Special Assessments in SW Florida: Who Pays What (and When) When You Buy
- 17 minutes ago
- 5 min read
Buying in Southwest Florida may mean buying into an association - condo, HOA, or master community. Along
with the beaches and palm trees, there’s a less-glamorous character in the story: special assessments. Handled correctly, they’re just a line on a closing statement. Handled poorly, they can become a very expensive surprise.
Below is a practical, Naples-to-Fort-Myers guide to what special assessments are, how they’re disclosed and prorated, and - most importantly - how responsibility shifts depending on the contract you use (NABOR vs. FR/Bar). Light humor included; legalese decoded.
Quick disclaimer: I’m not an attorney. This is an educational overview based on standard contracts and public guidance. Always loop in your closing attorney/title company for specifics to your deal.
What is a “special assessment,” exactly?
A special assessment is a charge above your regular recurring dues, usually for a specific project (roofing, concrete restoration, seawall, clubhouse refresh, etc.) or to cover an unexpected shortfall. Assessments can be:
Levied/ratified (“voted on”): The association (or public body) has approved it, the amount and payers are certain, and payment terms are known.
Pending/introduced: Talked about, noticed, or under consideration - but not yet approved or finalized.
Condo/HOA assessments are different from public body assessments (think: underground utilities, streetscapes, or roadwork projects) that may show up on your property tax bill over several years.
The two contracts you’ll see in SW Florida - and why they matter
NABOR (Naples Area Board of REALTORS®) - Very common in Collier County (Naples/Marco Island).
FR/Bar (Florida Realtors/Florida Bar “AS IS” or Standard) - Used statewide, including Lee County (Fort Myers, Bonita Springs, Estero, Cape Coral).
Each handles assessments differently, so it’s important to know which contract governs your transaction.
Note: These guidelines are based on the standard versions of the NABOR and FR/Bar contracts commonly used in Southwest Florida. Individual terms may vary if modified or if a different version of the form is used. Always consult your real estate agent, closing attorney, or title company for your specific situation.
How NABOR handles assessments (Collier/Naples)
1) Condo/HOA & Governmentally Imposed Assessments (non-CDD/MSTU)
NABOR draws a clear line between “certain” and “pending” as of the Effective Date:
Seller pays any association or governmentally imposed special assessments that are already certain -meaning they’ve been approved and the amount is known as of the Effective Date.
Buyer pays assessments that are pending or uncertain unless the seller failed to disclose them and they exceed 1% of the purchase price. In that case, the buyer can cancel unless the seller agrees to fund the excess into escrow.
2) CDD/MSTU (Community Development Districts or Municipal Services Taxing Units)
If the property lies within a CDD/MSTU, the buyer typically assumes any outstanding capital assessment balance at closing, which must be disclosed in an addendum.
3) Prorations and Estoppels
Association operating assessments are prorated to closing, and the seller must provide estoppel letters confirming dues, transfer fees, special assessments, and any upcoming capital contributions.
4) Required Disclosures and Buyer Rights
NABOR contracts include the statutory HOA and condo disclosures that allow a buyer to cancel within a specified window if those documents aren’t provided before signing.
Plain-English takeaway (NABOR):
Voted/ratified (“certain”) before Effective Date? Seller pays.
Introduced/pending (not yet certain)? Typically buyer’s responsibility - unless it’s undisclosed and large, in which case the buyer can cancel or negotiate coverage.
How FR/Bar handles assessments (Lee County and beyond)
The FR/Bar contract separates public-body assessments from association assessments and addresses each differently.
1) Public-body assessments (e.g., municipal projects)
For things like sewer, street, or utility improvements billed by the city or county, the contract gives two options:
Option A: Seller pays installments due before closing, Buyer pays installments after closing.
Option B: Seller pays the entire assessment in full at or before closing.
The parties choose which option applies at the time the contract is signed.
2) Condo/HOA Assessments
Handled through separate Condo and HOA Riders, these specify whether the seller or buyer pays for any installments due after closing. Typically, sellers cover what’s due before closing, while buyers assume future installments if that box is checked.
Plain-English takeaway (FR/Bar):
Public-body specials (like roads or sewers): Contract checkboxes determine whether the seller pays off the balance or if it’s split by timing.
Condo/HOA specials: The relevant rider decides who pays future installments - make sure the correct box is checked.
“Introduced” vs. “Voted On” (a.k.a. “Pending” vs. “Levied/Ratified”)
Introduced/Pending: The project has been discussed or noticed, but not yet officially approved, so the cost and timing are uncertain. Under NABOR, these usually fall to the buyer unless undisclosed and substantial.
Voted/Ratified/Levied (Certain): The board or governing body has formally approved the project and set the amount. Under NABOR, these are the seller’s responsibility if approved before the Effective Date; under FR/Bar, responsibility depends on the checkboxes chosen in the contract or rider.
Real-world examples (so this sticks)
Naples High-Rise Concrete Restoration (Condo):
NABOR: If approved and amount known before Effective Date → seller pays. If still under discussion → buyer typically responsible unless undisclosed and major.
FR/Bar: Governed by the Condo Rider; payment depends on which box is checked for post-closing installments.
Fort Myers Underground Utility Project (Public Body):
FR/Bar: Controlled by the main contract. Either seller pays off in full, or the buyer assumes installments after closing, depending on the chosen option.
CDD in a Master-Planned Community:
NABOR: Buyer assumes the remaining capital balance unless otherwise negotiated.
FR/Bar: Treated as part of tax-style prorations unless addressed differently.
What to Do as a Buyer (or Seller) in SW Florida
Know which contract governs. The rules differ significantly between NABOR and FR/Bar.
Order estoppels and municipal lien searches early. They’ll confirm dues, upcoming assessments, transfer fees, and any capital contributions.
Ask questions.
Has any assessment been voted on?
Is anything pending?
Are there public improvements billed through the tax roll?
Check the boxes. On FR/Bar contracts, make sure the correct payment option is selected for both public-body and association assessments.
Model different outcomes. A seller paying off an assessment versus the buyer assuming it can make a five-figure difference in total cost.
Remember disclosure timelines. Condo buyers have a 7-business-day document review period.
In Collier County (NABOR), the Effective Date is the dividing line: anything certain as of that date is generally the seller’s responsibility; anything pending typically falls to the buyer, unless undisclosed and significant.
In Lee County and most other areas (FR/Bar), the contract language and checkbox selections control whether the seller or buyer pays installments or full balances for both public-body and association assessments.
Understanding these distinctions can prevent major misunderstandings - and help you negotiate smarter whether you’re buying or selling.
Thinking about buying or selling in Naples or surrounding areas?If you aren’t satisfied with average service, contact Your Naples Real Estate Expert, Renee Hahn, to ensure you get the attention, strategy, and outcomes you deserve.
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