Thomas Druck PA — Miami real estate
FAQ · ABSENTEE & INTERNATIONAL CONDO SELLERS

WHAT IS A MILESTONE INSPECTION — AND HOW DOES IT AFFECT MY MIAMI CONDO SALE?

Quick answer: A Milestone Inspection is a structural safety inspection required by Florida Statute §553.899 for residential condo and co-op buildings three stories or taller, once they reach 30 years of age (or 25 years inside three miles of saltwater, at the local enforcement agency’s discretion). It was passed in 2022 after the Surfside collapse and amended in 2023.

If your building is in or approaching the inspection window, it directly affects your sale in four ways: disclosure obligations, buyer financing, HOA fee and reserve increases, and the risk of a special assessment. Sellers who ignore the inspection status often lose 5–15% of net proceeds — or lose the buyer entirely. Sellers who get ahead of it can preserve price and close on time.

WHAT DOES FLORIDA'S MILESTONE INSPECTION LAW (§553.899) REQUIRE?

When was Florida's Milestone Inspection law passed and why?

The Milestone Inspection law was passed as Senate Bill 4-D in May 2022, in direct response to the June 24, 2021 collapse of Champlain Towers South in Surfside that killed 98 people. It was amended in June 2023 by Senate Bill 154 (the “glitch bill”) to clarify deadlines and remove the automatic 25-year coastal trigger.

 

Which buildings does the Milestone Inspection law apply to?

The current statute applies to:

  • Any residential condominium or cooperative building
  • That is three habitable stories or more above ground
  • Once it reaches 30 years of age based on the date its certificate of occupancy was issued
  • Then every 10 years after that

 

Does Miami-Dade have a 25-year coastal trigger?

There is one exception that matters in Miami-Dade. Local enforcement agencies are allowed to require a 25-year initial inspection for buildings within three miles of the coastline if local conditions justify it. Miami-Dade County had a 40-year recertification program for decades that pre-dates the state law; that program has been folded into the state Milestone framework. If you own a condo in Brickell, Edgewater, South Beach, Bal Harbour, Sunny Isles, or anywhere else east of Biscayne Bay, assume the 25-year trigger may apply and verify with your association.

 

Which buildings are exempt from Milestone Inspection?

It does not apply to single-family homes, townhouses, or any residential building three stories or fewer.

WHAT ARE PHASE ONE AND PHASE TWO OF A MILESTONE INSPECTION?

A Milestone Inspection is performed by a Florida-licensed engineer or architect — not a home inspector, not a contractor. It runs in two phases:

What is a Phase One inspection?

Phase One — Visual inspection. The engineer walks the building and visually examines the load-bearing structural elements: foundations, columns, beams, slabs, balconies, exterior walls. They produce a sealed report describing the building’s condition and identifying any “substantial structural deterioration.”

What happens if a building passes Phase One?

If Phase One finds no substantial deterioration, the building passes. The next inspection is required in 10 years. Done.

What is a Phase Two inspection?

Phase Two — Destructive testing. Triggered only when Phase One identifies structural deterioration that needs deeper investigation. Phase Two involves invasive testing — coring concrete, exposing rebar, sometimes opening walls or ceilings. The Phase Two report identifies what needs to be repaired, the urgency, and (often, but not always) cost estimates.

What happens after Phase Two findings are issued?

Once Phase Two findings are issued, the association has 365 days to commence repairs. If they don’t, local code enforcement can declare the building unsafe for occupancy.

What is the Structural Integrity Reserve Study (SIRS)?

Worth knowing because it travels alongside the Milestone Inspection: every condo and co-op building three stories or taller must also complete a SIRS every 10 years. The SIRS identifies the cost and timeline for major structural repairs and dictates how much the HOA must hold in reserves. As of January 1, 2025, condo boards can no longer let unit owners vote to waive or underfund reserves for structural items. This is the single biggest reason HOA fees have spiked across Miami in the last 18 months.

