Turnover Inspection Reports
As condominium developers are now well aware, Florida Statute 718.301-4-p regulates the transfer of a condominium development from the developer to the condominium ownership association by requiring an analysis produced by an engineer authorized to practice in the state of FL, attesting to required maintenance, useful life and replacement costs of the thirteen common elements (such as the structure, roof, site, amenities, and mechanical and electrical systems.
This timely requirement was put in place in 2008 and applies to all condominium projects completed and transferred to the owners after October 1, 2008. Condominium construction in Florida, which reached record levels in the early 2000s, has tapered off substantially with the subsequent residential market collapse. The boom, which spawned rampant real estate and mortgage fraud, was the primary reason Florida law makers (and their counterparts in several other states) enacted such a statute. Unfortunately for developers and speculators, the steeply declining prices turned their anticipated profits into substantial losses. The financial institutions backing such projects now find themselves with pristine, fully functional, vacant condominium complexes on their balance sheets. Commonly these complexes have sat untouched for a year or two while the developer held on as long as they could and then the ensuing foreclosure process was played out.
When the institution takes control and proceeds to liquidate the existing units, it may or may not know that it must have the engineering inspection performed. Savvy new condominium associations usually hire legal council to guide them through the turnover process, which includes establishing official project/property records including all of the project construction drawings, system details and the Turnover Inspection Report. However In the case where both the owners and the institution are unaware of the statute and turnover proceeds without an inspection report being generated, a wealth of problems could result. Lengthy and expensive legal battles have not been uncommon where the new association demands that the lender have the inspection performed. The lender may point the finger at the developer or claim that the building’s systems have been improperly used or maintained by the new owners. This situation is obviously one to avoid and can be done by contacting Blue Ray Engineering.
The Professional staff at Blue Ray Engineering is dedicated to helping you meet these state condominium statute requirements. We develop professional engineering based reports such as Turnover Inspection Reports (TIR), Facility Condition Assessments (FCA) & Property Replacement Reserve Study (RRS) to meet your needs.
Please visit our website at www.BlueRayEngineering.com or contact us by phone at 321.432.9524 for more information.
-July 19, 2010