Condo Reserve Rules: What Venice Buyers Should Know

Thinking about a condo in Venice and worried about surprise assessments or new Florida rules? You’re not alone. Many buyers want low‑maintenance living but also want to feel confident about a building’s long‑term health and costs. In this guide, you’ll learn how Florida’s milestone inspections and reserve funding work, what to review during due diligence, and how to spot red flags in Venice and greater Sarasota. Let’s dive in.

Florida milestone inspections explained

Florida adopted milestone structural inspections after the Surfside tragedy. If a condominium building is three or more stories, it must complete a milestone inspection when it reaches a certain age and then on a regular schedule.

• Within 3 miles of the coastline: first inspection at 25 years, then every 10 years.
• All other 3‑plus story buildings: first inspection at 30 years, then every 10 years.

Inspections are performed by licensed structural engineers or architects. They typically include a visual review and selective invasive checks of structural elements, plus an evaluation of the building envelope. Reports identify life‑safety concerns, recommended repairs, cost estimates, and suggested timelines.

If an inspection identifies conditions that threaten life or safety, the association is expected to act promptly. Cost estimates from the inspection should feed into the association’s capital planning and reserve budgeting. As a buyer, you should see a clear action plan and a funding strategy if significant repairs are identified.

Reserves and your monthly cost

Condo associations maintain reserve funds for major common‑area items like roofs, elevators, painting, pavement, balconies, structural repairs, and building systems. A professional reserve study estimates useful life, replacement costs, and how much should be saved each year.

A helpful way to read reserve health is the funded ratio: the current reserve balance divided by the recommended balance. While not a legal threshold, common industry benchmarks treat levels above 70 percent as generally healthy, 30 to 70 percent as moderate, and below 30 percent as low and potentially risky. Also check whether there is a current, professionally prepared reserve study rather than a board estimate.

When reserves are short, associations often use special assessments or loans to fund major work. Large, urgent repairs identified by milestone inspections are commonly financed by a mix of reserves, assessments, and borrowing. That mix can change your cost of ownership.

Insurance matters too. Associations carry master insurance and may have sizable hurricane or named‑storm deductibles. Review the declarations to see coverage limits and deductibles, and clarify what falls to the owner vs the association. Lenders and secondary market programs can restrict financing for buildings with very low reserves, unresolved inspection issues, or recent unfavorable findings. If you plan to use conventional, FHA, VA, or other financing, confirm project eligibility early.

Due diligence checklist

Core documents to request

• Most recent milestone inspection report and any follow‑up engineering reports.
• Current reserve study and any updates.
• Last 3 years of association financials: income statement, balance sheet, and bank statements.
• Current operating budget and the most recent year’s actual vs budget.
• Board meeting minutes for the past 12 to 24 months.
• List of pending or approved special assessments and unfunded repairs with timing and estimated amounts.
• Association insurance declarations, including limits and deductibles, and flood insurance status if applicable.
• Governing documents: declaration, bylaws, rules, and amendments.
• Certificates or filings tied to milestone inspections, where available.
• Permit history for major common‑area work through Sarasota County records.
• Litigation history and any open claims.
• Reserve bank statements or an accountant’s reconciliation confirming reserve balances, where available.

Smart questions to ask

• When was the last milestone inspection, and what did it find?
• What repair plan and timeline has the association adopted? How will it be funded?
• Are any special assessments approved or being discussed? What is the estimated per‑unit amount and schedule?
• What is the current reserve balance, and when was the last full reserve study completed?
• Are there any pending claims or litigation that could affect finances?
• What is the association’s policy on owner vs association responsibility for items like windows, sliders, and balconies?
• For recent major repairs, were permits obtained and inspections closed out?

Technical follow‑ups and timing

• If the milestone report shows significant issues, have a qualified structural engineer review the findings and cost estimates.
• Ask your lender about condo project eligibility and documentation they will require.
• Consider a condo‑focused attorney review if large repairs or assessments are in play.
• Make review of inspections, reserves, minutes, and assessments a clear purchase‑contract contingency. Build in a reasonable review period, such as 7 to 14 business days based on local practice.
• Require disclosure of known assessments or board votes that will create future owner obligations.

