Special Assessments and SIRS/MIRS UPDATE

DBPR Panel – Part 2, February 29, 2024 

Attorney Kistemaker is a voting member of the Florida Bar Condominium & Planned Development Committee and as such, serves as Co-Chair of the Education Sub-Committee and additionally, serves on and the Senate Bill 4D/154 Substantive Legislative Committee Task Force and Board Certification Course Committee. 

Special Assessments

1. How are special assessments handled at the time of closing? If the seller discloses special assessments properly, the parties must negotiate their payment method. They are negotiable as to who will pay them and should be noted on any purchase agreement – The seller may elect to pay the full amount due at closing, or the seller may pay prior to closing, and the buyer shall pay the amounts due after closing.

2. What should a buyer look for to avoid getting hit with a special assessment as soon as they buy? Need to review condo rider and note they only have a 3 day right of rescission in the condo rider the special assessments that are contemplated must be identified in the disclosure – take note of any upcoming restoration projects and review the budget and reserves for the last year. Review minutes and agendas for the last year. 

SIRS and MIRS

1. How important is the SIRS Reserve Study? It is mandatory so it is extremely critical for associations to comply with this law. The statute which is law now requires that each condo buildings 3 stories or higher must complete a SIRS at least every 10 years after the condo’s creation. Additionally, Associations must also have a Milestone Inspection by December 31 of the year in which the building reaches 30 years of age. (These are condo buildings 3 stories or higher)
2. At this time, structural integrity reserve study is not very clear and open to see in most Associations. Advice for buyer? Review budget and ensure they have mandatory reserves for the sirs and they have at least hired the expert to perform the inspections – should be in the minutes.