What Every CONDO Buyer Needs to Know - the New Condo SIRS Reserve Requirements


If you're considering purchasing a condominium, it's essential to be aware of the new Structural Integrity Reserve Study (SIRS) reserve requirements. These regulations are designed to ensure that condo associations have adequate funds set aside for critical repairs and maintenance, particularly those related to the structural integrity of the building. In this blog post, we'll explore what the new SIRS reserve requirements entail, why they were implemented, and what they mean for prospective condo buyers. Understanding these changes can help you make an informed decision and avoid potential pitfalls in your condo purchase.

What Are SIRS Reserve Requirements?
Definition of SIRS

The Structural Integrity Reserve Study (SIRS) is a comprehensive assessment conducted to evaluate the condition of a condominium building's structural components. This study identifies necessary repairs and maintenance and estimates the costs associated with these projects. The goal is to ensure that condo associations have sufficient reserves to address critical structural issues and maintain the safety and integrity of the building.

Key Components of SIRS

- Structural Assessment: A thorough inspection of the building's structural elements, including the foundation, roof, walls, and support beams.
- Cost Estimates: Detailed cost estimates for necessary repairs and maintenance, including both immediate and long-term projects.
- Reserve Funding Plan: A financial plan outlining how the condo association will fund the identified repairs and maintenance, including the required reserve contributions from unit owners.

Why Were the New SIRS Reserve Requirements Implemented?

The new SIRS reserve requirements were implemented in response to several high-profile building failures and collapses, which highlighted the need for stricter regulations to ensure the safety and structural integrity of condominium buildings. These incidents underscored the importance of proactive maintenance and adequate reserve funding to prevent catastrophic failures.

Objectives of the New Requirements

- Enhance Safety: Ensure that condo buildings are regularly inspected and maintained to prevent structural failures and protect residents' safety.
- Financial Preparedness: Require condo associations to set aside sufficient reserves to cover the costs of critical repairs and maintenance, reducing the risk of financial shortfalls.
- Transparency: Provide prospective buyers with clear information about the building's condition and the financial health of the condo association, enabling them to make informed decisions.

What Do the New SIRS Reserve Requirements Mean for Buyers?

Increased Financial Transparency

One of the primary benefits of the new SIRS reserve requirements is increased financial transparency for prospective buyers. Condo associations are now required to provide detailed information about their reserve funds, including the results of the SIRS and the reserve funding plan. This transparency allows buyers to assess the financial health of the association and understand the potential costs they may incur as unit owners.

Potential for Higher Monthly Fees

To meet the new reserve requirements, some condo associations may need to increase their reserve contributions, which could result in higher monthly fees for unit owners. Buyers should be prepared for the possibility of higher fees and factor this into their budget when considering a condo purchase.

Importance of Due Diligence

Given the new SIRS reserve requirements, it's more important than ever for buyers to conduct thorough due diligence before purchasing a condo. This includes reviewing the SIRS report, understanding the reserve funding plan, and assessing the overall financial health of the condo association.

Steps for Buyers to Navigate the New SIRS Reserve Requirements

Review the SIRS Report

Before purchasing a condo, request a copy of the SIRS report from the condo association. This report will provide valuable information about the building's structural condition, necessary repairs, and estimated costs. Pay close attention to any immediate repair needs and the long-term maintenance plan.

Assess the Reserve Funding Plan

In addition to the SIRS report, review the condo association's reserve funding plan. This plan outlines how the association intends to fund the identified repairs and maintenance, including the required reserve contributions from unit owners. Ensure that the plan is realistic and adequately funded to cover the anticipated costs.

Evaluate the Financial Health of the Condo Association

A condo association's financial health is a critical factor in your decision-making process. Review the association's financial statements, including the balance sheet, income statement, and budget. Look for signs of financial stability, such as adequate reserve funds, a history of regular maintenance, and a well-managed budget.

Consult with a Real Estate Professional

Navigating the new SIRS reserve requirements can be complex, so consider consulting with a real estate professional who has experience with condo purchases. A knowledgeable agent can help you understand the implications of the SIRS report and reserve funding plan, as well as guide you through the due diligence process.

Factor in Potential Costs

When budgeting for your condo purchase, factor in the potential costs associated with the new SIRS reserve requirements. This includes higher monthly fees, special assessments for immediate repairs, and any additional costs identified in the SIRS report. Ensure that you have a clear understanding of these costs and how they may impact your overall budget.


The new SIRS reserve requirements are designed to enhance the safety and financial preparedness of condo associations, providing buyers with increased transparency and peace of mind. By understanding these requirements and conducting thorough due diligence, you can make more informed decisions and avoid potential pitfalls in your condo purchase. We invite you to leave a comment below with your thoughts or questions about the new SIRS reserve requirements and share this post with friends and family who may benefit from these insights.

Posted by Andrea Webb on

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