Milestone inspections, structural reserve studies, and how Florida's 2022 condo safety law changed what due diligence looks like.
The collapse of Champlain Towers South in Surfside, Florida in June 2021 killed 98 people and fundamentally changed how Florida regulates condominium safety. In May 2022, the Florida Legislature passed Senate Bill 4-D, which introduced mandatory structural inspections and reserve-funding requirements for older condo buildings. Subsequent legislative sessions have amended those requirements, but the core framework is in place and it materially affects what buying a condo in Clearwater Beach, Sand Key, or any of our barrier-island towns looks like in 2026.
For buyers, the big takeaway is this: the era of skipping past condo financials and just touring the unit is over. Whether a building is well-managed, well-reserved, and up-to-date on its inspection obligations now directly determines whether your lender will finance it, whether your insurance is affordable, and whether you'll be hit with a five- or six-figure special assessment in the next few years.
This page explains the basics. It's not legal advice, and condo law is complex — every serious condo purchase should be accompanied by a thorough document review, and for larger purchases or buildings with known issues, consultation with a Florida real estate attorney.
Under SB 4-D as amended, Florida condominium buildings three stories or more in height must undergo a milestone structural inspection performed by a licensed architect or engineer. The first inspection is due when the building reaches 30 years of age — or 25 years if it's within three miles of a coastline, which covers most of our barrier-island inventory. After the first milestone, inspections repeat every 10 years.
The inspection has two phases. Phase 1 is a visual assessment of the building's structural components — concrete, steel, load-bearing elements, waterproofing, etc. If Phase 1 reveals substantial structural deterioration, the building moves to Phase 2, a more invasive inspection that may involve destructive testing and more detailed engineering analysis.
Any structural deficiencies identified must be documented and remediated. Condo associations are required to provide inspection reports to owners and make them available to prospective buyers. When reviewing a building, the milestone inspection report is one of the first documents we ask for.
In parallel with the milestone inspection, SB 4-D requires condo associations to conduct a Structural Integrity Reserve Study. Unlike a general reserve study, a SIRS specifically identifies reserves needed for structural and safety-critical building components — roofs, load-bearing walls, floor structures, foundations, fireproofing, plumbing, electrical systems, waterproofing, windows, and others.
The critical change for buyers: reserves for SIRS-identified components can no longer be waived or underfunded by board vote. Before SB 4-D, Florida law allowed condo boards to vote to underfund reserves, which kept monthly assessments low but left buildings without cash to handle major repairs. After SB 4-D, that practice is no longer permitted for structural components — the money has to be collected.
For many older buildings that had been underfunded for years, complying with SIRS has meant either large dues increases or large one-time special assessments. Some buildings are still working through this transition, and the pain is real. Reviewing a building's most recent SIRS report and seeing how the association plans to fund identified reserves is central due diligence.
Fannie Mae and Freddie Mac — the two quasi-governmental agencies behind most US conventional mortgages — maintain criteria that a condo building must meet to be 'warrantable' (i.e., for the agencies to buy the loan from the originating lender). Post-Surfside, both agencies tightened those criteria and publish restricted-building lists.
Buildings that have significant deferred maintenance, pending special assessments, unresolved structural issues, or inadequate reserves can fall off the warrantable list. When that happens, financing options narrow dramatically — buyers may be limited to portfolio lenders at higher rates, or required to bring more cash. Some buildings become cash-only.
This means that when you're shopping a specific building, the finance-ability check is no longer optional. We routinely engage with your lender early to verify that a target building is warrantable before you go under contract. For some buildings, the answer is yes with conditions; for a few, it's a hard no. Knowing up front saves weeks.
For every condo purchase we represent buyers on, we ask for the same core documents: the most recent milestone inspection report (if the building is old enough to require one), the current Structural Integrity Reserve Study, the most recent audited financial statements, the current year's operating budget, the last 12 months of board meeting minutes, the declaration of condominium and bylaws, the association's insurance certificates, and disclosure of any pending or levied special assessments.
Board meeting minutes are the most under-read document in condo due diligence, and they shouldn't be. Minutes reveal everything the glossy sales materials don't — litigation, roof leaks, contractor disputes, resignations, debates over reserves, homeowners complaining about structural cracks. A pattern of concerning minutes should inform how you price an offer and what contingencies you ask for.
Under Florida Statute 718, sellers are required to deliver many of these documents before closing, and buyers generally have a cancellation right during the review period. Actually reading them matters.
Despite the headlines, many Clearwater-area condo buildings are in genuinely good shape: inspections are current, reserves are funded, SIRS is complete, the board has been transparent with owners, and a clear multi-year capital plan exists. These buildings tend to hold their value through the post-SB 4-D transition and are noticeably easier to finance.
On the other hand, buildings that have kicked maintenance down the road for decades are now having to pay the bill, and the pain is showing up in either big assessments or sale-price discounts. Neither is disqualifying — sometimes a 'problem' building is the right buy at the right price — but it has to be priced in.
Our job as your agent is to read the documents, call your lender early, talk to management companies and owners we already know in the building, and give you the unvarnished version of what you're actually buying.
Waived or underfunded reserves that haven't been corrected. A pending milestone inspection with no scheduled date. Board minutes discussing structural issues without clear remediation plans. Large special assessments announced within the last 24 months with more expected. A rising trend of insurance premiums without explanation. Any of these warrants a serious second look — and sometimes, walking away.
Understanding FEMA zones, elevation certificates, and what flood insurance actually costs on a Pinellas County barrier island.
Read guideVacation rental regulations vary widely across Pinellas County barrier islands — here's what you need to know before you buy for rental income.
Read guideShopping in a specific area? See how this applies in Clearwater Beach, Sand Key, Island Estates, Belleair Beach, or Indian Rocks Beach.
This page is educational, not legal, tax, or insurance advice. For specifics on your situation, reach out — we'll give you a straight answer or point you to the right licensed professional.