Key Takeaways
- Banks and insurance companies now require detailed engineer reports, not just visual inspections.
- They expect: a clear assessment of the building’s condition, a structural diagnosis signed by an engineer, and a 10 to 25 year budget forecast.
- Reasons: more claims, stricter regulations (Bill 16, Bill 122), and frequent hidden defects, even in new buildings.
- A poorly done report slows financing. A thorough one speeds up the process and reassures everyone involved.
- Genispec provides complete inspections recognized by both lenders and insurers.
A Simple Visual Report No Longer Suffices
A few years ago, a quick visit and a few photos could be enough to reassure a bank or insurer. That time is over. Financial institutions and insurance companies now require thorough, evidence-based reports, often signed by an engineer, especially for commercial, multi-unit, or condominium buildings.
“We’re getting more calls directly from banks. They want inspections, but not superficial ones. They want real data, because they need to protect themselves too”
What a Building Inspection Report Must Now Include
1. A Clear Assessment of the Building’s Current Condition
Institutions need to know the condition of major components: roof, foundations, walls, underground parking, plumbing, and electrical systems.
A well kept building maintenance logbook supports this report by documenting the history of repairs and maintenance.
2. A Structural Diagnosis Signed by an Engineer
Building inspectors can provide an overview, but only engineers have the legal authority to issue certain technical recommendations, particularly concerning:
- The lifespan of systems
- Potential risks
- Expected repair costs
“We’re an engineering firm. Inspectors have limits. A bank will often require an engineer’s report to make sure there are no unpleasant surprises hidden in the building”
3. A Long-Term Financial Outlook: What the Building Will Cost in 10 or 25 Years
Some institutions now ask for budget projections similar to a reserve fund study, even for commercial properties. The goal is clear: avoid financing a building that will become financially burdensome within a few years.
Why These Requirements Are Increasing
- Rising Claims : Insurers are facing soaring costs due to poorly maintained buildings.
- Compliance with Quebec Bills : Bills 16 and 122 impose new responsibilities on property owners. Institutions want to ensure the buildings they finance comply with these regulations.
- Preventing Hidden Defects in New Construction : Construction defects are increasingly common, even in newly built properties.
“Even brand new buildings show irregularities. Banks know this now. They want proof”
What Makes the Difference for Banks and Insurers
- A report signed by an engineer rather than a basic inspector
- An on site inspection that covers the building envelope, structure, and technical systems
- Clear, prioritized recommendations with realistic timelines
- The ability to produce multi-year projections, including upcoming interventions
What Genispec Provides in This Context
Genispec already collaborates with lenders, insurance companies, and real estate brokers seeking reliable, well documented, and actionable reports.
Depending on your needs, our inspections can include:
- A complete diagnosis signed by an engineer
- Detailed photos with clear recommendations
- A 10 or 25 year budget forecast
- Technical appendices highlighting detected structural anomalies
Conclusion: A Solid Report Simplifies Negotiations
A poorly prepared report delays financing, worries insurance companies, and complicates transactions. In contrast, a rigorous, well structured report signed by a professional builds confidence among all parties.
Need to provide a report to your financial institution? Genispec can help with thorough, engineer-led inspections that meet today’s stricter market requirements.
Genispec
Consulting engineering firm based in Québec
Genispec is a consulting engineering firm made up of building engineers who are members of the OIQ. We offer specialized services in façade and underground parking inspections in accordance with Law 122, as well as reserve fund studies and maintenance logs as required by Law 16. We also conduct inspections of commercial, multi-residential, industrial buildings, and condominiums. In addition, we provide building condition certificates and pre-delivery inspections.
All our reports are validated by a qualified engineer. Every article published on our website is reviewed and approved by a qualified member of our team to ensure the technical accuracy of the information.