The Non-Negotiable Five — Walk Away Without These
1 Structural Integrity Reserve Study (SIRS)
The single most important document for any Florida condo purchase in 2026. The SIRS identifies the building's structural reserve requirements for eight component categories and determines the funding shortfall. If the building has not completed its SIRS, you cannot evaluate your financial exposure. A building without a completed SIRS is a building where nobody — including the board — knows what the structural obligations are.
Why it matters: A $2 million reserve shortfall on a 100-unit building means $20,000 per unit in unfunded obligations. That cost will be funded through your HOA or a special assessment. You need to know the number before you buy.
2 Reserve Fund Balance and Funding Plan
The SIRS tells you what the building needs. The reserve fund balance tells you what the building has. The gap is what you're on the hook for. A well-funded building has reserves at 70%+ of the SIRS requirement. A poorly funded building may be at 20–30%. Ask for the current balance, the percentage funded, and the board's adopted plan to close the gap.
Why it matters: Industry best practice is 70%+ funded. Below 50% signals significant risk. Below 30% almost guarantees a special assessment or dramatic HOA increase within 2–3 years.
3 Master Insurance Declarations Page
This document shows the building's current master property insurance policy: carrier name, annual premium, coverage limits, deductible, and policy period. The master insurance premium is typically the single largest line item in the building's budget and the primary driver of HOA fees. If the carrier is Citizens (the state insurer of last resort), ask whether the building is scheduled for depopulation to a private carrier — and at what expected rate.
Why it matters: A building paying $1.2 million/year for insurance has fundamentally different economics than a building paying $400,000. The premium directly determines your monthly HOA fee. Also check the carrier's AM Best rating — a B-rated or unrated carrier may face financial stress.
4 Three-Year HOA Fee History
Request the monthly fee for the last 36 months. This reveals the trajectory. A building that went from $350/month to $380/month to $400/month over three years is increasing at a manageable 4–5% annually. A building that went from $300/month to $450/month to $700/month is in crisis. The trajectory tells you more about the building's future than the current fee alone.
Why it matters: A $50/month annual increase compounded over 5 years adds $250/month to your cost. That trajectory may continue. Budget accordingly.
5 Pending or Approved Special Assessments
Florida law requires sellers to disclose pending assessments, but "pending" is sometimes interpreted narrowly. Ask explicitly: "Are there any special assessments that have been approved, proposed, discussed at board meetings, or anticipated within the next 24 months?" An assessment approved but not yet billed is a liability you inherit at closing. An assessment discussed but not yet voted on is a risk you should price into your offer.
Why it matters: A $15,000 special assessment arriving 6 months after your purchase effectively increases your purchase price by $15,000. If you knew about it, you would have offered $15,000 less — or walked away.
The 48-Hour Rule
If the listing agent cannot provide documents 1–5 within 48 hours of your request, either the agent doesn't know the building's financial position or the building's association is not responsive to disclosure requests. Both are red flags. A well-managed building with a competent agent produces these documents routinely. Do not write an offer until you have all five.
The Important Six — Evaluate Before Closing
6 Board Meeting Minutes (Last 12 Months)
Minutes reveal what the board is actually discussing. Roof repair debates, insurance carrier changes, owner complaints, contractor disputes, and reserve funding discussions all appear in the minutes. Read them for tone as much as content — a board dealing with repeated emergency motions and contentious votes is governing differently than a board with routine monthly updates.
7 Pending Litigation
Is the building's condo association involved in any lawsuits? Litigation affects the building's insurability, depletes reserves (legal fees come from the operating budget), and creates uncertainty that depresses resale values. Construction defect lawsuits, slip-and-fall claims, and disputes with contractors or insurance carriers are the most common types.
8 Annual Budget and Financial Statements
The budget shows how the building allocates HOA revenue across insurance, maintenance, management, reserves, and other categories. Look for the insurance line item as a percentage of the total budget — if insurance exceeds 40% of the budget, the building is vulnerable to premium spikes. The financial statements show whether the building is operating at a surplus or deficit.
9 Insurance Loss History (3 Years)
Prior claims drive future premiums. A building with two water damage claims in three years pays more for insurance than a building with zero claims, regardless of other factors. The loss history also reveals the types of issues the building experiences — chronic water intrusion, fire alarm malfunctions, liability incidents.
10 Milestone Structural Inspection Report
For buildings 30+ years old (25 years within 3 miles of the coast), Florida requires a milestone structural inspection. This is separate from the SIRS — it's a physical structural assessment, not a financial reserve study. Request the inspection report and any findings, recommendations, or required remediation.
11 Wind Mitigation Report
Shows what hurricane hardening measures the building has — impact windows/shutters, roof tie-downs, secondary water resistance. These measures directly reduce insurance premiums by 10–40%. A building with a current wind mitigation report is likely paying less for insurance than a building without one.
The Helpful Four — Nice to Have, Reveals Character
12 Rules and Regulations / CC&Rs
The governing documents define what you can and can't do: pet policies (breed restrictions, weight limits, number), rental restrictions (no renting first year, annual limits), renovation rules (approval process, contractor insurance requirements), parking regulations, and noise policies. Read these before falling in love with a unit — a no-pet rule or a 2-year rental restriction can be a dealbreaker.
13 Owner-Occupied vs. Rental Ratio
The percentage of owner-occupied units affects community character, governance participation, and — practically — how well the common areas are maintained. A building with 85% owner-occupied units feels different from a building with 40% rentals. FHA and VA financing also require minimum owner-occupancy ratios, which can affect your financing options.
14 Estoppel Letter
A certified statement from the association confirming the unit's account status: any outstanding fees, pending assessments, or violations. This is typically ordered during the closing process but you can request it earlier to verify there are no surprises. Florida law limits the estoppel fee to $250.
15 Turnover Inspection (If Developer-Built Within Last 10 Years)
For newer buildings that recently transitioned from developer control to owner control, the turnover inspection report reveals any construction defects or incomplete work identified at the point of transition. HB 913 now requires the turnover report to include a SIRS.
When to Walk Away
Not every building is a bad buy. But some are. Walk away if any of these conditions exist and the building or association cannot provide a clear remediation plan:
The SIRS has not been completed and there is no scheduled completion date. The reserve fund is below 30% of the SIRS requirement with no adopted funding plan. The master insurance policy is with an unrated carrier or was non-renewed by the prior carrier. HOA fees increased more than 25% in a single year without a clear explanation. There are pending special assessments exceeding 10% of the unit's value. The building is involved in active litigation that could affect insurability or reserve funds. Board meeting minutes are unavailable or reflect governance dysfunction.
The purchase price is one number. The financial health of the building is the number that determines what you actually pay.
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