Buying a condo in Florida today involves a layer of due diligence that simply did not exist a few years ago, and skipping it can cost you far more than a bad paint color or an outdated kitchen. Structural Integrity Reserve Study requirements under Florida Statute 718 are now being enforced across the state, and the financial health of a condo association has become just as important as the unit itself. Here is what we walk every condo buyer through before they submit an offer.
Why This Matters Now
Condo associations are now required to fund reserves for major structural components, and buildings that were underfunded for years are catching up fast. That catch up shows up in two places: special assessments and insurance costs. Buildings with strong reserves and completed SIRS reports are seeing property insurance renewals stabilize, in some cases with changes of only 0% to 5%. Older coastal buildings that are still working through reserve shortfalls are seeing general liability and umbrella policy increases of 10% to 15%, on top of flood insurance increases of 15% to 18% annually as FEMA’s Risk Rating 2.0 phases in. That is a real cost difference that belongs in your decision, not a surprise after closing.
What to Ask Before You Offer
Before you write an offer on any Florida condo, ask for the building’s most recent SIRS report, its current reserve fund balance, and a copy of the master insurance policy with the deductible clearly stated. Ask directly whether any special assessments are active or anticipated in the next twelve to twenty four months. Lenders are asking these same questions now too, and a building that cannot produce clean answers can slow down or even derail your financing, regardless of how much you love the unit itself.
Older Coastal vs. Newer Inland Buildings
Not every older building is a red flag, and not every newer building is automatically safe, but the pattern we are seeing across the market is real. Older coastal towers facing upcoming milestone inspections or reserve shortfalls tend to sit longer on the market and require deeper price discounts to close, because informed buyers are pricing in the coming assessment. Newer or well reserved buildings, including many inland from the coast, are holding value more consistently and facing far less insurance pressure. Neither category is automatically the right or wrong choice for you, but you should know which one you are buying into before you commit.
How We Help You Vet a Building
We request the SIRS report, reserve financials, and master policy details as a standard part of every condo offer we help write, before you are locked into a contract, not after. Buying the right unit in the wrong building can turn into an expensive lesson. Buying the right unit in a well managed building is one of the more secure real estate decisions you can make in Florida right now.
If you are shopping for a condo anywhere in South Florida, let’s go through this checklist together before you fall in love with a unit that comes with a problem building attached.