Thinking about buying a condo in Deerfield Beach? You’re smart to ask about reserves and structural inspections before you fall in love with the view. After the Surfside tragedy, Florida tightened rules around building safety and financial transparency, and those changes directly affect your monthly fees, risk of special assessments, and long-term costs. In this guide, you’ll learn what reserves are, how “milestone inspections” work, what to request from the association, and how to budget with confidence. Let’s dive in.
Condo reserves explained
Condo reserves are association-held funds set aside for major repairs and replacements. Think roofs, elevators, exterior painting, waterproofing, parking decks, and structural work. These are not operating costs like landscaping or utilities.
When reserves are adequately funded, the association can tackle big projects without sudden fee spikes. If reserves are thin, owners often face special assessments to cover shortfalls. That is why reserves matter to you on day one.
Reserve studies 101
A reserve study is your roadmap to future costs. A qualified engineer or reserve specialist lists major components, estimates remaining useful life, and projects replacement costs. The study also recommends annual contributions to keep funding on track.
You’ll typically see two parts: a physical inventory and a financial plan. Read both. The inventory tells you what exists and when it will wear out. The funding plan shows how the association intends to pay for it.
What to look for in a study
- Date of the study and the preparer’s credentials.
- A clear list of components, useful lives, and replacement costs.
- The gap between the recommended reserve balance and the actual balance.
- Whether owners have voted to waive or partially fund reserves in recent years.
- A multi-year funding schedule, not just a single-year estimate.
Red flags in reserve documents
- No recent reserve study or an outdated report.
- Large shortfall between recommended reserves and cash on hand.
- Repeated votes to waive or reduce reserve contributions.
- Vague cost estimates or missing timelines for replacements.
How reserves affect your costs
Your monthly condo fee includes both operating expenses and reserve contributions. A building that funds reserves properly may have slightly higher monthly fees, but the strategy aims to reduce the risk of surprise assessments.
Here are two illustrative examples:
- Example: The association needs an immediate $500,000 repair and has $100,000 in reserves. With 100 units, the $400,000 shortfall equals a $4,000 one-time assessment per unit, plus any financing costs if the association borrows.
- Example: A building needs $300,000 next year and holds $250,000. The $50,000 shortfall spread across 75 units equals about $667 per unit as a one-time assessment.
Well-managed reserves can smooth out these costs over time and reduce volatility.
Milestone inspections: the structural checkups
Florida’s “milestone inspections” are periodic assessments of structural elements and critical systems conducted by licensed professionals. They aim to identify deferred maintenance and vulnerabilities before they become emergencies. The timing and requirements depend on state law and, in some cases, local programs.
After the inspection, the association receives a written report. If deficiencies are found, the board must plan repairs and funding to address them.
What the inspection report includes
- The date and the inspector’s license or certification.
- The scope of what was inspected and any limitations.
- Specific repairs, prioritized timelines, and cost estimates.
- Any required follow-up testing or monitoring.
- Evidence the board adopted a remediation plan and budget.
Link between inspections and reserves
Milestone findings often feed directly into reserve planning. If the report flags near-term structural work, expect higher reserve contributions or a special assessment. Strong associations integrate inspection results into updated reserve studies and budgets.
A note on “SIRS”
You may see the acronym “SIRS” in local conversations or documents. Usage varies and can refer to different structural or reserve-related reports. Do not assume a single definition. Ask the association to define the term in writing and provide the exact report referenced, along with any related engineering or funding plans.
Deerfield and Broward: local timing
Broward County and the City of Deerfield Beach follow state requirements and may have local recertification or permitting processes that influence timing. In many cases, the inspection schedule ties back to the building’s certificate of occupancy date. Local building departments may hold the records that determine when your building’s “clock” started.
Before you submit an offer, ask the association and the local building departments to confirm:
- When the building received its certificate of occupancy.
- When the next milestone inspection or recertification is due.
- Whether prior inspections identified issues and how they were addressed.
Your Deerfield buyer checklist
Request these documents from the seller, association, or property manager. Read them together to form a complete picture.
