If you're shopping for a condo in South Florida right now, you're navigating a market that looks and feels different than it did just a few years ago. New state laws, tighter lending requirements, and rising operating costs have added layers to the process that simply didn't exist before. The good news is that none of this has to be confusing. Here's what you need to understand before you fall in love with a unit.
The Law That Changed Everything: SB 4-D
In the wake of the Surfside tragedy, Florida passed Senate Bill 4-D, which fundamentally changed how condo buildings are inspected and how associations must manage their finances. Here's what the law requires:
- Condo buildings three stories and taller must complete a Milestone Structural Inspection at 30 years, or 25 years if the building's within three miles of the coast. Inspections repeat every 10 years after that.
- A Phase 1 inspection is a visual review. If issues are found, a Phase 2 engineering inspection is required.
- Every association must now have a Structural Integrity Reserve Study (SIRS) completed. This determines how much money the association must set aside each year for structural components.
- Associations can no longer vote to waive reserve funding. Full funding is now legally required.
- Once a SIRS report is received, the association must notify all owners within 45 days and submit the report to the Florida Division of Condominiums, Timeshares, and Mobile Homes within that same window.
These requirements apply to condominium and cooperative buildings that are three stories or taller. The main exemption is for smaller residential buildings, including single-family, two-family, three-family, or four-family dwellings, that are three stories or less.
The SIRS and the Milestone Inspection Are Two Different Things
One of the most common points of confusion among buyers is treating these two documents as the same thing. They are not. The Milestone Inspection is a structural safety document. The SIRS is a financial planning document. They're completed by different professionals on different timelines, and both need to be reviewed independently. A building that's completed its SIRS isn't automatically in good financial shape. The real question is whether the reserve funding level actually matches what the SIRS recommends. Those are two very different things, and conflating them is where a lot of buyer confusion comes from. One resource worth knowing about: the Florida Division of Condominiums now maintains a public database showing which associations have completed their SIRS reporting requirements. Buyers can look up any building before making an offer.
Questions to Ask About Every Building
Before making an offer on any condo, these are the questions worth asking:
- Has the Milestone Structural Inspection been completed, and what phase is the building in?
- Has the SIRS been completed, and how does the current reserve funding level compare to what it recommends?
- Are there any pending, voted-on, or anticipated special assessments?
- How have HOA dues changed over the past two years, and are increases planned?
- Is the building approved for FHA loans, VA loans, or conventional financing through Fannie Mae or Freddie Mac?
- Is there any active litigation involving the HOA?
- How does the association handle board meetings? Are they held at least quarterly, and do owners have the right to ask questions and review contracts up for approval?
How the Association Is Run Matters More Than Most Buyers Realize
The new laws put significant new accountability requirements on condo association boards. Associations with more than 10 units are now required to hold board meetings at least once per quarter. Owners must be able to participate and ask questions at those meetings, and any contract up for board approval must be available for owner review. How an association is run directly affects the ownership experience and the building's resale value. A well-run, transparent board is a signal of a well-managed building. A board that resists owner participation or operates without accountability is a yellow flag worth taking seriously.
What About Hurricane Protection?
Associations are now required to adopt uniform hurricane protection standards across the entire building. If the association votes to install hurricane protection measures such as impact windows, those costs can be assessed to unit owners. Maintenance of those improvements is the association's responsibility if they cover common elements. Buyers should ask whether hurricane protection has been installed, what standards the building follows, and whether any related assessments are pending.
Why Financing Is More Complicated Now
Lenders now require detailed questionnaires about a building's financial and structural health before approving loans. Buildings with reserve shortfalls, deferred maintenance, or pending litigation may not qualify for conventional financing. That limits a buyer's options upfront and limits the future buyer pool at resale. Starting in 2026, reserve estimates for components valued at $25,000 or more must also account for inflation, which means reserve requirements and future assessments can rise even without any new deferred maintenance.
What a Healthy Building Looks Like
A building that has completed its inspections, funds its reserves at or near the level the SIRS recommends, runs transparent board meetings, and has a clear plan for hurricane protection is a materially different asset than one that hasn't done the work. The price difference may not always show up in the listing. But it will show up in the ownership experience. Knowing how to evaluate a building, not just the finishes inside the unit, is one of the most valuable things a buyer can do before making an offer in today's South Florida condo market.
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