Florida Statute 718.111 is the section of the Condominium Act that defines the association itself: how directors must act, what insurance the association must carry, which records it must keep, and how it must report its finances to unit owners. If you are trying to understand what your board legally owes you, or what your board legally owes the membership, this is the statute that answers most of the question.
The rules below track the current text of section 718.111 and the reporting and website provisions tied to it. Related obligations that sit in neighboring sections of Chapter 718, like reserve waivers, elections, fines, and milestone inspections, are flagged at the end so you know where to look next.
Fiduciary Duty of Officers and Directors
Section 718.111 establishes that every officer and director of a condominium association has a fiduciary relationship with the unit owners. Directors must act in good faith, exercise the care a reasonably prudent person in the same position would use, and act in the association’s best interest.1Online Sunshine. Florida Code 718.111 – The Association
That standard is not decorative. A director who breaches the duty can be held personally liable for money damages when the breach involves criminal conduct, an improper personal benefit, recklessness, bad faith, or willful disregard of safety or property rights. Ordinary business judgment mistakes are treated differently from self-dealing or reckless neglect, and the statute draws that line directly.
Practically, the fiduciary duty is what unit owners rely on when a board signs a contract with an insider, ignores obvious maintenance problems, or hides financial information. It is also the standard a court will apply if the dispute ever reaches litigation.
Property Insurance the Association Must Carry
The association must obtain and maintain adequate property insurance based on the replacement cost of the property, and this obligation applies regardless of what the declaration says.1Online Sunshine. Florida Code 718.111 – The Association Coverage must extend to all portions of the property as originally installed, or replaced with materials of like kind and quality, and to any alterations or additions to association property.
The policy specifically excludes items that serve only a single unit. That means personal property inside the unit, along with floor coverings, wall coverings, ceiling coverings, appliances, cabinets, countertops, and window treatments, are not covered by the association’s policy. Those items are the unit owner’s responsibility to insure.
Replacement cost cannot be guessed at. The association must determine the full insurable value through an independent insurance appraisal or update at least once every 36 months. In Florida, where construction costs can move sharply after major storms, that three-year cycle is what keeps coverage from lagging behind reality.1Online Sunshine. Florida Code 718.111 – The Association
Beyond the required property coverage, the association may obtain directors and officers liability insurance, coverage for employee benefits, and flood insurance for the common elements and units. When insured property is damaged by an event the policy covers, the reconstruction or repair is handled as a common expense of the association.
Official Records the Association Must Keep
Section 718.111 requires the association to maintain a detailed set of official records. The list includes the recorded declaration of condominium and every amendment to it, the bylaws, the articles of incorporation, current rules, minutes of every board and membership meeting, a current roster of unit owners with their addresses and contact information, all insurance policies, all management agreements and other contracts, and the association’s accounting records.2Florida Senate. Florida Code 718.111 – The Association
Accounting records are not a summary. They include itemized receipts and expenditures, invoices, monthly account statements for each unit, and all contracts and bids received by the association. Election materials, meaning ballots, sign-in sheets, and any voting proxies, must be kept for at least one year after the date of the election or vote. Structural Integrity Reserve Studies must be kept for at least 15 years after they are completed.
Access, Timing, and Location
Records must be maintained within the state and made available to any unit owner, or their authorized representative, within 10 working days after the association receives a written request.3Department of Business and Professional Regulation. Official Records of Condominium Associations The seven-year retention rule is the floor; some categories carry longer holds.
Certain material is not open to owner inspection. Records protected by attorney-client privilege, personnel records of association employees, medical records, and information that would identify individual unit owners in some contexts must be withheld or redacted before disclosure.
Website and Portal Requirement
Effective January 1, 2026, any association operating a condominium with 25 or more units, and that does not include timeshare units, must maintain a password-protected website, mobile application, or web portal. The threshold used to be 150 units, so a large number of smaller buildings now fall under this rule for the first time.
The site has to be inaccessible to the general public. Access is limited to unit owners and association employees through a username and password. Specific official records must be posted there, and if the board holds a meeting by video conference, the recording must be posted for at least 12 months. Any confidential or protected information in posted documents must be redacted before it goes up.
Annual Financial Reporting
Every association must prepare a year-end financial report within 90 days after the end of its fiscal year, or on any other date the bylaws specify. Once the report is ready, the association has 21 days to deliver a copy, or a notice that a copy is available on request, to each unit owner. The outside limit is 120 days after the fiscal year ends.2Florida Senate. Florida Code 718.111 – The Association
The type of report depends on total annual revenue.
- Revenue of $150,000 to $299,999: compiled financial statements.
- Revenue of $300,000 to $499,999: reviewed financial statements.
- Revenue of $500,000 or more: audited financial statements.
Associations with revenue under $150,000 still have to produce a report of cash receipts and expenditures for the year. All reports must follow generally accepted accounting principles and include a summary of the association’s reserves, with a good-faith estimate of the amount needed to fully fund each reserve item on a straight-line basis.4Florida Senate. Florida Code 718.111 – The Association
These reporting tiers exist so that owners in larger buildings, where the money at stake is higher, get a stronger level of independent review. A compilation is essentially the accountant putting the association’s numbers into standard format. A review adds limited analytical procedures. An audit is a full independent examination with an opinion attached. Boards cannot pick a lower tier than the revenue tier requires unless the membership votes to reduce it, and the statute controls when and how that vote can happen.
What 718.111 Does Not Cover
Several major condo obligations that owners often assume are in 718.111 actually live in neighboring statutes. If your question is about one of these, the answer is elsewhere.
Bylaws, board meeting notice, elections, and reserve budgeting sit in section 718.112. The reserve categories that a Structural Integrity Reserve Study must cover, and the January 1, 2026 rule that owners can no longer waive or reduce SIRS reserve funding for budgets adopted for fiscal years starting on or after that date, are governed by 718.112 rather than 718.111.5Florida Senate. Florida Code 718.112 – Bylaws
Maintenance responsibility for common elements and limited common elements is set out in section 718.113. Estoppel certificates and the fees an association can charge for them fall under 718.116. Fines, use suspensions, and the independent committee that must approve a fine before it takes effect are in section 718.303. Milestone structural inspections for buildings three or more habitable stories tall are required by section 553.899, which sits outside Chapter 718 entirely.6Online Sunshine. Florida Code 553.899 – Milestone Inspections Nonbinding arbitration and presuit mediation of condo disputes are governed by 718.1255, and the Condominium Ombudsman is a separate office within the Department of Business and Professional Regulation.
The reason to know this is practical. If a board tells an owner that “718.111” does or does not require something about elections, reserves, or fines, the citation is wrong. Owners and directors who want to enforce their rights, or defend their conduct, need to point to the right section.
Using 718.111 as a Compliance Checklist
Read on its own terms, section 718.111 gives boards a short, testable list. Are directors acting in good faith and documenting their decisions. Is the property insured to full replacement cost, with the appraisal refreshed inside the 36-month window. Are the required records on hand, within the state, and produced to owners within 10 working days of a written request. Is the annual financial report at the correct tier for the association’s revenue, and did owners get it inside the 120-day outside deadline. And, as of January 1, 2026, does an association with 25 or more non-timeshare units have a working password-protected portal.
Miss any of those, and the exposure is real: personal liability for directors in the worst cases, owner records demands and complaints to the Division, and civil actions to compel compliance. Meet them, and the association has satisfied the core of what Florida Statute 718.111 asks.