What a milestone inspection is
A milestone inspection is a structural inspection of a condominium or cooperative building that reaches a certain age, performed by a licensed engineer or architect, with repeats at set intervals. Its goal is to find structural deterioration early.
The age threshold and the schedule are set by state law and depend on how far a building is from the coast, so ask the association for the exact status.
Structural integrity reserve study
A structural integrity reserve study estimates the remaining life and replacement cost of key components, such as the roof, structure, waterproofing, plumbing and electrical systems, and sets the reserves the association must fund.
These reserves can no longer be waived in many cases, which is the main reason fees have risen in older buildings.
How to read the reports
Look for a summary of conditions, any item marked as needing repair, the estimated cost and the timeline. Ask the association what has been done since the report and how repairs will be paid for.
If a report mentions substantial structural work, ask an independent engineer or your attorney to review it before you proceed.
What it means for fees
Higher required reserves usually mean higher monthly fees, and a building that has underfunded reserves may use special assessments to catch up. Compare the fee per square foot across buildings, not only the headline number.
A lower fee is not automatically better if it hides unfunded repairs.
What buyers should request
Ask for the latest milestone inspection report, the structural reserve study, the budget, the minutes and confirmation that the association is compliant with deadlines. Ask also whether repairs are scheduled and who will pay.
Request these early in the inspection period, because associations may take days to respond.
Effect on price and resale
Buildings that are transparent and funded may hold value better, while buildings with open questions can trade at a discount or take longer to sell. Financing can also be harder in buildings with major unresolved issues.
Think about resale when you buy: your future buyer will read the same reports.
Common mistakes
Buying on price alone, ignoring a recent report, assuming a new paint job means the structure is sound and skipping the minutes where repair plans are discussed.
Another mistake is relying on verbal assurances instead of documents.
Checklist for buyers of older buildings
Find the year of construction and the distance from the coast. Ask whether the milestone inspection is done and request the report. Ask for the reserve study and whether reserves are fully funded. Read minutes for repair plans and loans. Compare the fee and its history with similar buildings. Ask your attorney to review the documents before the inspection period ends.
What about newer buildings
Newer buildings are not exempt from checking. The rules start later for them, but you should still ask about the budget, reserves and warranties. A young building usually has fewer large repairs ahead, though early construction defects do occur.
If you are choosing between a new and an older building, compare the full cost over several years, not only the price.
Next step
Tell us the building and we will request the reports and review them with you and your attorney before the inspection period ends. Lidiya Tretyak is a licensed Florida real estate agent with Douglas Elliman and speaks English, Russian and Ukrainian; the first consultation is free.
This guide is general information, not legal or tax advice. Laws and programs change — confirm details with a Florida attorney and a US tax professional.
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