If you own a condo in Miami and are thinking about selling, a Florida law you may not have heard of is already affecting your sale price, your buyer pool, and how long your unit sits on the market.
Senate Bill 4-D, commonly called SB-4D, was passed in May 2022 after the Champlain Towers South collapse in Surfside. It has since been amended twice, and as of 2026, its requirements are fully in effect. For sellers in Miami-Dade, this law changes how buyers can finance a purchase, what disclosures are required at closing, and what your building's financial condition means for what you actually walk away with.
This guide covers what SB-4D requires, how it affects your sale, and what to do before you list.
Key Takeaway
Condo buildings that have not completed required milestone inspections or fully funded their structural reserves are increasingly difficult to sell using conventional financing. Buyers are limited to cash or specialized loans, which compresses your buyer pool and often your sale price. Knowing your building's compliance status before you list is essential.
What SB-4D Actually Requires
SB-4D applies to condominium and cooperative buildings with three or more habitable stories. It mandates two things: milestone inspections and structural reserve funding.
Milestone Inspections
Any qualifying condo building must undergo a milestone inspection by a licensed Professional Engineer or Registered Architect once it reaches a certain age:
- Coastal buildings (within 3 miles of the coastline): inspection required at 25 years from the Certificate of Occupancy
- Inland buildings: inspection required at 30 years from the Certificate of Occupancy
- Buildings with a Certificate of Occupancy before July 1, 1992: the first inspection deadline was December 31, 2024
After the initial inspection, repeat inspections are required every 10 years.
Inspections happen in two phases. Phase 1 is a visual examination of structural components: load-bearing walls, foundations, floor systems, and the building envelope. If Phase 1 identifies substantial structural deterioration, the association must commission a Phase 2 inspection, which includes detailed testing and a remediation cost estimate. Phase 1 typically costs $4,000 to $40,000 depending on building size. Phase 2, when required, can add $10,000 to $50,000 or more.
Structural Integrity Reserve Studies
Associations are required to complete a Structural Integrity Reserve Study (SIRS) every 10 years, covering the cost to repair or replace major structural components: roofs, load-bearing walls, foundations, plumbing, electrical systems, waterproofing, windows, and fire protection systems.
The most significant financial change: as of January 1, 2025, condo boards can no longer allow members to vote to waive or reduce reserve contributions for these components. That practice, common in Florida for decades, is now prohibited by law.
Miami-Dade Has Additional Requirements
Miami-Dade County operates its own 40-year recertification program, in place since 1975, that applies to all buildings regardless of ownership type. Miami condo sellers are subject to both frameworks simultaneously. A properly scoped engineering report can satisfy both at once, but the association must have pursued it correctly.
How This Affects Sellers
Your Buyer Pool Shrinks If the Building Is Non-Compliant
Lenders require condo project questionnaires before approving a mortgage. These ask whether the building has completed its required inspections, what the reserve funding percentage is, and whether any special assessments are pending. Buildings with significant deferred maintenance, inadequate reserves, or unresolved structural concerns face financing restrictions.
When a building is flagged, buyers typically cannot use conventional Fannie Mae or Freddie Mac loans. They are limited to cash or specialized non-warrantable condo loans, which carry higher interest rates and stricter down payment requirements. In August 2026, Fannie Mae also eliminated its Limited Review shortcut, meaning every loan on a building with more than 10 units now requires a Full Review of the association's finances, reserves, and insurance. A smaller buyer pool means longer days on market and often a lower sale price.
Disclosure Requirements for Sellers
Florida law requires associations to provide Phase 1 inspection summaries to all unit owners within 45 days of receiving the report. Sellers must disclose known material defects, and associations must provide inspection reports, reserve studies, and financial documents to prospective buyers on request. Buyers have a statutory three-day cancellation period after receiving the full condo document package, with full deposit returned. If your building's documents reveal significant structural concerns, an underfunded reserve account, or a pending special assessment, buyers can walk.
Special Assessments Hit Sellers at Closing
Because buildings can no longer waive reserve contributions, associations that underfunded reserves for years now face a catch-up problem. The most common solutions are:
- Sharply increased monthly HOA fees (older beachfront buildings are seeing 50 to 100 percent increases)
- Special assessments levied against individual unit owners
- Association loans passed through to unit owners
Special assessments in older Miami buildings where reserves were systematically underfunded are frequently five to six figures per unit. Miami-Dade offers up to $50,000 in assessment relief for qualifying owners. As a seller, any pending or approved assessment is a negotiating point for buyers and may reduce your net proceeds if you must pay it at closing or offer a credit.
Your Net Proceeds Depend on Understanding This Math
Many sellers in non-compliant or structurally flagged buildings do not realize how much compliance exposure affects their actual take-home. The calculation is not just price minus commission. It also includes:
- Any pending special assessment you must pay or credit at closing
- HOA arrears or outstanding fines on the unit
- Whether buyer financing constraints require a price reduction to attract cash buyers
- The cost and timeline of any required repairs before the building can be recertified
Allioo's free seller net sheet calculator is built for Miami condo sales, using real Miami closing costs, millage rates, and HOA math, not national averages. Before you set a price or accept an offer, run the numbers: Calculate Your Net Proceeds.
Questions to Ask Your Condo Association Before You List
Get written answers to these questions from your association before putting your unit on the market:
- Has the building completed its Phase 1 milestone inspection? If yes, what were the findings? If no, when is it scheduled?
- Has the building completed a Structural Integrity Reserve Study? What is the current funding percentage for each required component?
- Are reserves being contributed at the legally required levels?
- What special assessments have been levied in the past five years? What is currently pending or under discussion?
- Who is the current property insurance carrier? Is the building in Citizens Property Insurance?
- Is the building on any Fannie Mae or FHA ineligibility lists?
If the association cannot or will not answer promptly, that itself is information. Buyers will ask the same questions, and delays surface during due diligence.
What a Non-Compliant Building Means for Your Timeline
Selling in a building that has not completed required inspections or has underfunded reserves is not impossible, but it requires a realistic timeline and pricing strategy. Cash buyers and investors familiar with non-warrantable condos do purchase in these buildings, typically at a discount that reflects the financing limitations they are accepting.
Days on market in buildings with known compliance concerns have increased significantly across Miami in 2025 and 2026, in some cases tripling compared to compliant buildings in the same neighborhood. If your building is mid-inspection or mid-remediation, trajectory matters. A building with a clean Phase 1 report and a funded SIRS is in a meaningfully different position than one that has not begun the process.
