Buying a condo in Palm Beach right now can feel exciting and uncertain at the same time. You want coastal lifestyle and long-term value, yet headlines about inspections, insurance, and assessments raise real questions. The good news is you can buy with confidence when you follow a clear, local checklist. This guide explains Palm Beach County’s “milestone” rules and shows you the exact checkpoints to use from offer to closing. Let’s dive in.
Milestone rules in Palm Beach
Which buildings and when
Florida now requires structural “milestone” inspections for residential condominium and cooperative buildings with three or more stories. In Palm Beach County, the first inspection occurs at 25 years if the building is within three miles of the coast and 30 years if farther inland, then every 10 years. Licensed architects or engineers perform the inspections and report to the county. You can review requirements and how submissions work through the county’s Mandatory Milestone Inspections guidance on the Palm Beach County Planning, Zoning & Building portal.
Why it matters to you
Milestone reports can identify structural issues and required repairs. A Phase 1 finding can lead to a more detailed Phase 2 evaluation and mandatory repairs. These outcomes can affect special assessments, insurance availability, and even whether lenders will finance units in the building.
County enforcement and red flags
Palm Beach County tracks compliance and has begun enforcement for buildings that missed initial deadlines. Local reporting confirms the county has identified noncompliant buildings and authorized steps like notices, hearings, and fines. That matters to you because noncompliance can complicate financing and insurance, and it can lead to special assessments. You can read more about the local enforcement effort in the Palm Beach Post’s coverage of missed filings and county action.
Your buying milestones
Before you make an offer
- Ask for the building’s milestone inspection status and copies of all submitted reports. Request Phase 1 and, if applicable, Phase 2, plus any county submission receipt or building reference ID. Use the county portal to understand local requirements.
- Confirm project eligibility with your lender early. Many South Florida condos face stricter project reviews, and some are ineligible for FHA or conventional programs. Your lender can check tools like Fannie Mae’s Condo Project Manager.
- Review the association’s master insurance declarations and recent invoices. Insurance availability and premiums can make or break deals, so get clarity up front. Recent reporting shows insurance pressures are a frequent dealbreaker in South Florida condo transactions. See context in this AP News report on insurance availability and costs.
Key contract contingencies
- Include a contingency to review association records and all engineering reports. At minimum, request milestone reports, the current reserve study, the last two to three years of budgets and financials, 12 to 24 months of meeting minutes, insurance declarations, the pending litigation list, and the rules and bylaws.
- Add a financing contingency that lets you cancel if the building is ineligible for your loan program or if your lender requires repairs or insurance that are not feasible. Lenders follow project-level standards and use tools like Fannie Mae’s Condo Project Manager to evaluate buildings.
- Plan for the estoppel certificate timeline and fees. Florida Statutes set delivery timelines and fee caps for estoppels, including typical caps of $250 for standard delivery and an additional $100 for expedited delivery. Review the statute for details at Florida Statutes 718.116.
Pre-closing verifications
- Obtain the estoppel early in your permitted window, then consider requesting an updated estoppel closer to closing. Confirm amounts due, any approved or pending special assessments, litigation, and contact info for insurance carriers. See the framework in Florida Statutes Chapter 718.
- If a Phase 2 report or repair plan exists, ask for the contractor scope, timeline, assessment schedule, and any loan or reserve funding plan. Confirm proration responsibilities at closing.
- Verify whether association approval is required for transfers. The estoppel and governing documents should note board approval or right of first refusal and the timeline to obtain it. See Florida Statutes Chapter 718 for association governance context.
After closing
- Track board notices about reserves, capital projects, and assessments. New owners who stay engaged reduce surprises.
- Save copies of your estoppel, insurance certificates, and milestone reports for future refinancing or resale.
Financing, insurance, and reserves
Adequate reserves matter. If the reserve study or budget is out of sync with known repairs, the association may need higher fees or a special assessment. That risk should be part of your price and timeline planning.
Insurance and lending are closely tied. Lenders and agencies raised project-level standards for coverage amounts and building conditions. Some buildings have become ineligible for conventional financing, which can affect resale liquidity. For background on these pressures, see the Wall Street Journal’s reporting on condo sales and the insurance market.
Project eligibility is a key checkpoint. If you need a low down payment or plan to use FHA or conforming financing, confirm project status at the start. Lenders rely on internal reviews and tools like Fannie Mae’s Condo Project Manager, and many South Florida condos are not FHA approved.
Market snapshot: Palm Beach condos
County-level data shows nuanced conditions across price points. Palm Beach County’s condo market has seen shifts in price bands, and some segments offer more negotiation room than single-family homes. For a recent look at county trends, see Miami Realtors’ update on local sales and inventory. The Town of Palm Beach is a smaller, ultra-luxury market where a high share of sales close with cash. Building age and coastal proximity can change inspection triggers and insurance costs, so evaluate each building on its own merits.
Confidence checklist
- Verify milestone reports and county submission receipts for any 3-plus story building.
- Review reserves, budgets, minutes, insurance, and litigation before your inspection period ends.
- Confirm project eligibility with your lender and get preliminary underwriting feedback early.
- Build in contingencies for association documents, engineering reports, and lender acceptance.
- Use the estoppel to confirm fees, assessments, and approval requirements before closing.
Ready to move forward with clarity? Let’s tailor this checklist to your specific building and budget. Reach out to Julia Amsterdam for a concierge-style plan to find the right Palm Beach condo and negotiate with confidence.
FAQs
What is a milestone inspection for Palm Beach condos?
- It is a required structural inspection for 3-plus story condo and co-op buildings, with the first inspection at 25 years near the coast or 30 years inland, then every 10 years, reported to Palm Beach County.
How can I verify a building’s milestone compliance before I buy?
- Ask for the Phase 1 and any Phase 2 reports and a county submission receipt or reference ID, then confirm timing and requirements through Palm Beach County’s milestone guidance.
Can milestone findings affect my mortgage approval?
- Yes. Major structural issues, inadequate insurance, or weak reserves can cause a building to be ineligible for FHA or conforming loans, so confirm project eligibility with your lender early.
What should be in my condo due diligence package?
- Milestone reports, the current reserve study, two to three years of budgets and financials, 12 to 24 months of minutes, insurance declarations, a litigation list, rules and bylaws, and the estoppel certificate.
What does the estoppel certificate tell me as a buyer?
- It shows fees owed, approved or pending special assessments, litigation status, insurance contacts, and whether association approval is required for the transfer, all within timelines and fee caps set by Florida Statutes.
