Commercial Transactions in Miami-Dade and Broward Counties

Under the Florida Building Code of 2001, Broward and Miami-Dade have enacted the 40 Year Building Safety Inspection Program, which requires all commercial properties that are 40 years old to undergo a property assessment by a professional structural engineer. Learn how this program impacts commercial closings and why getting a 40 Year Recertification is so crucial to ensuring a successful sale!

An Overview of the 40 Year Building Safety Inspection Program

The program is designed to ensure that buildings reaching 40 years of age are safe in terms of their structural and electrical systems. All commercial buildings fall under the program, regardless of their size, how they are used, or even whether they are open to the public. Part of the impetus for the program is to make sure that older buildings can withstand the tropical storms, hurricanes, and other severe South Florida weather.

How the 40 Year Recertification Works

Once a commercial property hits 40 years old, the owner will often be sent a “Notice of Required Inspection” by the municipal or county government in which the structure is situated. From that point, the owner will have 90 days to find a certified structural engineer who will inspect the building and provide a “40 Year Certification” report to the relevant municipal or county government.

The report gives a comprehensive overview of the state of the property and identifies anything that needs to be repaired or replaced. If any work needs to be done to make the property safer, the owner will have up 180 days to complete the work, after which an engineer must inspect the property once more and issue a report confirming all the necessary work has been done. If everything is in order, the property is certified as meeting the required building codes, and another inspection/recertification will not be needed for another ten years (to be followed each decade thereafter).

Failure to get the initial certification or subsequent re-certifications can result in several financial and legal penalties, which will also attach to the property in the public records. Therein lies the next crucial point.

Why a Commercial Seller Should Timely Obtain the 40 Year Recertification

As part of the due diligence process in a commercial real estate transaction, the buyer will review the property’s physical structure and legal history. If the seller has failed to obtain a timely certification or recertification, it will often result in the buyer requiring that the certification be completed before closing, which may consequently lead to a delay to the closing process. Conversely, having the proper certification or recertification proves that the property is structurally (and thus legally) sound, making it much more sellable at its market rate.

The real estate attorneys at Jurado & Farshchian, P.L. know the ins and outs of commercial real estate properties, including what you can do to maximize the value of your property while minimizing any liabilities. if you would like to know more about our services, please do not hesitate to contact me at (305) 921-0440 or email me directly at [email protected].

Read more at Why Sellers Need to Obtain a 40 Year Recertification for Commercial Transactions in Miami-Dade and Broward Counties