HOW DOES A MILESTONE INSPECTION AFFECT MY SALE PRICE, TIMING, AND NET PROCEEDS?

There are four ways the Milestone law shows up at the closing table.

What does Florida require me to disclose to the buyer?

Florida requires sellers of resale condos to provide the buyer with the association’s governing documents, recent financials, and any pending special assessments. Milestone Inspection reports — Phase One, Phase Two, and any related engineering studies — are squarely inside that disclosure scope. Hiding them is not an option. Most title companies now ask for them up front.

Will buyers be able to get financing in my building?

This is the biggest hidden risk. Fannie Mae and Freddie Mac maintain a list of “non-warrantable” condo buildings — buildings whose financial or structural condition disqualifies them from conventional 30-year mortgages. Buildings with pending Phase Two findings, deferred required repairs, or underfunded reserves are increasingly being flagged. A buyer who was approved for a conforming loan on Monday can find out Friday the lender won’t fund. Cash buyers absorb this risk; financed buyers walk away.

How much will HOA fees rise after a Milestone Inspection?

Once SIRS recommendations kick in, monthly HOA fees often rise 30–80%. Buyers underwrite the deal based on monthly carry cost. A $1,200/month HOA jumping to $2,000/month changes how much condo a buyer can afford — and reduces what they’ll pay for yours.

 

How much can a special assessment cost per unit?

This is the one that does the most damage to absentee sellers. If the Phase Two report mandates significant repairs — facade restoration, balcony reconstruction, post-tension cable replacement, roof rebuild — the association will levy a special assessment. Special assessments range from $20,000 per unit to over $250,000 per unit on serious repair projects. Whether the seller or buyer pays is negotiable, but the disclosure is mandatory and the price impact is real.

The number one mistake Tom sees absentee sellers make: pricing the condo based on what comparable units sold for two years ago, before the Milestone deadlines hit. Pricing has to reflect the building’s current inspection status, SIRS findings, and any pending or assessed repair work. The Net + Risk Review Tom provides each absentee seller starts here — with the building, not the unit.

Related: Special assessments are a deep enough topic to deserve their own playbook. What are special assessments and how do they affect a Miami condo sale? covers the disclosure rules, the three pri

WHAT WILL BUYERS AND LENDERS DEMAND TO SEE — AND HOW CAN I PREPARE?

What documents will buyers and lenders request?

Sophisticated buyers (and every lender) now include a “structural file” request in their initial offer. Typical contents:

  • Phase One Milestone Inspection report (and Phase Two if applicable)
  • SIRS report
  • Current reserve balances
  • 12 months of HOA board meeting minutes (where assessment discussions live)
  • Any engineering studies commissioned outside the Milestone process
  • Insurance master policy details and any recent claims
  • Status of any open code violations against the building

Why does producing the structural file in 48 hours matter?

Sellers who can produce this file in 48 hours close on time. Sellers who can’t trigger the buyer’s inspection contingency, an attorney review delay, or a price renegotiation. Tom typically requests this file from the association before listing, not during inspection period.

What public records will the buyer's attorney pull?

The buyer’s attorney will also pull the 40/50-year recertification status from Miami-Dade Code Compliance and the building permit history from the city. If anything inconsistent surfaces between what the seller disclosed and what public records show, the deal usually dies.

Sophisticated buyers (and every lender) now include a “structural file” request in their initial offer. Typical contents:

  • Phase One Milestone Inspection report (and Phase Two if applicable)
  • SIRS report
  • Current reserve balances
  • 12 months of HOA board meeting minutes (where assessment discussions live)
  • Any engineering studies commissioned outside the Milestone process
  • Insurance master policy details and any recent claims
  • Status of any open code violations against the building

Sellers who can produce this file in 48 hours close on time. Sellers who can’t trigger the buyer’s inspection contingency, an attorney review delay, or a price renegotiation. Tom typically requests this file from the association before listing, not during inspection period.

