The Clock Is Running for Thousands of Florida Condo Owners

If you own a condominium unit in Daytona Beach, Port Orange, Ormond Beach, New Smyrna Beach, Palm Coast, or anywhere else in Volusia County, and your building is three or more stories tall, you may be weeks away from a legally mandated structural inspection deadline that could directly affect your property value, your monthly costs, and your ability to sell.

The December 31, 2026 milestone inspection deadline applies to condominium and cooperative buildings that are reaching their age threshold this calendar year. Missing it is not a paperwork inconvenience. It carries real legal and financial consequences. Here is what every owner, buyer, and investor in the Daytona Beach area needs to understand right now.

Where This Law Came From

Florida's milestone inspection requirement was created by Senate Bill 4-D following the June 2021 collapse of the Champlain Towers South in Surfside, Florida, which killed 98 people. The Legislature moved quickly, and SB 4-D was signed into law in May 2022. Since then, the statutory framework has been refined through SB 154 (2023), HB 1021 (2024), and most recently CS/CS/HB 913, signed by Governor DeSantis on June 23, 2025, and effective July 1, 2025 as Chapter 2025-175, Laws of Florida.

The controlling statute is Florida Statute Section 553.899. Every condo owner should know that number. It governs who must comply, when, and what the inspection must cover.

Who Must Comply and When

Under Section 553.899, the milestone inspection requirement applies to any condominium or cooperative building that is three or more habitable stories in height. The age triggers are straightforward:

The phased deadline schedule matters here. Buildings that reached 30 years before July 1, 2022 faced a December 31, 2024 deadline. Buildings that crossed the threshold between July 1, 2022 and December 31, 2024 had until December 31, 2025. If your building is reaching 30 years (or 25 years for coastal properties) during 2026, your association must complete the inspection by December 31, 2026. Statewide, an estimated 900,000 condo units are subject to these requirements.

In Volusia County, that means beachside buildings in Daytona Beach Shores, Ormond-by-the-Sea, and New Smyrna Beach are particularly likely to fall under the 25-year coastal rule. Associations that have not yet engaged a qualified engineer should treat this as urgent.

The Two-Phase Inspection Process

The inspection is not a single walkthrough. It proceeds in two distinct phases, and the distinction matters enormously for budgeting and disclosure purposes.

Phase 1 is a visual examination conducted by a Florida-licensed Professional Engineer or Registered Architect. The engineer reviews primary structural components: load-bearing walls, foundations, floor systems, columns, beams, and the building envelope. Phase 1 inspections range in cost from approximately $8,000 on the low end to $150,000 or more for larger or more complex buildings. The association bears this cost, which means it is ultimately passed to unit owners.

Phase 2 is triggered only when Phase 1 identifies areas of concern. It involves a more detailed, often invasive examination of specific structural elements. Phase 2 costs can far exceed Phase 1 costs and frequently lead directly to required repairs, which is where special assessments enter the picture.

A building that receives a clean Phase 1 report is a genuinely marketable asset. A report flagging multiple structural concerns signals that significant expenditures are coming, and both sellers and buyers need to understand that before a transaction closes.

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Special Assessments: The Financial Exposure Owners Face

The inspection itself is only the beginning of the potential financial impact. When Phase 1 or Phase 2 identifies required repairs, the association must fund them. If reserves are inadequate, that funding comes through special assessments levied against individual unit owners.

Florida law now requires condominium associations to maintain fully funded structural integrity reserve accounts. HB 1021 (2024) and the subsequent amendments in HB 913 (2025) significantly tightened reserve waiver rules. Associations that have historically waived or reduced reserve contributions are now facing the accumulated shortfall at the worst possible time: when inspections are mandating repairs.

For owners in Daytona Beach, DeLand, Palm Coast, and the surrounding communities, this creates a specific risk. A special assessment of tens of thousands of dollars per unit is not hypothetical. It has already happened in multiple Florida communities, and the wave of required inspections in 2026 will produce more of them.

What Sellers Must Disclose

Florida's disclosure obligations are serious, and the milestone inspection framework has added new layers. Sellers of condominium units are required to disclose known material defects, and a pending or completed milestone inspection with adverse findings almost certainly qualifies. Sellers must also provide buyers with a copy of the association's most recent milestone inspection report if one exists.

Failing to disclose known structural concerns or pending special assessments is not merely a civil risk. It can expose a seller to fraud claims. As both a licensed Florida attorney and a real estate broker, I counsel every seller client to get ahead of disclosure rather than hope a buyer does not ask. Buyers are asking now, and their attorneys are looking carefully at inspection reports and reserve studies before contracts are signed. Understanding when and why you need a real estate attorney in Florida has never been more relevant than in today's condo market.

What Buyers Must Demand

If you are purchasing a condominium unit in any Volusia County community, ask these questions before you submit an offer:

Florida's condominium purchase contract gives buyers a right to review association documents, including meeting minutes, reserve studies, and financial statements. Use that right fully. Review the escrow deposit mechanics in your contract and understand your cancellation rights if the documents reveal problems during your review period.

Pricing and Market Impact in the Daytona Beach Area

The milestone inspection requirement is already affecting condo pricing throughout Florida, and Volusia County is not immune. Buildings with clean reports and adequately funded reserves are commanding premium prices relative to buildings with unresolved inspection findings or thin reserves. Buyers are discounting units in buildings with uncertain inspection outcomes, and lenders are scrutinizing association financials more carefully than ever.

Sellers who understand this dynamic can position their units strategically by providing documentation proactively, pricing to reflect known reserve contributions, and avoiding the sticker shock that kills transactions when buyers discover problems mid-contract rather than upfront.

The Bottom Line

The December 31, 2026 deadline is real, the law is specific, and the financial stakes for condominium owners across Daytona Beach and Volusia County are significant. Whether you are an owner trying to understand your association's obligations, a seller preparing to list, or a buyer evaluating a purchase, the intersection of Florida Statute 553.899 and the current inspection cycle deserves careful attention before you act.

Arthur Simpson, Esq., CIPS is a licensed Florida attorney and real estate broker serving buyers, sellers, and investors throughout the Daytona Beach, Port Orange, Ormond Beach, New Smyrna Beach, Palm Coast, and DeLand areas. To discuss your condo transaction, disclosure obligations, or the legal dimensions of the milestone inspection process, contact Realty Pros Assured at arthursimpson.com.