In 2022, Florida passed SB 4-D — the most significant change to condo law in the state's history. It came in the wake of the Champlain Towers South collapse in Surfside, and it fundamentally changed what buyers need to know before purchasing a condo in any building over three stories.

If you're shopping for a condo in Panama City Beach, 30A, or Destin from out of town, this law directly affects your due diligence process. Here's what you need to understand before you fly in to look at a unit.

What Is a Milestone Inspection?

A milestone inspection is a structural integrity review of a condo building conducted by a licensed engineer or architect. Florida law now requires it for:

• Buildings 3 stories or taller — first inspection at 30 years of age, then every 10 years
• Buildings within 3 miles of the coast — first inspection at 25 years of age, then every 10 years

The inspection has two phases:

Phase 1 — A visual inspection of the building's structural components. If the engineer finds no signs of substantial structural deterioration, the inspection ends here.

Phase 2 — Required if Phase 1 finds potential issues. This is a more invasive inspection that may include testing of materials and a detailed remediation plan.

Why This Matters for Buyers Right Now

The Emerald Coast has a lot of condo inventory built in the 1980s, 1990s, and early 2000s. Many of those buildings are now hitting their 25- or 30-year milestone thresholds for the first time.

Here's the practical impact: if a milestone inspection reveals structural deficiencies, the association is legally required to complete repairs. Those repairs cost money. If the reserve fund isn't sufficient — and many Florida condo associations were chronically underfunded before the new law tightened reserve requirements — the cost gets passed to unit owners through special assessments.

Several buildings on the PCB strip and in Destin are currently in the middle of this process. Some have completed inspections with clean results. Others have findings that are generating significant repair costs and owner assessments.

As a buyer, you need to know which category the building you're considering falls into before you make an offer.

The Structural Integrity Reserve Study (SIRS)

Alongside the milestone inspection requirement, Florida law now requires condo associations to complete a Structural Integrity Reserve Study (SIRS) — an engineering assessment that estimates the remaining useful life and replacement cost of major structural components.

The SIRS determines how much the association must hold in reserve for:

• Roof
• Load-bearing walls and primary structural members
• Foundation
• Fireproofing and fire protection systems
• Plumbing
• Electrical systems
• Windows and exterior doors
• Waterproofing and exterior painting
• Seawall (where applicable)
• Parking structure

Associations are now required to fund reserves at the level the SIRS recommends — they can no longer vote to waive reserve contributions. This is a significant change from prior law and is driving HOA fee increases in many buildings.

What to Ask Before You Book a Flight

If you're considering a condo purchase from out of state, here's the list of questions I send to the listing agent before my buyers ever get on a plane:

Milestone inspection questions:

1. Has the building completed its milestone inspection?
2. If yes, what were the findings — Phase 1 only, or did it proceed to Phase 2?
3. Are there any required repairs identified in the inspection report?
4. What is the timeline and estimated cost for any required repairs?

Reserve and financial questions: 5. Has the association completed a Structural Integrity Reserve Study (SIRS)? 6. What is the current reserve fund balance? 7. What percentage funded is the reserve fund relative to the SIRS recommendation? 8. Are there any pending or anticipated special assessments? 9. When was the HOA fee last increased, and is an increase anticipated?

Building age and history questions: 10. What year was the building constructed? 11. Has the building had any major structural repairs in the past 10 years? 12. Are there any active lawsuits involving the association?

What the Condo Documents Will Tell You

Florida law requires sellers to provide condo documents before closing — typically within 3 days of contract execution. These include:

• The declaration of condominium
• Bylaws and rules
• Most recent annual budget
• Most recent financial statements
• Meeting minutes from the past 12 months
• Any pending or approved special assessments
• The milestone inspection report (if completed)
• The SIRS (if completed)

I review all of these for every buyer I represent. The meeting minutes are particularly revealing — they document every discussion the board has had about structural issues, reserve funding, and upcoming assessments. If there's a problem brewing in a building, it shows up in the minutes before it shows up anywhere else.

Red Flags to Watch For

• A building that is past its milestone inspection threshold but hasn't completed the inspection yet
• A reserve fund that is less than 50% funded relative to the SIRS recommendation
• Meeting minutes that reference structural concerns, water intrusion, or deferred maintenance
• A special assessment that was recently levied or is currently under discussion
• An HOA fee that has increased more than 20% in the past two years (often a sign of catching up on underfunded reserves)

The Bottom Line for Out-of-Town Buyers

The milestone inspection law is good for the long-term health of Florida's condo market. It's forcing associations to face deferred maintenance that should have been addressed years ago. But it also means that buying a condo in an older building without doing thorough due diligence is riskier than it was five years ago.

The good news: all of this information is available before you close. You just have to know what to ask for — and have someone on the ground who can get it for you.

If you're evaluating a condo purchase on the Emerald Coast from out of state, I can pull the condo documents, review the milestone inspection status, and give you a clear picture of the building's financial health before you ever book a flight. That's the kind of local representation that makes a real difference when you're buying remotely.

FAQ

What is a milestone inspection in Florida? A milestone inspection is a structural integrity review required by Florida law for condo buildings 3 stories or taller. Buildings must be inspected at 30 years of age (25 years for coastal buildings) and every 10 years after. The inspection is conducted by a licensed engineer or architect and assesses the structural components of the building.

What happens if a condo building fails its milestone inspection? If a milestone inspection finds substantial structural deterioration, the association is legally required to complete repairs. The cost of those repairs is typically funded through the reserve fund or, if reserves are insufficient, through a special assessment charged to all unit owners.

What is a Structural Integrity Reserve Study (SIRS)? A SIRS is an engineering assessment that estimates the remaining useful life and replacement cost of a condo building's major structural components. Florida law now requires associations to fund reserves at the level the SIRS recommends — they can no longer vote to waive reserve contributions.

How do I find out if a condo building has completed its milestone inspection? Ask the listing agent directly, and request a copy of the inspection report as part of your due diligence. Florida law requires sellers to provide condo documents — including the milestone inspection report if completed — before closing. Your buyer's agent should request these documents immediately after contract execution.