Can You Use a Lady Bird Deed on a Florida Condo?

Sylvia's oceanfront condo and her question

Sylvia is 77 and owns an oceanfront condo in Daytona Beach Shores. She is a composite I use to illustrate a question I hear often, not an actual client, but her situation is a common one along Florida's coast. Her building's declaration requires the association to approve every sale, lease, and transfer of a unit, no exceptions that she's ever seen. She wants her condo to go straight to her daughter when she dies, without a probate proceeding, but she also doesn't want to upset the board or violate her declaration by doing something behind their backs.

A lady bird deed (also called an enhanced life estate deed) lets Sylvia keep full ownership and control of her condo for the rest of her life, including the right to sell it, refinance it, or change her mind entirely, and then it passes automatically to her named beneficiary at her death without going through probate. The question for a condo owner like Sylvia is whether her association's transfer-approval rights reach into that plan at all, and if so, when.

Does the association's approval right apply to a lady bird deed?

Florida condominium declarations commonly include restrictions on the transfer of units, and Florida law allows this. The declaration may include covenants and restrictions on transfers of units, so long as they're the kind of restriction permitted with reference to real property generally. That's why so many oceanfront and resort buildings, like Sylvia's, require board approval before a unit changes hands.

Here is the key distinction I walk clients through. A lady bird deed signed and recorded during the owner's lifetime does not transfer possession, income, or control to the beneficiary. The owner keeps the right to sell, mortgage, lease, or revoke the deed at any time, with no need for the beneficiary's consent or even their knowledge. Because nothing actually changes hands while the owner is alive, many associations do not treat the recording of a lady bird deed itself as a "transfer" that triggers approval procedures the way an ordinary sale or gift would.

That said, association declarations vary widely, and some boards read their approval language broadly enough to cover any recorded instrument affecting title, including a future-interest deed like this one. Because there is no single statewide rule settling this, I generally recommend a practical approach: have the deed properly drafted, then let the association know what it is and why it was filed, framed clearly as an estate planning tool rather than a sale, lease, or rental arrangement.

What happens at Sylvia's death: approval, estoppel, and the beneficiary's next move

The moment that matters most for a condo lady bird deed isn't the day it's signed, it's the day the owner dies. At that point, ownership passes to the named beneficiary by operation of the deed itself, not through a sale contract. That distinction matters because a right of first refusal in a declaration typically applies to sales during the owner's life, where there's a willing buyer and a negotiated price the association (or another owner) could match. An inheritance under a lady bird deed isn't that kind of transaction, and whether the association can invoke a right of first refusal on it depends heavily on the specific wording in that building's declaration.

Regardless of how the first-refusal question shakes out, Sylvia's daughter should expect the association to require some kind of notice and approval process once she takes title. Florida condo estoppel certificates, which associations issue when a unit is sold or refinanced, specifically address whether board approval is required for a transfer and whether a right of first refusal applies. Practically speaking, this means the beneficiary should plan to:

• Notify the association promptly after the owner's death, providing a copy of the recorded lady bird deed and a death certificate.
• Ask what the association requires for a formal transfer of ownership on its books, which may include an approval application even though no sale is taking place.
• Request an estoppel certificate before any future resale, since it will confirm approval requirements and any right of first refusal that could apply to the beneficiary's own eventual sale.

Assessments, dues, and the estate

A lady bird deed doesn't erase money owed to the association. Regular monthly assessments and any special assessments levied against the unit remain obligations tied to the property and, before the deed transfers ownership, to the owner's estate. If Sylvia's association levies a special assessment (common in oceanfront buildings facing insurance costs, reserve requirements, or storm-related repairs) before her death, that obligation is hers to pay or resolve as part of her finances during life. If any assessment is outstanding when she dies, it typically becomes a claim against her estate, and the beneficiary who inherits the unit will also want to confirm the account is current, since unpaid assessments can carry with the unit and affect the association's willingness to approve the beneficiary's own future sale.

This is one more reason the estoppel certificate matters so much for a condo beneficiary. It will show the outstanding balance, any pending special assessments, and whether the account is in good standing, which protects the beneficiary from surprises when it's time to sell or refinance down the road.

Sylvia's plan going forward

For Sylvia, a lady bird deed remains a sound way to pass her oceanfront condo to her daughter without probate, and her lifetime control doesn't change one bit. The one extra step for condo owners like her is a courtesy conversation with the association once the deed is signed and recorded, explaining what it is and confirming whether the board wants it reflected on their internal records. That conversation costs her nothing in control today and can save her daughter a headache later.

Truestead prepares Florida lady bird deeds starting at $199 for a self-guided version, or $399 for an attorney-prepared deed that includes recording, and for a condo owner in a building with an active board, having the deed drafted correctly and paired with the right documentation for that association can make the eventual transition to the beneficiary much smoother.

Sources

• The Florida Bar, Uniform Title Standards 6.10-6.12, 2019
• The Florida Bar Journal, Lady Bird Deeds, January 7, 2019
• Florida Statutes Section 718.104(5), condominium transfer restrictions
• Florida Statute 718.116(8), condominium estoppel certificates

This article is for general informational purposes only and does not constitute legal advice, nor does reading it create an attorney-client relationship. Florida estate, elder, probate, and real estate law are fact-specific and change over time. Consult a licensed Florida attorney about your individual circumstances. Arthur Simpson, Esq. is licensed to practice law in the State of Florida. Attorney advertising.