Selling a Condo Affected by Florida's Milestone Inspection Law

4 min read · Last updated 2026-08-03 · Reviewed by Joseph Mena, CFO of Cash Flow Deals. · Reviewed by Camilo Palacio, Licensed Florida Real Estate Professional (License #3280644, REALTOR®)

Cash Flow Deals is one option when you want to sell a Florida condo before Phase 1 or Phase 2 milestone inspection 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. With Cash Flow Deals, you choose between the Fast Cash Offer, where we buy your condo as-is and close, and the Premium Cash Offer, where a pre-approved FHA or conventional buyer we already have, ready to go, pays more and buys directly from you. You disclose the inspection status so we can account for it when preparing both offers.

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.	You can compare the Fast Cash Offer and Premium Cash Offer before a pending Phase 2 finding is resolved, with the inspection status disclosed. The number is agreed before any work starts, and it changes only if you agree. 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.
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.	You choose between the Fast Cash Offer and Premium Cash Offer with the disclosed milestone status considered in each offer. On Premium, Cash Flow Deals is paid as one separate line item on the closing statement through Silver Door Realty. Repair costs and other sale costs are settled from the sale proceeds out of our share, so nothing comes out of your pocket.

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 starts with your building's inspection status: 1. Request a walkthrough and disclose the milestone inspection status, including Phase 1 or Phase 2 findings. 2. Compare the Fast Cash Offer, where we buy your condo as-is and close, and the Premium Cash Offer, where a pre-approved FHA or conventional buyer we already have, ready to go, pays more and buys directly from you. You choose. The number is agreed before any work starts, and it changes only if you agree. 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. 3. On Premium, your home may be listed through Cash Flow Deals' licensed Florida brokerage partner, Silver Door Realty, with a licensed agent and scheduled showings. Your buyer's lender evaluates the disclosed inspection status. We cover repair costs, and we figure out a way, so nothing comes out of your pocket. Only what the buyer's lender requires gets fixed, with costs settled from the sale proceeds out of our share; on Fast Cash, we buy as-is with no repairs for you to make. 4. On Premium, your buyer signs a new contract directly with you, their lender funds the purchase, and title transfers once, directly from you to that buyer. Your closing date depends on the lender's requirements and any association inspection or repair issues that affect approval.

What Cash Flow Deals Actually Is

With Cash Flow Deals, a Florida real estate investor, you choose between the Fast Cash Offer, where we buy your condo as-is and close, and the Premium Cash Offer, where a pre-approved FHA or conventional buyer we already have, ready to go, pays more and buys directly from you. On Premium, your home may be listed through Silver Door Realty, our licensed Florida brokerage partner; Cash Flow Deals is not itself a brokerage. If your buyer's loan falls through, that is our problem, not yours, and you can still take the Fast Cash Offer at its own number alongside your Premium Cash Offer choice. Before signing anything, you should confirm your exact disclosure obligations tied to a milestone inspection finding with a licensed Florida real estate attorney.

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.