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 Dear
Steve,
You recently mentioned that when buying a new single-family
home, you should get
a builder-warranty inspection before the warranty expires. Does this apply
to a new condominium? I ask because I am looking to buy one of the new units that
have recently been added to an existing complex. How would inspections of these
two types of properties differ?
-- Danielle
 Dear
Danielle,
A warranty inspection of a condo is far less comprehensive
by nature and slightly less expensive than the warranty inspection of a conventional
new-construction home. For a conventional home, these inspections evaluate a structure's
components and system, inside and out, comparing them to industry standards and
code requirements. It's performed before the builder warranty expires to determine
if the home measures up to the owner's quality expectations and to call the builder's
attention to any deficiencies that could lead to future problems.
But in the case of a condo, such
an inspection would cover only the visible structural,
mechanical, electrical and plumbing, and systems
inside the particular unit. Even though the overall
physical condition of a condo development can
be significant in determining how challenging
it will be to resell your individual condo unit
someday, there are many common elements such as
hallways, façades and common mechanical
systems that typically aren't examined by the
inspector because they aren't part of the specific
unit you're buying.
Repairs and maintenance of these
elements are the responsibility of the condo association
and are financed through association dues. Condo
warranty inspectors can, however, note obvious
problems in association-controlled common features
and do a little more in-depth inspection of the
premises for an additional fee, provided they
are allowed easy access to all these areas.
Your condo association
should maintain something called a reserve study, which you will want to review.
Such studies, which are typically performed by engineers and architects, take
into account the viability of the property's key structural and mechanical elements,
including their condition and age and the anticipated maintenance, replacement
or repair work they'll need over the next five years. (These studies should be
updated every five years, by the way.) Compare the latest reserve study with the
latest condo association budget, which should list funds in reserve for future
projects and repairs. If these projects aren't covered in the budget, you may
be required to pony up for a "special assessment" at some point to fund
them. Ask plenty of questions about this before you sign the final papers. Other
tips: Although the condo warranty inspector will probably switch on your appliances
to see if they're working, give them a good test run yourself to be sure they
are operating properly. Also, be sure to schedule your warranty inspection at
least one month before the warranty expires. Good luck!
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