Over the last few years, we have seen a surge in apartment construction, yet very few new condominiums. As Millennials start considering homeownership, we anticipate a large uptick in condominium conversions to meet that demand. But these conversions can pose plenty of legal risks, making a solid building condition report more important than ever.
Under San Diego Municipal Code §144.0504, for all condominium conversion projects, a Building Conditions Report (BCR) must be prepared by a California registered architect or engineer licensed by the State of California. A condominium conversion shall not be approved until the BCR has been submitted to and accepted by the city as complete. The report shall also be provided to a prospective purchaser prior to opening an escrow account. The purpose and intent of the report is to provide prospective buyers with an analysis of how the building does/does not comply with current codes, and lists the proposed improvements and integral building components with a useful life of five years or less.