- Most recent reserve study and any prior studies.
- Current reserve balance and a recent reserve account ledger.
- Current annual budget and most recent year-end financials.
- Last 2–3 years of budgets and actuals to spot trends.
- Board meeting minutes from the last 12–24 months.
- The latest milestone inspection report and any follow-up engineering reports, repair plans, and contractor bids.
- Insurance certificates and details for property, liability, and flood coverage.
- List of any association loans, liens, or judgments.
- History of special assessments and fee increases.
- Governing documents: declaration/CC&Rs, bylaws, rules, and reserve funding policy.
- Owner delinquency report and the association’s collections policy.
- Any pending litigation involving the association or major vendors.
Questions to ask
- When was the building’s certificate of occupancy issued, and when is the next required milestone inspection?
- Do you have the latest inspection and a board-approved action plan?
- What is the current reserve balance, and what percentage of recommended reserves does that represent?
- Who prepared the reserve study, and what assumptions were used for useful lives and costs?
- Has reserve funding been waived or reduced in recent years? If so, why and for how long?
- Are any special assessments active or planned? What amount per unit and timeline?
- What major capital projects are scheduled in the next 5–10 years and how will they be funded?
- Are there any code violations, notices of unsafe conditions, or structural-related litigation?
- What percentage of owners are current on dues, and how are delinquencies handled?
- Have you obtained recent bids for identified repairs, and can we review contract terms and warranties?
Red flags to pause on
- No milestone inspection on file or an overdue inspection.
- Major discrepancies between recommended reserves and actual balances.
- Repeated reserve waivers or transfers from reserves to operations.
- Structural or engineering reports noting serious deficiencies without a funding plan.
- High owner delinquency paired with deferred capital projects.
- Ongoing or significant litigation tied to building structure or safety.
Budgeting for today and tomorrow
It is wise to set aside funds for potential assessments in your first year. The right amount depends on the building’s age, inspection history, and reserve position. If the latest reports show significant pending work with uncertain funding, consider negotiating a seller credit or an escrow holdback.
Long term, buildings with solid reserves and up-to-date inspections usually offer lower cost volatility. Underfunded older properties may be priced more attractively upfront but can carry greater risk of assessments and service cuts over time. Balance price against financial stability and your risk tolerance.
Build your team early
Buying a Deerfield Beach condo is a team effort. Consider engaging:
- A real estate attorney familiar with Florida condominium law.
- An engineer or reserve-study specialist for secondary review when risk is high.
- A local real estate agent with condominium expertise in Deerfield Beach and broader Broward County.
- Your lender, to confirm loan eligibility if the building has recent structural findings or pending assessments.
Ready to buy with confidence?
If you want a clear, actionable path through reserves, inspections, and budgeting, you are not alone. A thoughtful strategy and the right documents can turn a complex decision into a confident purchase. For tailored guidance on Deerfield Beach condominiums and nearby coastal communities, reach out to Michelle Yales to review documents, interpret risk, and align your search with your goals.
FAQs
What are condo reserves and why do they matter?
- Reserves are association funds for big-ticket repairs and replacements; strong reserves reduce the risk of surprise special assessments and fee volatility.
What is a Florida “milestone inspection” for condos?
- It is a periodic, licensed structural assessment that identifies needed repairs; findings inform the association’s repair plan, budget, and reserve funding.
How do reserve studies affect my Deerfield Beach condo fees?
- The study sets recommended annual contributions; higher funding can raise monthly fees slightly but lowers the chance of large one-time assessments.
What documents should I request before buying a Deerfield condo?
- Ask for the latest reserve study, reserve balances, budgets and financials, board minutes, milestone inspection reports, insurance, assessment history, loans, and litigation updates.
What does “SIRS” mean in condo documents?
- The acronym is used inconsistently; request a written definition from the association and the exact report referenced, plus any related engineering or funding plans.
How do Broward and Deerfield local rules impact inspection timing?
- Local building departments track permits and certificates of occupancy that can set inspection timelines; confirm dates and schedules directly with them before you buy.
