Selling a Florida condo with a milestone inspection, reserve study or special assessment

Milestone inspections: which buildings and when

Florida's milestone inspection law applies to buildings that are three habitable stories or more and are wholly or partly residential condominiums or cooperatives (Fla. Stat. 553.899(3)(a)). It doesn't apply to single-family homes or two- to four-family dwellings with three or fewer habitable stories above ground (§ 553.899(4)).

The inspection is not a building-code compliance check. Its purpose is to attest to the life safety and adequacy of the structural components and identify needed maintenance, repair or replacement (§ 553.899(2)(a)). Surface cracks, sagging or signs of leakage don't count as substantial structural deterioration unless the engineer or architect decides they are a sign of it (§ 553.899(2)(b)).

For a seller, the practical point is this: if phase one finds nothing serious, the report is short and the building moves on. If it triggers phase two, expect repair estimates, and repairs usually lead to a special assessment, a loan or both.

Structural integrity reserve studies (SIRS)

A residential condo association must have a structural integrity reserve study at least every 10 years for each building three habitable stories or higher (Fla. Stat. 718.112(2)(g)1.). The study covers, at a minimum, the roof; the structure, including load-bearing walls; fireproofing and fire protection; plumbing; electrical systems; waterproofing and exterior painting; windows and exterior doors; and any other item over the statutory dollar threshold whose failure would affect those items. The base threshold is $25,000, adjusted for inflation (§ 718.112(2)(g)1.h.); the Division of Florida Condominiums lists the 2026 figure as $25,675 (DBPR reserve threshold).

• Who does it. A licensed engineer or architect, or a reserve specialist or professional reserve analyst certified by the Community Associations Institute or the Association of Professional Reserve Analysts (§ 718.112(2)(g)3.a.).
• What it says. Each item's estimated remaining useful life and replacement cost, plus a funding plan; at a minimum, a baseline plan that keeps the reserve cash balance above zero each budget year (§ 718.112(2)(g)4.a.).
• Deadline for older associations. Associations existing on or before July 1, 2022 and controlled by unit owners had to complete it by December 31, 2025. An association whose milestone inspection is due on or before December 31, 2026 may do both at the same time, but in no event may the study be completed after December 31, 2026 (§ 718.112(2)(g)7.).
• Owner notice. Within 45 days of receiving the study, the association must give owners a copy or a notice that it's available (§ 718.112(2)(g)11.). The Department of Business and Professional Regulation publishes searchable lists of associations that have reported a completed study (DBPR SIRS reporting).

Why reserve studies lead to higher dues and special assessments

For a budget adopted on or after December 31, 2024, the members of an association that must have a SIRS can no longer vote to provide no reserves or less reserves than required for the study's items; the only exception is for multicondominium associations with a division-approved alternative funding method (Fla. Stat. 718.112(2)(f)2.b.). Those reserves must be based on the most recent study (§ 718.112(2)(f)2.a.), and reserve money for those items can't be voted to another purpose (§ 718.112(2)(f)3.).

The law lets an association fund those reserves through regular assessments, special assessments, lines of credit or loans; a special assessment, line of credit or loan for this purpose needs a majority vote of the total voting interests (§ 718.112(2)(f)2.c.(I)). A 2025 change adds some breathing room: for budgets adopted on or before December 31, 2028, an association that completed a milestone inspection in the previous 2 calendar years may, with majority approval of the total voting interests, pause or reduce reserve contributions for up to two consecutive annual budgets to pay for the repairs the inspection recommended (§ 718.112(2)(f)2.e.). It must then get a new SIRS before resuming contributions.

So when you sell, the buyer is looking at three numbers: the current regular assessment, any special assessment already approved, and what the reserve study says the building will need.

What a resale buyer receives

Under the nondeveloper disclosure rule, each prospective buyer under contract is entitled, at the seller's expense, to current copies of (Fla. Stat. 718.503(2)(a)):

1. The declaration of condominium
2. The association's articles of incorporation
3. The bylaws and rules
4. The annual financial statement and annual budget
5. The inspector-prepared summary of the milestone inspection report, if applicable
6. The most recent structural integrity reserve study, or a statement that the association hasn't completed one
7. A turnover inspection report, for turnover inspections on or after July 1, 2023
8. The "Frequently Asked Questions and Answers" document

The buyer is also entitled to the division's governance form (§ 718.503(2)(b)). Any special assessment, line of credit or loan used to fund SIRS reserves must appear in the annual financial statement given to buyers (§ 718.112(2)(f)2.c.(II)).

