August 31, 2008

BALCONY TILE LEAKS

Boards should be aware that allowing owners to tile or carpet their balconies will cause water damage to the balcony, their unit, and the unit below.

Damage to Membrane. Tile and the grout used to install tile are porous; so is carpet. As a result, water will become trapped between these materials and the waterproofing membrane underneath. This will void the manufacturer's warranty of the waterproofing membrane on the deck and will accelerate the breakdown of the waterproofing materials. The resultant seepage of water into the balcony structure will lead to wood rot and will also attract termites. Frequently, this is undetectable. Sometimes, the first sign of trouble is when the owner walks onto the deck and his/her foot goes through the flooring material. The structural repairs that follow are quite costly.

Water Drainage. Another problem caused by tile is that it reduces the amount of space between the top of the deck surface and the threshold of the sliding glass door. That means a heavy rain that overwhelms balcony drains will quickly spill over the threshold into the owner's unit and the unit below.

Protection. Associations should amend their CC&Rs to clearly define maintenance responsibilities for balconies and decks. In addition, they should include maintenance guidelines in the rules. Finally, architectural guidelines need to be adopted prohibiting the installation of tile, carpet and other materials over the top of waterproofing membranes unless the owner is willing to sign and record a covenant taking responsibility for maintenance and damage, and indemnifying the association.

NO 10-YEAR WARRANTY
FOR DEFECTS

QUESTION: Our building is nearly 10 years old. A previous board president said the builder had given our association a 10-year warranty on common area defects. What is the board's responsibility to perform due diligence on defects?

ANSWER: Although many believe that a 10-year builder warranty exists, there is no such thing. There is, however, a 10-year statute of repose. That means your association has a maximum of 10 years, unless the statute is tolled, to make claims against the builder for latent construction defects. CCP 337.15. More importantly, there are other shorter statutes running at the same time that will extinguish an association's rights. Boards should immediately contact an attorney if their property is less than 10 years old and they suspect defects. If they wait, they may lose the right to seek damages against the developer.

Duty to Investigate. Directors have a fiduciary duty to act in the best interest of the association and with such reasonable inquiry as an ordinary prudent person would use under similar circumstances. Therefore, if a board knows or suspects they have defects they have a duty to investigate.

Picking an Expert. In performing their duties, directors are entitled to rely on information and opinions from experts. Investigations can be performed by construction defect law firms using a forensic architect or general contractor. I prefer that it be done under the direction of a law firm so it will have the attorney-client privilege attach as an added protection for the association. Most construction defect law firms will perform this initial evaluation at no cost to the association.

*Thank you to defect specialist Chuck Fenton of Feinberg Grant Mayfield Kaneda & Litt, LLP for his input on this question. You can find his contact information in the Service Directory.

Adrian Adams


  Very truly yours,
 
   Adrian Adams, Esq.
   Adams Kessler PLC


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