By Eric Berman, REALTOR® | The Eric Berman Team at Compass
 

TL;DR:

No state income tax is real and it's why most people look. What relocation content almost never covers is the condominium question, and Miami is a condominium market. Florida law now requires milestone inspections and structural integrity reserve studies for buildings meeting certain criteria, and associations can no longer waive reserve funding the way many did for decades. The result has been special assessments, sometimes very large ones. Before buying into any Florida condo, ask whether the milestone inspection is done, what it found, and what the reserve study says — those three answers matter more than the monthly charge.

Start With the Long Island Sale

At roughly 1,300 miles, coordinating two closings is impractical and the Long Island transaction sets the budget.

Before touring anything, know what the current home nets — commission, New York State Transfer Tax at four dollars per thousand, attorney fees generally $1,500 to $3,500, preparation, and carrying costs. The full breakdown of what a Long Island sale costs covers each line.

A seller who establishes Florida residency before the Long Island closing becomes a New York nonresident for that transaction, triggering Form IT-2663 — an estimated payment at closing of 8.82 percent of net gain. A prepayment rather than an additional tax, refundable where the real figure comes in lower, but it reduces the wire.

For a long-held home, the exclusion covers $250,000 single and $500,000 filing jointly, and improvement records reduce taxable gain substantially. The full treatment of how gain is calculated covers the mechanics.

Sell first.

The Condominium Question

This is the most important thing on this page and most relocation content gives it a sentence.

Miami is a condominium market to a degree Long Island isn't. And Florida condominium law changed substantially following the Surfside collapse, in ways that directly affect what a unit costs to own.

Milestone inspections. Buildings meeting certain age and height criteria are now required to undergo structural inspections on a defined schedule. Whether a specific building has completed one, and what it found, is a question with an answer.

Structural integrity reserve studies. Associations must now study and fund reserves for structural components, and the ability to waive or underfund those reserves has been curtailed. For decades many associations kept monthly charges low precisely by not funding reserves. That option has narrowed.

The consequence is special assessments. Buildings that deferred maintenance and underfunded reserves are now facing both at once, and assessments in Florida condominiums have in some cases been very large.

What a buyer should ask, in order:

Has the milestone inspection been completed, and what did it find? Has the structural integrity reserve study been done, and what does it require? What assessments have been levied in the last several years, and what is contemplated? What are the association's current reserve balances against what the study says is needed?

The monthly charge is the number in the listing. These four answers are the number that matters. A low monthly charge in a building with an unfunded reserve and a pending assessment is not a bargain.

The same diligence framework applies as for any association purchase — reserve position, financial statements, assessment history, insurance, and litigation — covered in the treatment of buying into an association.

Insurance Can Be the Constraint

In Florida, the question isn't only what coverage costs. It's whether it can be obtained.

Availability has been genuinely difficult in parts of the state, with a state-backed insurer of last resort serving policyholders who can't find coverage in the private market. A lender will not close without bindable coverage, which means a buyer who can't obtain a policy on a specific property cannot buy it regardless of price.

Windstorm and hurricane coverage may be separate from a standard policy, with deductibles frequently expressed as a percentage of insured value rather than a flat amount — producing much larger out-of-pocket figures than a Long Island homeowner expects.

Flood is separate again. Zone designation, National Flood Insurance Program claim history that attaches to the address permanently, and elevation certificates all matter, and much of the Miami area sits in mapped flood zones. The full treatment of flood zone questions covers the federal mechanics, which are identical.

For condominium buyers there's a further layer: the association's master policy covers the building, and what an individual owner must carry separately varies. Gaps here surprise people after a loss.

Get actual quotes on specific addresses before making an offer, and for a condo, ask what the master policy covers and what its deductible is.

The Tax Picture, and One Misconception

Florida has no state income tax, which for a household with meaningful earned or retirement income is a substantial and recurring advantage. That's the real draw and it holds.

Property taxes are assessed at the county level with rates varying across the Miami area. Pull the actual current bill on any specific property rather than relying on a regional figure — and note that a seller's bill may not reflect what a buyer will pay, for the reason below.

The homestead exemption requires application. Florida offers an exemption reducing the taxable value of a qualifying primary residence, and it isn't automatic on purchase. A new owner has to apply, and one who doesn't pays more than necessary.

And the misconception worth clearing. Florida limits annual increases in the assessed value of homesteaded property, and long-time residents accumulate a substantial benefit as a result. Florida also allows residents to transfer accumulated benefit to a new Florida homestead.

A New York buyer has no Florida benefit to transfer. Your assessment is set at purchase, which means a seller's current tax bill — reflecting years of accumulated limitation — may be far below what you'll pay on the same property. Ask what the bill will be after reassessment, not what it is now.

That's the same trap the California base-year rules create, and people assume it helps them in both states.

Documentary stamp tax applies on the deed at transfer, customarily paid by the seller, with Miami-Dade having its own structure. It matters at eventual resale rather than at purchase. Confirm current rates with a Florida attorney.

Buying Works Differently

Florida is a title company state. Closings run through title companies, and no attorney is necessarily involved on either side.

For a New York seller accustomed to counsel drafting the contract, negotiating on their behalf, and running the closing, that's a real adjustment. A buyer who wants legal review retains an attorney separately and pays for it — and given the condominium questions above, many relocating buyers do. The fuller picture of what the attorney handles on the New York side describes what you'd be giving up.

