Thinking about buying a condo in Lake Park? Beyond the list price and ocean breezes, you need a clear picture of the building’s reserves and structural health. Florida’s newer safety rules and rising repair costs make this more important than ever. In this guide, you’ll learn what reserves are, how milestone inspections work, where to focus your review, and the documents to request so you can buy with confidence. Let’s dive in.
What condo reserves cover
Reserves are the association’s savings for large repairs and replacements. They are separate from the operating budget that covers everyday costs like utilities and landscaping. Common reserve items include roofs, exterior painting, concrete and balcony repairs, elevators, and major mechanical systems.
A reserve study estimates each component’s remaining life, replacement cost, and the annual contributions needed. Studies can be full (site visit plus analysis) or updates. Good practice is to update every 2 to 5 years or after major repairs. Healthy reserves lower your risk of surprise special assessments and support resale value, since buyers and lenders prefer well-funded associations.
Florida rules that impact you
Florida’s Condominium Act (Chapter 718) governs budgets, reserves, and financial reporting. Associations must prepare annual budgets and disclose if reserves are being funded. Owners can sometimes vote to reduce or waive reserves, but the budget must then state how the association plans to pay for future repairs, such as special assessments or loans.
After the 2021 Surfside tragedy, the state adopted milestone structural inspections for older buildings. Key points you should know:
- Initial milestone inspection timing is generally 30 years for buildings within a defined coastal distance and 40 years for others.
- After the first inspection, follow-up inspections are typically required every 10 years.
- A licensed engineer or architect must perform the inspection and file the report with the local building official.
- Reports can trigger required repairs and follow-up actions.
Associations must provide certain financial disclosures to owners and prospective buyers during resale. Always review the most recent budget, reserve details, and any inspection reports during your contract’s due-diligence window.
Lake Park local context
Many Lake Park and northern Palm Beach County condominiums were built from the 1970s through the 1990s. Given coastal proximity, many buildings fall on the earlier milestone schedule. Expect to see engineering reports for older properties and plan time to review them carefully.
Local building departments track permit histories and milestone filings. You can also confirm building age and parcel information through county records. In this coastal setting, salt air, wind, and hurricane risk can accelerate wear on concrete, balconies, and building envelopes, which affects reserves and insurance costs.
High-cost items to review
When you study the association’s records, look closely at components that tend to drive big costs in our area.
Structural and envelope
- Structural concrete repairs, including spalling and rebar corrosion.
- Balcony repairs and waterproofing.
- Pool decks and waterproofing systems.
- Parking decks and garage slab repairs.
- Exterior stucco, coatings, and sealants.
Roofs, windows, and doors
- Roof replacement and roof membrane failures.
- Window and door systems. Hurricane-rated upgrades can be expensive.
Elevators and mechanical systems
- Elevator overhauls in mid-rise and high-rise buildings.
- HVAC chillers, boilers, and other major mechanical equipment.
If these items are nearing the end of their expected life and reserves are light, plan for higher assessments or increased monthly fees.
How to read a reserve study
Start with the basics: the date of the study, the preparer’s credentials, and whether it was a full study or an update. Then review the component list, remaining useful life estimates, and the recommended annual contributions.
A quick screen some buyers use is reserves equal to at least 10 percent of the annual operating budget. Treat this only as a rough check. The more reliable measure is whether the association’s actual contributions match the reserve study’s recommendations and whether the current reserve balance aligns with upcoming projects.
Your buyer due-diligence checklist
Request these items from the seller and association early in your inspection period:
- Association governing documents: declaration, bylaws, articles, and rules.
- Most recent annual budget showing reserve line items.
- The latest reserve study, including date, component list, costs, and recommended contributions.
- Current financial statements and the reserve account balance.
- Board meeting minutes for the last 12 to 36 months.
- Any milestone or engineering reports, recommended repairs, cost estimates, and timelines.
- Details of special assessments and any association loans, plus vote results.
- Building insurance certificate and claims summary.
- List of pending legal claims against the association.
- Relevant permits and inspection records from Palm Beach County or Lake Park.
