"It's just an apartment," you say; "what could be wrong?" To which I would reply, "You'd be surprised". In short, a home inspection is warranted for a condominium apartment or a condo townhouse before proceeding with a purchase, just as it is for a single-family home. Sure, most of the mechanicals in an apartment building are in a locked basement room, but why should these not be inspected before you own a share in them? A good home inspector may find issues glossed over by a Reserve Fund Study, and a good condo Realtor will calculate your likely share of the cost to fix those problems.
As a recent example, a particularly careful home inspector I often call upon looked through a condo apartment for buying clients of mine and also looked into the boiler room and at the building's exterior. While the boiler room was fine, the stucco cladding of the entire building turned out to be soft, having been mixed with too much sand and not enough cement. The reserve fund had only a small allocation for stucco patching, while the replacement the inspector felt would soon be needed will cost $150,000. My buying clients would become responsible for a considerable portion of that.
My clients still wanted that suite with its space, views, and close-in location, but only if the seller compensated them on the purchase price for the inevitable special assessment that will be needed to fund the stucco replacement. A reduced price for the suite was negotiated and the buyers will put the amount saved aside for the day when the stucco bill arrives. The value was clearly demonstrated of having the right conditions in a purchase contract and of performing a professional inspection.
The property managers for some condo buildings will not permit inspection of roofs and boiler rooms, yet it's not their property, but the co-owned property of the suite seller. If the buyers want to look at these building aspects, the seller should demand an owner's right of access, as the sale may well depend on it.
In my mind condo Boards and their property managers have the duty to facilitate quick sale and favorable pricing for all their homeowners. They should always allow access (and tell the Manager to allow access) for professional inspection on behalf of prospective buyers, otherwise I will wonder what the building has to hide. Issues requiring a price adjustment will not often come up, and if such an issue is found it's better that the seller and buyer deal with it before the deal is sealed, heading off a lawsuit after the buyer takes possession.
There are also minor in-suite issues that a home inspector could identify that make the $300 to $400 expense worth it for the condo apartment home buyer. Here's a sample list:
*Some electrical outlets may not work, while others might work but not be grounded, which is a life-safety issue. Some receptacles should have weather-proof covers or be converted to GFI-style plugs.
*Railings and banisters can be lower than modern safety standards require and some are not properly anchored, so they might not prevent a fall.
*The inspector's humidity detector will reveal if the dishwasher is dripping, perhaps rotting the kitchen floor or promoting mold growth.
*Inspection of the electrical panel will identify whether aluminum wiring serves the suite, whether the power supply is adequate, and if any safety electrical work should be done.
*Appliances will all be tested to see if they work properly, which is a condition of our standard purchase contract, but what will you do on possession day if some of them don't work? The purchase cannot be held up on such grounds, so the only other recourse is to sue, and that's not worth it. It's better that the appliances be repaired or replaced before you own them!
*Are the range hood and the clothes dryer exhaust both vented to the building's exterior?
*What is the condition of plumbing fixtures, bathroom tiling and caulking, and what might it cost to repair deficiencies?
*Are the seals broken in any double-pane window sets? Your Realtor should also analyze the Condo Plan and the Bylaws to confirm whether the suite owner or the building is responsible to maintain these.
This short list becomes a lot longer for a condominium townhouse, which has all the independent mechanical systems of a single-family house. From the furnace to the sump pump and from the hot-water heater to the plumbing and fixtures, it's all inside the house and is all the individual owner's responsibility. Before you proceed with the purchase you want to know the condition of these components and if there are expensive surprises you have the right to discuss walking away or asking for compensation on the price to complete the purchase.
It's just a townhouse or a condo apartment? Inspect it anyway!
Calgary Condominium Directory
