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All About Florida
Condo Financing

A Free guide for realtors on How to get condo financing

Presented by Philip Bennett
Founder & CEO at Bennett Capital Partners

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In this guide we will cover

How to differentiate New Construction

Vs. Established Construction.

New Construction / New Conversion  

Eligibility Criteria

  • Fewer than 90% of the total units in the project have been conveyed to the unit purchasers OR

  • Less than 70% of the units are pre-sold to owner occupied residences OR

  • Project is not fully completed, such as proposed construction, new construction, or the proposed or incomplete conversion of an existing building OR

  • Project is newly converted OR

  • Project is subject to additional phasing OR

  • Builder/Developer has not relinquished control to the HOA

Establish / Existing Condo Eligibility Criteria

  • Fewer than 90% of the total units in the project have been conveyed to the unit purchasers OR

  • Less than 70% of the units are pre-sold to owner occupied residences OR

  • Project is not fully completed, such as proposed construction, new construction, or the proposed or incomplete conversion of an existing building OR

  • Project is newly converted OR

  • Project is subject to additional phasing OR

  • Builder/Developer has not relinquished control to the HOA

Insurance What is the bank looking for?

What is a Master or Blanket Insurance Policy?


Because it is more efficient and economical, the condo association usually insures the entire building and common areas under a 
single package policy.  This single package policy is called: The “Master Insurance” Policy.

The Master Policy package must include these 3 types of Insurance:

  • Hazard Insurance, AKA Building’s Insurance.

  • General Liability Insurance.

  • Fidelity Bond Insurance.

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The Condo Association and Building Management Company  (if any) maintains copies of these policies.  A copy of the Master Policy binder is available upon request.


What is Building/Hazard Insurance?

Building/Hazard insurance insures the project’s building(s) from damage caused by fire, etc. 

 

Insurance Requirements: Condominium and Cooperative projects must carry Guaranteed Replacement Cost  or 100% replacement cost  for building/hazard coverage for all units within the project.

 

What is General Liability Insurance?

Project Requirements Are;:

  • Projects must carry a minimum $1 million per occurrence General Liability policy.

  • üProjects must carry a minimum $1 million per occurrence General Liability policy.

  • üCooperative projects that contain elevators, must carry a minimum $3 million per occurrence General Liability policy.

What is General Liability Insurance?

 

General Liability insurance insures the project from  slip & fall litigations, etc..

 

Project Requirements are:

  • Hazard Insurance, AKA Building’s Insurance.

  • General Liability Insurance.

  • Fidelity Bond Insurance.

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