Many Florida homeowners associations (HOAs) and condominium associations include a right of first refusal (ROFR) in their governing documents. A ROFR gives the association -- or its designated purchaser -- the right to step in and buy a unit at the same price and terms offered to a third-party buyer before the sale closes.
If you are a Florida homeowner going through foreclosure, or a buyer considering a purchase at a Florida foreclosure auction, you may be wondering: does the HOA or condo association ROFR apply here? This guide explains how ROFR provisions work under Florida Chapter 718 (condominiums) and Chapter 720 (homeowners associations), when they do and do not apply at Florida foreclosure sales, and what the new owner owes the association after the sale.
What Is a Right of First Refusal in a Florida HOA or Condo Declaration?
A right of first refusal is a contractual right that requires a homeowner to offer the association (or another designated party) the opportunity to purchase the property at the same price and terms before the homeowner can close a sale with a third party. ROFR provisions in Florida HOA declarations are governed by the CC&Rs and must comply with Chapter 720. ROFR provisions in condominium declarations are authorized under Florida Statute 718.112(2)(l) and must comply with Chapter 718, including federal and state anti-discrimination laws.
A ROFR is not mandatory in Florida HOA or condo declarations -- it must be expressly included. Not all Florida communities have one. Check your declaration and bylaws to determine whether a ROFR exists and what its notice requirements are.
Does a Florida HOA or Condo ROFR Apply at a Foreclosure Sale?
The answer under Florida law is generally no. A court-ordered foreclosure sale under Chapter 45 of the Florida Statutes is an involuntary transfer -- the property is sold by order of the court, not by the voluntary act of the homeowner. Florida courts have consistently held that contractual ROFR provisions in HOA and condo declarations do not apply to involuntary transfers such as court-ordered foreclosure sales.
This means the association cannot invoke its ROFR to block, delay, or match a bid at the auction. The foreclosure auction proceeds without ROFR interference, and the Certificate of Title transfers to the highest bidder without the association's consent.
However, the association does not lose its other rights. The new owner must still comply with all HOA and condo rules, pay ongoing assessments, and observe any membership approval or lease approval requirements in the governing documents.
When Does a Florida HOA ROFR Apply?
A properly drafted ROFR in a Florida HOA or condo declaration applies to voluntary transfers -- sales from one willing seller to a willing buyer. If you are selling your home normally (listing on the MLS, accepting an offer, closing with a title company), the ROFR applies. You must give the proper notice to the association, wait the required number of days (typically 10 to 30 days under the declaration), and either proceed with your buyer if the association does not exercise the ROFR, or sell to the association if it matches the offer.
A short sale may also trigger the ROFR, since a short sale is a voluntary sale by the homeowner with lender approval -- not a court-ordered sale. Check your HOA declaration carefully if you are negotiating a short sale in a ROFR community. In practice, associations rarely have the funding to exercise a ROFR at a short sale price, but the notice obligation still applies.
Estoppel Certificates and ROFR Disclosure
Under Florida Statute 718.116(8)(i), a condominium estoppel certificate must disclose whether the association has an unexpired right of first refusal. Buyers, lenders, and title companies rely on the estoppel certificate to understand whether the ROFR must be waived before closing. A condo association that fails to disclose a ROFR in its estoppel certificate may be estopped from asserting the right against a buyer who closed in reliance on the certificate.
If you are a buyer in a condo community, always request a current estoppel certificate. This protects you from ROFR surprises and also tells you the exact amounts you owe in past and current assessments at closing. See our guide on HOA vs. mortgage foreclosure in Florida for more on how HOA liens interact with first mortgage foreclosure.
What the New Owner Owes the HOA After a Foreclosure Sale
Even though a foreclosure sale extinguishes the ROFR, the new owner inherits the property subject to the association's governing documents. Post-sale, the new owner owes:
- All regular and special assessments that accrue after the date of the Certificate of Title
- A capped amount of pre-sale assessments under Florida Statute 718.116 (condos) or 720.3085 (HOAs) -- the lesser of 12 months or 1% of the original mortgage amount
- Compliance with all use restrictions, lease approval requirements, occupancy rules, and architectural standards in the governing documents
The new owner is not personally liable for fines or special assessments that accrued before the Certificate of Title date beyond the statutory cap. However, any association lien that was not extinguished in the foreclosure (for example, an HOA lien that was not named in the action) may survive and encumber the property.
HOA Approval of New Owners After Foreclosure
Some Florida HOA and condo declarations require association approval of new members (screening requirements). Courts have generally held that these approval requirements also do not apply to buyers at court-ordered foreclosure sales -- the court order transfers title regardless of association approval. However, post-sale occupancy, lease approvals, and ongoing membership requirements still apply.
If you purchase a Florida foreclosure property in a community with board approval requirements, introduce yourself to the HOA management promptly, pay any amounts owed under the estoppel certificate, and comply with the governing documents from day one. A cooperative relationship with the association is far easier than disputes.
Loss Mitigation for Homeowners in ROFR Communities
If you are a homeowner in a Florida HOA or condo community with a ROFR and you are behind on your mortgage, your loss mitigation options are the same as for any other homeowner. You can apply for a loan modification, request forbearance, or negotiate a short sale -- provided you comply with any ROFR notice requirements for a voluntary sale. The ROFR does not limit your ability to apply for federal loss mitigation programs or to stop a foreclosure through the court system.
Contact your servicer early and document your hardship. If you are concerned about HOA arrears in addition to your mortgage default, our guide on HOA vs. mortgage foreclosure in Florida explains how the two enforcement tracks interact.
Barrett Henry: REMAX Collective, 23+ Years of Florida Experience
Barrett Henry is a Broker Associate at REMAX Collective with more than 23 years of experience helping Florida homeowners facing foreclosure. Whether your community has HOA ROFR complications, condo assessment arrears, or both, Barrett can help you navigate your options and connect you with qualified real estate attorneys and housing counselors.
Tampa Bay homeowners receive direct service; homeowners across all 67 Florida counties receive referrals to qualified local professionals. Contact us today for a free, confidential consultation.
Related Resources
- HOA vs. Mortgage Foreclosure in Florida -- how HOA and first mortgage liens interact
- Florida Foreclosure Process -- step-by-step guide to judicial foreclosure in Florida
- Florida Foreclosure Auction Bidder Registration Guide -- how to register, bid, and settle at Florida online auctions
- Loan Modification in Florida -- how to apply and what documentation you need
- Short Sale in Florida -- selling for less than you owe as an alternative to foreclosure
- Florida Foreclosure Surplus Funds -- how to claim money left over after the auction
- Florida ADU and Foreclosure -- how ADU law interacts with HOA restrictions and mortgage foreclosure
- Deed in Lieu of Foreclosure -- voluntarily transferring the property to the lender
- Forbearance in Florida -- temporarily pausing payments while you stabilize finances
- Florida Foreclosure Checklist -- step-by-step guide for homeowners at every stage of the process
