Buying a Condo in Palm Beach County? What the Milestone Inspection Means for You

If you're shopping for a condo in Palm Beach Gardens, Delray Beach, Boca Raton, or anywhere in Palm Beach County, there's a question you need answered before you make an offer — and most buyers relocating from New York, New Jersey, or Chicago have never heard of it.

What is this building's milestone inspection status?

After the 2021 Surfside collapse, Florida passed Senate Bill 4-D, which fundamentally changed the condo market across South Florida. The law created mandatory structural milestone inspections for older condominium and cooperative buildings, and the deadline wave has been hitting Palm Beach County buildings for the past two years. Florida condo values dropped 9.9% statewide in the 12 months through mid-2025 — the steepest one-year decline since 2009. That's not random market volatility. It reflects buyers pricing in inspection risk they don't fully understand yet.

Here's what you actually need to know.

WHAT THE LAW REQUIRES

Florida SB 4-D applies to condominiums and cooperative buildings that are three stories or taller. The inspection timeline depends on how close the building is to the coast:

• Within 3 miles of the coast: Milestone inspection required at 25 years, then every 10 years
• More than 3 miles from the coast: Inspection required at 30 years, then every 10 years

Palm Beach County also has its own building ordinance — historically referenced as the "40-year recertification" — requiring structural and electrical review for aging buildings. For condos, the state milestone inspection requirements overlap with and, in many cases, supersede the local rule. What matters for you as a buyer is whether the building has completed the required inspection under current law and what that inspection found.

The inspection happens in two phases. Phase 1 is a visual assessment of the building's structural elements — load-bearing walls, foundations, balconies, and roofs. Cost to the association: typically $5,000–$20,000 depending on building size. If Phase 1 finds significant deterioration, the engineer orders a Phase 2 investigation. This is a detailed engineering study — costs can exceed $50,000. If repairs are required from there, you're looking at potential six-figure expenses for concrete restoration, balcony remediation, or structural reinforcement.

The building's age and coastal proximity determine its deadline. Singer Island, North Palm Beach, and Juno Beach buildings from the 1970s and 80s. Many are hitting their inspection windows right now.

WHAT THIS MEANS WHEN YOU'RE BUYING

The inspection itself isn't the risk. What comes after is.

When a building has significant structural findings, the association must fund repairs — through reserves (if adequately funded over the years) or through special assessments (if not).

A special assessment is an additional charge levied against every unit owner. In a building facing major structural repairs, that can mean $10,000, $20,000, or more per unit — billed to whoever owns the condo when the assessment is approved. If you close on a condo the week before a special assessment vote, that bill is yours.

This is why your due diligence on any Palm Beach County condo has to go deeper than a home inspection. You need a careful review of the condo documents — specifically the Structural Integrity Reserve Study (SIRS), the milestone inspection report (Phase 1 and Phase 2, if applicable), and the association's meeting minutes for the past 12 to 24 months. Meeting minutes are where the real conversation happens: the board vote on the assessment, the engineer's findings presented to owners, the arguments about who should pay and how.

After 35+ years helping buyers in this market, I can tell you the condo documents don't lie. But you have to know where to look — and what questions to ask before your contingency period expires.

As of early 2026, fewer than one-third of buildings required to submit milestone inspection reports statewide had done so. That compliance gap means a meaningful number of buildings are operating with unknown structural status — which matters to your lender as much as it matters to you. Fannie Mae and Freddie Mac guidelines have tightened significantly around condo associations with deferred maintenance, underfunded reserves, or pending special assessments above certain thresholds. If a building can't pass the lender's warrantability review, you may not qualify for conventional financing — regardless of your credit score, income, or down payment.

YOUR DUE DILIGENCE CHECKLIST

Before you make an offer on any Palm Beach County condo, verify:

1. Has the building completed its milestone inspection? Request the Phase 1 report and Phase 2 report if applicable.

2. Is a Structural Integrity Reserve Study (SIRS) in place? Florida law required SIRS completion since December 31, 2024 for most associations. If it isn't done, that's a red flag.

