The 'poison pill' and digital secrets flipping the Sunshine State's condo power dynamic
For decades, purchasing a Florida condo was a leap of faith masked by palm trees and ocean views. But in the new year, the veil of secrecy has lifted.
Between a new mandatory digital transparency law and a landmark court ruling that handed a so-called "poison pill" to developers, the power dynamic in the Sunshine State has shifted dramatically.
"I think it's definitely correcting," Douglas Elliman Palm Beach agent Jessica Julian told Fox News Digital about the state of the condominium market. "I would say last year we saw more of these older buildings were hurting, not as many buyers for them. Everybody was kind of scared to dip their toes into an older building after what happened in Miami on Surfside. And so now that assessments are being paid and repairs are being done, we're definitely seeing that correction."
"I think momentum is probably the best word that we have. Things have stabilized. We are gonna move forward… And again, the demand here in South Florida is so strong," MIAMI REALTORS Chief of Residential & Advocacy Danielle Blake also told Fox News Digital.
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The first major shift of 2026 includes provisions that took effect under House Bill 913, which requires associations with 25 units or more to have a dedicated, secure digital portal where prospective buyers can see a condo's bank statements, reserve details and even structural reports of a building.
"The click of the button, you can go in there, you can look at all these documents – including the budget – before you make that offer," Blake said. "We're huge proponents of it. It brings transparency and accountability, and we continue to promote that."
"It's making the condo market more predictable. So condos that have delayed reserves or delayed issues with their building are seeing a lot more ongoing negotiations," Julian noted, "where buildings that have thought ahead and have fully funded reserves, they have a competitive edge in the market."
In Miami-Dade, 65% of active inventory consists of older condo buildings, and sales in the $200,000 to $400,000 range are up 21% year over year despite rising insurance costs and assessments, according to REALTORS data. The experts weighed in on whether buyers are being brave or just eager for a slice of paradise.
"I would like to say it's all because of our advocacy work. I mean, transparency is really important, but I think it has to do more with market conditions. And in South Florida, it's a very hot market. Everybody wants to move here. The weather is absolutely beautiful. People want to take advantage of that. And so this is really the last affordable inventory that we have, and they are moving in," Blake explained.
"I am getting a lot of buyers that are eager to get down here in South Florida, but they're very well-informed. They're usually coming to me already doing their due diligence," Julian added. "They might already have the buildings that they've pinpointed. They've researched the other ones, found out which ones seem a little weak on those reserve studies."
The second major shift in Florida’s condo market is the recent Biscayne 21 court ruling, which set a legal precedent effectively granting minority holdouts, as few as 5% to 10% of owners, the power to block major redevelopments if the original declaration requires unanimous consent.
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Julian called the decision a "poison pill" for developers who were eyeing older, waterfront Miami buildings as prime targets for ultra-luxury conversions.
"The poison pill, which is [a] 100% buyout, it makes things very difficult. So they haven't been pursuing those as much," she said. "It's too much unknown to try to do that, to change the condo bylaws, and try to take a building down that way. So I think it's gonna change going forward as developers are going to look at buildings a lot more with scrutiny and patience."
Julian dealt with buyout wars personally in late 2025 at Harbor Towers & Marina in West Palm Beach when two developers sued multiple owners caught in the crosshairs of a battle for control of the building.
"There are a handful of buildings out there that still have language in their condo bylaws that say 75 to 80% can terminate a building… So developers are most likely going to do their due diligence and they're going to be looking towards those buildings first," Julian said.
"I think this case really highlights the importance of reading the government docs," Blake noted. "It's really important for developers to check that and know what you're getting into before you incorporate that into your plan."
With her advocacy role in mind, Blake also offered advice on what fixes realtors may push for to ensure that one or two residents can't prevent an entire community from escaping the financial burden of an older building: "Talk to local government, talk to the state. Everybody needs to be informed so they can come up with the right solution. And we would support that."
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And while both experts agree that the two major changes in Florida’s condo market put an important emphasis on clarity and communication, Julian did share one warning about the future of the market environment.
"Greed is kind of taking place a little bit. So [buyers] are holding back until they get many more millions of dollars [from developer offers]. But what they don't realize, that I see behind the scenes, is these developers are scooping up other buildings that are more affordable to them, that make more sense in pencil. And eventually we're gonna be oversaturated," she said.
"So if they are waiting, thinking that they're going to get the ultimate payout, they might want to rethink that."