Re-Sale of Leaky Condos: Did the Buyer Know?

This CMHC sponsored article from 2002 is still very much valid today. There is still a significant portion of leaky condos out there that have either not been fixed or not even discovered yet.

The CMHC article identifies that many home inspection reports are of a check list nature with "
buried significant information; and written comments by an inspector may appear benign but closer examination by a person knowledgeable about building envelope failure would
reveal ominous warnings couched in soft language" The report also states "It was found that the extent to which the exterior of a building is inspected varies greatly;"

The task of buying a condo is stressful enough without worrying if your inspector is going to even look at the building envelope, and then if they do, whether they will protect themselves more than the try to protect you by hiding behind vague unremarkable language, or will they present the defects in a clear, concise and understandable manner.

The Real Estate Council of BC back in 2000 sent this advisory to its members:

Some property inspections are restricted to the strata lot; others will include a limited investigation of the common property. Licensees should advise buyers to clarify with the inspector what services will be provided. An inspection that includes the common property is preferable, although more expensive than one that only includes the particular strata lot. Buyers may wish to confer with their property inspector about matters arising from the buyers’ review of the documentation they have received or from the inspection itself.

Much of the hesitation by home inspectors to look at what is termed the 'common areas' (which include the building envelope) is the fact that no inspection association group has standards of inspection that include common area inspections. As a result no home inspector can get insurance for such areas. As a result the vast majority go out of their way to avoid such areas and instead focus their inspection on the purchased unit only. This shedding of responsibility by the entire industry, leaves the home buyer vulnerable to extreme levels of liability, as the problems are very seldom truthfully and completely reported in the minutes or Form D's.

The report goes on to look into why more people who bought 'leaky condo's" did not get an inspection. Out of the 40 persons studied, 29 did not get an inspection with 9 of those citing that their Realtor encouraged them to not get an inspection citing the following reasons:

• “We are trying to make this purchase affordable for you”
• “It’s never been lived in. You don’t need one.”
• “No point. They only look at your suite – not the rest of building”
• “It’s all been repaired.”
• “You have the CMHC full package deal and they will appraise the building.”

SENWI feels this is an unacceptable situation and so even though the inspection body we have received our certification through does not include common area inspections in its Standard of Practice and as a result we are unable to get insurance for such areas - we still go out of our way to inspect, analyze, report, and then clearly explain defects we feel are present or likely on a particular building envelope. We take on average an extra 2 hours to look at the building exterior, roof, common mechanical rooms and parkade. We look to see if the Strata is managing the building well or consistently deferring required maintenance. We will insist you receive building envelope engineers reports and help interpret the report findings to you in a clear and understandable way.

This will all result in you being able to make an informed purchasing decision. Look to Realtor Independent SENWI inspector for your condo inspection needs. We will go the extra mile so that you do not have to.