When Can a Condominium Association Charge Fees?

Lessons from a Florida “Fob Activation” Fee Dispute

Florida condominium law draws a clear line: associations may only charge fees when they are authorized to do so. Yet in practice, associations sometimes attempt to impose charges through rules or administrative practices that go beyond what their governing documents allow.

A recent dispute involving so-called “check-in” or “fob activation” fees highlights several recurring legal issues under Chapter 718 of the Florida Statutes and the governing documents of condominium associations.

1. The Starting Point: The Declaration Controls

In Florida, a condominium’s Declaration of Condominium is a contract binding the association and all unit owners. It takes precedence over rules and regulations.

If a fee is not authorized in the Declaration (or properly adopted amendments), the association generally cannot impose it—even if it believes the fee is reasonable or necessary.

This principle is foundational:

Rules cannot contradict the Declaration
Administrative convenience does not create authority
Economic justification does not substitute for legal authorization

2. The Statutory Framework: §§ 718.111 and 718.112

Two key statutory provisions frequently arise in fee disputes:

A. Use Fees — § 718.111(4)

Associations may not charge a use fee for common elements unless:

The fee is authorized by the Declaration, or
Properly approved by the membership

This provision prevents associations from monetizing access to common elements without proper authority.

B. Transfer Fees — § 718.112(2)(k)

Associations may not charge fees in connection with the:

lease
sublease
sale
or other transfer

unless two conditions are met:

The association is required to approve the transfer, and
The fee is authorized in the governing documents

Even then, such fees are typically subject to statutory limits.

3. The Problem with “Creative” Fee Labeling

One recurring issue is how associations characterize a fee.

In disputes, associations may argue that a charge is:

not a “transfer fee,” but an administrative charge
not a “use fee,” but reimbursement of costs
not tied to leasing, but to access or operations

But courts and arbitrators often look beyond labels and focus on substance over form.

If a fee is triggered because of a lease or occupancy, it may fall within statutory restrictions—regardless of how it is described.

4. Rules vs. Amendments: A Critical Distinction

Associations frequently attempt to impose new fees through rules and regulations rather than formal amendments to the Declaration.

This creates a legal problem.

Under Florida law:

Rules regulate behavior
Declarations create substantive rights and obligations

A fee that materially affects ownership or leasing rights typically requires amendment to the Declaration, not just a board-adopted rule.

5. Recordkeeping and Financial Transparency

Another issue that often arises in fee disputes is recordkeeping.

Florida law requires associations to maintain:

accurate accounting records
itemized financial data
records of payments attributable to units

When associations impose recurring fees but cannot produce:

receipts
audit logs
or accounting entries

it raises both evidentiary and statutory compliance concerns.

6. Practical Implications for Owners and Associations

For Unit Owners:

Review your Declaration before paying new or recurring fees
Distinguish between properly adopted assessments and informal charges
Request financial records if fees appear inconsistent or undocumented

For Associations:

Ensure all fees are grounded in governing documents
Avoid relying solely on rules to create financial obligations
Maintain complete and accessible financial records

7. The Bigger Picture

As short-term rentals and flexible occupancy arrangements become more common, disputes over fees tied to access, administration, and occupancy are increasing.

The governing principle remains unchanged:

Authority must come first.
Not from convenience. Not from practice. Not from necessity.
But from the Declaration and the statute.

Final Thought

Fee disputes in condominium law are rarely about the dollar amount.
They are about authority, structure, and compliance.

Associations that operate outside those boundaries risk legal challenge.
Owners who understand those boundaries are better positioned to protect their rights.

If you are dealing with a condominium fee dispute or have questions about your rights under Florida law, consult counsel experienced in Chapter 718 matters.