Did the milestone inspection pass or fail?

The statute does not assign a pass or fail grade. Phase 1 visually examines the building and provides a qualitative assessment. If the architect or engineer finds no signs of substantial structural deterioration in the components examined, Phase 2 is not required. If substantial structural deterioration is identified, Phase 2 is required.

This guide explains how to read and present either outcome. The adverse-finding guide is what to do when the finding is adverse.

1. 01Provide the sealed report and inspector-prepared summary.
2. 02Identify whether the record is Phase 1, Phase 2, or a later progress report.
3. 03Pair recommendations with current notices, permits, contracts, and completion evidence.
4. 04Pair funding decisions with budgets, assessments, reserves, loans, and minutes.
5. 05State the record date and avoid interpreting structural language.

The milestone report addresses structural inspection findings. A SIRS and association financial records address reserve planning and funding. The milestone and SIRS guide keeps those records separate.

Neither result allocates repair or assessment costs between buyer and seller. Neither determines financing; only the buyer’s lender approves the borrower, loan, and project.

Use the condo seller hub to organize the wider document room and the seller guide library for related decisions. Keep association statements, local notices, professional reports, title information, and contract terms in their proper lanes.