Florida Condo Milestone Inspection Law: What Owners and Boards Need to Know
After the 2021 collapse of Champlain Towers South in Surfside, Florida passed laws requiring structural inspections of older condo buildings and requiring associations to study and fund major repairs. These rules now shape condo budgets, special assessments and sales across Broward County. Here is how they work. Joseph S. Hughes of Hughes Real Estate Law handles every matter himself. He earned his J.D. at the University of Miami School of Law and has more than 10 years of practice in Florida real estate law.
Milestone Inspections
Under section 553.899, a residential condominium or cooperative building three habitable stories or taller must have a milestone inspection by December 31 of the year it reaches 30 years of age, and every 10 years after that. The local building official may require the first inspection at 25 years when local conditions, such as proximity to salt water, call for it. A licensed engineer or architect performs the inspection.
The first phase is a visual inspection. If the inspector finds substantial structural deterioration, a more detailed second phase follows, and the needed repairs must be addressed. Owners must receive the inspector’s summary of the report.
Structural Integrity Reserve Studies
Under section 718.112(2)(g), a residential condo association must complete a structural integrity reserve study at least every 10 years for each building three habitable stories or taller. The study covers the roof, structure, fireproofing and fire protection, plumbing, electrical, waterproofing and exterior painting, windows and exterior doors, and other major items that affect them. An engineer, an architect or a certified reserve specialist must perform or verify it.
The study sets the reserves the association must fund for those components. For budgets adopted on or after December 31, 2024, owners may not vote to use those reserve funds for any other purpose.
What This Means for Owners
- Higher budgets and special assessments. Buildings that underfunded reserves for years may need large increases or one-time assessments. Under section 718.116, a special assessment notice must state its specific purpose, and the money must be used for it.
- Records rights. Owners can review the inspection reports, the reserve study and the budget, and should do so before a vote.
- Board duties. Directors who ignore inspection or reserve requirements can face claims from owners and regulators.
What This Means for Buyers and Sellers
Under section 718.503(2), a buyer of a resale condo is entitled to the milestone inspection summary, if any, and the most recent structural integrity reserve study, or a statement that none exists. Read them during the review period, along with the budget and any planned assessments. A low price can reflect a large repair bill to come.
Practical Steps for Owners
- Ask the board when the building’s milestone inspection and reserve study are due, and request copies
- Compare the reserve schedule in the study with the current budget
- Attend budget meetings and ask how any shortfall will be funded
- Plan ahead for a possible special assessment if reserves are low
Condo Associations, HOAs and Tenants
These rules apply to condominium associations under Chapter 718, Florida Statutes, not to homeowners’ associations for single-family communities under Chapter 720. Budgets and special assessments are owed by unit owners. A tenant renting a condo does not pay association assessments directly. The lease between the owner and the tenant decides whether rent can change.
Owners who rent out units should plan for higher assessments when setting rent and lease terms. Owners who are buying to rent should review the reserve study and any planned assessments before signing, since those costs reduce the return on the unit.
Frequently Asked Questions
Does the milestone inspection law apply to HOAs?
No. It applies to condominium and cooperative buildings three habitable stories or taller. Single-family HOA communities under Chapter 720 are not covered.
Can my condo board pass repair costs on to me?
Yes, through the budget or special assessments, following the declaration and Chapter 718. The assessment notice must state its specific purpose.
Can a buyer cancel after seeing the inspection or reserve study?
Usually, yes. Under section 718.503(2), unless the buyer received the documents more than 7 days before signing, the buyer can cancel within 7 days, excluding weekends and legal holidays, after receiving them. A contract that does not meet these requirements is voidable by the buyer before closing.
Related reading: What to do if your condo developer goes bankrupt; The 80/20 rule for 55+ communities.
Talk With a Florida Condo Attorney
Joseph Hughes advises condo owners, buyers and boards on assessments, records and disputes. See our HOA and condo attorney page. Learn about Joseph Hughes, call (954) 256-5125 or request a consultation.
