2025 Condo Engineering Reports Impact Condo Property Valuations. Lenders, Servicers, Real Estate Investors And Condo Owners: New FL Laws Impact Condo Property Valuations.

Foreclosure bidding/sales, and REO sales to be affected by new engineering reports.

We are proud to announce Managing Member Rich Lubliner of Lubliner Law has been published in ALFN’s Volume 11, Issue 4. See summary below.

View Full ALFN Article HERE (PDF)

The newly required engineering reports are likely to cause special assessments in excess of 50% of the unit’s value, increasing foreclosure rates. Unit owners may have to make a choice between paying Condo association dues and their mortgage.

The article by Richard Lubliner, Esq. critiques a new Florida condo law enacted after the Champlain Towers South collapse, which killed 98 people in June 2021. The law mandates that by December 2025, all buildings at least three stories high and 30 years old undergo an engineering assessment to identify necessary repairs, especially in coastal areas prone to structural deterioration.

While aimed at improving safety, the law has significant financial and social repercussions:

1. Sky-High Special Assessments: Many condo owners face assessments exceeding $100,000, often outpacing the property’s market value. This burden forces some to sell their homes at a loss or relocate to less expensive states like Tennessee or Alabama.
2. Depressed Condo Market: Condo prices have dropped significantly, with properties selling for 10% less than peak values. Buyers are hesitant to purchase condos with looming assessments.
3. Insurance and Lending Crises: Insurance premiums have skyrocketed—rising by as much as 2,000%—and many insurers have exited the state. Additionally, lenders risk losing collateral as special assessments create financial strain, potentially leading to foreclosures and jeopardizing mortgages.
4. Wider Economic Consequences: The financial strain on residents and lenders is expected to cause widespread foreclosures and a crash in the condo real estate market.

Lubliner anticipates that the law’s severe unintended consequences will prompt legislative revisions as the economic and social impacts worsen.

Get market updates and due diligence by partnering with Lubliner Law.

Lubliner Law, PLLC has offices in Florida and New York. Our practice spans a wide range of industries and focuses on areas including:

• Complex commercial litigation
• Financial services
• Real estate
• Corporate ownership disputes
• Homeowners’ and condominium associations

We also represent clients in connection with creating and restructuring companies, including drafting operating, shareholder, and partnership agreements, employment and independent contractor agreements, the purchase and sale of businesses, and real estate transactions.

If you have any questions regarding this, please contact Richard Lubliner at 561-207-2018 or rich@lubliner-law.com