Why Do Home Inspectors NOT Inspect HOA Common Areas? If you read any report by any home inspection company about a condo or townhome, you will notice language that the inspector did not inspect any common areas that are part of the HOA. The question is why? Why are HOA common areas excluded?
The answer is a mix of the California Residential Purchase Contract, the California Business and Professional Code, and the inspection Standards of Practice.
What Are HOA Common Areas?
Common areas in a condominium complex can include spaces like lobbies, hallways, stairwells, gyms, pools, parking garages, and exterior building elements such as the roof, exterior walls, and landscaping. These areas are typically owned and maintained by the HOA, not the individual unit owners.
California Residential Purchase Contract
The California Residential Purchase Contract, more commonly known as the RPA, is the contract between the buyer and seller.
Section 18 B, Scope of Duty, says the Buyer and Seller agree that the (Real Estate) agent(s)
(iv) Does not have an obligation to conduct an inspection of the common areas.
And
(v) Shall not be responsible for identifying defects of the property in common areas.
In short, your purchase contract only covers the unit or portion of the building that is for sale. All common areas are excluded from the contract.
California Business And Professional Code
The California Business and Professional Code, Chapter 9.3, section 7195 (a)(1) defines a home inspection is a non invasive physical examination, performed for a fee in connection with a transfer of real property. Section (e) then refers to California Civil Code 2985(a). This states that a real property sale contract is an agreement to convey title to real property to another party.
More simply, California law defines a home inspection as the inspection of property that is being transferred. Because the common areas are not being transferred in the sale of a condo or townhome, the common areas do not fall under the legal definition of a home inspection.
Standards of Practice
The Standards of Practice are the standards all home inspectors follow. There are three organizations that make standards, though they are all similar.
The International Association of Certified Home Inspectors (InterNACHI) Standards of Practice section 2.2 III H excludes common elements or areas in multi-unit housing.
The American Society of Home Inspectors (ASHI) excludes common areas in sec 13.2 E(6).
While the California Real Estate Inspection Association (CREIA) has this same comment in section III (30)
All three organizations exclude common areas from their Standards of Practice.
Can Common Areas Be Inspected?
The basic answer is yes, but the HOA would have to hire the inspector as a commercial inspection. We have performed numerous inspections of common areas for HOAs before, but we need authorization and payment from the HOA board or president of the board, not an individual owner.
What Can A Condo Buyer Do?
A buyer in escrow on a condo, townhome or other portion of an HOA should:
Review HOA Documents: Request and review the HOA’s financial statements, reserve studies, and maintenance history.
Ask the HOA about Pending Assessments: Inquire if any special assessments are planned for repairs or upgrades to common areas.
Review HOA Meeting Minutes: The minutes can provide insights into ongoing maintenance issues, planned repairs, and potential financial red flags.
While a home inspection provides valuable insights into the condition of your prospective condo unit, it does not extend to the HOA common areas. To get a complete picture of the property, homebuyers should take the time to thoroughly review HOA documents and consult with their real estate agent or attorney if they have concerns about the common areas. If you need more guidance on home inspections or have questions about the process, don’t hesitate to contact us at IM Home Inspections!
Book your inspection now at 818-298-3405 or book online here.