What Florida's New Condo Reserve Laws Mean for Buyers and Sellers in 2026

January 1, 2026 marked a significant shift for anyone who owns, buys, or sells a condominium in Florida. That was the deadline for all associations of buildings three stories or taller to have fully funded reserves for structural components. The grace period ended, and the new rules are now in full effect.

If you are considering a condo in Sarasota, Manatee, or Charlotte County, understanding these changes is no longer optional. They affect what you pay in monthly fees, what you need to disclose as a seller, and what you need to ask before you buy. Here is a plain-language explanation of what changed, what it means, and how I help my clients navigate it. For a broader overview of the buying process, see my Buying Guide and my Buying FAQ.

What exactly is a Structural Integrity Reserve Study?

A Structural Integrity Reserve Study, or SIRS, is a detailed engineering assessment of a condominium building's critical structural components. It covers eight mandated items: the roof, load-bearing walls, foundation, electrical systems, plumbing, fireproofing, waterproofing, and any other items that affect the building's structural integrity. The study determines how much these components are worth, how much useful life remains, and what it will cost to repair or replace them.

Before these new laws, many Florida associations chose to waive or underfund their reserves, keeping monthly fees low but leaving the building vulnerable to sudden, large special assessments. That is no longer legal. Every association must now budget sufficient reserves to cover the full cost of these structural components over their useful life. For a detailed look at how this affects your monthly budget as a condo owner, see my guide to the true monthly cost of buying a home in Florida.

How does this affect monthly HOA fees?

In many buildings, monthly HOA fees have increased to fund these required reserves. This is not a temporary adjustment. It is a permanent shift in how Florida condos are financed. A building that used to keep fees artificially low by waiving reserves must now charge owners their actual share of future structural costs.

For buyers, this means the advertised HOA fee may need to be evaluated in context. Is the fee adequate to fund both operating expenses and the required structural reserves? If it seems low compared to comparable buildings in the area, that may be a red flag rather than a deal. I review the association's budget, reserve study, and financial statements with every condo buyer to understand what the real carrying costs will be.

What about special assessments?

Buildings that deferred maintenance for years before these laws took effect are now facing significant special assessments. In some Florida condos, these have ranged from $30,000 to $75,000 per unit or more. The buildings most affected are typically older structures from the 1970s through 1990s that have not had major structural updates.

As a buyer, you need to request information about any current, pending, or anticipated special assessments before closing. The association's board meeting minutes for the past 12 to 24 months are a good place to look for discussions about upcoming repairs. I ask for these documents on every condo transaction and review them with the client so there are no surprises at closing or after.

What do sellers need to disclose?

The disclosure requirements for condo sellers have also tightened. Under the new laws, sellers must provide the association's most recent SIRS report to the buyer (or a statement explaining why one has not been completed). Sellers must also disclose any existing or proposed special assessments in the condo questionnaire and estoppel certificate.

This is important for sellers to understand before listing. If your building has deferred maintenance or an upcoming special assessment, that fact needs to be part of your pricing and marketing strategy. A buyer will find out during due diligence anyway, and a transaction falling apart late in the process is avoidable with upfront transparency. If you are considering selling a condo, I can help you understand where your building stands before we go to market.

Milestone inspections for older buildings

Florida law also requires milestone inspections for condominium buildings three stories or taller. Buildings that are 30 years old (or 25 years old if within three miles of the coast) must have a completed milestone inspection, and then repeat that inspection every 10 years. The inspection evaluates the building's structural condition and identifies any needed repairs.

For buyers considering an older condo building, the milestone inspection report is critical reading. It tells you what repairs the building needs, how urgent they are, and what they are likely to cost. A building that has completed its milestone inspection and is fully funded for reserves is in a much stronger position than one that has not yet completed either requirement.

What about financing and insurance?

Lenders are paying closer attention to condo association financials than they used to. Fannie Mae has announced that starting in 2027, it will require condominium associations to allocate at least 15 percent of their annual budgeted assessment income to capital expenditure reserves for buildings that need project review. Buildings that do not meet this threshold may face financing difficulties for prospective buyers.

On the insurance side, Citizens Property Insurance will not issue or renew policies for condo buildings that lack a completed Structural Integrity Reserve Study. Other insurers are following similar practices. Without insurance, a condo building cannot operate. This is another reason to verify that the building is compliant before you commit. For a broader look at insurance costs in Florida, see my Florida homeowners insurance guide.

Your checklist before buying a condo in 2026

Whether you are downsizing into a maintenance-free condo, buying a second home, or relocating to Florida and considering condo living, here is what I recommend every buyer review:

• The most recent Structural Integrity Reserve Study, showing funded percentages per component
• The Milestone Inspection Report (if the building is 30 years old, or 25 near the coast)
• A written disclosure of all current, pending, and anticipated special assessments
• The association's current budget, financial statements, and reserve fund balance
• Board meeting minutes from the past 12 to 24 months
• Building insurance coverage, Citizens compliance, and deductible amounts
• Rental restrictions, pet policies, and any pending litigation

This checklist is the starting point, not the whole process. Every building is different, and the right questions depend on the building's age, size, location, and financial history. If you would like to walk through a condo transaction step by step, my first-time buyer's guide covers the broader Florida inspection and buying process, and I am always available for a direct conversation.

The new condo reserve laws have made Florida condos financially healthier in the long run, but the transition has been disruptive. If you are buying or selling a condo in Sarasota, Manatee, or Charlotte County, I can help you understand where the building stands and what the real costs are. I'm Kim Donahue, REALTOR® with Medway Realty. Let's chat about real estate.