Property Ownership
Under Florida's Chapter 718, a condominium association may collect a 'capital contribution' fee from new buyers. This fee:
AIs prohibited by Florida law
BIs permitted if authorized by the Declaration and is used to fund the association's reserves or capital improvements✓ Correct
CMust be refunded to the buyer upon resale
DCan be collected only from buyers, not from original purchasers from the developer
Explanation
Florida law permits condo associations to collect capital contribution fees (also called working capital fees or transfer fees) from new buyers if authorized in the governing documents. These fees help fund the association's reserve accounts and capital needs.
People Also Study
Related Florida Questions
- Under Florida's condo law (Chapter 718 F.S.), a condominium association must provide unit owners with a proposed budget at least how many days before the budget meeting?Property Management
- Under Florida's Chapter 718 (condominium law), the condo association must provide the unit owner with a written notice of a special assessment at least how many days before the vote?Property Management
- What is a 'condominium association' in Florida responsible for under Chapter 718 F.S.?Property Ownership
- A Florida condominium association refuses to approve a sale to a person with a mental disability. This most likely violates:Fair Housing
- Under Florida's Condominium Act (Chapter 718), the board of directors of a condominium association has the authority to:Property Management
- A Florida real estate agent uses different standards when qualifying buyers of different races for showing homes. This is an example of:Fair Housing
- A Florida seller nets $280,000 after paying a 6% commission. What was the original sale price?Real Estate Math
- Florida law requires sellers to disclose to buyers if a property is in a designated flood zone. The primary federal program governing flood insurance in Florida is:Environmental
Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
State-Specific Concepts
Transfer Tax
Study This Topic
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →