What Board Members Need to Know About 718 and 720 Statutes

Florida
May 14
3 min read

Serving on the board of a homeowners’ association (HOA) or condominium association in Florida carries serious responsibility. Two key laws every board member must understand are Florida Statute 718 (for condominiums) and Florida Statute 720 (for HOAs). These statutes govern everything from board operations to resident rights, and misunderstanding them can result in legal trouble or costly mistakes.

Here’s what board members need to know about each.

📘 Florida Statute 718 – The Condominium Act

Statute 718 specifically governs condominium associations in Florida. It outlines how condo communities must be managed and regulated.

Key Provisions:

Board Powers & Duties: Establishes the board’s authority to manage common areas, enforce rules, and assess dues.
Financial Reporting: Requires associations to prepare financial reports annually, depending on revenue size.
Unit Owner Rights: Grants owners access to association records and the ability to challenge certain board actions.
Voting & Elections: Dictates how elections are to be conducted, including notice requirements and proxy rules.
Insurance Requirements: Sets standards for property and liability insurance on shared buildings.
Dispute Resolution: Encourages mediation or arbitration before litigation on certain disputes.

Why It Matters:

Failure to comply with 718 can result in legal challenges, fines, or loss of community trust. Understanding your fiduciary duties under this law is critical.

📗 Florida Statute 720 – The Homeowners’ Association Act

Statute 720 applies to HOA communities (not condos). While similar to 718 in spirit, it has distinct differences tailored for single-family home communities.

Key Provisions:

Board Operations: Governs meetings, notices, and quorum requirements.
Access to Records: Requires transparency by allowing owners to inspect and copy official records.
Fining & Suspension: Specifies the process for levying fines or suspending use rights for rule violations.
Architectural Control: Outlines rules for architectural review committees and exterior modifications.
Annual Budgets & Reserves: Mandates disclosure of financial plans and reserve funding, but with different rules than 718.
Dispute Resolution: Offers procedures for resolving conflicts, including presuit mediation for some issues.

Why It Matters:

Many HOAs are volunteer-run, so understanding 720 helps protect the board and the community from unintentional violations and legal claims.

🏛️ Similarities and Differences

Topic	Statute 718 (Condos)	Statute 720 (HOAs)
Governs	Condominiums	Homeowners’ Associations
Record Access	Yes	Yes
Dispute Resolution	Arbitration favored	Mediation favored
Budget & Reserves	Stricter requirements	More flexible
Architectural Control	Less common	More prevalent

✅ What Board Members Should Do

Read and Understand the Statute That Applies to Your CommunityDon’t rely solely on management companies — you are legally responsible.
Attend Board Member Certification CoursesFlorida law requires new board members to become certified within 90 days of election or appointment.
Stay UpdatedLaws change — make sure your community attorney or manager keeps you informed about updates to 718 or 720.
Keep Transparent RecordsEnsure all meeting minutes, budgets, contracts, and correspondence are well documented and accessible.
Consult Professionals When NeededLegal, financial, or insurance experts can help you navigate complicated areas of the law.

Final Thoughts

Being a board member means more than attending meetings. Understanding Florida Statutes 718 and 720 ensures you act in the best interest of your community while staying legally compliant.

Whether you’re in a condo or an HOA, a strong understanding of the applicable statute is essential for ethical governance and long-term community health.

Need help navigating 718 or 720 statutes? Reach out to a licensed community association attorney or a certified manager for expert guidance tailored to your association.