How New Legislation Affects Florida Condo Owners and Buyers
If you own a condo in Florida or are thinking of buying one, you need to be aware of some recent legislative changes that could impact your property value and your budget. These changes are a result of the tragic collapse of the Champlain Towers South building in Surfside, Florida, which exposed the need for stricter safety standards and maintenance practices for condominium buildings.
In this blog post, I will explain what these changes are and how they affect you as a condo owner or buyer.
Milestone Inspection Reports
One of the new requirements is that all condominium buildings that are three stories or more, 30 years old, or 25 years old and within 3 miles of a coastline must undergo Milestone Inspection Reports to ensure their structural integrity. These inspections are done by licensed engineers or architects and consist of two phases: a visual inspection to identify any signs of deterioration or damage, and a testing phase to assess the extent and cause of the problems.
The cost of these inspections is borne by the condo associations, which may pass it on to the owners through assessments or increased fees. The inspections must be completed by December 31, 2024, and every five years thereafter.
Another new requirement is that all condo associations that were in existence prior to July 1, 2022 and are three stories or higher must conduct SIRS (Structural Integrity Reserve Study) reports. These reports are intended to evaluate the current and future maintenance needs of the buildings and to ensure that the associations have adequate reserve funds to cover them.
The cost of these reports is also borne by the condo associations, which may also pass it on to the owners through assessments or increased fees. The reports must be completed by December 31, 2024, and every five years thereafter.
A third change that affects condo owners and buyers is that sellers are now required to disclose whether the Milestone Inspection Reports and SIRS reports have been completed and what the results were. This disclosure must be made before or at the time of entering into a contract for sale. Buyers can use this information to make informed decisions about whether to purchase a condo or not.
A final factor that affects the condo market in Florida is the rising cost of insurance premiums. Due to the increased risk of natural disasters, lawsuits, and claims, many insurance companies have raised their rates for condo policies by 75-100% compared to last year. This means that condo owners and associations have to pay more for their coverage, which may also affect their monthly fees or assessments.
What Does This Mean for You?
As you can see, there are many factors that could affect your condo ownership or purchase in Florida. Depending on your situation, you may face higher costs, lower property values, or reduced buyer demand. However, you may also benefit from improved safety standards, better maintenance practices, and more transparency.
If you have any questions about how these changes affect you specifically, please contact me and I will be happy to assist you. I have extensive experience and knowledge in the Florida condo market and I can help you navigate these challenges and opportunities.
Thank you for reading my post and I hope you found it informative and helpful.