Selling a Condo Affected by Florida's Milestone Inspection Law
2 min read · Last updated 2026-08-03 · Reviewed by Camilo Palacio, Licensed Florida Real Estate Professional (License #3280644, REALTOR®)
Cash Flow Deals is one option for selling a Florida condo tied up in a milestone inspection, before Phase 1 or Phase 2 findings get finalized. Florida Statute 553.899 requires condo and co-op buildings three stories or taller to complete a Phase 1 milestone inspection by December 31 of the year the building turns 30, or 25 near the coast. Cash Flow Deals locks a net price around that inspection instead of waiting on its outcome.
| Factor | Traditional Listing | Cash Flow Deals |
|---|---|---|
| Timeline | Financed buyers and lenders often want the milestone inspection report, and any Phase 2 findings, resolved or disclosed before a loan clears, which can stall a listed sale for months while repairs get scoped. | Cash Flow Deals underwrites the property with the milestone inspection status already factored in, so Phase 1 or Phase 2 findings do not reopen the closing date. |
| Repairs | A Phase 2 finding of substantial structural deterioration can trigger association-wide repairs, often funded by special assessment, before some lenders will fund a buyer's loan. | Cash Flow Deals locks the net price before repairs are scoped, so a pending Phase 2 finding does not have to resolve before a number exists. |
| Fees / Costs | Missing a milestone deadline can trigger code compliance referrals and local enforcement penalties against the association, costs that flow back to owners through assessments, on top of negotiable listing commission. | Cash Flow Deals is paid as one separate line item on the closing statement through Silver Door Realty, and the milestone status gets factored into the locked net number instead of subtracted after the fact. |
What Florida's Milestone Inspection Law Actually Requires
Florida Statute 553.899 requires condominium and cooperative buildings three or more habitable stories tall, including mixed-ownership buildings with condo or co-op units, to complete a structural milestone inspection. Phase 1 is due by December 31 of the year the building turns 30 years old, based on its certificate of occupancy date. Coastal buildings, based on their proximity to salt water, can be required to inspect at 25 years instead, at the local enforcement agency's discretion. The inspection has to be performed by a Florida-licensed professional engineer or architect. If Phase 1 flags substantial structural deterioration, a Phase 2 substantive evaluation follows. After the first milestone inspection, buildings have to re-inspect every 10 years. The statute lets local enforcement agencies set their own timelines and penalties for missing the deadline, and in serious cases a flagged building can face evacuation orders.
How a Pending Inspection Slows Down a Financed Sale
A financed buyer's lender wants to see the milestone inspection status before funding a loan on a condo in an affected building. A Phase 1 report that flags issues, or a Phase 2 evaluation still in progress, reads as unresolved risk, and some lenders will pause underwriting until the association shows a repair plan and funding source. A seller listed traditionally during that window is stuck waiting on the association's engineering timeline before a buyer's financing can move forward.
Cash Flow Deals' Process for Selling While the Inspection Is Still Open
Cash Flow Deals' Process: 1. Request a net-price walkthrough, and disclose the building's milestone inspection status, Phase 1 or Phase 2, as part of that conversation. 2. Cash Flow Deals factors the inspection status into the locked net number instead of waiting on the engineering report to close out. 3. Cash Flow Deals' licensed brokerage partner, Silver Door Realty, connects the property with a real FHA or conventional buyer whose lender underwrites around the disclosed inspection status. 4. Title transfers once, directly from seller to that buyer, on a closing date that does not wait on the association's re-inspection or repair schedule.
What Cash Flow Deals Actually Is
Cash Flow Deals is a Florida real estate investor that locks in a net price for a seller's house before repairs are scoped, using a novation-based, flat-fee process arranged through its licensed FL brokerage partner, Silver Door Realty — not a traditional listing, and not a brokerage itself. Sellers should still confirm exact disclosure obligations tied to a milestone inspection finding with a licensed Florida real estate attorney before signing anything.
The One Exception That Can Move the Number
The one exception: if something structural surfaces that was not visible or disclosed before we signed — foundation issues, hidden moisture, old wiring, cast-iron drain failure — we re-cost it and bring the number back to you. You decide. You can walk away. We disclose what we know at offer time so this almost never happens. A Phase 2 milestone finding is exactly the kind of structural issue this exception exists for, and it gets priced into the number instead of surprising anyone at closing.
Common questions
What is the difference between Phase 1 and Phase 2 of a milestone inspection?
Phase 1 is a visual inspection performed by a Florida-licensed engineer or architect. If Phase 1 flags substantial structural deterioration, Phase 2 follows as a more detailed structural evaluation of the flagged areas.
Can I sell my condo before my building's milestone inspection deadline?
Yes, a milestone deadline applies to the building and association, not to an individual sale. A seller can sell at any point, though a financed buyer's lender may want the inspection status disclosed as part of underwriting.
What happens if my building already failed Phase 1?
A Phase 1 finding of substantial structural deterioration triggers a Phase 2 evaluation and, depending on what that finds, association-wide repairs, often funded through a special assessment. That status still has to get disclosed to a prospective buyer.
Does a missed milestone deadline penalty apply to me personally or to my association?
Florida Statute 553.899 lets local enforcement agencies set their own timelines and penalties for a missed milestone deadline, and any resulting penalty applies to the building and its association, not to an individual unit owner directly, though the cost of penalties or repairs can flow back to owners through assessments.