Many questions linger and answers remain elusive more than a month after the deadly collapse of the Champlain Towers South condo building on June 24, in Surfside, Florida. Real estate professionals across the state are suddenly dealing with new concerns about the structural soundness of aging high-rise buildings, particularly in coastal areas. So how can we best assist current owners wishing to sell in these condos, as well as their future buyers?
Structural engineers agree there isn’t a large-scale threat to condominiums nationwide. The U.S. follows International Building Code standards, and it's exceedingly rare for a residential tower to inexplicably collapse.
In fact, the Miami area is home to some of the most rigorous building codes in the country, a factor that has buoyed buyer confidence and sales in the local condo market in the aftermath of the Surfside disaster, according to Miami REALTORS® data. Condo sales in Miami-Dade County spiked 159.4% year over year in the two weeks immediately following the Champlain Towers South collapse, the data shows.
Miami-Dade officials have also ordered a structural review of all buildings undergoing the 40-year safety recertification process, as Champlain Towers South was at the time of the collapse.
Real estate professionals, especially those of us in regions susceptible to beach erosion, have been fielding concerned inquiries from condo buyers who are uneasy and want reassurance about a building’s condition before moving in. So what are we doing to help YOU - our clients - feel more secure?
Dig Deep into Maintenance Records
When assessing the quality and consistency of building upkeep, it’s more important than ever to do our due diligence. We will request maintenance records from the condo association, which should detail any work that’s been done to the property, from something as simple as a new coat of paint in the lobby to a more extensive structural repair or replacement. These records, however, may not be that simple to obtain. In the state of Florida, property disclosures on individual condo units are the only ones required by law. There is no law that requires disclosures on the building's common areas.
If a condo board refuses to release maintenance records, as your agent I will ask the seller of the unit to provide a copy of the minutes from recent condo board meetings to see if there are any maintenance issues or special assessments. If there are, we will request a timeline for when the work will be done. Going one step further, I will also request a copy of the condo's current operating budget and financials for your review.
Check out the Condo Association Reserves
Costly repairs speak volumes about the condo association’s reserves. Some condo associations postpone the inevitable and don’t set aside money for emergency repairs, but the opposite is also true: Some associations have budgeted for every single thing that needs to be done.
A healthy condo association should be putting at least 10% of their collected fees into reserves—though that’s on the low end, according to industry standards. How often the association is willing to spend money on building maintenance is also worth noting. It is wise to pay close attention to the cost and frequency of major repairs coming out of the budget and whether the condo association has paid attention to the structural components of the building. A new roof, for example, is a big-ticket item that condos need to set aside reserve funds for payment at a later date.
Look for Telltale Signs of Wear and Tear
Visible wear and tear in common areas can sometimes suggest larger problems. While cosmetic flaws don’t necessarily mean that a building has structural defects, they can be early red flags of greater concerns. When we tour the common areas of a condo building together we can be on the lookout for signs of wear and tear, such as chipped paint, traces of water leaks or mold, warped walls, or sagging floors. If any are noticed, we will ask the property manager or owner for an explanation.
Beachfront High-Rises Will Always Have Appeal
So please don't cross those older high-rise condos off your wish list. By asking the right questions, doing our due diligence, and hiring a qualified home inspector to assess not only your individual unit, but the overall integrity of the building itself...that penthouse condo with a sunset view could still be your real estate dream come true/