3. Is the reserve account adequately funded? Request the association's most recent financial statements and compare the funded percentage to SIRS projections.

4. Are any special assessments pending, planned, or under discussion? Read the last 24 months of board meeting minutes — not just the summary sheet.

5. Has the HOA fee increased significantly in the past two years? Rapid increases often signal an association scrambling to cover deferred costs or underfunded reserves.

6. Can you get conventional financing? Run a preliminary warrantability check with your lender before falling in love with a specific building.

One detail worth knowing if you're comparing condos across county lines: in Palm Beach County and Martin County, the seller pays the owner's title insurance. In Broward County — Coral Springs, Parkland, Pompano Beach, Deerfield Beach, and Lighthouse Point — the buyer typically pays. That's a several-thousand-dollar line item that shifts between columns depending on where you're buying.

HOW TO THINK ABOUT THIS IN YOUR OFFER

The milestone inspection situation doesn't mean you should avoid condos in Palm Beach County. Well-maintained buildings with solid reserves and clean inspection reports exist — and in today's market, with some buyers steering away from condos entirely, there's less competition for them.

Your offer should reflect what the documents show. Pending issues are leverage — or a reason to walk. Clean documentation and a funded reserve is something worth paying for, because it's increasingly rare.

Every condo situation is different, and the only way to know what you're actually buying is to run through the documents with someone who's done this analysis many times in this market. This is exactly the kind of due diligence I walk my clients through — before we draft the offer, not after.

FREQUENTLY ASKED QUESTIONS

What happens if a building fails its milestone inspection?
If Phase 1 identifies significant deterioration, the building must complete a Phase 2 engineering investigation. If Phase 2 confirms structural issues, the association is required to make repairs within a defined timeline. In extreme cases where a building is deemed structurally unsafe, residents may be required to vacate. Associations that fail to comply face daily fines and potential code enforcement action by Palm Beach County.

Who pays for the milestone inspection and any repairs?
The condominium association is responsible for arranging and funding the inspection. Repair costs are typically covered through reserves or special assessments against unit owners. Any special assessment approved after your closing becomes your financial responsibility — which is exactly why reviewing meeting minutes and reserve funding status before closing is not optional.

Can I get conventional financing on a condo with inspection issues?
Not always. Fannie Mae and Freddie Mac have tightened condo warrantability guidelines to flag buildings with significant deferred maintenance, underfunded reserves, or pending special assessments above certain thresholds. A building that hasn't completed its required inspection may not qualify for conventional financing — which also limits your buyer pool when you go to resell.

What is a Structural Integrity Reserve Study (SIRS), and why does it matter?
A SIRS is a detailed engineering assessment of a building's major structural components and a projection of what it will cost to repair or replace them over time. Florida law required most associations to complete their SIRS by December 31, 2024. An incomplete or underfunded SIRS is one of the clearest warning signs in a condo due diligence review.

How do I find out if a building has completed its milestone inspection?
During your condo document review period, you can request the inspection report directly from the association — they are required to provide it. Palm Beach County's Building Division also maintains records for buildings subject to local recertification requirements. Your buyer's agent should help you request and review these documents before your contingency period closes. This step is not something to rush or skip.

The condo market in Palm Beach County is one of the most nuanced it's been in years — and the milestone inspection requirement is a central reason why. The buyers who understand the due diligence process are finding well-run buildings at better prices. The ones who skip it are getting surprised after closing.

If you're looking at condos in Palm Beach Gardens, Delray Beach, Boca Raton, West Palm Beach, or anywhere in Palm Beach County, I'll help you review the documents and separate the well-maintained buildings from the ones to avoid. Connect with the Treu Group team at treugroup.com or call us directly — before you make an offer, not after.

About Lisa Treu
Lisa Treu is the CEO of Treu Group Real Estate and has been helping buyers and sellers in Palm Beach County since 1989, with a focus on Jupiter, Palm Beach Gardens, and Delray Beach. She specializes in luxury homes, waterfront properties, new construction, and residential resale, and her team has earned 107 Google reviews, 265 Zillow team reviews, 79 Realtor.com reviews, and 21 Yelp reviews.