Reading condo documents before buying in Florida: Declaration, SIRS, milestone, minutes

Section 01Why this matters for a Canadian buyer

A condominium purchase in Florida is not just a real estate transaction. It is also the purchase of a share in a private corporation (the condominium association) that holds the building's structural risk, insurance program, and capital plan. Three structural shifts since the Surfside collapse in June 2021 have made document review more consequential, not less.

First, SB 4-D (2022) introduced mandatory milestone inspections for buildings of three habitable stories or more under F.S. §553.899. Second, the same legislation introduced the Structural Integrity Reserve Study (SIRS) requirement under F.S. §718.112(2)(g), forcing associations to fund eight categories of structural reserves. Third, HB 913 (2025) extended the SIRS deadline to December 31, 2025, raised the minimum threshold for "other" reserve items from 10,000 USD to 25,000 USD, and clarified that for budgets adopted on or after January 1, 2025, owners can no longer waive or reduce reserve funding for SIRS-required components.

The practical consequence for a Canadian buyer: many older Florida condo buildings are now confronting a multi-decade backlog of underfunded reserves, all at once. Special assessments of 50,000 USD to 400,000 USD per unit have been documented at buildings that failed to plan ahead. If you skip the document review and walk into a building that has not yet absorbed its SIRS funding obligation, you may end up paying for the previous twenty years of underfunding.

For a Canadian, this risk is asymmetric in another way: you are typically not on the ground in Florida, you cannot easily attend board meetings, and you may not have a US credit history that makes refinancing a special assessment painless. The document package, properly read, is the closest thing to a structured risk audit that the law provides.

Section 02Who provides what: resale versus new construction

Florida law splits condo disclosure into two regimes. The distinction matters because the cancellation timelines and document lists are different.

Resale (most Canadian buyers): F.S. §718.503(2)

When you buy from an existing owner (a "nondeveloper unit owner"), the seller must furnish, at the seller's expense, eight categories of documents listed in §718.503(2)(a):

1. The declaration of condominium
2. The articles of incorporation of the association
3. The bylaws and rules of the association
4. An annual financial statement and annual budget of the condominium association
5. A copy of the inspector-prepared summary of the milestone inspection report, if applicable
6. The association's most recent SIRS, or a statement that no SIRS has been completed
7. A copy of the turnover inspection report described in F.S. §718.301(4)(p) and (q), for turnover inspections performed on or after July 1, 2023
8. The Frequently Asked Questions and Answers document required by F.S. §718.504

Beyond these eight, the seller must also provide a governance form prepared by the DBPR summarizing how condominium associations are governed. The governance form is informational, but it is part of the statutory package.

New construction (preconstruction sales): F.S. §718.503(1)

When you buy directly from a developer, the document list is much longer (twenty categories under §718.503(1)(b)) and the cancellation window is 15 days rather than three business days. The developer cannot close for 15 days after delivery of the documents unless you sign a separate written waiver. This guide focuses on resale, which is by far the more common pattern for Canadian buyers in the secondary market.

Section 03The three-business-day cancellation right

The single most useful protection in F.S. §718.503(2) is the resale cancellation window. The mechanics are precise.

Verified fact (F.S. §718.503(2)(d)2): The buyer may void the agreement by written notice to the seller within three days, excluding Saturdays, Sundays, and legal holidays, after the date of contract execution and receipt of the complete document package. The buyer may also extend the closing date by up to three business days after receipt. Any purported waiver of these rights is of no effect. The right terminates at closing.

The clock starts only when the package is complete. If the seller delivers six of the eight documents and you sign the FAR/BAR contract, your three-business-day clock has not started. It starts on the day the last required document arrives in your hands. A contract that does not conform to the disclosure rules is voidable at the buyer's option prior to closing under F.S. §718.503(2)(d).

A separate three-business-day window opens (under F.S. §718.503(2)(e), for contracts entered into after December 31, 2024) tied specifically to receipt of the milestone inspection summary, the turnover inspection report, or the SIRS, when those documents are required. This second window is meant to protect buyers in older buildings where the SIRS or milestone may arrive late.

