Resisting Common Area Disclosure
Last week I completed a condominium inspection in the City’s “new west side”. When the buyer met me, our initial conversation consisted of the difficulties he had persuading his real estate agent that he could use Tomacor to inspect the condominium. He explained that although his real estate agent and the selling agent were upset with us, he refused to use another company. I informed him that this was a common occurrence due to our tough reputation and thorough inspections, but I couldn’t help but to think, “This is going to be a long inspection”.
After 2 months of negotiation, my client settled on a price and confirmed the inspection time with the real estate agent insisting that all common areas be inspected. Unfortunately, as the inspection progressed, I realized that his agent was not going to allow our access to the common areas.
The first common area we approached was the electrical closet and of course the agent denied us access, exclaiming, “I’ve never heard of an inspector who wanted to see the electrical switch gear room!” My client remained persistent and the agent dropped her jaw and looked thoroughly panicked as we insisted that she get the key from the property manager. Unfortunately, she could not get in contact with him during the inspection.
The buyer was furious because he had been so adamant about inspecting the common areas in this nearly $500,000.00 purchase. The only credible response that we got from his agent was, “When you said you wanted to see the electrical closet I thought you meant the electrical in the closet”.
In all honesty, this is not the first time that an agent has interfered with my inspection of the common areas by, “forgetting to get the keys” or “misunderstanding the definition of a common area”. I’ve come across dozens of real estate agents who were outright angry when I asked to look at common elements. What buyers and real estate agents need to understand is that the inspection of the common areas is just as important as the inspection of the units. Once a buyer takes ownership of a condominium, they take ownership of the common areas as well. If the lobby springs a leak, the condominium association (comprised of unit owners) is responsible for funding the needed repairs.
A good, thorough inspector will insist on evaluating the common areas in an effort to protect their client and provide them with as much information as possible. This will assist them in their purchase decision. After all, wouldn’t you want to know if the condo you are about to purchase shows common areas with hundreds of thousands of dollars in needed repairs?
What will it take to bring the real estate industry to a full and reasonable disclosure standard? Will it take two or three more real estate recessions? When do buyers get the respect they deserve? I say today.
-Tom Corbett