Florida Condo Milestone Inspections and Reserves: What Winter Park and Maitland Buyers and Sellers Should Know

Most of the condo questions I get now are not about the unit. They are about the building: how old it is, what the engineer said, and how much is in the bank. When I walk a buyer or seller through a Winter Park or Maitland condo, I start with the paperwork the state now requires, because that paperwork tells you more about your real cost than the kitchen does.

What the law actually requires

After the Surfside collapse in 2021, Florida added two requirements for older condominium and cooperative buildings. One looks at the structure. The other looks at the money.

The first is the milestone inspection, set out in Florida Statutes section 553.899. It applies to buildings that are three habitable stories or more and are owned in whole or in part as a residential condominium or cooperative. The rules in plain terms:

• When: by December 31 of the year the building turns 30, counted from the certificate of occupancy, and every 10 years after that.
• Who: a Florida-licensed architect or engineer, hired by the association.
• Phase one: a visual examination. If the inspector sees no signs of substantial structural deterioration, that is the end of it.
• Phase two: required if phase one finds substantial deterioration. It can include destructive or nondestructive testing and ends with a repair recommendation.
• Repairs: the county or city is required to adopt an ordinance making repairs from a phase two report begin within 365 days.

The local enforcement agency can move the first inspection up to 25 years where local conditions call for it, such as proximity to salt water. That is a county or city decision, so the exact schedule for a given building depends on who has jurisdiction: the City of Winter Park, the City of Maitland, or Orange or Seminole County. Local agencies can also set their own timelines and penalties, so I check with the right building department.

The second requirement is the structural integrity reserve study, or SIRS, in section 718.112(2)(g) for condominiums, with a parallel rule for cooperatives in section 719.106. It applies to buildings three habitable stories or higher and must be redone at least every 10 years. A licensed engineer or architect, or a credentialed reserve specialist, visually inspects the roof, structure, fireproofing and fire protection, plumbing, electrical, waterproofing and exterior painting, windows and exterior doors, and certain other big-ticket items. The study estimates remaining life and replacement cost for each, then recommends how much the association should set aside each year.

For associations that existed on or before July 1, 2022, the statute set a deadline of December 31, 2025, and allowed associations with a milestone inspection due by the end of 2026 to do the two together. The current statute says no SIRS may be completed after December 31, 2026. If you are reading this later, assume those dates have passed and ask for the study itself.

Why reserves matter more now

For years, many Florida condo owners voted to waive or reduce reserves. Under section 718.112, for budgets adopted on or after December 31, 2024, owners in an association that must have a SIRS can no longer vote to waive or underfund reserves for the items the study covers, and they cannot vote to spend those reserves on anything else.

There is some flexibility. An association can also fund those reserves through special assessments, lines of credit or loans, which take a majority vote of the total voting interests. And for budgets adopted on or before December 31, 2028, an association that finished a milestone inspection in the prior two calendar years can, with a majority vote, pause or reduce reserve contributions for up to two annual budgets to pay for the repairs the inspection recommended. That relief is temporary, and it means the money is going to repairs instead of savings.

The practical effect: in older buildings that kept fees low for years, the gap is now on paper, and owners close it.

What to ask for before an offer

Under section 718.503, a buyer under contract on a resale condo is entitled, at the seller’s expense, to the declaration, articles, bylaws and rules, the annual financial statement and budget, the inspector-prepared summary of the milestone inspection if one applies, the most recent SIRS or a statement that none has been completed, and the state’s Frequently Asked Questions and Answers document. If the buyer did not get those documents more than 7 business days before signing, the contract is voidable for 7 days after receiving them.

That is a safety net, but I would rather read the important pages first. Here is what I ask the listing agent for:

• The milestone inspection report, not just the summary, and whether a phase two was required.
• The most recent SIRS and the reserve funding schedule it recommends.
• The current budget, showing what is actually being funded into reserves.
• Board and owner meeting minutes for the last year or two. This is where talk of repairs and special assessments shows up first.
• Any special assessment, approved or proposed, with the amount per unit and the payment dates.
• Any loan or line of credit the association has taken, which must appear in the annual financial statement.
• The master insurance policy and its renewal date, along with any recent premium increase.

I also ask who pays an assessment that is approved before closing but billed after. That is a contract question, and it should be settled in writing. My post on Florida closing costs for buyers and sellers covers the other line items buyers and sellers usually split.

Insurance belongs on this list for a reason. The association’s master policy affects your monthly fee, and your own unit policy is a separate cost. The wind mitigation inspection post explains a form that can matter for the building, and Florida’s flood disclosure law covers what sellers must now tell buyers about flooding.

What a seller should have ready

If you are selling a condo in a building that falls under these rules, the buyer is going to see the reports either way. You are better off reading them first.

• Get the milestone summary, the SIRS and the current budget from the association before you list.
• Know whether a special assessment is on the table and how much your share is.
• Pull recent minutes so nothing in them surprises you during the contract.
• Gather what you know about the master policy and your own unit coverage.

Having the paperwork ready keeps a good buyer from walking away during the 7-day window.

What it does to the price

This is where older Winter Park and Maitland condos and newer construction separate. Two units can list at a similar price and cost very different amounts to own.

In an older building, the real monthly cost now includes whatever the association needs to fund the SIRS schedule, plus any assessment tied to milestone repairs. A building that has already finished its repairs and funded its reserves may carry a higher fee but less risk. A building that has done neither may look cheaper and be the more expensive purchase.

Newer buildings are not exempt. The 30-year clock still runs, and the SIRS requirement applies to buildings three habitable stories or higher regardless of age. What a newer building usually offers is time and fewer near-term big-ticket items. Under section 718.112, a developer-controlled association cannot vote to waive or reduce reserves before turnover, and a turnover inspection report under section 718.301 is now part of what buyers receive. If you are comparing a new building to an older one, my notes on new construction home inspections are a good companion read, and my Winter Park vs. Maitland comparison explains what changes at the city line, including which building department you will be dealing with.

Lower garden-style and townhome-style communities may fall outside the three-story rules entirely. Check the building’s height under the Florida Building Code before assuming either way.

How I help

When you are buying, I get the reports and the minutes in front of you before we decide on a price, and I read them with you so we can talk about what they mean for your monthly cost. When you are selling, I help you gather the documents early and price the unit against comparable buildings, not just comparable floor plans.

This is general information, not legal, engineering or insurance advice. Statutes change, and local rules vary by city and county, so confirm the details for a specific building with the association, the building department and your own attorney.

I’m Will LaValle with IRL Homes, RE/MAX 200 Realty, local since 1978 and licensed since 1989. Call or text 407-620-7785, email will@irlhomes.com, or use my contact page.

Will LaValle, REALTOR® · RE/MAX 200 Realty · 1155 Louisiana Ave., Suite 110, Winter Park, FL 32789