Researched & Written By Richard Eimers, Broker Owner, Beach Road Realty
Starting January 1, 2025, when you’re buying or selling a condo in Florida, the sales purchase contract must include clear statements about three key things:
1. Condo Shock Wave: What Buyers and Sellers Must Understand Now
2. Turnover report
3. Structural integrity reserve study (SIRS)
These statements need to be easy to spot in the contract, so you don’t miss them.
What’s a Milestone Inspection?
Think of a milestone inspection as a check-up for your condo building. Just like we go to the doctor for regular check-ups, buildings need them too! This inspection is required for condos that are either:
• 25 years and older
• Over three stories tall
Licensed engineers or architects will examine important parts of the building, like:
• Walls that hold up the building
• The foundation
• The roof
• Electrical systems
• Plumbing
• Fire protection
• Windows and waterproofing
Pros of Milestone Inspections
1. Safety First: By catching problems early, we can prevent big accidents and keep everyone safe.
2. Save Money in the Long Run: Fixing small issues now is cheaper than big repairs later.
3. Better Property Value: Well-maintained buildings are worth more!
4. Plan Ahead: Knowing what needs fixing helps condo associations budget better.
Cons of Milestone Inspections
1. Upfront Costs: These inspections can be expensive, especially for smaller condo associations.
2. Possible Fee Increases: If repairs are needed, condo fees might go up to cover the costs.
3. Market Challenges: Buildings with poor inspection results might be harder to sell.
4. Compliance Struggles: Older buildings might find it tough to meet new standards.
What This Means for You
If you’re buying a condo, you’ll have more information about the building’s condition before you make your decision. If you’re selling, you’ll need to make sure you have all this information ready for potential buyers.
Financial Changes
There’s also a big change in how condo associations manage their money. They now need to keep 100% of the repair costs in their reserve funds for any repair over $10,000. This might mean higher condo fees, but it also means buildings will be better maintained in the long run.
Wrapping Up
These new rules are all about making sure Florida’s condos are safe, well-maintained, and financially healthy. While there might be some challenges as everyone adjusts, the goal is to create better, safer homes for all condo residents. Remember, if you’re buying or selling a condo, make sure you understand these new requirements. Don’t hesitate to ask your real estate professional if you have any questions. Here’s to a safe and happy 2025 in your Florida condo!