Opinion (editorial judgment): Three business days is short. For a Canadian buyer who needs to review documents in a second language with a Florida-licensed attorney, the prudent move is to negotiate the FAR/BAR contract so that the document delivery happens before signing, not after. That way, you read first and commit second, instead of committing first and having three business days to escape if something is wrong.

Section 04What to read first and what to look for

The eight statutory documents form the floor, not the ceiling. A thorough Canadian buyer typically requests several additional items, all routinely available to the association and inexpensive to produce.

Beyond the statutory eight, request:

• The last 12 to 24 months of board meeting minutes (special assessments are typically discussed in minutes long before they are formally voted)
• The current insurance master policy declaration page, including the wind/hurricane deductible
• A current estoppel letter (typically 250 USD to 300 USD, often paid by the seller at closing) showing whether the unit is current on fees and assessments
• Any litigation summary the association can provide
• The reserve account balance as of the most recent month, separate from the budgeted reserve amounts

Inside the declaration of condominium, focus on:

• Use and occupancy clauses: short-term rental restrictions, pet limits, smoking, signage, vehicle storage
• Leasing or rental rules: minimum lease term, board approval process, application fees, the maximum number of units that may be rented at once
• Maintenance and repair allocation: which components are owner responsibility (typically interior, fixtures, appliances) versus association responsibility (roof, structure, plumbing risers, exterior walls)
• Insurance: what the master policy covers (typically the building structure and common elements) versus what the unit owner must cover with an HO-6 policy (interior, betterments, personal property, loss assessment coverage)
• Special assessment authority: the threshold for when a unit owner vote is required, the mechanism the board uses to levy without a vote
• Right of First Refusal: a small number of older Florida condos give the association the right to match any third-party offer before the unit can be sold to a stranger. This is rare but it can complicate timing and financing.

Inside the financial documents, focus on:

• The operating budget versus the actual prior year, looking for line items that consistently overrun (insurance is the most common culprit)
• The reserve fund balance versus the SIRS recommendation: the gap is the most reliable predictor of a future special assessment
• The percentage of units delinquent on monthly fees: above 10 percent is a yellow flag, above 15 percent is a red flag
• Any recent special assessment levied or under discussion in minutes

Section 05Red flags

The following patterns recur in document packages of buildings that go on to disappoint their buyers.

Verified fact patterns (sourced from F.S. and DBPR guidance):

• The reserve fund balance is materially below the SIRS-recommended baseline funding plan, with no special assessment or loan in place to close the gap
• The milestone inspection is required (building of three habitable stories or more, age 30+ for non-coastal, or earlier where local enforcement requires) but has not been completed by the statutory deadline
• The SIRS has not been completed when due (the deadline for owner-controlled associations existing on or before July 1, 2022, was extended to December 31, 2025 by HB 913 in 2025)
• A milestone Phase 2 inspection has been ordered but the recommended structural repairs have not been commenced, knowing the owner has 365 days from receipt of the Phase 2 report under F.S. §553.899

Typical range patterns (practical estimates, not statutory thresholds):

• Monthly condo fees below 400 USD per unit per month for a building 30+ years old, three or more stories, in a hurricane zone (often a sign of underfunded reserves rather than efficient management)
• A master policy hurricane deductible above 10 percent (a sign that the association struggled to renew with a reasonable deductible, or chose to absorb risk to keep premiums down)
• Active litigation (lawsuits where the association is defendant or plaintiff) disclosed in the Q&A document or board minutes
• More than 15 percent of units in delinquency on monthly fees (each delinquent unit is a hidden subsidy paid by the current owners)
• A pattern in board minutes of repeatedly deferring repairs or capital projects from one fiscal year to the next without funding

Opinion: the single biggest red flag is unwillingness to provide documents on time. A Florida resale condo association is statutorily obligated to produce these records. If the seller, the seller's broker, or the management company is slow, evasive, or partial in their delivery, that is a structural signal about how the association handles its obligations. Walk away.

Section 06Canada to Florida comparison

Canadian buyers come from a different documentary regime. The FL system is more federalized in design (Chapter 718 governs all Florida condos statewide) but produces a thicker stack of documents than most Canadian provinces require.

For provinces other than Quebec and Ontario, the equivalents are similar in spirit: British Columbia uses the Form B Information Certificate under the Strata Property Act, Alberta uses the Estoppel Certificate under the Condominium Property Act, and the Maritime provinces follow comparable disclosure regimes. Equivalent comparisons for British Columbia, Alberta, and the Maritimes are forthcoming.