Contract language and the 7-day cancellation right

For contracts signed after December 31, 2024, the resale contract must say in conspicuous type whether the association is required to have a milestone inspection or SIRS, and whether it has completed them (§ 718.503(2)(e)). Where they're completed, the contract either acknowledges that the buyer received the milestone summary and SIRS more than 7 days (excluding weekends and legal holidays) before signing, or makes the agreement voidable by the buyer for 7 days after signing and receiving them. The buyer's right ends at closing, and a contract that doesn't conform is voidable by the buyer before closing. A parallel clause covers the declaration, bylaws, budget and the FAQ document (§ 718.503(2)(d)).

Practical takeaway: order the documents from the association as soon as you decide to sell. Associations with 25 or more units must post official records, including the milestone inspection reports and the most recent SIRS, on a website or app (Fla. Stat. 718.111(12)(g)), so you may be able to download them yourself.

Special assessments and the estoppel certificate

Notice of any meeting where special assessments will be considered must say so and give the estimated cost and purpose (§ 718.112(2)(c)3.). Once approved, the purpose must be stated in a written notice to owners, and the money can be used only for that purpose (§ 718.116(10)).

At closing, the title company or closing attorney orders an estoppel certificate. The association must issue it within 10 business days of the request, and it must itemize all assessments, special assessments and other money owed on the date of issue, plus amounts scheduled to come due during its effective period (§ 718.116(8)). It is effective for 30 days if hand-delivered or emailed and 35 days if mailed (§ 718.116(8)(b)), and the association can't later collect more than it states from someone who relied on it in good faith (§ 718.116(8)(c)).

The statute sets base caps of $250, $100 and $150 and requires the department to adjust them for inflation every 5 years (§ 718.116(8)(f), (i)); the figures above are the department's current published amounts (DBPR estoppel certificate fees). If the association misses the 10-business-day deadline, it can't charge a fee for that certificate (§ 718.116(8)(d)).

Who pays a special assessment when you sell?

The statute answers part of this. A buyer is liable for assessments that come due while they own the unit, and is jointly and severally liable with the seller for all unpaid assessments that came due up to the transfer of title, with a right to recover them from the seller (§ 718.116(1)(a)). That's why the amounts owed on the estoppel certificate are normally settled at closing.

The statute doesn't decide who pays installments of an approved special assessment that fall due after closing, or an assessment that's proposed but not yet voted. That's a matter for your sale contract. Put the answer in writing: the seller pays it in full at closing, the buyer takes it over, or the price is adjusted.

Your options when the building has big repairs ahead

Whatever route you take, you still have to disclose known facts that materially affect value and aren't readily observable to the buyer. See disclosure when selling as-is. If you're behind on dues as well as the mortgage, the association has a lien for unpaid assessments and can foreclose it (§ 718.116(5), (6)); see the Florida foreclosure timeline.

How we look at a condo with an assessment

We make a written, no-obligation cash offer and buy as-is, with no fees or commissions. For a condo, send us the unit address, the most recent budget, any special assessment notice and, if you have them, the milestone inspection summary and the SIRS. We'll read them before we put a number in writing and spell out in the contract who pays which assessment. See our pages for St. Petersburg, Tampa, Orlando and Jacksonville.

Frequently asked questions

Sources

1. Florida Statutes, § 553.899 (mandatory structural inspections for condominium and cooperative buildings)
2. Florida Statutes, § 718.112 (bylaws; budgets, reserves and structural integrity reserve studies)
3. Florida Statutes, § 718.503 (disclosure before sale)
4. Florida Statutes, § 718.116 (assessments, liability, estoppel certificates)
5. Florida Statutes, § 718.111 (official records and association websites)
6. Florida Department of Business and Professional Regulation, Estoppel certificate fees, SIRS reporting and reserve threshold

This is general information, not legal advice. Condominium law changed several times between 2022 and 2025, and your declaration, bylaws and local building department can add requirements. Talk to a Florida real estate attorney or your closing agent before you sign a contract.