Thinking about a Boca Raton condo but unsure how new reserve rules might affect you? You are not alone. Reserve funding, building inspections, and lender reviews now play a bigger role in what you pay each month and whether your loan gets approved. In this guide, you will learn what the rules require, how they show up in real life, and the steps to protect your budget and your financing. Let’s dive in.
Florida condo reserve rules, simply explained
Reserves and required studies
Florida’s condominium law requires associations to budget for reserves that cover major components like roof replacement, painting, and paving, plus any item over a statutory cost threshold. For taller buildings, the budget must reflect a structural integrity reserve study that estimates useful life and recommended contributions. These rules exist to ensure long-term repairs are funded on schedule. Florida Statutes Chapter 718
Milestone inspections for taller buildings
Residential buildings that are three or more habitable stories must complete milestone inspections. A phase 1 visual review comes first, then phase 2 testing if deterioration is found. Timing depends on building age and location, and reports go to the building official and the association. Milestone inspections statute
Local enforcement in Boca Raton and Palm Beach County
Palm Beach County and the City of Boca Raton enforce milestone inspections and set local schedules. Many coastal jurisdictions require earlier inspections due to exposure. Associations receive notices and must meet defined timelines for inspections and reporting. You can review local instructions and deadlines through the county’s building division. Palm Beach County milestone information
How these rules affect your costs and financing
Monthly dues and special assessments
If inspections or reserve studies uncover big repair needs, associations often raise monthly assessments to increase reserves. When reserves are not enough, boards may levy special assessments or use loans and lines of credit, which can still increase owner payments. Expect older, taller coastal buildings to feel this most. Reserve requirements and funding options
Loan approvals and lender scrutiny
Most lenders evaluate the condo association, not just your unit. Fannie Mae and Freddie Mac look at reserve adequacy, recent studies, owner occupancy, delinquencies, and how special assessments are handled. Some lenders refer to a 10 percent reserve contribution guideline as a common screen, and they often ask for minutes, budgets, and inspection reports. Buildings with low reserves or large unfunded repairs can be flagged or ineligible, which can limit conventional, FHA, or VA financing. Fannie Mae condo project review and Freddie Mac project FAQ
Insurance and marketability
Major repairs and higher reserve targets often arrive alongside rising insurance costs. That combination can weigh on demand and time on market for some condos. Florida updated rules after the Surfside tragedy to improve safety while balancing cost, and those changes continue to shape owner expenses. Legislative changes and impacts
Your Boca Raton condo due-diligence checklist
Documents to request early
- Current year budget and the prior two years of budgets, plus recent financials if available. Look for clear reserve line items and contributions. Budget and reserves statute
- The most recent reserve study, or structural integrity reserve study for buildings with three or more stories. Confirm the update schedule. Reserve study requirements
- Milestone inspection reports, including phase 2 if performed, and any repair estimates tied to those findings. Milestone inspection law
- Board and membership meeting minutes for the last 12 to 24 months to spot discussions on assessments, repairs, loans, insurance, and delinquencies. Lender project review focus
- An estoppel certificate showing current and pending assessments and fees for the unit. Florida sets timing and fee limits for delivery. Estoppel certificate statute
- Master insurance declarations, including wind and flood coverage, deductibles, and carriers. FHA and lender guidance reference
- Owner occupancy and a delinquency report. Lenders often screen projects on these metrics. Freddie Mac project FAQ
- Any pending or threatened litigation and any legal reserves. Freddie Mac project FAQ
Questions to ask the right people
- Has the building completed its milestone inspection? What did it find, and what repairs are scheduled and funded? If not complete, when is it due locally? Milestone inspection law
- Does the current budget follow the reserve study’s recommended funding? If not, why, and what is the plan to comply? Reserve funding requirements
- Are any special assessments approved but unpaid, or proposed? The estoppel should confirm unit-level obligations. Estoppel certificate statute
- If reserves were reduced or paused, did the association use the required proxy disclosure and vote? Proxy disclosure rules
Practical steps that protect you
- Have an engineer or condo-savvy contractor review the reserve study and milestone report if major items are flagged. Unit inspectors cannot fully evaluate common elements. Reserve study basics
- Ask your lender early about project eligibility for your loan type. Get clarity on reserves, owner occupancy, and delinquencies before you fall in love with a unit. Fannie Mae project review
Red flags to watch and how to respond
Red flags that warrant deeper review
Contract protections and negotiation moves
- Make your offer contingent on receiving and approving the estoppel, reserve study, milestone reports, budgets, minutes, and insurance. Estoppel certificate statute
- Ask the seller to order and pay for the estoppel and to provide association documents early. Florida sets delivery timelines and fees. Estoppel certificate statute
- Negotiate seller credits, escrows, or require the seller to pay any pending special assessments shown on the estoppel. Estoppel and assessments
- If large structural work is likely and funding is uncertain, consider a contingency that lets you cancel if new assessments over a set amount are approved before closing. Reserve and funding framework
Boca Raton context, in plain terms
Boca Raton has many mid and high-rise condos along the coast and downtown, so the milestone inspection and structural reserve study rules apply widely. Taller, older coastal buildings are the most likely to face higher reserve contributions or special assessments after inspections. The upshot for you is simple. Do your homework on the building’s reports and budget, confirm loan eligibility early, and structure your contract to manage risk. Milestone inspection law and reserve requirements
Ready to evaluate a specific building or compare your options across Boca Raton and nearby beaches? Reach out to Grettie Sutton for calm, thorough guidance that puts your goals first.
FAQs
What are condo reserves and why do they matter for Boca Raton buyers?
- Reserves are funds set aside for major repairs like roofs and structural components, and they directly affect your monthly dues and risk of special assessments. Florida condo reserve law
How do milestone inspections impact buying in a coastal high-rise?
- Buildings with three or more stories must complete age-based inspections, and findings can trigger repairs that change assessments and financing options. Milestone inspections statute
Can I get a conventional loan if the association has low reserves?
- It depends on the full project review, but insufficient reserves or unfunded repairs can cause projects to be ineligible with major lenders. Fannie Mae project review
What documents should I review before making an offer on a Boca Raton condo?
- Collect budgets, reserve studies, milestone reports, minutes, insurance, delinquency data, litigation updates, and an estoppel certificate. Estoppel requirement
Who enforces inspection and reserve compliance in Boca Raton?
- Palm Beach County and the City of Boca Raton enforce milestone timelines, while state law governs reserve budgeting. County milestone guidance
How can I protect against surprise special assessments when I buy?
- Use document-review contingencies, require seller-paid assessments shown on the estoppel, and negotiate credits or escrow if major work is pending. Estoppel and assessments
