john@johngillen.com
www.johngillen.com
In June 2021, the Champlain Towers South collapsed in Surfside, Florida, killing 98 people. The Florida Legislature responded with the most sweeping condominium safety reform in state history. These laws directly affect your monthly dues, special assessments, your ability to close - and your investment. Most agents will hand you a disclosure and move on. John reads every line of it.
The Laws - What They Are and What They Mean
2022
The Foundation Law
Senate Bill 4-D was the first major post-Surfside response. It established mandatory Milestone Inspections, required Structural Integrity Reserve Studies, and banned associations from waiving full reserve funding after December 31, 2024. This law is why your association may be sending special assessment notices right now.
- Owners protected from sudden catastrophic failure
- Building value and insurability maintained
- Sales can close without legal complications
- Sales blocked until inspections are complete
- State fines and enforcement actions possible
- Insurance coverage may be denied or cancelled
FS 553.899
Milestone Inspections
Buildings 3+ stories must be inspected at 30 years (25 years if within 3 miles of coast), and every 10 years after. Phase 1 is visual. Phase 2 requires destructive testing if deterioration is found. Non-compliant buildings cannot close sales.
- Buyers and lenders have confidence in the building
- Repairs identified early cost far less than emergency fixes
- No state-mandated sales restrictions on the building
- No closings permitted until inspection is complete
- Local authorities can order evacuation of the building
- Lenders may refuse to finance units in the building
FS 718.112
Structural Integrity Reserve Study
Required by December 31, 2024 for all 3+ story buildings. The SIRS calculates what the association must hold in reserves. Full funding can no longer be waived. Translation: dues and assessments are rising across South Florida.
- Reserves exist to fund repairs without emergency levies
- Buyers can see the building is financially healthy
- Property values supported by sound fiscal management
- Large special assessments become inevitable
- Buyers inherit a financially distressed association
- State can appoint a receiver to run the association
Florida law gives buyers 7 business days (excluding weekends and legal holidays) to cancel after receiving required condo documents. This right cannot be waived. If documents are not received, your right stays open until they are. See CR-7 and CRSP-17x.
2024
Condo 3.0
HB 1021 tightened board accountability, required digital records accessible to unit owners, restricted board self-dealing, and gave the Division broader authority to investigate. If a board has been operating loosely, Condo 3.0 is forcing a reckoning.
- Owners can access records and hold boards accountable
- Transparent finances attract buyers and lenders
- Division can fine the association and remove board members
- Owners can sue for access to withheld records
2025
The 2025 Refinement
Addressed SIRS funding ambiguities, clarified Milestone phase timelines, and provided limited relief for associations demonstrating good-faith compliance. John tracked every amendment.
- Good-faith associations may qualify for extended timelines
- Clear deadlines protect buyers from unexpected delays
- Relief provisions unavailable - full penalties apply
- Buyers discover non-compliance during due diligence
718.504
The Required Disclosure
Sellers must provide the full disclosure package before closing. John reviews every document - not just to confirm receipt, but to understand what it means for your investment.
- Buyer's 7-day cancellation right is properly satisfied
- Seller protected from post-closing disputes and lawsuits
- Buyer can void the contract at any time until closing
- Seller may face legal liability for undisclosed defects
The Required Disclosure Package RCD-8
- Declaration of Condominium - the building's founding legal document; defines what you own vs. what is shared
- Articles of Incorporation - establishes the association as a legal entity under Florida law
- Bylaws and Rules - governs day-to-day operations, elections, meetings, and unit owner restrictions
- Annual Financial Statement - shows whether the association is solvent and managing funds responsibly
- Current Annual Budget - tells you what dues pay for and whether reserves are adequately funded
- FAQ Document - plain-language summary of key rules; required if buyer requests in writing
- Governance Form (DBPR) - state-issued summary of board duties and owner rights; required every sale
- Milestone Inspection Summary if applicable - engineer's structural findings on the building
- SIRS Report if applicable - reserve funding requirements for structural components
- Turnover Inspection Report if applicable - developer's handover condition report for buildings 3+ stories
- Management fees
- Insurance premiums
- Landscaping & maintenance
- Utilities for common areas
- Pest control
- Administrative & legal
- Roof replacement
- Elevator repair
- Pool resurfacing
- Parking lot and paving
- Painting & exterior
- HVAC common areas
- Load-bearing walls
- Foundation & floors
- Fireproofing systems
- Plumbing risers
- Windows & doors
- Balconies & railings
Before You Make an Offer
- Milestone Inspection StatusHas the building completed its required inspection? Non-compliant buildings cannot close.
- SIRS ReportRequest the most recent Structural Integrity Reserve Study. Review funded vs. required reserves.
- Special AssessmentsAsk if any have been levied or discussed at board meetings in the past 12 months.
- Monthly Dues TrendRequest budgets from the past 2 years. Are dues rising significantly?
- Pending LitigationIs the association involved in any pending or anticipated legal action?
- Reserve Funding LevelUnderfunded reserves mean future assessments are likely.
- Building AgeBuildings over 25-30 years have additional compliance requirements.
Questions to Ask the Association
- Has the Milestone Inspection been completed?If yes, request the inspector summary. If no, ask when it is scheduled.
- Has the SIRS been completed?If yes, request a copy. If no, ask if fees have been raised to fund it.
