Thinking about a Marco Island condo with a Gulf view, but unsure what a “milestone inspection” means for your purchase and budget? You are not alone. These building-wide inspections shape safety, timelines for repairs, and future fees, so they matter to every buyer. In this guide, you will learn what milestone inspections are, how they connect to reserves, which documents to request, and how to read them with confidence. You will also get a simple due diligence plan tailored to Collier County. Let’s dive in.
What milestone inspections are
Milestone inspections are mandatory, periodic reviews of a condominium building’s primary structure and life-safety systems. A licensed structural engineer evaluates elements like foundations, columns, slabs, load-bearing walls, balconies, and facades. The goal is to identify safety issues, recommend repairs, and outline timing and cost ranges.
These inspections rose in visibility after the 2021 Surfside collapse. Florida and many counties strengthened rules to require earlier and more frequent checks and to improve transparency. In practice, many buildings complete an initial milestone inspection around the 30 to 40 year mark from the certificate of occupancy, then repeat about every 10 years. Applicability often depends on building age, height, and coastal location.
A licensed firm or structural engineer signs and seals the report. The condominium association receives the report and is responsible for addressing safety items, planning repairs, and updating budgets. In many cases, the association must also share the report with owners and respond to local building officials. For buyers, that report is a key document to review before you remove contingencies.
Why this matters on Marco Island
Marco Island’s coastal setting is beautiful, but salt air and wind can speed up corrosion and concrete spalling. Hurricanes and windborne debris test building envelopes and balconies. Many local condo buildings were built between the 1960s and 1990s, so a good number are entering milestone windows or completing follow-up cycles. Repairs often require county permits, and the Collier County Building Division oversees structural permits and related filings. Understanding a building’s inspection status helps you plan for both safety and costs.
Reserve funds explained
“Reserves” are funds your association sets aside to repair or replace common elements such as roofs, exterior painting, balconies, major structural components, elevators, paving, and common-area systems. A reserve study lists each component, useful life, remaining life, projected replacement cost, and a recommended annual contribution to stay on track.
Milestone inspection findings feed directly into planning. If an engineer calls out concrete repairs or balcony work, the board may need to update the reserve study, increase monthly assessments, or levy a special assessment. There is no single universal percentage that defines “adequate,” but many communities look at:
- Percent funded, which compares current reserves to the study’s recommended balance.
- Annual reserve contributions, compared to the study’s recommended amount.
- Whether contributions were increased or special assessments adopted after the inspection.
Why you should care: if large repairs are needed and reserves are low, owners may face higher monthly fees or special assessments. Lenders and insurers also watch inspection status and reserve funding.
What to ask the association
Before you fall in love with a view, get the paperwork. Here is a practical checklist.
Documents to request
- Most recent milestone or recertification inspection report, including all attachments and the engineer’s signed seal.
- Any follow-up engineering reports, repair contracts, and progress updates since that inspection.
- Current year budget and the prior two years’ budgets.
- Current financial statements and the most recent audited or reviewed financials, if available.
- The most recent reserve study and any updates or addenda, including the recommended contribution schedule.
- An association ledger or statement showing current reserve balance and a breakdown of reserve vs. operating funds.
- Minutes of board meetings for the last 24 months, or since the inspection if more recent.
- Records of any special assessments or planned assessments related to inspection findings.
- Copies of permits and signed contracts for identified repair work.
- Master insurance certificate, including coverage types, limits, and deductibles, especially hurricane or windstorm.
- Any pending litigation or claims, along with notices from Collier County or state agencies about building safety or compliance.
- Declaration, bylaws, and rules, to see how assessments and reserves are handled.
- Any correspondence with county or state agencies about building safety, recertification, or enforcement.
Plain questions to ask
- When was the last milestone inspection performed, and what is the report date?
- Who prepared the report, and does it include the engineer’s seal and license information?
- Were any immediate or urgent repairs identified, what are the cost estimates, and what is the timeline?
- Has the board approved a repair plan or budget, and are there permits and signed contracts in place?
- How much money is in reserves today, and what percent funded is the association based on the reserve study?
- Have regular assessments increased, or has a special assessment been approved since the report?
- Are there any pending orders from Collier County, the state, or other agencies related to building safety?
- Has the association had challenges securing insurance, or did coverage terms change after the inspection?
- Are there lender restrictions in place for units in this building, such as FHA or conventional investor approvals or denials?
How to make the request
Ask in writing to the board or property manager and include a clear deadline, such as 7 to 10 business days. If you are working with an agent, have them request and track delivery. If responses are incomplete or unclear, consult a Florida condominium attorney.
How to read the key documents
Milestone inspection report
Focus on the executive summary and conclusions for an overall condition snapshot. Then review any section labeled immediate or critical repairs. Look for estimated cost ranges and a recommended timeline for work and reinspection. Confirm that the report includes photos and diagrams showing defects, and check that it is signed and sealed by a licensed professional.
Red flags:
- Immediate life-safety hazards without a clear plan or funding.
- Vague or unsupported cost estimates.
