Inspections when buying commercial property
Q. Before moving to a small city, I lived in a large metropolitan area where I routinely bought, sold and developed commercial property. For many years, it had been my practice to hire a professional inspector before buying any commercial real estate. So I was surprised to find that most commercial transactions where I now live are done without inspections. It seems that most of the local real estate agents recommend inspections to homebuyers but not to purchasers of commercial properties. What's the reason for this disparity?
A. Home inspections in rural communities gained popularity in the late 1980s and early '90s, ten or more years after becoming standard procedure in large cities. For some reason, however, there has been a greater time lag in the adoption of commercial property inspections in less-populated areas.
The reasons for this disparity are uncertain, but they are due in part to the fact that many Realtors do not recommend commercial inspections to their buyers, as you have noted.
From the standpoint of structural integrity, general safety and financial liability, the need for a detailed physical inspection is just as important when buying commercial real estate as it is with residential property. Roofs are just as prone to deterioration and leakage, foundations and wall construction are equally subject to damage and deterioration, plumbing fixtures and piping are just as likely to incur leakage or malfunctions, heating and cooling equipment are just as likely to need repair or replacement, and the risks of fire and shock hazards in electrical systems are equally probable regardless of the type of building being purchased.
Additionally, the price of most commercial buildings exceeds that of most residential properties. With purchase figures as high as they are, the price of an inspection is a bargain when you consider the consumer protection it provides, and the inspection fee can often be recouped in the form of repair work paid by sellers.
When you tally the pros and cons, commercial property should be purchased with both eyes open, and those eyes should include those of a qualified property inspector.
Q. I'm planning to move my water heater from the hall closet to a small shed I've built against the back of my house. This shed is next to a bedroom window, and I'm wondering how to keep the combustion exhaust from blowing into the house when the window is open. How far from the window should I install the exhaust pipe?
A. A water heater flue pipe should extend at least 12 inches above the roofline and should terminate no closer than 4 feet from an operable window. However, my advice is to stop what you're doing and call a licensed plumber.
There are more safety considerations effecting the installation of a water heater than those of the exhaust system. Other vital requirements include the installation of gas piping, combustion air supply, fire clearances, pressure relief valve, seismic strapping in some locales, and more. Without specific knowledge of plumbing code requirements, you'd be well advised to delegate the project to a qualified expert.
• To write to Barry Stone, visit him on the web at www.housedetective.com, or write AMG, 1776 Jami Lee Court, Suite 218, San Luis Obispo, CA 94301.
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