Doing Due Diligence Before Buying

It’s natural for prospective buyers to focus more on the apartment itself than the building as a whole. They tend to take note of such things as room layout, ceiling height, lighting, the view, carpeting, paint color, wallpaper design, fixtures, moldings, etc. While these are important considerations from a standpoint of comfort and aesthetics, they tell you little about the health of the building.

A pre-purchase survey can uncover hidden deficiencies.

The majority of building problems originate outside individual apartments, mostly from the roof level, the exterior walls, and the mechanical systems typically originating in the basement.

With that in mind, a pre-purchase survey of any property should thoroughly cover the following main building systems and components, from top to bottom:

• Roof and roof level structures, including roof surface, parapet walls and copings, mechanical and stair bulkheads, flashing, counterflashing, and chimneys. Ponding on the roof is a serious warning sign of potential water infiltration.
• Facades and exterior walls: Open or eroded mortar joints and displaced, spalled, or cracked bricks could indicate structural and waterproofing problems. Other facade problems can originate at windowsills, window and door lintels, cornices, ledges, and decorative stone elements. Such defects may also be in violation of New York City Local Laws 10/80 and 11/98, which mandate facade inspections and maintenance on buildings taller than six stories.
• Terraces, balconies, decks, and patios can be a significant source of water penetration into the building if not properly maintained. Heavy planters or furniture on a terrace can damage the terrace deck or roof surface.
• Heating and ventilation systems: A properly maintained boiler or furnace is a must. Boiler rooms should be properly ventilated to increase the lifespan of boilers, furnaces, and heaters. The age of the mechanical equipment is also key. Hot water heaters, for example, can last from 10 to 15 years, but they can start leaking suddenly. Rooftop vent stacks and chimneys need to be checked to make sure they’re not covered or clogged.
• Plumbing and drainage: Lead pipes in older buildings are a potential health hazard, and galvanized pipes can rust and restrict water flow. Tile floors in shower stalls can be a problem because of the poor condition of underlying old lead pans.
• Main electrical service: There must be adequate electrical capacity coming in to the apartment, and each apartment should have its own main disconnect for electric fire safety. Circuit breakers are preferable to fuses. Ground Fault Circuit Interrupters (GFCI) prevent shocks in bathrooms and kitchens.
• Walls, floors, and ceiling and floor joists that have shifted, cracked, or settled may be a warning sign. Significant cracks or shifting in the basement or lower floor walls could mean the building has been structurally weakened.
• Windows: For energy efficiency, windows should be double-paned, thermally insulated units and open, close, and lock properly without requiring extra force.
• Elevators and compactors: Elevator cabs should stop evenly with the floors, and doors should open and close fully and smoothly. The equipment in the elevator motor rooms and in compactors should be checked for age and wear.
• Site exterior: Sidewalks, curbs, entrances, driveways, rear and side yards, fences, gates, railings, steps, and banisters are integral to the property’s safety and appearance.
• Fire escapes that are loose or rusted or have missing steps or rails are a safety hazard and could violate the fire code. Particular attention should be paid to the fire escape anchors into the building, where metal rust can displace masonry.
• Air conditioners: Window-mounted units should be properly secured by brackets. The sleeves of through-wall units, if not tightly sealed, will allow water to penetrate.
• Common areas, such as lobbies, stairwells, and laundry rooms must have adequate lighting, clear access, and be free of debris and tripping hazards.

Some central system defects do manifest themselves from inside an apartment. Stained or cracked walls, for example, may indicate larger problems with the building’s waterproofing, while discolored water could mean corroded piping. Other conditions, although not critical to the building’s health, can nonetheless be annoyances for new owners and should therefore be pointed out by the inspector.

While the evaluation of design or decorative elements within the apartment is left to the prospective buyer, an inspector should not overlook what may seem as routine or trivial items. He or she should walk into every room and test the floors for creaking, sagging, or loose boards; look in closets, in cupboards, and under sinks; open and close doors, windows, drawers, and cabinets; turn on faucets to check water pressure and color; flush toilets; and turn lights on and off. The intercoms and door buzzer should be operated and door latches should be checked to see if they work correctly. (As a rule, inspectors don’t check refrigerators, dishwashers, washer, dryers, or other appliances, so prospective buyers should make sure they work properly.)

It should be noted that an environmental evaluation is not typically part of a basic due diligence survey. Prospective buyers concerned about asbestos, lead paint, radon, or mold may want to consider hiring an environmental consultant to test for these and other potentially hazardous substances. (Most New York City buildings built before 1960 will contain lead-based paint.) Similarly, although an inspector can usually detect obvious signs of termite damage, a specialist should be called in for more extensive testing.