For most of the last decade, the smart move on a Miami condo was to read the listing, love the view, and negotiate on price. That era is over. Today the two documents that actually decide whether a building is a good buy — or a good sell — aren't the MLS sheet and the comps. They're the milestone inspection report and the Structural Integrity Reserve Study. Almost no one outside the business knows how to read them. That's precisely why knowing how is worth so much right now.
I pull these two documents on every older condo I touch, and I've watched them make and break deals all year. A gorgeous unit in a building with an ugly reserve study is a liability wearing a nice outfit. A plain unit in a building that's already done the work and funded the fix is a quietly great buy that most people walk right past. Let me show you exactly what I look for in each one, so you can tell the difference before the market does.
First, what these two documents actually are
They sound interchangeable. They're not — they answer two different questions, and you need both.
The milestone inspection answers "is this building structurally safe?" It's a state-required structural check under Florida Statute 553.899 for condo and co-op buildings three or more habitable stories tall, done by a licensed engineer or architect when the building turns 30 (25 in some coastal jurisdictions), and then every 10 years after. It runs in two phases: Phase 1 is a visual inspection of the structure — foundations, load-bearing walls, columns, beams, the building envelope. If the engineer sees signs of substantial structural deterioration, the building moves to Phase 2, a deeper investigation that can include actual testing of the concrete and rebar.
The Structural Integrity Reserve Study (SIRS) answers a different question: "does the building have the money to fix what it will inevitably need?" It prices out the big-ticket structural components an association must reserve for — the roof; the load-bearing structure; the floor and foundation; fireproofing and fire protection; plumbing; electrical; waterproofing and exterior painting; and windows and exterior doors — plus any other item costing more than $25,000 that affects those systems. Then it lays out how much cash the association should be setting aside each year so the money is there when the roof or the concrete comes due.
💡 The distinction that matters: the milestone report tells you if the building is sound. The reserve study tells you if the building can afford to stay sound. A building can pass its inspection and still be a financial trap because its reserves are empty — which means the repairs are coming out of your pocket as a special assessment. Read them together, or you're only seeing half the risk.
Reading the milestone report: three things, in order
Don't get lost in the engineering language. On a milestone report I'm looking for three signals, fastest to slowest.
1. Did it stop at Phase 1, or go to Phase 2?
A clean Phase 1 with no Phase 2 required is the best outcome — the engineer looked and found no substantial structural deterioration. A building pushed into Phase 2 isn't automatically doomed, but it means the engineer saw something that needed a closer look. Read why, and read what the Phase 2 concluded.
2. What repairs are required, and what's the clock?
If the report calls for repairs, Florida gives the building a timeline: once the local building official receives a Phase 2 report identifying required repairs, work generally has to begin within 365 days. That deadline is your friend — it converts a vague "the building needs work someday" into a dated, fundable project you can put a number on.
3. Is there a letter saying the building is safe to occupy?
The engineer's summary should state whether the building is safe for continued occupancy. That single sentence is what lenders and insurers care about most. If it's missing, hedged, or conditional, that's a conversation to have before you go further — not after.
Reading the reserve study: the numbers that decide the price
This is where deals are quietly won and lost. Four things.
1. Percent funded — the one ratio to memorize
Every reserve study reports how fully funded the reserves are against what they should be. The rough industry benchmark: 70% or higher is healthy, 30–70% is caution, and under 30% is a red flag. A building above 70% rarely needs an emergency special assessment. A building at 15% is telling you an assessment is a matter of when, not if — and you want that priced into your offer, not discovered after closing.
2. What's coming due, and when
Percent funded without context can mislead. A building at 50% with nothing major due for a decade can be safer than one at 65% with a $2 million roof replacement scheduled next year. Flip to the component schedule and find the big line items — roof, concrete restoration, waterproofing, elevators — and their remaining useful life. The question isn't just "how full is the tank," it's "how soon is the next big expense, and is the money there for it?"
3. The funding plan — and whether waivers are gone
Under Florida's 2025 condo law (HB 913), a compliant SIRS now has to include a baseline funding plan showing the reserve balance for those structural components stays above zero across the whole funding period. And starting with budgets adopted for 2027, most affected associations can no longer waive or underfund those structural reserves. So a building that's been voting every year to skip reserves is about to lose that option — which usually means a dues increase, an assessment, or both. Read the current budget next to the study and see whether the board is already funding the plan or still hoping to dodge it.
4. Two credibility checks most people skip
How old is the study? If it's more than three years old, treat it as stale — a lender will, too.
Who wrote it, and are they bidding the work? HB 913 requires the engineer or architect to disclose in writing if they intend to bid on the repairs their own study identifies. It's not automatically disqualifying, but you want to know.
