New Regulations Impacting – Florida Keys Condos

A Milestone Structural Inspection has two key phases

Phase 1 – the inspection involves a visual assessment of both habitable and uninhabitable areas of the building. The examiner is required to provide a qualitative evaluation of the building’s structural condition, which must be completed within 180 days of receiving written notice from the local enforcement agency.

Phase 2 – The second phase of the inspection will only be conducted if the examiner identifies significant structural decay during Phase One.

Once Phase One or Phase Two is finished, the inspector is required to provide a sealed inspection report to both the condominium association and the relevant local government building official.  In addition, they must include a summary of the significant findings and recommendations.

The condominium or cooperative association must distribute the examiner’s summary of the inspection report to every unit owner.  The report must be handed out regardless of the report’s findings or recommendations. They should do this via mail, personal delivery, and electronic transmission. Additionally, the association must display a copy of the summary in an obvious location on the property of the condominium or cooperative.

Associations are also responsible for all expenses related to carrying out the Milestone Structural Inspections, as well as being accountable for all aspects of the inspections.

MILESTONE INSPECTION REPORT SUMMARY: -This is the document the Buyer will be entitled to BEFORE the sale of the property.

MILESTONE INSPECTION REPORT SUMMARY: Pursuant to Section 718.503(2)(a)(5), F.S., Buyer who has entered into this Contract is entitled, at Seller’s expense, to receive from Seller, before the sale of the Property, a copy of the inspector-prepared summary of the milestone inspection report, as described in Sections 553.899 and 718.301(4)(p), Florida Statutes, if (1) applicable and (2) the summary has been submitted to the Association.

Structural Integrity Reserve Study

Associations must conduct a Structural Integrity Reserve Study every 10 years for buildings that are three stories or taller, in addition to Milestone Structural Inspections.

The first study must be finished before December 31, 2024.

A Structural Integrity Reserve Study is an assessment of the reserve funds needed for significant future repairs and replacements of common areas. This evaluation is based on a visual inspection of the common areas.

During the Structural Integrity Reserve Study, the association must assess the estimated remaining useful life and replacement cost of the following components:

Roof

Load bearing walls or primary structural members

Floor Foundation

Fireproofing and fire protection systems

Plumbing

Electrical systems

Waterproofing and exterior painting

Windows

Any other item with deferred maintenance expense or replacement cost over $10,000, whose neglect negatively impacts the above-listed items.

The Structural Integrity Reserve Studies must be retained for a minimum of 15 years following the completion of the study.

STRUCTURAL INTEGRITY RESERVE STUDY: Buyer is entitled to the SIRS or statement that SIRS has not been completed if the association is required to complete a SIRS.

STRUCTURAL INTEGRITY RESERVE STUDY: Pursuant to Section 718.503(2)(a)(6), F.S., Buyer who has entered into this Contract is entitled, at Seller’s expense, to receive from Seller, before the sale of the Property, a copy of the Association’s most recent structural integrity reserve study or a statement that the Association has not completed a structural integrity reserve study.

What is the impact of the two reports in the Florida Keys?

Not many of these reports exist now.

Associations are responsible to arrange for and absorb the cost of the inspections and preparation of reports.

Between now and 12/31/2024 – likely to see an increase in special assessments as associations begin to conduct inspections and identify necessary repairs, especially where the association has inadequate reserves and/or has been lax about maintenance.

Increases in quarterly/monthly maintenance assessments as associations budget for necessary repairs and attempt to rebuild reserves.

Some associations may have these reports now and if they do, the Buyer is entitled to them. Some have received written notice from the local enforcement agency.

Alerts the Buyer that at some point the condo they are buying may be part of an association which needs to obtain these 2 documents.

Conclusion 

Florida Keys condos can be a joy to own, just make sure you understand the associastion you are joining.

PRUMO & CARDEN TEAM

Amy’s success as a Florida Keys Elite Agent and Diamond Award Winner is truly awe-inspiring. With over 13 years of experience in the real estate industry, she has cemented her position as a trailblazer and pioneer. Her unwavering commitment to excellence is reflected in her impressive academic credentials, which include a Master’s Degree in Marketing and Management. Amy’s marketing programs are simply unmatched, ensuring that your property is showcased to the widest audience of potential buyers, thus guaranteeing maximum exposure.