Condominium purchases carry a statutory review period. Florida provides buyers a defined window after receiving association documents in which they may cancel — similar in structure to Nevada's and Virginia's, with New York having nothing equivalent. Read the documents within it rather than filing them.

A Worked Example

Consider a composite case — a Nassau County household relocating to the Miami area, selling a colonial that comped near $1,100,000.

Three discoveries reshaped their search. The first building they liked had a low monthly charge and an incomplete reserve study. Their Florida attorney flagged it, and they asked for the milestone inspection report — which identified work the association hadn't yet funded. They walked.

The second was insurance. On a different property, obtaining a quote took three weeks and came back materially higher than budgeted, with a percentage-based hurricane deductible they hadn't anticipated.

The third was the tax bill. The seller's figure reflected years of accumulated assessment limitation. Theirs, set at purchase, would be substantially higher — which nobody had mentioned and which they found by asking.

On the New York side they sold first. Their attorney's early title review turned up an unclosed 2012 permit, resolved in six weeks before listing.

Where to Start

Build the net-proceeds model on the Long Island home and sell first. Call the town or village building department about permits. Engage a New York real estate attorney early and talk to a CPA about IT-2663 and capital gains before setting a closing date.

On the Florida side: for any condominium, ask whether the milestone inspection is complete and what it found, whether the structural integrity reserve study is done, what assessments have been levied or are contemplated, and what the reserve balances are against what the study requires. Get insurance quotes on specific addresses before offering, and ask what a condo's master policy covers. Ask what the property tax bill will be after reassessment rather than what the seller pays now. Find out what the homestead exemption application requires. And decide whether you want your own counsel, since none comes with the closing.

Sellers wanting a current read on where their Long Island home sits can start with a quiet look at present value.

The Honest Bottom Line

The no-income-tax advantage is real and it's why most people look. Housing is generally cheaper than Long Island, though less so in the desirable parts of Miami-Dade than relocation articles suggest.

What deserves the most attention is the condominium question, because Miami is a condominium market and Florida law changed substantially. A building's milestone inspection status, reserve study, and assessment history tell you what ownership actually costs — and a low monthly charge in a building that hasn't funded its reserves is a bill arriving later rather than a saving.

The other two are insurance, where availability rather than price can decide whether you can buy at all, and the tax bill, which resets at purchase and may be well above what the seller pays.

All three are answerable before an offer. For anyone working through what their Long Island home would net before any of that begins, that conversation is available whenever the timing suits.

This is general information, not legal, tax, insurance, or financial advice. Florida condominium inspection and reserve requirements, exemption criteria, assessment limitation rules, documentary stamp tax, and insurance availability vary and change. Confirm current specifics with a Florida attorney, the association, the county property appraiser, and a licensed insurance professional, and confirm New York specifics with a licensed New York real estate attorney and a CPA.

FAQs

What should I ask before buying a Miami condo?

Four things, in order, and they matter more than the monthly charge. Has the milestone inspection been completed, and what did it find? Has the structural integrity reserve study been done, and what does it require? What assessments have been levied in recent years, and what is contemplated? And what are the association's reserve balances against what the study says is needed? Florida law now requires these inspections and studies for buildings meeting certain criteria, and the ability to waive or underfund reserves has been curtailed — which has produced substantial special assessments in some buildings.

Why did Florida condo rules change?

Following the Surfside collapse, Florida enacted legislation requiring milestone structural inspections for buildings meeting certain age and height criteria, and structural integrity reserve studies with limits on an association's ability to waive or underfund reserves. For decades many associations kept monthly charges low precisely by not funding reserves. That option has narrowed, and buildings that deferred maintenance and underfunded reserves are now facing both at once. The practical effect for a buyer is that a low monthly charge may signal a bill arriving later.

Is insurance really a problem in Florida?

It can be the binding constraint rather than just a cost. Availability has been genuinely difficult in parts of the state, with a state-backed insurer of last resort serving policyholders who can't find private coverage — and a lender won't close without bindable coverage, so a buyer who can't obtain a policy can't buy the property. Windstorm and hurricane coverage may be separate with percentage-based deductibles, flood is separate again, and for a condominium the master policy's scope and deductible matter. Get quotes on specific addresses before offering.

Can I transfer my property tax benefit to Florida?

No, and this is a common misconception. Florida limits annual increases in the assessed value of homesteaded property, and long-time residents accumulate substantial benefit — which they can transfer to a new Florida homestead. A New York buyer has none to transfer. Your assessment is set at purchase, which means a seller's current bill, reflecting years of accumulated limitation, may be far below what you'll pay on the same property. Ask what the bill will be after reassessment rather than what it is now. The homestead exemption also requires application.

Does Florida require an attorney to buy a home?

No. Florida is a title company state — closings run through title companies with no attorney necessarily involved on either side. For a New York seller accustomed to counsel drafting the contract, negotiating, and running the closing, that's a real adjustment, and many relocating buyers retain an attorney separately given the condominium questions involved. Florida does provide condominium buyers a statutory window after receiving association documents in which they may cancel — read the documents within it rather than filing them.

By Eric Berman, REALTOR® | The Eric Berman Team at Compass

Eric Berman | Long Island & Queens Associate Broker | Compass
1468 Northern Blvd, Manhasset, NY 11030
(917) 225-8596 | eric@ericbermanre.com | theericbermanteam.com