The fundamental delta for a Canadian buyer is that Florida packages the disclosure into one statutory list with a hard cancellation window, whereas Canadian provinces typically deliver disclosure piecemeal through brokerage forms (DRCOP in Quebec, status certificate in Ontario) and rely on contractual contingencies negotiated in the offer itself.

Section 07Worked example

The following figures illustrate the order of magnitude. They are not predictive of any specific building.

A Canadian couple from Montreal signs a FAR/BAR resale contract for a 350,000 USD two-bedroom condo in a 1985-built oceanfront tower in Hollywood, Florida. The building has 80 units, ten habitable stories, is within three miles of the coast, and has a current monthly condo fee of 525 USD per unit.

On day three after contract execution, the seller's broker delivers a partial document set: declaration, bylaws, articles, the current annual budget. The Q&A document, the SIRS, and the milestone inspection summary are missing. The three-business-day cancellation clock has not started.

Two weeks later, the missing three documents arrive. The Q&A document discloses an active lawsuit by a former unit owner against the association regarding a 2023 special assessment. The SIRS, completed in November 2025, recommends a baseline funding contribution of 1,200 USD per unit per month for the next ten years. The milestone Phase 1 inspection, completed in 2024, identified spalling concrete on the third-floor balconies and recommended a Phase 2 structural assessment, which has not been commissioned.

Worked-out implications:

• Current monthly fee: 525 USD x 80 units = 42,000 USD per month into operations and reserves combined
• SIRS-recommended monthly contribution: 1,200 USD x 80 units = 96,000 USD per month
• Funding gap: 54,000 USD per month, or 648,000 USD per year, that the association is not collecting
• For a Canadian buyer, that gap typically translates into one of two outcomes within 24 to 36 months: a special assessment averaging 60,000 to 100,000 USD per unit, or a steep monthly fee increase of 600 to 700 USD per unit, or both

The buyer notifies the seller in writing within three business days of receipt of the complete package and cancels the contract under F.S. §718.503(2)(d). Deposit is refunded. The Canadian couple has just saved themselves a six-figure exposure they had no obligation to inherit.

Section 08Common mistakes

These are the recurring failures we see in Canadian buyer files.

Signing the FAR/BAR contract before requesting documents. The standard FAR/BAR contract starts the cancellation clock from receipt, not from signing, but you only get a single three-business-day window. Negotiating delivery upfront, before signing, gives you weeks rather than days to read.

Treating the Q&A document as filler. F.S. §718.504 requires the Q&A to disclose specific items: estimated regular and special assessments, leasing restrictions, pet policies, expected reserves, expected major capital expenditures, ongoing litigation. It is the most concentrated information per page in the package. Read it twice.

Reading the budget and ignoring the actuals. The budget is forecast, the actuals are reality. If the building consistently overruns insurance and underfunds reserves by the same amount each year, the trajectory is set and the budget is fiction.

Confusing the master insurance certificate with the unit HO-6 policy. The master covers the building shell and common elements. It does not cover your interior, your loss assessment exposure, your contents, or in many cases your appliances. A Canadian who buys without an HO-6 quote in hand has no idea what their true monthly carrying cost will be.

Reviewing the documents alone, in English, with no Florida-licensed attorney. Document review by a Florida-licensed real estate attorney typically costs 250 USD to 500 USD. For a 300,000 to 600,000 USD purchase, this is the highest return-on-investment dollar in the entire transaction. Your Canadian notary or real estate lawyer is not licensed to opine on Florida statutes.

Skipping the board minutes. Special assessments do not appear out of nowhere. They are typically discussed in minutes for six to eighteen months before being formally adopted. Twelve months of minutes is the floor, twenty-four months is better.

Ignoring delinquency rates. Delinquent units are a hidden subsidy paid by the current owners. A building with 20 percent delinquency rate is a building where you are paying for your neighbours.

Section 09Actionable checklist

A working sequence for a Canadian buyer making a resale offer.

