Florida High-Rise Buyers: Understanding Milestone Inspections and SIRS

Florida's allure, with its stunning waterfront properties and bustling urban centers, attracts many seeking the high-rise condominium lifestyle. However, the tragic collapse of the Champlain Towers South in Surfside on the other coast prompted significant changes in Florida law, emphasizing building safety and financial preparedness. If you're considering purchasing a unit in a Florida condominium building three stories or higher, it's important to be aware of some important matters related specifically to condos and to grasp the implications of Milestone Inspections and Structural Integrity Reserve Studies (SIRS).

What are Milestone Inspections?

• Purpose: Milestone Inspections, mandated by Florida Statute 553.899, are structural evaluations designed to identify signs of substantial structural deterioration. These inspections aim to prevent catastrophic failures by ensuring buildings maintain their structural integrity. It is worth noting that these inspections are only required for buildings that are three stories or higher.
  

• Timing:

  • Buildings within three miles of a coastline must undergo their initial Milestone Inspection by December 31st of the year they reach 25 years of age.

  • Buildings beyond the three-mile coastal zone have until December 31st of the year they turn 30 years old.

  • Subsequent inspections are required every 10 years.
    

• Phases:

  • Phase 1: A licensed engineer or architect conducts a visual inspection to identify potential structural issues.

  • Phase 2: If Phase 1 reveals signs of substantial structural damage, a more detailed inspection is required. This may involve destructive testing to assess the extent of the damage.

    

    

• Parties Involved:

  • Licensed Structural Engineers or Architects: Conduct the inspections.

  • Condominium Association Boards: Responsible for hiring and overseeing the inspections.

  • Property Managers: Facilitate the process and manage documentation.

  • Third-Party Consultants: May be hired for additional review or expertise.
    

• Importance for Buyers:

  • A recent and satisfactory Milestone Inspection report provides assurance of the building's structural health.

  • Any Phase 2 inspections or identified deficiencies should be looked at carefully to understand the potential implications for the building and the owners.

  • It is important to understand that these inspections are not a guarantee of future integrity, but they are a snapshot of the building's current state.
    

• Link for more information on Milestone Inspections go to Florida Statute 553.899.

What are Structural Integrity Reserve Studies (SIRS)?

• Purpose: SIRS, as mandated by Florida Statute 718.112, are financial planning tools that assess a condominium association's reserve funds and determine the adequacy of those funds to cover future major repairs and replacements. These studies aim to prevent financial instability and unexpected special assessments.
  

• Components Covered: SIRS must address the following critical structural components:

  • Roof

  • Load-bearing walls or other primary structural components

  • Floor

  • Foundation

  • Fireproofing and fire protection systems

  • Plumbing

  • Electrical systems

  • Waterproofing and exterior painting  
    

• Funding Requirements: Florida law now requires condominium associations to fully fund these reserves, eliminating the option to waive or partially fund them. This ensures that associations have the necessary funds for future maintenance and repairs.

  

  
  
  

• Parties Involved:

  • Reserve Specialists or Engineers: Conduct the studies.

  • Condominium Association Boards: Responsible for commissioning and implementing the studies.

  • Property Managers: Assist in providing necessary data and managing the process.

  • Financial Advisors: May be consulted for funding strategies.
    

• Importance for Buyers:

  • A well-funded SIRS indicates financial stability and reduces the risk of special assessments.

  • Reviewing the SIRS provides insight into the building's long-term maintenance needs and associated costs.

  • This allows the buyer to foresee future potential expenses.
    

• Link for more information on SIRS, go to Florida Statute 718.112
  

How a Real Estate Agent Can Help:

• Guidance and Expertise: A knowledgeable real estate agent specializing in Florida high-rise properties can guide you through the complexities of Milestone Inspections and SIRS.

• Due Diligence Assistance: They can help you obtain and interpret relevant documentation, including inspection reports and reserve studies.

• Asking the Right Questions: An experienced agent will know the critical questions to ask condominium association boards and property managers.

• Negotiation Support: They can help you negotiate contingencies related to inspection findings or reserve funding.

• Connections to Professionals: Agents often have connections to qualified inspectors, engineers, and attorneys specializing in condominium law.

• Protecting Your Interests: A real estate agent will work to protect your interests and ensure you make an informed decision.
  

What Buyers Should Be Aware Of:

• Request documentation... and take the time to read through the information available... this is your responsibility as a buyer

• Be prepared for special assessments that could come as part of planning for maintaining common spaces and building systems.

• Understand insurance implications.

• Review association financials.

• Consider the building's age and location.

• Consult with experts.

• Review association meeting minutes.
  

Key Takeaways for Buyers:

• Florida's Milestone Inspection (for buildings three stories or higher) and SIRS requirements are crucial for protecting buyers and ensuring building safety.

• Thorough due diligence is essential to make informed decisions.

• A real estate professional is a valuable asset in this process.

• Understanding these regulations can help you avoid unexpected costs and financial burdens.

• By taking these precautions, you are better prepared to make a sound investment.

  
  

Investing in a Florida high-rise can be a rewarding experience. By prioritizing Milestone Inspections and SIRS, and by working with a qualified real estate agent, you can safeguard your investment and enjoy peace of mind.

If you have any real estate needs in the Naples or greater area, feel free to reach out to Renee Hahn at 239.287.2576 or Renee@YourNaplesExpert.com.