Are you eyeing a sleek tower in Downtown West Palm Beach and wondering how Florida’s new condo “milestone inspections” affect your purchase? You are not alone. Since the Surfside tragedy, these structural reviews have become central to condo due diligence across Palm Beach County. In this guide, you will learn what milestone inspections are, which buildings they affect, what to request from the association, how financing and insurance can be impacted, and how to protect your timeline and budget. Let’s dive in.
Milestone inspections explained
Purpose and scope
Milestone inspections are periodic, structural safety evaluations required by Florida law for residential condominium and cooperative buildings. The goal is to identify structural deterioration, safety issues, and major repair needs before problems escalate. A licensed engineer or registered architect performs the inspection and produces a written report.
These reviews focus on key structural elements, including columns, beams, slabs, and the building envelope. Inspectors also examine balconies, parking structures, waterproofing, and related life-safety items tied to structural performance. The report highlights urgent defects, recommends repairs, estimates remaining useful life, and may include cost ranges.
Which buildings and timing
The rules generally apply to residential buildings that are three stories or higher above ground. Initial inspection timing is tied to the age of the building. Many communities follow commonly used thresholds where the first inspection occurs around 30 years from completion, or earlier for coastal buildings that sit within a few miles of the ocean. Reinspections typically follow every 10 years. Always verify the exact age triggers and intervals with state and local authorities.
Reporting and follow-up
Associations must deliver the inspection results to all unit owners and often file the report with the local building official. When issues are identified, the association is expected to act. That can include securing areas, hiring engineers to scope repair plans, applying for permits, and arranging funding through reserves, special assessments, or loans. Owners should expect follow-up communications as repair plans are set.
What to request before you offer
Core documents and disclosures
Ask for these items early, ideally before you submit an offer or within a tight contingency window:
- Most recent milestone inspection report and any follow-up engineer or architect plans.
- The current full reserve study and any structural integrity reserve study.
- Association meeting minutes for the past 12 to 24 months, especially where structural items or assessments were discussed.
- Official notices to owners about the milestone report, plus any ballots or notices for special assessments or borrowing.
- Estoppel certificate showing assessment balances, pending or approved special assessments, and repair status.
- Building permit history and contractor invoices for major work over the past 5 to 10 years, including warranties.
- Details on any pending litigation or claims involving the association or building.
- Association financials, including the current budget, recent financial statements, reserve balances, and any loan agreements.
- Insurance declaration pages for the association policy, including limits, exclusions, and deductibles.
- Any correspondence with local building officials about deficiencies or compliance.
Smart questions for the association
Go beyond documents and ask targeted questions:
- Has the association completed all required filings with the City of West Palm Beach or Palm Beach County?
- Have any areas been closed temporarily for safety, such as balconies or parking garages?
- What is the repair timeline and cost estimate for recommended work, and how will it be funded?
- Which firm performed the milestone inspection, and what was the scope and license number?
Build contingencies into your offer to allow enough time for document review and conversations with your lender and insurance broker.
Financing and insurance impacts
Underwriting focus
Mortgage underwriters review the project’s structural condition and financial health, not just your personal credit. They consider building age, milestone findings, reserve adequacy, owner-occupancy ratios, insurance coverage, and any special assessments. If the report identifies urgent repairs or unfunded obligations, a lender may require completion, an escrow, or a defined funding plan before approving your loan.
Special assessments and contracts
Large special assessments can affect your debt-to-income ratio and your closing plans. Lenders often require clarity through the estoppel certificate. If an assessment is approved after you sign a contract, responsibility can fall to buyer or seller based on the contract language. Address this point clearly in negotiations so there are no surprises.
Insurance realities
Buildings with structural concerns can face higher master policy premiums, tighter coverage terms, or exclusions until repairs are complete. Lenders also require that the association’s insurance meets minimum standards. Factor these dynamics into your budget and approval timeline.
Practical steps
- Share the milestone report with your lender as soon as you receive it.
- Ask an insurance broker to confirm available coverage and cost for both the association and your unit policy.
- Expect to provide documentation that shows how repairs will be funded.
How inspections affect closing timelines
Typical timelines to expect
- Association documents and estoppel: delivery can take several days to a few weeks, depending on the association’s process.
