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Watch on YouTube: Can a Hotel-Condo Owner Avoid Chapter 718 Rights Over Shared Resort Facilities? | North Carillon Beach v. Z Capital
▶ Watch on YouTube: Can a Hotel-Condo Owner Avoid Chapter 718 Rights Over Shared Resort Facilities? | North Carillon Beach v. Z Capital

In short: Three tower associations at the Carillon in Miami Beach appealed a final judgment that gave them some common elements and a jury verdict for overassessments, but denied their bid to cancel pre-turnover agreements and buy the spa and recreational facilities. As of October 2026 we could not find a Third District decision.

The Facts

The Carillon is a mixed-use campus in Miami Beach with three condominium towers and a hotel lot. The hotel lot owner also holds shared facilities such as the spa, pools, lobbies, and parking. Z Capital acquired the hotel lot out of bankruptcy in 2015. The three tower associations sued in 2016 over how the hotel lot owner charged them and controlled the shared areas.

According to published reports, a jury in December 2022 awarded the associations about $16.3 million for overassessments. In January 2023, the trial court ruled that parts of the master declaration conflicted with the Condominium Act and that certain areas such as roofs, hallways, lobbies, and HVAC systems were common elements. The final judgment entered in November 2023 listed those common elements and entered an injunction. It refused, however, to let the associations buy the spa, pools, and other recreational facilities, and it denied prejudgment interest.

According to the arguments described in the video of the December 2025 oral argument, the associations argued that the statute controls over the developer’s declaration. They also argued that prejudgment interest should run from each budget year, that the spa was charged twice, and that Z Capital should not have been left out of the judgment.

The Issue on Appeal

We could not find a decision in this appeal. It was argued in December 2025, and we found no opinion on Justia, CourtListener, or in news coverage through early October 2026. Treat this post as an explanation of the issues, not a report of the result.

The central question is whether the Condominium Act’s protections can override what a mixed-use declaration says. Those protections include the right to cancel agreements the developer signed before turnover and the rules on common elements. The second question is when prejudgment interest starts on overassessment damages: at the verdict, or as each overpayment was made.

The Law

Under section 718.302, a grant, reservation, or contract made by the developer before unit owners take control must be fair and reasonable, and unit owners may cancel it by the required vote. section 718.114 governs association agreements to acquire recreational and similar facilities.

In 2024 the Legislature added section 718.407, which covers condominiums created within a portion of a building or a multiple parcel building. Under it, the common elements are only the portions submitted to condominium ownership. The recorded documents must say who maintains the shared facilities and how costs are split, and associations get budget and records rights. Reports say the hotel side argued the new law applies to this case, and the associations argued their judgment was already final.

Current law (2026): Section 718.407, Fla. Stat. (created by ch. 2024-244, amended by ch. 2025-175) governs condominiums within a portion of a building or a multiple parcel building: common elements are limited to the portions submitted to condominium ownership, and it adds disclosure, budget, records, and cost-challenge rights. Reports say it was argued to apply retroactively to pending cases, except where the hotel owner’s rights were fully and finally adjudicated.

Lessons

  • In a condo-hotel or mixed-use building, read the master declaration to see what you actually own and what you only pay for.
  • Section 718.407 now requires recorded documents to spell out who runs the shared facilities and how costs are divided. Buyers get a conspicuous disclosure in the contract.
  • Associations have the right to inspect the records behind shared-facility charges and a deadline to challenge the cost allocation. Use it.
  • Big condo cases take years. This one was filed in 2016 and was still on appeal in 2026.

Source: North Carillon Beach Condominium Ass'n v. Z Capital Partners, LLC, No. 3D23-2250 — Fla. 3d DCA.

Watch the Oral Argument

This is the recording of the actual oral argument, posted on the channel. What lawyers and judges say at argument is not the ruling; the decision is summarized above.

Can a Hotel-Condo Owner Avoid Chapter 718 Rights Over Shared Resort Facilities? | North Carillon Beach v. Z Capital

Go Deeper

Frequently Asked Questions

Can condo owners cancel contracts the developer signed?

Often, yes. Under section 718.302, a developer-era grant, reservation, or contract for operating, maintaining, or managing the condominium or property serving the owners must be fair and reasonable. Owners other than the developer can cancel it by the required vote once they control the association. Whether that reaches facilities a separate hotel owner holds is the kind of question raised in the Carillon appeal.

What are common elements in a Florida condo-hotel?

In a building where only part is a condominium, section 718.407 says the common elements are only the portions submitted to condominium ownership. The recorded documents must identify the shared facilities, who maintains them, and how the expenses are divided.

Can a condo association challenge shared facility charges?

Yes. Under section 718.407, the association may inspect and copy the books and records behind shared-facility costs and must receive an annual budget and year-end financial report. It has 60 days after receiving the report to challenge the apportionment of costs.

When does prejudgment interest start on condo overcharges?

Florida generally awards prejudgment interest from the date of the loss on a liquidated amount. In the Carillon case the associations argued that interest should run from each year they were overcharged rather than from the verdict. We could not find an appellate ruling on that point.

Talk to a Florida condominium and real estate lawyer

Weidner Law, P.A. handles Florida condominium and real estate disputes from St. Petersburg. If you need a real estate litigation lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.

Read the law yourself, free: every Florida statute and court rule is on floridarules.net.

This article is general information about Florida law, not legal advice about your situation. Reading it, watching the videos, or contacting the firm does not create an attorney-client relationship. Every case turns on its own facts, and past results do not guarantee a similar outcome. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.

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