By Andy B. Cooper — Florida Licensed Real Estate Broker, SFR Certified · Cabana West Real Estate
Florida's condominium rules have changed a lot in the last few years, starting after the 2021 Surfside collapse. For buyers, the changes are good news in the long run: more inspections, better reserve funding and more documents before you commit. In the short run they also mean some associations are raising dues or charging special assessments to catch up. If you're shopping for a condo in West Palm Beach, Wellington or anywhere in Florida, here's what to check.
Milestone inspections
Under section 553.899, Florida Statutes, buildings three habitable stories or more that are subject, in whole or in part, to the condominium or cooperative form of ownership need milestone structural inspections. The first one is due by December 31 of the year the building reaches 30 years of age, and then every 10 years after that. The statute also lets the local enforcement agency require the inspection at 25 years based on local circumstances, including environmental conditions such as proximity to salt water.
The inspection is performed by an architect or engineer licensed in Florida. As a buyer, you want to know whether the building has reached a milestone date, whether the inspection was done, and what it found.
Structural integrity reserve studies (SIRS)
The second big change is the structural integrity reserve study. Under section 718.112(2)(g), associations must obtain a SIRS for each building three habitable stories or higher, at least every 10 years. The study covers the items that keep the building safe and dry:
- Roof
- Structure, including load-bearing walls and primary structural members
- Fireproofing and fire protection systems
- Plumbing
- Electrical systems
- Waterproofing and exterior painting
- Windows and exterior doors
- Other items above a set cost threshold that affect those components
The law also restricts unit-owner-controlled associations from waiving or reducing the reserves required for those items. In plain terms, the days of voting to skip reserves on the roof and structure are largely over. That's safer, and it's also why some monthly fees have gone up.
What this means for your budget
When you compare condos, don't just compare the monthly fee. A building with a low fee may be underfunded and facing an assessment. A building with a higher fee may already be fully funded. Ask for the budget, the reserve schedule and any planned or pending special assessments. Our article on the hidden costs of owning a home in Florida explains special assessments, and the mortgage calculator lets you add the HOA fee to your monthly estimate.
Documents you receive on a resale condo
When you buy from an owner (not the developer), section 718.503(2) requires the seller to provide, at the seller's expense, documents including:
- The declaration of condominium
- Articles of incorporation of the association
- Bylaws and rules
- The annual financial statement and annual budget
- The inspector-prepared summary of the milestone inspection report, if applicable
- The association's most recent structural integrity reserve study, if applicable
- The "Frequently Asked Questions and Answers" document
The 7-day cancellation right
The same section gives the buyer the right to cancel the contract within 7 days, excluding Saturdays, Sundays and legal holidays, after the date of execution of the contract and receipt of the required documents. The buyer's right to void the agreement ends at closing. Use those days. Read the budget and the reserve study, and ask questions before the window closes.
Questions to ask about any condo building
- When was the building completed, and has a milestone inspection been required or done?
- What did the milestone inspection and SIRS recommend, and what's the timeline for the work?
- Are reserves fully funded for the SIRS items?
- Are there current or planned special assessments?
- Has the association had difficulty getting insurance?
- What are the rental rules, if you plan to rent the unit?
Financing and insurance
Lenders review the association too. Buildings with deferred maintenance, underfunded reserves or pending litigation can be harder to finance. Talk to your lender early about the specific building, and get an HO-6 insurance quote for the unit during the inspection period.
Are condos still a good buy?
For many buyers, yes. Condos in Palm Beach County offer locations and amenities that single-family homes at the same price can't match. The new rules make it easier to see what you're getting into. The key is doing the homework before the 7-day window closes. If you'd like help comparing buildings, contact us or browse homes for sale in West Palm Beach.
FAQ
Q: Which Florida condos need a milestone inspection?
Buildings three habitable stories or more in the condominium or cooperative form of ownership, by December 31 of the year the building turns 30 and every 10 years after, under section 553.899.
Q: What is a structural integrity reserve study?
A study, required at least every 10 years for condo buildings three habitable stories or higher, that plans reserves for the roof, structure, fire protection, plumbing, electrical, waterproofing, windows and exterior doors.
Q: How long do I have to cancel a resale condo contract in Florida?
Under section 718.503(2), within 7 days, excluding weekends and legal holidays, after signing and receiving the required documents. The right ends at closing.
Q: Why are condo fees going up in Florida?
In many buildings, stricter reserve rules for structural items mean associations must fund repairs and replacements they previously deferred.
Andy B. Cooper is a Florida Licensed Real Estate Broker, SFR Certified, with Cabana West Real Estate, serving Wellington, Palm Beach County, and all of Florida. Cabana West is a bilingual (English/Spanish) brokerage.
Disclaimer: This article is general educational information, not legal, tax, insurance or financial advice. Laws and requirements change. Confirm details with the official sources linked above and with a licensed professional before acting.