If you own or are thinking of buying a condo in Florida, you have probably heard the words 'milestone inspection' and 'reserve study' more than once in the last couple of years. Since the tragic collapse of Champlain Towers South in Surfside in 2021, Florida lawmakers moved fast, and the result is a package of laws that changed how condo associations must manage aging buildings and their finances. The changes are real, they are already in effect, and they affect what you pay every month, what a building is worth, and whether a lender will finance a unit in it.
The goal here is not to scare you. It is to help you understand what these rules actually mean in plain language, so you can make smart decisions whether you are buying, selling, or already living in a condo community.
What Is a Milestone Inspection?
A milestone inspection is a structural integrity review of a condo building. Under Florida Senate Bill 4-D, any condo building that is three stories or taller must complete this inspection by December 31, 2024, if the building is 30 years old or more. Buildings within three miles of a coastline must do it at 25 years. After that first inspection, buildings must repeat the process every 10 years.
The inspection has two phases. Phase one is a visual review by a licensed architect or engineer. If that review finds no significant structural concerns, you are done. If it does find something that needs a closer look, phase two kicks in, which is a more detailed examination that may involve testing materials and accessing areas that are not normally visible. The association must share the results with all unit owners and with local authorities. There is no option to ignore it or delay it without consequences.
Reserve Studies: No More Waiving Reserves
This is the part that is hitting owners the hardest in terms of monthly costs. Before these laws, Florida condo associations could hold a vote and decide to waive or reduce reserve contributions. Many boards did exactly that to keep assessments low. That option is now gone for certain items.
Associations of buildings three stories or taller must now fund reserves for the structural components covered by the milestone inspection, specifically the roof, load-bearing walls, floor and ceiling assemblies, foundation, fireproofing, plumbing, electrical systems, windows, and any other item identified in the structural integrity reserve study. These reserves must be fully funded based on the findings of a reserve study completed by a licensed professional, and the money must be kept in a separate account. Underfunded reserves are no longer something you can vote away.
How This Affects Buyers Right Now
If you are shopping for a condo in Palm Beach County, these rules change the due diligence process significantly. Before you make an offer, you want to know: Has the building completed its milestone inspection? What did it find? Is the reserve account adequately funded? Has the association already passed special assessments to cover repairs or catch up on reserves?
Lourdes Alvarez, who works with buyers across Boca Raton, Delray Beach, and the broader Palm Beach area, has seen firsthand how buyers, especially those purchasing remotely from Spain or Latin America, can be caught off guard by these details. A condo with a low list price can carry significant upcoming costs if the building is behind on its reserves or facing required structural repairs. That is a number you need to know before you close, not after.
Fannie Mae and Freddie Mac also updated their guidelines following Surfside. Lenders now scrutinize condo questionnaires closely, and buildings with deferred maintenance, special assessments, or underfunded reserves can be flagged as non-warrantable, which limits financing options and affects value.
What Sellers Need to Understand
If you are selling a condo in a building that has completed its milestone inspection with a clean report and has a healthy reserve fund, that is a genuine selling point. Market it. Buyers and their agents are asking these questions now, and a well-documented, financially sound association stands out.
If your building is behind on any of this, it does not necessarily mean your unit is unsellable. But pricing it correctly and disclosing everything honestly is the only path forward. Buyers in today's market are informed, and any surprises discovered during due diligence will either kill the deal or come back as a price reduction request.
The Bottom Line for Palm Beach Condo Buyers
These rules exist for a good reason. Buildings in Florida deal with humidity, salt air, and hurricane loads in ways that buildings in other states simply do not. Proper maintenance and funded reserves protect lives, not just property values.
If you have questions about a specific building or community in Boca Raton, Delray Beach, or anywhere in Palm Beach County, Lourdes is the right person to call. She can walk you through the condo documents, connect you with the right inspector, and help you read the financials before you commit to anything. You can reach her through palmbeachestatesmls.com. As always, her services cost the buyer nothing: in Florida, the seller pays the commission.
Questions about your case?
Lourdes answers in English or Spanish, usually the same day.