Venice and Sarasota factors

Venice’s coastal setting is a lifestyle draw, and it also shapes building wear and maintenance priorities.

• Coastal exposure: Salt air and humidity can accelerate corrosion of reinforcing steel, balcony degradation, and sealant wear. Many Venice condos near the Gulf or Intracoastal fall within the 3‑mile threshold that triggers earlier milestone inspections at 25 years.
• Hurricanes and wind: Roofs, windows and doors, and the building envelope are frequent capital items. Look for documented wind‑mitigation upgrades.
• Flooding: Confirm FEMA flood zone and whether the association carries flood insurance.
• Older inventory: Many Venice buildings were built in the 1970s through the 1990s. For 3‑plus story buildings in this age range, milestone inspections are current or imminent.
• Local records: The Sarasota County Building Division maintains permit histories and closeouts for major common‑area work. The Property Appraiser is a reliable starting point for building age and legal description.

Financing can be affected by inspection outcomes and reserve funding. If you need conventional or government‑backed financing, seek clarity on project eligibility upfront to avoid surprises later.

Red flags and how to respond

• No recent reserve study or one older than 3 years. Response: Request a current professional study and consider pausing until it is available.
• Very low reserves relative to recommended levels or building age. Response: Assume a higher likelihood of assessments or loans and price accordingly.
• Minutes showing deferred maintenance or inaction on known issues. Response: Ask for the board’s written plan and timeline before proceeding.
• Large pending assessments with unclear repayment plans. Response: Request per‑unit amounts, payment schedules, and any loan terms to calculate true ownership cost.
• Milestone findings noting immediate structural repairs without a funding path. Response: Treat this as a serious risk factor and consult an engineer and attorney.
• Insurance with very high wind deductibles and unclear responsibilities. Response: Clarify owner vs association obligations and confirm your personal coverage needs.

How to factor reserves into your offer

Start by reviewing the latest reserve study and funded ratio. If reserves are moderate or low, check the board minutes for upcoming projects and the inspection report for structural items. Ask for the per‑unit estimate of any approved or contemplated assessment and the expected timeline. Your lender may also need this information to complete project approval.

Build potential costs into your affordability and your negotiation. You can request seller credits, price adjustments, or escrowed funds tied to known assessments. Also confirm whether the association intends to borrow. If a loan is planned, ask how payments will be allocated to owners and for how long so you can compare the true monthly cost of owning in the building.

Next steps for Venice buyers

1. Request the inspection reports, reserve study, financials, minutes, insurance, and assessment history as early as possible and make document review a contract contingency.
2. Confirm whether the building is within 3 miles of the coast since that affects inspection timing.
3. If reports show meaningful structural work, hire an independent structural engineer to review findings.
4. Speak with your lender about project eligibility and any documents they require.
5. If repairs or assessments are likely, integrate those costs into your offer strategy and negotiate credits or terms that protect your budget.

When you have a clear view of building health, reserves, and funding plans, you can buy with confidence and enjoy the Florida lifestyle you came for.

Ready for a second set of eyes on a Venice condo’s reserves and inspection history? Connect with raena everett for local guidance tailored to your goals.

FAQs

What is a Florida condo milestone inspection?

• It is a required structural review for 3‑plus story buildings that occurs at 25 years for coastal buildings within 3 miles of the shore and at 30 years for others, then every 10 years, focusing on structural integrity and life‑safety.

How do reserve rules affect my HOA dues in Venice?

• Reserves fund major repairs, and adequate saving can stabilize dues, while underfunded reserves often lead to special assessments or association loans that raise your overall cost.

What should I do if the building is within 3 miles of the coast?

• Expect earlier milestone inspections at 25 years, verify the latest report and action plan, and confirm funding sources for any recommended repairs before you finalize your purchase.

Who pays special assessments for needed repairs?

• The association funds common‑area work through reserves, special assessments, or loans, and unit owners typically pay their proportionate share of any assessment.

Can inspection results affect my mortgage approval?

• Yes, lenders review project eligibility and may decline or delay loans for buildings with low reserves or unresolved safety findings, so involve your lender early and provide requested documents.