- Are there pending special assessments?Also ask about items discussed at board meetings but not formally levied.
- What is the current reserve balance?Compare against the SIRS funding requirements.
- Is association approval required?If yes, ask for the application and timeline - delays affect your closing date.
- Does the association have a right of first refusal?This can affect your contract if exercised.
Your 7-day cancellation right is protected by Florida law and cannot be waived in any contract. If anyone pressures you to waive it, call John immediately.
Buyer Timeline — Contract Signed May 21, 2026
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What Sellers Must Provide SPDC-2RCD-8
- Declaration of Condominium & BylawsCurrent copy including all amendments. Seller pays for this.
- Most Recent Financial Statement & BudgetBuyers are entitled to these at Seller's expense.
- FAQ DocumentRequired if buyer requests in writing.
- Condominium Governance FormProvided by the DBPR. Required for every sale without exception.
- Milestone Inspection SummaryIf completed and submitted to the association, Seller must provide it.
- SIRS ReportMost recent study or a written statement that it has not been completed.
- Special Assessment DisclosureAny levied or pending assessments discussed at board meetings in the past 12 months.
- Pending LitigationAny known legal action involving the property or common elements.
Seller Key Deadlines CR-7CRSP-17x
- At or Before Contract ExecutionProvide all required condo documents. If provided 7+ business days before signing, buyer's cancellation right is satisfied at execution.
- Within 3 Days of AvailabilityIf Milestone, SIRS, or Turnover reports complete after contract is signed, Seller must deliver within 3 days.
- Before ClosingIf the association voted to forego fire sprinkler retrofitting, Seller must provide written notice of that vote to buyer.
- At ClosingAll association fines must be paid. All regular assessments must be current.
- Special Assessments Before ContractSeller responsible for paying in full unless contract specifies otherwise.
Florida law requires sellers to disclose all known facts that materially affect value and are not readily observable. John walks through every section with you before listing - so there are no surprises at closing.
Seller Timeline — Contract Signed May 21, 2026
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Every Florida condo transaction involves a specific set of required forms. Knowing what each form is - and when it's due - helps you stay in control of your transaction. Your Real Estate Consultant handles all of these, but an informed client is always better protected.
- Has association approval of buyer been waived or is it required?
- Does the association have a right of first refusal?
- Are there any special assessments levied or pending?
- Is the Milestone Inspection complete and on file?
- Has the SIRS been completed - and are reserves fully funded?
- Are there any open violations or fines against the unit?
- Has the board discussed any fee increases in the past 12 months?
Condo Property Showing Worksheet — Bring This With You
Use this worksheet during showings or your buyer consultation. Rate each property, track what you find, and compare side by side before making any decisions.
References, Resources & Forms
| Legislation / Statute | What It Covers |
|---|---|
| SB 4-D (2022) | Post-Surfside foundation: Milestone Inspections and SIRS requirements established for buildings 3+ stories |
| HB 1021 (2024) | Condo 3.0: board accountability, digital records access, Division enforcement authority expanded |
| HB 913 (2025) | SIRS and Milestone timeline clarifications; good-faith compliance relief provisions |
| FS 718.112 | Reserve funding requirements and SIRS mandate; no more reserve waivers for SIRS items |
| FS 718.504 | Required seller disclosures at or before closing on any Florida condominium |
| FS 718.503 | Buyer's rights to receive documents and 7-day cancellation window |
| FS 553.899 | Milestone Inspection procedures, phased inspection standards, and engineer requirements |
| FS 718.301 | Turnover Inspection Report requirements for buildings 3+ stories |
| FS 627.714 | Unit owner insurance policy requirements |
DBPR Division of Condominiums
myfloridalicense.com/DBPR
(850) 488-1122 · Toll Free (800) 226-9101
Florida Legislature - Full Statutes
leg.state.fl.us/statutes
Florida Realtors Forms Library
floridarealtors.org/tools-research/forms
| Form Number | Purpose and When Used |
|---|---|
| RCD-8 (Rev. 1/26) | Receipt of Condominium/Cooperative Documents - buyer signs to confirm receipt of all required documents including Milestone summary, SIRS, and Turnover report |
| CR-7 (Rev. 06/2025) | Comprehensive Condominium Rider - attached to purchase contract; covers association approval, right of first refusal, special assessments, inspections, and voidability rights |
| SPDC-2 (Rev. 10/24) | Seller's Property Disclosure - Condominium; covers structures, water intrusion, fire protection, alterations, association status, Milestone, and SIRS |
| CRSP-17x (Rev. 6/2025) | Condominium Association Addendum to residential contract - alternative contract vehicle covering governance, inspection reports, and special assessments |
| DBPR Gov. Form | Condominium Governance Form - published by the Department of Business and Professional Regulation; required to be provided in every condominium sale |
Book a free 15-minute Condo Compass consultation. John will review the specific building you are considering and flag everything you need to know - before you are under contract. No obligation. www.johngillen.com
John is one of the few Real Estate Consultants in South Florida who holds both a Realtor license and a Community Association Manager (CAM) license - a combination that gives his clients unmatched insight into condo governance, reserve funding, and building compliance. With 28 years of experience and deep post-Surfside legislative expertise, John has reviewed hundreds of condo documents, budgets, and reserve studies on behalf of buyers and sellers alike. A former condo board president himself, he knows exactly what questions to ask and what red flags to catch - before you sign anything.