What is a Turnover Inspection Report?Across the United States, condominium and cooperative laws and regulations, more informally known as “condo or coop acts”, have been created. In addition to the primary purposes of regulating the initial formation of a development entity or association, the creation of a public offering statement and governing documents and bylaws, these acts also generally require a process for the “turnoverof developer, sponsors, and declarants property and control to a homeowner led board of directors. After the transference of the common property or common elements, obligations for maintenance, financial reserves, and component replacement will then rest with the association board of directors or board of managers who have a fiduciary responsibility to safeguard, preserve and perpetuate the common property.
The process of Turnover generally involves a comprehensive evaluation of the common elements, those components of the common property serving or used by more than one owner, and a review of the funding methods and balances for their replacement. These studies are typically termed the Turnover Inspection Report. Inspections and reports are made by or under the direction of licensed engineers, registered architects, and reserve specialists.
System Types Inspected• Roof
• Fireproofing and Fire Protection Systems
• Heating & Cooling Systems
• Electrical Systems
• Swimming pools & Spa Equipment
• Seawalls & Other Marine Structures
• Pavement & Parking Areas
• Drainage Systems
• Irrigation Systems
Phase ProcessInformation Gathering
An information gathering phase is conducted, and includes a reviewing all material documentation, including documents, plans, specifications, surveys, and interviews with property managers and/or board members.
The site visits consist of the physical inspection of the common property which includes buildings, common areas, and amenities, both indoors and outdoors and as well as the site improvements that may be the association’s responsibility, such as roadways and curbs, and stormwater management features. Depending on the property, technical specialists in building envelopes, mechanical, electrical, plumbing, and fire protection systems as well as site improvements are brought in for the evaluation.
Turnover Study Objectives
One of the primary objectives of the study is the determination of whether the common elements have been constructed in accordance with the approved plans and applicable codes as well as identifying the presence of inadequacies in construction or maintenance and construction defects. Reports are developed and issued for the association’s use highlighting any deficiencies. Ongoing services, if necessary, can include a more comprehensive investigation of deficiencies, non-destructive and destructive testing, and other building diagnostic efforts.
A replacement reserve specialist will visit the property as well to inventory the common property and evaluate its useful life. A comprehensive financial analysis is prepared to determine current and future reserve funding requirements for the staggered replacement of the common elements. The period covered by the replacement reserve portion of the study is generally 40 years.