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Did You Know You Could Be Liable For That?

Owner's Liability

As a property owner you are liable for certain things. Therefore, you must take reasonable precautions to ensure the safety of anyone on your property. As the owner of a business that is open to the general public, you must take extra measures to maintain a safe environment, both inside and around any buildings. Therefore, parking lots and privately owned paths and walkways must also be inspected for any safety hazards.

American with Disabilities Act (ADA) of 1990

ADA guidelines are something that you need to consider on a regular basis. Your facility must have unobstructed access for handicapped individuals.

A use change could be space that was an office and now it's going to be something entirely different-for example, a hair salon. If the use changes, many counties in this country today will demand that you bring the building up to ADA standards. This doesn't just mean it is wheelchair accessible from the outside to the inside-it's ingress and egress.

These standards also apply to the interior layout of a space as well. Bathroom doors must be wide enough to accommodate wheelchairs, with a specific clear span in which to circle. ADA requirements could even make you move walls. So, you need to be aware of what the ADA requirements are. You can look up this information online at ADA's official website.

Environmental Issues

The major environmental issue today is mold abatement. It's such a huge issue. Remember lead-based paint in the late 70's and, early 80's-in which people were sickened?

Workmen came in, dressed in white hazard suits and masks, and sanded down all of the walls to abate the problem. Today, lead-based paint is not a big issue. Walls can be sanded, primed, and another coat of paint applied to seal it. Perhaps sometime in the future, you may be able to abate mold in a similar manner.

If you are considering buying a building that's been vacant for a couple of years and has had any leakage or water damage inside, mold may still be a huge problem. In that case, the first thing you ought to do in your due diligence period, is spend $300 to $500 to address the problem. Have a mold abatement and inspection technician evaluate it and give you a professional opinion as to cost and procedures for abatement.

If you don't properly treat a building for mold, and months or even years later, somebody gets sick from it, you may have a costly issue on your hands. If tenants can show that you knew the building had mold when you bought it, but you can't prove that you paid for the proper abatement procedures, as the property owner, you may be liable.

Sick building syndrome is another extensive environmental issue that is usually related to mold issues in air conditioning ducts. In your due diligence period, you need to check all of these issues to make sure that you are not leaving yourself vulnerable for an expensive law suit. Also, be sure to look for hazardous materials, such as asbestos, when you're performing your preliminary inspections.

Common Area Liability

Liability is an insurance issue. You should carry solid insurance policies on your properties with reputable insurance companies and carry at least a $1,000,000 to $2,000,000 blanket policy to protect yourself. When you buy protection of this nature, you also buy some of the best attorneys in the world to be on your team.

Make sure that your leases include a clause stipulating that people must conduct business in your buildings, according to local building codes. Be especially wary of signage, since many of these may not be code compliant.

ADA Compliance

Go straight to the ADA website for this information. You can download their extensive regulations for details.

When considering a building purchase, thoroughly research anything that could be a potential issue that as the property owner, you may be liable for.

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