Selling a Florida Condo After a Milestone Inspection or Special Assessment
Since the state tightened building-safety laws, many older Florida condo owners have been hit with a milestone inspection, a structural integrity reserve study, or both, and the special assessment that can follow. Here's what these requirements actually mean and where selling fits if the assessment doesn't work for you.
What a milestone inspection actually requires
Under Florida Statute 553.899, condo and cooperative buildings that are three or more habitable stories tall must have a milestone inspection performed by a licensed architect or engineer, generally by the year the building reaches 30 years of age, based on its certificate-of-occupancy date, and every 10 years after that. The local enforcement agency may require a building's first inspection at 25 years instead of 30 based on local circumstances, including proximity to salt water. The inspection focuses on load-bearing elements and overall structural safety, not general code compliance.
Structural integrity reserve studies are a separate, related requirement
A structural integrity reserve study (SIRS), required under Florida Statute 718.112, is a different but related process. It looks at specific structural components, roofing, load-bearing walls, plumbing, and similar items, and determines how much the association should have saved for eventual repair or replacement. Associations are increasingly limited in how much they can vote to waive these reserves, which means underfunded reserves often have to be made up some other way.
Why this turns into a large bill for owners
When a milestone inspection finds substantial structural deterioration, or a reserve study shows the association is significantly behind on funding, the association frequently has to raise a large amount of money on a short timeline. A special assessment, charged directly to each unit owner based on their ownership share, is one of the most common ways associations cover that gap. Depending on the building's age and condition, these assessments can range from a few thousand dollars to tens of thousands of dollars per unit.
Selling with an open or approved assessment
Under Florida Statute 718.116, the estoppel certificate an association issues on request must itemize assessments and special assessments already owed on the unit as of the date it's issued, as well as any additional assessments and special assessments scheduled to become due during the certificate's effective period. If a special assessment has been approved, it should be disclosed and reflected on that itemized list. How it's actually handled in a sale, whether the seller pays it off, the price is adjusted, or the buyer assumes it, depends on what the purchase contract says and the specifics of the closing. Buyers, especially financed buyers, will factor a known or approved assessment into their offer. An as-is cash sale can remove a buyer's financing contingency, which is one variable a large assessment can complicate, but it doesn't remove the disclosure requirements, the association's own process, or the need to spell out in the contract how the assessment is being handled.
Frequently asked questions
What is a milestone inspection in Florida?
Under Florida law (F.S. 553.899), a milestone inspection is a structural inspection required for condominium and cooperative buildings that are three or more habitable stories tall. It must be performed by a licensed architect or engineer, generally by the year the building turns 30 years old (or 25 years old if the local enforcement agency requires it based on local circumstances, including proximity to salt water), and every 10 years after that.
What is a structural integrity reserve study, and how is it different from a milestone inspection?
A structural integrity reserve study (SIRS) is a separate requirement under Florida law (F.S. 718.112) that evaluates specific structural components, like the roof, load-bearing walls, and plumbing, and determines how much money the association needs to reserve for future repair or replacement. A milestone inspection focuses on life safety and structural soundness; a SIRS focuses on funding. Many associations need both.
Why do milestone inspections and SIRS lead to large special assessments?
If an inspection finds substantial structural deterioration, or a reserve study shows the association hasn't saved enough for upcoming structural repairs, the association often has to raise the money quickly. Since Florida law limits how much unit-owner-controlled associations can waive required reserves, a special assessment charged directly to unit owners is a common way associations cover a funding gap.
Can I sell my condo if it has an open or approved special assessment?
Yes, but it has to be disclosed, and it affects how buyers evaluate the property. Under Florida law (F.S. 718.116), the association's estoppel certificate itemizes assessments and special assessments already owed and any scheduled to become due, so an approved assessment should show up there. How it's actually handled, the seller paying it off, an adjusted price, or the buyer assuming it, depends on the purchase contract and the specific transaction, not a fixed rule. A cash sale can remove a buyer's financing contingency, but it doesn't remove the disclosure requirement or the need to address the assessment in the contract.
Facing a large condo special assessment and considering your options? Call OfferLink at 407-584-9111. We buy as-is across Florida, including Orange County, Pinellas County, and Volusia County. This article is general information, not legal or engineering advice. Your condo association, its engineer, and a real estate attorney are the right resources for the exact status of your building and unit.