The buyer’s attorney will also pull the 40/50-year recertification status from Miami-Dade Code Compliance and the building permit history from the city. If anything inconsistent surfaces between what the seller disclosed and what public records show, the deal usually dies.

WHAT DO REAL MIAMI MILESTONE OUTCOMES LOOK LIKE?

Brickell condo, Phase One pass: how did a Munich owner close in 38 days?

Brickell condo, 1989 construction. Owner in Munich. Building is in its initial Milestone Inspection window. Phase One inspection clears the building with minor maintenance items. SIRS flags facade work in 5–7 years, projected $12M building-wide. Result: HOA fees rise 22%, no special assessment yet, sale closes in 38 days at 96% of list. The seller’s net was $11K higher than her original Net + Risk Review estimate because the buyer waived the inspecti

South Beach condo with $85K special assessment: how did a Vienna owner close?

South Beach condo, 1979 construction. Owner in Vienna. Phase One triggers Phase Two. Phase Two finds structural deterioration in the parking podium. $85,000 special assessment voted in, with a 24-month payment schedule. Listing strategy: assessment paid by seller at closing as a credit, list price adjusted to absorb the cost. Property closed in 67 days at adjusted price, no buyer concessions beyond the assessment credit. Net to seller was within 2% of pre-assessment estimate.

Edgewater condo: how did a Zürich owner sell before the inspection cycle started?

Edgewater condo, 2002 construction. Owner in Zürich. Building still 6 years from initial inspection. Strategy: list and close before the inspection cycle starts. Disclosure was clean, HOA financials were strong, building had voluntarily commissioned a private structural review showing no concerns. Sold in 19 days at 102% of list to a cash buyer who specifically wanted a building with no near-term Milestone exposure.

WHICH MILESTONE MISTAKES COST SELLERS THE MOST MONEY?

Mistake 1: Assuming a reputable building is automatically safe

Reputation has nothing to do with what an engineer finds in a Phase Two. Even prestige buildings have failed inspections.

Mistake 2: Listing without pulling the structural file

Sellers who find out about a Phase Two finding from the buyer’s attorney lose negotiating leverage immediately.

Mistake 3: Pricing off old comparable sales

Comps from before the building’s Milestone or SIRS are stale data. Two years is a long time in this market.

Mistake 4: Refusing to negotiate on the special assessment

Trying to pass the entire assessment to the buyer often kills the deal. A pro-rated split usually keeps the buyer in.

Mistake 5: Hiding deferred maintenance items

Florida disclosure law is unforgiving. Post-closing lawsuits for non-disclosure are now routine in this category.

Mistake 6: Waiting to call an agent until after the buyer's inspection

By then it’s reactive. Tom’s standard process pulls the structural file weeks before listing.

WHAT'S THE RIGHT SEQUENCE IF MY BUILDING IS IN THE INSPECTION WINDOW?

Step 1: What should I ask my HOA management company first?

Call your HOA management company. Ask three questions: (a) When was the building’s CO issued? (b) Has the Milestone Inspection been completed? (c) Has the SIRS been completed?

Step 2: Which Milestone and SIRS documents should I request?

Request copies of any completed Phase One, Phase Two, and SIRS reports — and the most recent 12 months of board meeting minutes.

Step 3: How do I get a Net + Risk Review on my unit?

Get a Net + Risk Review on your unit. This is the analysis Tom provides at no cost: current market value, projected HOA changes, special assessment exposure, your net proceeds at three pricing strategies.

Step 4: Should I list now or wait through the inspection?

Decide the strategy: list now and close before more disclosure landmines surface, or wait through the inspection cycle. Both can be the right call. The wrong call is making it without the data.

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SOURCES & FURTHER READING

Last updated May 2026. Florida law changes — verify current statute text and Miami-Dade enforcement requirements with your association management or licensed attorney before relying on this guidance for a specific transaction.

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