Thursday, July 7, 2016

The 40 Year Inspection

This week's question comes from a couple in Minnesota who are looking to invest in a second home here in Aventura, Florida.  They have been conducting a search online, using they tell me realtor.com, and have come across properties that are quite old. At the same time they have heard of a “40 Year Inspection” and have asked me about this process.

So here I go…

In many parts of the world, a property that is 40 years old is seen as relatively new. And sure, a property that is well-maintained can and does compete with a “newer building”.

When searching for a luxury home in Aventura, Florida one will immediately see the difference in purchasing , shall I say, a more mature property and one that is relatively new. New buildings have generally speaking more amenities. These features include spas, luxury fitness centers, jacuzzis and more.

I will remind you that these features are always at an additional cost normally seen in the maintenance fees, a.k.a your running costs.

And then there are the older, more mature, those that have passed the test of time condominiums.

When purchasing a property that is 40 years of age and older, a county regulated inspection must take place.

The 40-year inspection in Dade County encompasses the inspection of the electricial safety and structural integrity of the building.

In many cases, it is the balconies of condominiums in Aventura that need to be updated and maintained, mainly because the salt in the ocean air can the concrete supports to disintegrate
( layman's terms of course).

Let me stress; this mandatory inspection is a good thing. This process ensures the safety of the building and therefore that of your family.

But…

It usually comes at a cost. Recently I sold a luxury condo unit in Aventura where the funds were set aside for this inspection. If funds have not been set aside typically in the form of  a reserve fund, the expense of the 40-year inspection is passed on to the homeowner as an assessment.

It is important  if purchasing in a building that is coming up to its 40 year anniversary that you ask if the 40-year inspection has been paid for or if the unit owners are going to be assessed. If so, it is important  for you and your Aventura real estate agent negotiate cost into the purchase price.

Another scenario would be that the 40-year inspection has taken place, and there is an assessment in place. Again, by law, a new buyer must be made aware of this additional cost.

REMEMBER, an assessment is a charge in addition to the regular maintenance.

So this is the answer to your question and wrapping it up, I must emphasize it is important to be aware of this law in Dade County, Florida and to work with an Aventura, Realtor who understand the process (that would be me!)

FYI - This inspection does not apply to single-family homes, duplexes or minor structures.
FYI 2- Every ten years after the inspection, meaning at 50 years the building must also undergo a “50 Year Inspection.”

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