What the Milestone Inspection Will Find

Buyer Intelligence

What the Milestone Inspection Will Find

Nikko Karki
Nikko Karki October 22, 2026
Florida's condominium market now runs on an engineering calendar. Buildings three stories and taller face a milestone inspection when they turn 30, at 25 near the coast where the local authority requires it, and every ten years after that. Beside the inspections sits the structural integrity reserve study, and since January 1 of this year its reserves must be fully funded. No owner vote can waive them anymore. For buyers this is not paperwork. It is the best diligence file ever mandated into existence, and most buyers still do not read it.
The trigger
3 stories
Buildings this tall and taller carry the regime
The clock
30 / 25
Inspection age, lower near salt water by local rule
SIRS items
8
The structural components reserves must now cover
Full funding
Jan 2026
Reserve waivers for those components are gone

The Regime in Plain Terms

The milestone inspection comes in two phases. Phase one is a licensed engineer or architect examining the building's structural condition. If nothing suggests substantial deterioration, the building is done for ten years. If something does, phase two follows, with testing as invasive as the findings demand and a report that becomes part of the association's official records.

The structural integrity reserve study runs on its own ten year cycle and prices the future. The list runs from the roof and load bearing structure through fire protection and plumbing to waterproofing and windows, plus any other structural item beyond the statute's cost threshold. The study sets the reserve schedule, and the January 2026 change gave it teeth. Those reserves now get funded in full, every year, whatever the owners would prefer.

What Phase Two Findings Mean

A phase two report is not a verdict on a building. It is a scope of work with a timeline, and the difference matters enormously to a buyer. Concrete restoration, waterproofing and balcony work are the Florida coast's normal maintenance arriving on a legal schedule rather than a board's optimism. The question is never whether a 40 year old oceanfront building has work to do. It is whether the work is scoped, funded and underway. The unscoped and unfunded building is the one that issues the surprise assessment.

The reports also reset building politics. Boards that deferred for decades now carry engineers' findings in their official records, and the era of the patched balcony and the waived reserve ended with it. We covered the budget side of this reading in our work on the island's buildings, and the milestone file is its structural twin.

Reading the File Before You Offer

Every serious condominium purchase now starts with four documents: the latest milestone report, the current SIRS, the reserve schedule against it, and the board minutes since. Together they answer the only questions that move money. What did the engineers find. What will it cost. Is the money already in the reserves or still in the owners' pockets. And is the board executing or stalling. A building that scores well on all four is safer to buy than it has ever been, which is the quiet gift inside the regime.

The arithmetic belongs in the offer. Funded reserves and completed work justify full pricing. A pending phase two or an underfunded schedule is a discount conversation with a number attached, and the file itself supplies the number. We run that read on every building a client considers, alongside the offer design covered in The Well-Built Offer.

What It Does to Prices

The regime is repricing older buildings in public. Carrying costs rose where reserves had been waived for decades, and some owners are selling into that reality. The result shows as longer marketing times and wider spreads between buildings with clean files and buildings without. For prepared buyers this is opportunity wearing a warning label. The discount on a building with a funded plan and an ugly assessment history often exceeds the remaining risk. Most buyers read the assessment and never the file behind it.

Bottom Line

The milestone regime turned Florida's condominium stock into the best documented housing in America: engineers on a legal clock, reserves that must be real, and findings in the public record. Buyers who read the file buy better buildings at honest prices. Buyers who skip it are the ones funding the next surprise.

For buyers weighing an older building: ask for the milestone report, the SIRS and the reserve schedule before you fall for the view. The building will tell you the truth in writing, which is more than any lobby ever has.

Mechanics follow Florida statute 553.899 and the related condominium statutes as amended through 2025 and in force October 2026. Milestone inspections apply to buildings three stories and taller at 30 years, or 25 near salt water where the local enforcement agency requires, recurring every ten years. Structural integrity reserve studies run on the statutory component list at least every ten years. Full funding of those reserves became mandatory on January 1, 2026. This piece is process description, not legal advice.

Market observations are qualitative and drawn from our building level work. Where companion pieces publish recorded figures, their methodologies govern.

Florida statute 553.899 and the Division of Condominiums' published guidance.

Our building records and the companion offer design guide.

Nikko Karki
Written by

Nikko Karki

Nikko Karki has worked in real estate for nearly two decades, beginning on the developer side at Related Group in West Palm Beach, then through private real estate investments and cross-border M&A across the U.S., Europe, and Southeast Asia. He holds an M.Sc. in economics from the Helsinki School of Economics. He built Palm Beach Luxury to make his analysis available to anyone in the market, for free.
About our team →
Frequently Asked Questions
A structural inspection by a licensed engineer or architect for buildings three stories and taller. It first falls due at 30 years of age, or 25 near salt water where the local authority requires, then every ten years. Phase two follows phase one if substantial deterioration is suspected.
The structural integrity reserve study prices the building's structural components, from the roof and load bearing structure to waterproofing, on a ten year cycle. Since January 1, 2026 those reserves must be fully funded, and owner votes can no longer waive them.
Not by itself. Phase two is a scope of work with a timeline. The real question is whether the work is scoped, funded and underway or unscoped and unfunded, and the building's own file answers it before you offer.
Palm Beach Luxury

Every article we write is built on the same research we use to advise our clients. If anything here sparked your interest, we'd welcome a conversation.

Start a Conversation