INFORMATION SERIES: Communal Properties

Purchasing a condominium or other communal property is more than just an investment in a dwelling unit; it is also the purchase of an interest in community property. It is important to know what you're getting in both respects - that is, what is the physical condition of your prospective dwelling unit and the physical and financial condition of the common property.

To help provide some of the information needed to make an informed purchase decision, a home inspection report offers insight into the physical condition of the specified major elements of the individual unit. It is not, nor is it intended to be, an evaluation of the communal property as the inspection of such elements is beyond the scope of a standard home inspection. Maintenance of the common property is typically the responsibility of a condominium or owners association. or in the case of a cooperative, the cooperative corporation In either case. day to day operations are usually overseen by a board of directors and handled by a manager or management firm. Accordingly. the owners association and management should be contacted to obtain pertinent information on property conditions. Specifically, a copy of the operating budget, including the reserve schedule, should be reviewed. Engineering reports or other property evaluations on the condition of the property should also be reviewed. Additionally, information should be obtained from the association regarding known construction defects. prior storm damage, the extent of planned repairs, and any pending claims or lawsuits.

Any comments made in a home inspection report relative to communal property are limited in nature and are provided for general information purposes only. Any questionable issues raised should be investigated and resolved to your satisfaction prior to completing any purchase. Since a unit owner has an undivided interest. he or she is ultimately responsible for the cost of maintenance. not only for elements directly adjacent to the subject unit but for common elements in other areas of the complex. Monies paid over the years into a replacement fund may cover this cost; but if the money isn't available, a special assessment may be required of all owners.

Determination of the legal parameters of the physical properly associated with an individual dwelling unit is beyond the scope of a standard home inspection. Consequently. the items included or excluded in the home inspection report are based on typical situations - that is. the exterior structural elements or systems outside the boundaries of the subject unit are generally not directly the responsibility of the individual unit owner. If, after review of the appropriate documents. it is determined that an omitted element is your direct responsibility. an inspection should be arranged.

Regarding the physical condition of the property, there have been some construction defects and issues that have surfaced over the years. One issue involves the failure of fire-retardant treated (FRT) roof sheathing, a specially treated plywood product used to improve the fire resistant nature of the roof structure. Similarly, many associations have been confronted with the premature failure of wood-composite, hardboard and synthetic stucco siding products. Windows are one area of a unit that, while part of the exterior envelope, may be the responsibility of an individual unit owner. Most newer units have double glaze windows and sliders with sealed glazing. This type window is subject to failure of the window seal, which can eventually lead to the buildup of moisture and staining between the panes of glass. This condition may not be readily visible during a limited inspection and/or during certain times of the year. Initially check for any evidence prior to closing and be prepared for possible replacement needs should failure be detected at a later date.

Decks can also be a questionable area in terms of ownership and maintenance. If the deck is part of the original construction, the association will most likely be responsible for repairs and replacement costs. In some cases, individual owners may be allowed to add decks and would consequently  be responsible for maintenance. Due to the typical design features of communal properties, special consideration must be given to sound transmission issues during the initial construction. Various methods can be implemented to help minimize sound transmission: however, it is difficult to do so after construction. Evaluation of such features will he subject to personal levels of concern and are not considered during a home inspection.

For your family's personal safety, it is also important to confirm that communal security and fire alarm systems are regularly maintained and comply with local requirements. Consideration must also be given to the security related to your unit. Also do not overlook the need to have approved and functional smoke detectors and carbon monoxide detectors in your own unit at all times.

It is important to determine the location for all the utility disconnects serving your unit in the event they must be used in an emergency or for servicing of equipment. While a main service disconnect should be provided for the electric distribution panel in each unit, these disconnects may be located at a remote location and may be locked for security purposes.

Some Communal Property Terminology:

Cooperative - All the property of a cooperative housing development is owned by a corporation made of the occupants of the individual units. Members of the corporation do not own their dwelling units, but own a membership certificate or stock that gives them rights to occupy a dwelling unit and to participate in the operation of the corporation. The corporation holds the mortgage and assumes the obligation for payment, taxes and maintenance of the property.

 Information Series Home uuuuu