1. Before signing any FAR/BAR contract, request the eight statutory documents from the seller's broker in writing. Add board minutes (24 months), master insurance declaration page, current estoppel letter, and reserve account balance. Note that the seller is statutorily required to provide the eight at seller's expense.
2. Once the package is complete, schedule a 30 to 45 minute call with a Florida-licensed real estate attorney for document review. Budget 250 USD to 500 USD.
3. Read the Q&A document twice. Highlight every reference to special assessments, litigation, reserves, and milestone or SIRS status.
4. Read the declaration of condominium with focus on use restrictions, leasing rules, and the special assessment authority granted to the board.
5. Compare the SIRS-recommended baseline funding plan to the current operating budget reserve line. The gap is your future risk.
6. Read 24 months of minutes, looking for repeated discussion of repairs, insurance renewal stress, deferred capital, or proposed assessments.
7. If the milestone inspection or SIRS is required and not completed, request a written explanation of where the association stands with the local enforcement agency and DBPR.
8. Obtain an HO-6 quote from a Florida-licensed insurance broker before committing. Add the quote to your monthly carrying cost estimate.
9. If anything in the package is missing, late, or evasive, your three-business-day cancellation clock has not started. Use that fact.
10. Make your final go or no-go decision before the three-business-day window closes. Send written notice of cancellation by certified mail or email with delivery receipt if you walk.

Section 10Frequently asked questions

My condo is two stories. Does the milestone inspection apply?

No. F.S. §553.899 applies only to buildings of three habitable stories or more. Single-family, two-family, three-family, and four-family dwellings with three or fewer habitable stories above ground are excluded.

The seller says no SIRS has been completed. Is that a deal-killer?

It depends on the building. If the association exists on or before July 1, 2022, and is owner-controlled with three or more habitable stories, the SIRS deadline was December 31, 2025 under HB 913 (2025). A missing SIRS at this point requires explanation. The Q&A document and any DBPR correspondence should clarify whether the association is delinquent, in active engagement, or coordinating with a milestone inspection through the Dec 31, 2026 grace window.

Can I negotiate a longer cancellation window?

Florida statute sets the floor at three business days for resale, and any waiver is "of no effect" under F.S. §718.503(2)(d)2. You cannot waive below that. You can however negotiate the FAR/BAR contract to require document delivery before signing, or attach a contingency for a satisfactory document review of any duration you and the seller agree to.

Who pays for the estoppel letter?

Custom in Florida is that the seller pays for the estoppel letter at closing. The fee is typically 250 USD to 300 USD per letter. Confirm in your FAR/BAR contract.

My financing fell through because the lender refused the building. Why?

Many US lenders refuse to finance units in condo buildings that are non-warrantable: not Fannie Mae or Freddie Mac compliant. Common triggers are missing SIRS, missing milestone, master policy with insufficient coverage or excessive deductible, more than 15 percent of units delinquent, or active litigation. The document package will usually telegraph this risk to your loan officer before you commit.

Can I rely on the seller's broker to explain the documents?

Under F.S. §718.503(2)(c), a real estate licensee who provides or obtains the disclosure documents for a prospective purchaser is not liable for any error or inaccuracy in those documents. The broker's role is delivery, not interpretation. Use a Florida-licensed attorney for interpretation.

I am buying from an estate or trust. Are the rules the same?

Resale rules under F.S. §718.503(2) apply to any nondeveloper sale, including by estates, trusts, banks (post-foreclosure), or relocation companies. You retain the three-business-day window.

Section 11What is out of scope of this guide

This guide covers the Florida condominium document review for a Canadian resale buyer. It does not cover:

• The full FAR/BAR contract structure and contingencies, which belong to a Chapter 01 (Acquisition) guide
• The cooperative form of ownership under F.S. Chapter 719, which has its own rules
• HOA disclosure for non-condo subdivisions under F.S. Chapter 720, which is covered separately
• The seller-side disclosure obligations under F.S. §718.503(2), which belong in the Chapter 04 (Sale) guides
• Equivalent disclosure regimes for British Columbia, Alberta, the Prairies, and the Maritimes, which are forthcoming

For a Canadian buyer, the document review is one piece of the broader acquisition due diligence. It pairs naturally with the physical inspection (covered separately), the financing pre-approval, the title search and title insurance review, and the SIRS-specific deep dive available in the dedicated SIRS guide on this site.