What this means if you're buying
In today's soft condo market, the discount on older buildings is largest precisely where the documents are murkiest — which is where the opportunity is if you're willing to read. Pull the milestone report, the SIRS, the current budget, and the last three years of board minutes before you're emotionally committed. A structurally sound building with a thin reserve but a credible, funded plan and a completed inspection is often mispriced in your favor. A pretty unit in a building with a Phase 2 finding, empty reserves, and no plan is someone else's problem you'd be buying at full price. And always confirm the building's lending status — more than 1,400 Florida buildings sit on Fannie Mae's "unavailable" list, which shrinks the buyer pool and holds prices down until the building fixes its paperwork.
What this means if you're selling
Here's the part sellers underestimate: your building's documents are now part of your list price whether you present them or not. Buyers and their lenders are already pricing in the uncertainty — so if your building has a clean milestone report and a healthy, funded reserve study, that's not paperwork to bury in the disclosures. That's your headline, and in this market it's rare enough to command a premium. Get it in writing up front: milestone passed, SIRS complete, reserves funded at X%, no pending assessment. If instead an assessment is coming, disclose it with a clear scope and number — buyers punish vague surprises far more harshly than known costs. Either way, the seller who hands a buyer a clean, organized document package is the seller who closes at the top of the building's band.
💡 My rule of thumb: in 2026 Miami, a condo is worth what its documents say it's worth. The unit sells the showing. The milestone report and the reserve study sell the price.
Want me to read a specific building's documents with you? Send me the building or address and I'll pull and interpret the milestone status, the reserve study and percent funded, any pending assessment, and the building's financeability — and tell you what it means for the price.
👉 Message me on WhatsApp | 🏷️ Selling a condo? Ask me for a free valuation that accounts for your building's reserve and inspection status | ✉️ silvana@carvalhoresidences.com
Frequently Asked Questions
What's the difference between a milestone inspection and a reserve study?
The milestone inspection is a structural safety check required under Florida Statute 553.899 for condo and co-op buildings three or more habitable stories, done at 30 years and every 10 years after. It answers whether the building is structurally sound. The Structural Integrity Reserve Study (SIRS) is a financial document that prices out the building's major structural components and sets how much the association must reserve to pay for them. One tells you if the building is safe; the other tells you if it can afford to stay that way. You need both.
What is a good "percent funded" for a condo reserve study?
As a rough benchmark, 70% or higher is considered healthy, 30–70% is a caution zone, and under 30% is a red flag that a special assessment is likely. But context matters: a building at 50% funded with no major repairs due for years can be safer than one at 65% funded with a multi-million-dollar roof or concrete project scheduled next year. Always read the percent funded alongside the component schedule showing what's coming due and when.
What are the eight components a Florida SIRS must cover?
A Structural Integrity Reserve Study must address the roof; the load-bearing structure; the floor; the foundation; fireproofing and fire protection; plumbing; electrical systems; waterproofing and exterior painting; and windows and exterior doors — plus any other item costing more than $25,000 that affects one of those systems. HB 913 raised that inclusion threshold from $10,000 to $25,000 and indexed it to inflation.
What does a Phase 2 milestone inspection mean for a building I'm considering?
A Phase 2 inspection is triggered when the Phase 1 visual inspection finds signs of substantial structural deterioration, prompting a deeper investigation that can include testing of the concrete and reinforcement. It doesn't automatically mean the building is unsafe, but it does mean the engineer saw something worth a closer look. Read the Phase 2 findings, the required repairs, the timeline (repairs generally must begin within 365 days of the local official receiving the report), and whether the reserve study funds that work.
Should I still buy an older Miami condo given all these requirements?
Often yes — if you do the due diligence. The market's discount on older buildings is concentrated where the documents are unclear, which is where a careful buyer finds value. A structurally sound building that simply hasn't finished funding its reserves yet may be mispriced in your favor, while a building with a Phase 2 finding and empty reserves is a trap at any price. Review the milestone report, the SIRS, the current budget, board minutes, and any pending assessment, and confirm the building's lending status before making an offer.
Florida condo law and the Dec. 31, 2026 SIRS deadline are moving quickly — if you're reading this later, reach out and I'll pull the current rules and the specific building's document status for your situation. 🔑
Sources: Florida Statutes §553.899 (milestone structural inspections — Phase 1/Phase 2, 30-year trigger, 365-day repair start) and §718.112 (reserves); Florida House Bill 913 (2025), effective July 1, 2025 — SIRS deadline coordination through Dec. 31, 2026, $25,000 reserve inclusion threshold (inflation-indexed), baseline funding plan requirement, engineer bid-disclosure, and elimination of reserve waivers for budgets adopted from 2027; industry guidance on reserve "percent funded" benchmarks (70% healthy / 30–70% caution / under 30% red flag) and reserve-study staleness (3-year lender flag); Fannie Mae condominium project review "unavailable" list (1,400+ Florida buildings). This article is general information, not legal or financial advice — confirm any building's specific status with its association and a licensed professional.