- Engineering review: plan for 1 to 2 weeks to read the report and consult a specialist if needed. If invasive testing or new assessments are proposed, allow more time.
- Lender review: underwriting can take an additional 1 to 3 weeks if the lender needs repair plans, escrow arrangements, or confirmations from the association.
- Repairs and permits: major work often takes months to design, permit, bid, and complete.
Negotiation levers and protections
- Contingencies: include a condo document review contingency and an inspection contingency that specifically covers milestone reports and funding plans.
- Assessment allocation: define who pays any assessment approved before closing.
- Escrow or holdback: negotiate for a portion of seller proceeds to be held until repairs are confirmed complete by an engineer.
- Right to terminate: include a time-limited right to cancel if lender approval or funding plans are not acceptable.
If urgent repairs are required
The association may convene an emergency meeting, vote on a special assessment, or apply for a loan. These steps can add days to weeks to your closing timeline. Your lender may insist on completion or escrow of critical items before closing, or they may pause the loan until the plan is in place.
Drafting tips for offers
- Require delivery of the estoppel and milestone report within a set number of business days.
- Specify responsibility for any newly discovered repair costs between contract and closing.
- Add a clause allowing you to confirm lender acceptance of the building’s condition before final approval.
Downtown West Palm Beach factors
Coastal exposure and building age
Many Downtown West Palm Beach towers sit within a few miles of the Atlantic. Coastal exposure can accelerate corrosion and water intrusion, which is why coastal buildings often face earlier inspection timelines and larger repair scopes. The downtown area includes buildings from the 1960s through the 2000s, so many are at or beyond typical milestone thresholds.
Check local records
Confirm whether the association has filed its milestone report with the City of West Palm Beach or Palm Beach County. Ask for any notices from local building officials, including temporary closures or compliance letters. Review the property’s age and permits so you understand what work has been done and when.
Market impact for buyers
Buildings with significant repair plans or large pending assessments may trade at a discount or remain on the market longer. That can create opportunity if you account for project timelines and funding obligations. Clear documentation, realistic budgets, and strong negotiation terms are your best tools.
Quick buyer checklist
- Confirm the building’s age and whether it meets a milestone trigger.
- Request the milestone report, reserve studies, minutes, insurance declarations, and the estoppel.
- Verify that required filings with local building officials have been completed.
- Share documents with your lender and an insurance broker early.
- Add association document and inspection contingencies to your offer.
- Define who pays any assessments approved before closing.
- Include a right to terminate if the lender cannot approve the project.
The bottom line
Milestone inspections are designed to keep residents safe and buildings well maintained. For you as a buyer in Downtown West Palm Beach, they are also a roadmap for risk, cost, and timing. When you secure the right documents, ask focused questions, and align your financing and insurance early, you can move forward with confidence and negotiate from a position of strength.
If you are considering a Downtown West Palm Beach condo and want a clean, well-managed process, connect with Elizabeth DeWoody for discreet, data-driven guidance.
FAQs
What is a Florida condo milestone inspection?
- It is a structural safety evaluation by a licensed engineer or architect for residential buildings three stories or higher, focused on identifying deterioration and needed repairs.
Which Downtown West Palm Beach buildings are covered?
- Most residential condo or co-op buildings that are three stories or higher are covered, with timing tied to building age and often earlier triggers for coastal proximity.
What documents should I review before making an offer?
- Ask for the milestone report, reserve studies, recent association minutes, the estoppel, insurance declarations, permit and repair records, and any litigation disclosures.
How do milestone findings affect my mortgage approval?
- Serious deficiencies or unfunded repairs can delay or prevent approval until a repair plan and funding approach are documented to the lender’s satisfaction.
Who pays for repairs after a milestone inspection?
- The association handles common-element repairs and typically funds them with reserves, special assessments, or loans, and unit owners pay their allocated share per governing documents.
Can a special assessment be levied after I sign a contract?
- Yes, if allowed by the bylaws and proper procedures. Your contract should define whether the buyer or seller pays assessments approved before closing.
How long can major repairs take in Downtown WPB towers?
- Minor work may take weeks. Major structural repairs can take many months for engineering, permitting, bidding, and construction, which can affect financing and closing timelines.
