How to Communicate Findings from Building Inspections
Under the Real Estate Act Rules, a condominium manager must act honestly, ensure proper communication, and meet their fiduciary duty to clients.
WHAT YOU'LL LEARN
How to Communicate Findings from Building Inspections
Communication Challenges When Disclosing Major Building Defects
Key Components of a Disclosure Letter
Evaluation Checklist
How to Communicate Findings from Building Inspections
Under the Real Estate Act Rules, a condominium manager must act honestly, ensure proper communication, and meet their fiduciary duty to clients. Effective communication of inspection findings is necessary to fulfill these obligations: A licensee must ensure that all communications with their clients and third parties are clear, timely, and accurate.
When communicating inspection findings:
Clarity: Clearly describe the issue, its location, and its potential impact on the building. Avoid technical jargon that owners or board members may not understand.
Accuracy: Base your communication on verified inspection results. Misleading or incomplete information can result in liability, which requires acting in good faith.
Timeliness: Deliver the findings promptly to avoid project delays or worsening defects. The Real Estate Act Rules highlight the importance of timely communication.
Practical Application
Example: If an inspection identifies structural deficiencies in the foundation, clearly state the nature of the issue, its implications for the building's safety, and the recommended next steps.
Ensure that the communication aligns with the Condominium Property Regulation, which outlines the manager's role in maintaining accurate records of building inspections.
Communication Challenges When Disclosing Major Building Defects
Common Challenges
When disclosing major defects, managers often face the following challenges:
Stakeholder Sensitivity: Owners may react emotionally or feel overwhelmed by the financial implications of defects.
Technical Complexity: Complex issues like structural deficiencies may be difficult for stakeholders to fully understand.
Legal Risks: Poorly worded communications can expose the corporation to liability if the disclosure is perceived as incomplete or misleading.
Legislative Context
The Condominium Property Regulation emphasizes the importance of disclosing accurate and thorough information regarding building issues: A condominium manager shall maintain, on behalf of the corporation, accurate records of all building inspections and provide disclosure to the board and owners as required.
Case Example
Scenario: A building inspection reveals significant water damage in the roof of a condominium.
Challenge: Owners express frustration about potential costs.
Solution: To mitigate concerns, provide a summary of the inspection findings, explain the urgency of repairs, and outline the proposed solution, ensuring alignment with the Real Estate Act Rules.
Analysis: Assess whether the tone, language, and structure of the communication effectively address the owners' concerns while meeting legal disclosure requirements.
Best Practices
Be transparent about the severity of the defect and associated costs.
Provide options for remediation, including cost estimates and timelines.
Use visuals, such as annotated inspection photos, to simplify complex information.
Critique an Example Disclosure Letter for Compliance
Key Components of a Disclosure Letter
When reviewing a disclosure letter, ensure it includes the following:
Identification of the Issue: Describe the defect clearly and accurately.
Legislative Reference: Cite relevant sections of the Condominium Property Regulation or Real Estate Act Rules.
Proposed Actions: Include recommendations for addressing the defect, such as repair timelines and financial implications.
Professional Input: Reference inspection reports to support findings.
Legislative Framework
The Real Estate Act Rules require honesty and accuracy in all communications. Similarly, the Condominium Property Regulation mandates that records of building inspections be disclosed to stakeholders transparently.
Evaluation Checklist
To evaluate a sample disclosure letter, ask:
Does the letter clearly identify the defect and its implications?
Does it provide accurate inspection details, supported by expert input?
Does it align with the legislative requirement for transparency under the Condominium Property Regulation?
Is the tone professional and respectful, addressing potential owner concerns?
Example Evaluation
Scenario: A disclosure letter outlines mold growth in a common area but fails to include inspection results or remediation options.
Critique: The letter does not comply with legislation, as it lacks clarity and sufficient detail. Recommendations for remediation should be added, and references to inspection findings must be included to ensure transparency.
