Most people get a home inspection before they buy a house. If you find that your roof needs replacing or your air conditioner needs replacing, you’re not going to pay as much for the house. Obviously it is better to find out about problems before you close. Any you may use the home inspection as a bargaining chip to use to negotiate an amount to repair the items that were identified. The same is true when you buy a commercial property.
In the past, the majority of commercial property transactions were “As Is” and most buyers did little physical inspection of the property other than environmental surveys, relying on seller maintenance reports and operating plans for future capital expenditures. Contracts contain seller representations and warranties (as detailed as sellers are willing to give) but buyers have always planned for maintenance and replacement reserves up to the amount sellers already budgeted for. If smart, buyers plan for higher reserves.
Commercial property inspectors provide good reports for budgeting for short term and long term maintenance. A commercial buyer who isn’t using either a property inspector or a full structural engineer on an older building today is committing gross negligence. We know that structures nearing or past the 40-year certification in Pinellas County should be thoroughly inspected down to the rebar. This is good practice everywhere.
A buyer should carefully review all inspection reports to determine whether additional inspections are necessary. Commercial property inspectors are, in essence, “jacks of all trades” and are not necessarily experts in any one or all areas of building construction. They are tasked with finding areas of potential problems, but not the actual problems. Therefore, if an inspector notes that they “observed” water staining on ceiling tiles or air blistering on the roof, or both, it would be a good idea to retain a roofing contractor or engineer to further inspect the roof.
Ben Winter, P.A. focuses its practice in the areas of Real Estate Law, Financial planning, Social Security Disability and Workers Compensation in St Petersburg, Florida. For more information, go to our web site www.benwinterlaw.com or call (727) 822-0100.