- A short memo with no photos, no seal, or absent qualifications.
- Repeat deficiencies across multiple reports with no remediation plan.
Reserve study
Check the component list to make sure major elements are included, such as roofs, balconies, exterior structural components, parking structures, and elevators. Compare useful life and remaining life for near-term needs. Review the recommended annual contributions and percent funded, then compare these to the association’s current budget.
Red flags:
- A study older than 2 to 3 years, especially if not updated after a milestone inspection.
- Omitted components that the inspection report says need attention.
- Very low percent funded, especially if large repair needs are identified.
Financials and budgets
Confirm reserve cash is separate from operating cash, and that operating costs are not being covered by reserve transfers. Look for audits or reviewed financials, which add credibility to the numbers. Note any loans or frequent special assessments, since these can signal underfunding.
Red flags:
- Repeated special assessments or association loans to cover capital repairs.
- Operating deficits or reserves used to fund routine expenses.
- Missing or out-of-date budgets.
Minutes, contracts, and permits
Minutes tell you whether the board acted on the inspection report, approved projects, and notified owners. Contracts and permits confirm the work is properly scoped and compliant with local requirements.
Red flags:
- Board disputes that delay repairs or funding.
- Unpermitted work or permit issues that stall timelines.
Insurance coverage
Review the master policy limits and deductibles, with special attention to hurricane or named storm deductibles. If insurers have nonrenewed coverage or premiums spiked recently, it can indicate increased perceived risk and higher future costs for owners.
Red flags:
- Large hurricane deductibles that could shift significant costs to owners after a storm.
- Reduced coverage limits or insurer nonrenewals.
Local records to verify in Collier County
- Collier County Building Division and Code Enforcement for permit history, certificate of occupancy, and any compliance or recertification records.
- Collier County Property Appraiser for building age and parcel data.
- Florida licensing boards or DBPR to confirm the engineering firm’s license and to check for any disciplinary history.
- Local court records for any litigation involving the association or developer.
Your due diligence timeline
- Early stage, offer to escrow: request the milestone report, reserve study, current budget, reserve balance, recent minutes, and insurance certificate. These items can affect financing and your long-term costs.
- Prior to inspection period end or contingency removal: have a Florida condominium attorney review the documents. If needed, engage a licensed structural engineer to explain technical items and likely costs.
- If major repairs are identified: confirm the funding plan, such as increased dues, a special assessment, or a loan. Request copies of signed contracts, permits, and project schedules.
Financing and insurance considerations
Some mortgage programs require certain reserve funding levels or building certifications. If a building has significant unresolved structural issues or insufficient reserves, financing can be more challenging. Insurance terms also matter. High deductibles or reduced coverage can increase your out-of-pocket risk, especially after a storm or during structural work.
Red flags to watch
Use this quick list to decide where to dig deeper:
- Recent milestone inspection identifies immediate safety repairs, but there is no plan or funding.
- No recent reserve study, or the study was not updated after the inspection.
- Reserve balance is far below the recommended level.
- Recent or repeated special assessments or loans to fund repairs.
- Pending county or state enforcement related to structural safety.
- Insurance nonrenewals, very high storm deductibles, or reduced coverage.
- Board minutes show unresolved conflicts that delay projects.
- Inspection reports lack detail, photos, signatures, or licensing information.
Who to involve
- Florida condominium or real estate attorney for document and compliance review.
- Licensed structural engineer with coastal condo experience for technical interpretation or supplemental review.
- Certified public accountant or financial reviewer for complex reserve and budget analysis.
- A local real estate agent with Marco Island condo experience for context, document gathering, and lender or insurance introductions.
- A title company familiar with association lien language and special assessment status.
Final thoughts and next steps
A Marco Island condo can be a wonderful investment and lifestyle choice. By understanding milestone inspections and reserves, you can protect your budget and choose a building that is prepared for coastal conditions. Request the right documents, read them with a clear framework, and bring in experienced professionals when the details get technical.
If you want a steady guide through the process, the Gina Guarino Group can help you request and organize documents, coordinate timelines, and connect you with trusted local resources. Let our team, be your team.
Important note: Laws and local procedures change, so verify current requirements with DBPR, Collier County, and a qualified attorney or engineer.
FAQs
What is a condo milestone inspection in Florida?
- It is a building-wide structural and life-safety assessment by a licensed engineer that identifies safety issues, recommends repairs, and outlines costs and timelines.
How do milestone inspections affect condo fees?
- If repairs are needed and reserves are low, the association may raise regular dues or levy a special assessment to fund the work.
What documents should I review before buying on Marco Island?
- Ask for the latest milestone report, reserve study, current budget, reserve balance, recent board minutes, insurance certificate, and any repair contracts and permits.
Who pays for repairs found in the milestone report?
- The association pays for common element repairs using reserves, assessments, or loans, and owners share costs as defined in the governing documents.
Should I walk away if a building has a tough report?
- Not necessarily, consider severity, the funding plan, insurance terms, and your financing options, and consult a Florida condo attorney and possibly a structural engineer before deciding.