Red flags to take seriously
- No recent reserve study, or a study prepared by an unqualified provider.
- Very low reserves relative to needs, such as less than 10 percent of the annual budget.
- Votes to waive reserves without a credible alternate funding plan.
- Repeated special assessments for the same component.
- Minutes showing large deferred maintenance or unfunded contractor estimates.
- Recent milestone report identifying structural deterioration with no repair plan.
- Outstanding long-term loans or liens impacting owners.
- Insurance nonrenewals or sharp premium increases noted in records.
Interpreting milestone reports
Check the inspection date and the scope. Identify which items are life safety versus longer-term maintenance. Life safety items should be prioritized and funded.
Compare recommended repair costs to the current reserve balance and the association’s funding plan. Ask whether the board has obtained multiple bids, selected a contractor, and applied for permits. If the report identifies serious issues but there is no schedule or funding plan, your risk is higher.
What to do if problems surface
You still have options if your review raises concerns.
- Negotiate for a seller credit or price reduction tied to written engineer estimates.
- Ask for escrow holdbacks until critical repairs are completed and inspected.
- Request a written funding plan from the association that outlines special assessment amounts and timelines.
- Consider walking away if urgent structural issues lack a viable plan or if there is a pattern of chronic underfunding.
The right professionals to involve
Bring in specialists who understand Florida condos and coastal structures:
- A real estate attorney experienced in Chapter 718 to review legal and financial exposure.
- A structural engineer with South Florida coastal experience to interpret milestone reports.
- A reserve study specialist or engineer to assess reserve adequacy.
- A local real estate agent experienced with northern Palm Beach County condos and association negotiations.
- A property inspector familiar with condo common-area concerns for unit-level issues.
Timing your document review
Plan to review association materials as early as possible during your due-diligence period. Build an association-document contingency into your contract or ensure you have time to obtain clarifications or updates. If a building is 30 to 40-plus years old, plan for an engineering review of the milestone report even if the association has already provided one.
Smart questions to ask the HOA
Use these direct questions to get clear answers:
- Is there a current reserve study? When was it prepared and by whom?
- What is the current reserve account balance, and have contributions matched the study’s recommendations over the past 3 to 5 years?
- Has the association completed the required milestone inspection? What were the results and next steps?
- Are there pending or approved special assessments or loans? What are the amounts and terms?
- What major repairs were completed in the last 3 to 5 years, and how were they funded?
- Are there pending legal claims, insurance issues, or violations that could affect future costs?
- Can you share board minutes that discuss capital projects and funding in the last 24 months?
Bottom line for Lake Park buyers
Strong reserves and up-to-date engineering reports protect you from surprise costs and support future resale. In Lake Park’s coastal market, that due diligence is essential. Review the documents, ask direct questions, and bring in the right experts so you can buy the right condo with confidence.
If you would like a local, concierge partner to guide your search and help you evaluate association health, connect with the team at Premier Properties of South Florida, Inc.. We focus on the Jupiter-to-Stuart corridor and can coordinate attorneys, engineers, and post-close renovations so you move in with peace of mind.
FAQs
What are condo reserves and why they matter in Lake Park
- Reserves are savings for big repairs like roofs and concrete work. In Lake Park’s coastal environment, strong reserves help manage salt air and storm-related wear and reduce the risk of special assessments.
How milestone inspections affect condo buyers in Florida
- Milestone inspections are required structural reviews at set building ages. Results can lead to required repairs, which may increase monthly fees or trigger assessments if reserves are low.
What counts as a healthy reserve level for a condo
- A quick screen some buyers use is reserves equal to at least 10 percent of the annual budget, but the best measure is whether the association follows an up-to-date reserve study and funds it accordingly.
Can Florida condo owners vote to waive reserves
- In some cases, owners can vote to reduce or waive reserve funding. If they do, the budget must disclose this and explain how future repairs will be paid, such as through assessments or loans.
Where to check milestone and permit records in Palm Beach County
- Review association reports and also check county and Lake Park building and permit portals for milestone filings, permits, and any notices. Your agent or attorney can help you pull these records.