Phase 1 or Phase 2? What your Florida condo's milestone inspection notice really means

If you own a condo in a Florida building three stories or taller, sooner or later a board notice will mention the milestone inspection. It may say "Phase 1 is complete." Or it may say "Phase 2 is required." Those two lines lead to very different places.

This article walks through the steps in order: the letter that starts the clock, what happens in each phase, and what the engineer's report has to tell you. It is a guide to what the law says, not legal advice. Your board, its engineer and the association attorney know your building's details.

Step one: the letter that starts the clock

The milestone inspection law is section 553.899 of the Florida Statutes. It covers buildings of three or more habitable stories that are wholly or partly condo or co-op. The first inspection is due by December 31 of the year the building turns 30, counted from its certificate of occupancy, and then every 10 years. The local building department can move the first one up to 25 years based on local conditions, such as being close to salt water.

The process starts when the building department sends the association a written notice by certified mail. The association then has 14 days to tell owners that the inspection is required and the date it must be finished. Phase 1 must be completed within 180 days after owners get that notice. "Completed" means the inspector has submitted the Phase 1 report to the building department.

If the association has hired an architect or engineer but can't reasonably finish on time, the building department may extend the deadline for good cause. The law also lets each local agency set its own timelines and penalties. That is why the details differ from county to county. For example, Palm Beach County's building division says on its website that noncompliance can bring daily fines of $500 or more, and that its first inspection comes at 25 years for buildings within three miles of the coastline.

Phase 1: a careful look

In Phase 1, the architect or engineer does a visual examination of the building, both lived-in and other areas, and gives a qualitative assessment of the structure. Qualitative means a professional judgment of condition, not lab testing.

If Phase 1 finds no signs of substantial structural deterioration, the inspection stops there. No Phase 2 is required. The law says surface problems such as cracks, sagging or signs of leaks do not count by themselves, unless the inspector decides they point to that kind of deterioration. So a Phase 1 report can still list repairs without triggering Phase 2.

Phase 2: a closer look, sometimes with testing

Phase 2 is required only if Phase 1 finds substantial structural deterioration. It is a deeper investigation. It may involve destructive testing (removing a small piece of concrete or finish to see what is underneath) or nondestructive testing, at the inspector's direction. The law asks the inspector to choose spots that are the least disruptive and easiest to repair while still representing the structure.

Within 180 days after the Phase 1 report is submitted, the Phase 2 inspector must send the building department a progress report with a timeline for finishing Phase 2. If Phase 2 calls for repairs of substantial structural deterioration, Florida law says those repairs must be started within 365 days after the building department receives the Phase 2 report.

What the report must tell you

After each phase, the inspector sends a sealed copy of the report, plus a separate summary of the material findings and recommendations, to the association and the local building official. The law says the report must:

• Carry the seal and signature (or electronic signature) of the licensed engineer or architect.
• Say what kind of inspection it is based on.
• Identify any substantial structural deterioration, how far it goes, and the recommended repairs.
• State whether any unsafe or dangerous conditions, as the Florida Building Code defines them, were seen.
• Recommend repairs for damaged items that are not substantial structural deterioration.
• List any items that need further inspection.

Within 45 days of receiving the report, the association must send every owner a copy of the inspector's summary, whatever it found. It must also post the summary in a visible place on the property and put the full report and summary on the association website, if it has one.

What to do

If you are an owner:

• Read the summary first. Look for three things: whether substantial structural deterioration was found, whether unsafe or dangerous conditions were seen, and what needs further inspection.
• If you haven't received a summary and your board has a report, ask in writing when it will be sent. The law gives the association 45 days.
• If the notice says Phase 2 is required, ask the board for the expected timeline and when owners will hear more. Don't assume the worst; Phase 2 is how the engineer finds out how serious a problem is.
• Questions about the findings are best put to the board, which can ask its engineer. Your local building department can tell you what it has on file for your building.

If you are on the board:

• Mark your calendar the day the certified letter arrives: 14 days to notify owners, 180 days to complete Phase 1.
• Check your local building department's website for its own forms, extension rules and fines. They vary.
• If Phase 2 is required, track the 180-day progress report and, if repairs are needed, the 365-day start date.
• Talk with your engineer and association attorney early about the schedule, owner notices and how any repairs would be paid for.