Condo Milestone and SIRS Due Diligence: What South Florida Buyers Should Check Before They Sign
Before you make an offer on a South Florida condo, there is one folder of documents that matters more than the finishes, the view, or the monthly dues. Skip it, and you can inherit a six-figure special assessment that was decided before you ever saw the listing. This is the single most common source of unpleasant surprises in the Broward, Miami-Dade, and Palm Beach condo market right now, and almost all of it is knowable in advance.
Two words explain why: milestone inspection and SIRS.
What a milestone inspection actually is
A milestone inspection is a structural inspection of an aging condominium building, carried out by a Florida-licensed engineer or architect. It applies to buildings of three or more habitable stories. Under Florida Statute 553.899, the first inspection is generally required once a building reaches 30 years from its certificate of occupancy, or 25 years if it sits within three miles of the coastline. After that, it repeats every ten years. For a coastal South Florida building, that 25-year trigger catches a very large share of the inventory.
The inspection runs in two phases. Phase 1 is a visual assessment. If Phase 1 flags substantial structural deterioration, Phase 2 follows, using testing to map the actual extent of the damage. Once a Phase 2 report confirms a problem, the association has to begin repairs within a set timeframe.
Here is the part buyers get wrong. Confirming that a milestone inspection happened is not enough. The inspection is not the risk. The findings, and how the building plans to pay for them, are the risk.
The SIRS is the document that touches your wallet
The Structural Integrity Reserve Study, or SIRS, is the financial companion to the milestone inspection. Introduced by Senate Bill 4-D after the Surfside collapse and refined by later bills including HB 913, the SIRS forces associations to actually hold money for future structural repairs.
Governed by Florida Statute 718.112, the SIRS evaluates the building's major structural components, including the roof, load-bearing structure, foundation, fireproofing, plumbing, electrical systems, waterproofing, and windows and exterior doors. For each one, it estimates remaining useful life, replacement cost, and the reserve funding needed.
One change matters more than any other. Reserve waivers are no longer permitted for structural components. The old move, where a board would vote to waive reserves and keep monthly dues artificially low, is gone. That mechanism is exactly what let Champlain Towers South defer its problems for years. A completed SIRS sitting next to an underfunded reserve account is not reassurance. It is a bill waiting to be sent.
The documents to request before you write an offer
The Florida Condominium Act gives a buyer a short window to review association documents after receiving them, and the inspection period in a standard contract is negotiable. Use that window. For any condo 25 years or older, ask for the following as part of your condo due diligence.
The full milestone inspection report, both phases if Phase 2 was triggered. Read what was found, not just the date on the cover. Phase 1 findings that stopped short of Phase 2 can still reveal conditions worth knowing about.
The most recent SIRS, checked against the association's actual reserve balance. Note the current funding percentage for each component and whether the board has adopted a plan to reach full funding.
The last 24 months of board meeting minutes. This is where special assessment discussions live before they become special assessments, and it is the most underused document in the entire process.
The two most recent annual budgets and reserve schedules, so you can see whether reserves are being funded on schedule or paused.
The current master insurance policy, including wind and flood coverage. Inadequate master insurance is a leading reason buildings run into financing trouble, and an insurance problem usually precedes a financial one.
If a seller or listing agent is slow to produce any of these, treat the delay itself as information.
