By Eric Glazer, Esq.

Published March 13, 2023


Now that condominiums are going to have to pass huge special assessments in order to make repairs and maintain new accounts with potentially millions of dollars in the bank, let me tell you one of the reasons I heard as to why these new laws should not go into effect.  “Because we don’t trust our Board having access to all of these funds…….no doubt they will steal some of it.”


I heard this on the radio show and I heard this at our seminars.  Like I always said…… it possible for Board members to steal funds?  Of course it is.  It’s also possible for doctors to steal, lawyers to steal and for cops to be on the take.  Every profession, including that of being a board member has its thieves.  However, when you think about the number of condominiums and the number of times you’ve heard about board members getting caught stealing, it’s really a very minute percentage of directors with their hands in the cookie jar.


Now, let’s say you live in one of those condominiums where the bad guys did take the condominium’s money.  According to the law, you’re covered.  Don’t worry about it. 


FS718.111(11) (h) The association shall maintain insurance or fidelity bonding of all persons who control or disburse funds of the association. The insurance policy or fidelity bond must cover the maximum funds that will be in the custody of the association or its management agent at any one time. As used in this paragraph, the term “persons who control or disburse funds of the association” includes, but is not limited to, those individuals authorized to sign checks on behalf of the association, and the president, secretary, and treasurer of the association. The association shall bear the cost of any such bonding.


Now here is where your association needs to get busy.  It is imperative that the Board and the management company contact the insurance agent for the association and let the agent know about the dramatic rise in the “maximum funds that will be in the custody of the association or its management company at any one time” as special assessments are passed and reserve accounts are funded.


So technically, no need to worry about some Board member heading off to Tahiti with the association’s funds, because even if they did, the association gets it back through their insurance policy.


          Don’t worry members who live in an HOA.  There is an exact same statute that applies to you.  720.303(5).

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About HOA & Condo Blog

Eric Glazer

Eric Glazer graduated from the University of Miami School of Law in 1992 after receiving a B.A. from NYU. He has practiced community association law for three decades and is the owner of Glazer and Sachs, P.A. a five attorney law firm with offices in Fort Lauderdale and Orlando.

Eric is Board Certified by The Florida Bar in Condominium and Planned Development Law.


Since 2009, Eric has been the host of Condo Craze and HOAs, a weekly one hour radio show that airs at 11:00 a.m. each Sunday on 850 WFTL.




Eric is the first attorney in the State of Florida that designed a course that certifies condominium and HOA residents as eligible to serve on a Board of Directors and has now certified more than 20,000 Floridians all across the state. He is certified as a Circuit Court Mediator by The Florida Supreme Court and has mediated dozens of disputes between associations and unit owners. Eric also devotes significant time to advancing legislation in the best interest of Florida community association members.

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