January 31st, 2023 1:23 PM by Linda Holley
This blog is not intended to provide legal advice. Please contact a Florida real estate attorney for questions and interpretation of new Florida laws affecting condominiums.
Remember the collapse of Champlain Towers South in the Miami suburb of Surfside, Florida, where 98 people were killed on June 2021 at 1:22 am? Today there are 86 condominiums for sale on Siesta Key beach starting at $479,000 and 14 active listings on Venice Beach starting at $385,000. Listen up, readers! Ninety percent of the condominiums on the market today on Siesta Key beach and Venice beach are more than 25 years old.
Last year, the Florida legislature passed laws which require condominium and cooperative associations to hire an engineer or architect to conduct "Milestone Inspections." Phase One is a visual inspection of the structural components of buildings three stories or higher when the first level is storage or parking. If this inspection reveals certain conditions, then a second inspection is required.
Milestone Inspections are required by December 31st of the year when building is 30 years old or 25 years old if located within 3 miles of the coastline. If buildings have already reached the age limit, inspections must be done by December 31, 2024.
The condominium association and county will receive a summary and full inspection report for all Milestone Inspections. Owners will receive a copy of the summary report and this information should be provided to prospective buyers.
Reserve Study. The law also requires the association to conduct a special study of the funds held by the association to pay for maintenance, repairs, and replacement of structural component parts (roof, load-bearing walls, foundations, floors, electrical systems, etc.). All existing associations having buildings three stories or higher, regardless of age, must complete the Reserve Study by December 31, 2024.
Some real estate brokerages are including a MILESTONE INSPECTIONS AND STRUCTURAL INTEGRITY RESERVE STUDY DISCLOSURE in their contract packages. This is why it's important to work with an experienced real estate agent and brokerage and beware of FSBOs. The disclosure advises prospects, sellers, and buyers of the documentation that will be required for properties that are affected by the new law. The Florida legislature is reviewing the law and changes may be made in the future.
So, if you are buying or selling a Florida condominium that is three or more stories, over 25 years old, or is within 3 miles of the coastline, it's recommended that you seek legal advice. If you need a good real estate attorney in Florida, I know several.
Buyers and their agents must be diligent in researching the association's financial solvency. Get a copy of the summary report and Reserve Study. Ask if the association manages their budget by straightline or pooled funding. Buyers: if your agent doesn't know what that is, tell him or her to have a conversation with the condominium management company. Ask if the association is fully funding their maintenance requirements by line item (straightline) or if the community is avoiding increasing monthly/quarterly fees and paying bills out of one "pool" of money.
I am ready to publish my first book, Failure to Disclose--a Double-Edged Sword. Peppertree Press, Sarasota.
Call Linda Holley, Realtor, GRI, SRES, Fine Properties, 941-914-4914 for your Sarasota and Manatee County real estate needs.
Warmest regards,
Linda
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