Condominium Development Considerations and Strategies

This guide discusses three critical issues to consider in condominium development. The first issue addresses the importance of having genuine purchasers before initiating a project. It suggests restructuring deposit requirements to engage buyers more closely with the project's progress. The second issue focuses on risk management, emphasizing the necessity of a comprehensive program to handle potential construction defect claims. It recommends using a single-asset, limited liability entity for development and ensuring insurance expectations are clearly documented. The final issue pertains to having a planned exit strategy, advising developers to remain flexible and consider alternative plans should the market not accept the project. It highlights the need for legal counsel to structure projects in a way that allows for adaptability, using various tools available under Florida condominium law. This approach can mitigate long-term operational costs and enhance the project's viability in changing market conditions.