New Condo Laws in Florida: What Buyers Need to Know

February 10, 2025

Florida's real estate market is no stranger to changes in condo laws. There have been many modifications over the last few years, so we're not surprised to start 2025 with new condo laws to take into account. This particular set of regulations, however, is designed with a specific focus on structural safety, and its creation can be traced back to a specific event and its tragic consequences.  

Today, our real estate professionals will go over all the relevant details to explain how this law might affect the real estate process. If you're planning to buy a new house in Florida, you can't miss this blog post.

The Basics

Let's start by outlining the new rules that will affect condo sale contracts from now on. Effective since January 1st, 2025, the new law dictates that sale contracts require statements in conspicuous type regarding the milestone inspection (Milestone), turnover inspection report (Turnover), and structural integrity reserve study (SIRS).

What does this mean?

Milestone inspection: Milestone inspections focus on important structural factors to ensure that the building is safe for all residents. Condominiums and cooperative associations are obligated to conduct these inspections on buildings that are three stories or higher, as well as buildings that are at least 30 years old.

The report must be must be signed and sealed by a Florida Registered Architect or Florida licensed Professional Engineer, and issued alongside the turnover inspection report.

The report must include:

• Materials and components, as well as their lifespan. It must also specify if any of these components shows visible signs of decay.


• Specific issues that require upgrading or areas in need of repairs.


• Information on whether the building adheres to local/state guidelines.

Structural Integrity Reserve Study (SIRS): Associations must conduct an evaluation of their reserve funds to prove their ability to fund major repairs, specifically any item exceeding $10,000. This way, the association assumes the responsibility of handling the building's maintenance over the years.

The study needs to assess elements like:

• Internal systems like electricity, plumbing, and fire protection systems.


• Load-bearing walls.


• Roofing


• Exterior painting and other parts of the exterior structure.

The law's main purpose is to ensure a transparent process where all safety hazards are properly detected and addressed. Its creation shows the impact of the Champlain Towers South Collapse, an event that understandably shocked Florida into prioritizing its own condo safety regulations.

Repercussions of the Champlain Towers South Collapse

The collapse of Champlain Towers South in Surfside in 2021 revealed concerning gaps in Florida's condo regulations. Causing 98 deaths and a $1.02 billion settlement, it drew attention to the dangers of poor building maintenance, especially on aging condo structures. The building was 40 years old at the time of the collapse, not unlike many of the multi-story buildings spread all over the state.

This tragic event prompted a new deadline during which condo associations were expected to complete milestone inspections and issue the corresponding forms. Likewise, sellers are now expected to present updated forms where they show the status of the Milestone, Turnover, and SIRS documents.

What To Expect from This New Condo Law

The importance of this law is undeniable, but it also creates a new picture for those looking to buy a condo inside the state.

• The main points of contention circle around the increase of association fees, given that now condo associations are expected to have the funds to cover the building's maintenance.
  
  A direct result is that condo owners will see an increase in their monthly fees, while potential buyers will have to calculate this increase into their budget. This will likely reduce the buyer's options among the condos available in their area. According to an article released by ABC Action News at the end of January, condo associations in Florida are asking for changes in the funding requirements while some condo owners across the state face the risk of eviction.


• Restriction may also extend to your mortgage options as a new buyer. Lenders and mortgage brokers might deny your request if the property doesn't comply with new state regulations.


• While affecting homeowners and condo associations, this regulation will also affect the market value of old condo buildings. With owners being forced to sell and buyers investing less, associations might condemn some of these structures, creating a smaller pool of options in Florida's market.

In light of all this, we stress the importance of researching thoroughly before setting your sights on a specific property. Look into the association's financial investment and make sure that all inspections have been completed, checking that the documents are tailored around the updated language and guidelines.

The knowledge of a local real estate company will be crucial once you make your decision. They can help you do due diligence so you have nothing to worry about during the closing.

Are you worried about moving forward with your real estate purchase? You can navigate the process without getting confused by Florida's new condo laws. Key Title & Escrow will assist you with up-to-date information and reliable services to help you ensure your safety inside your new home. If you have questions about how the new real estate landscape could affect your transaction, contact us today to get the support you need! You can call (305) 235-4571 or toll-free at (800) 547-0006 to learn more about our services. If you want, you can also get in touch with our specialists via the contact form on this page. We'll be happy to answer all your questions!