SECTION 1 — PURPOSE AND APPLICABILITY

1.1  Purpose

This Standard of Practice (“SOP” or “Standard”) establishes the minimum requirements, scope, procedures, and limitations applicable to the Limited Commercial Visual Inspection (“LCVI”) performed on the commercial storefront unit(s) of a mixed-use property containing one to four (1–4) residential units and one or more commercial storefronts.

1.2  Applicability

This Standard applies exclusively to:

• Commercial storefront units in mixed-use residential/commercial properties;
• Non-residential units within buildings that are primarily 1–4 family residential structures;
• Retail, office, service, or light commercial occupancies that form part of a larger residential building.

1.3  What This Standard Is Not

This Standard is not, and shall not be construed as:

• A home inspection under N.J.A.C. 13:40-15 or any state residential inspection statute;
• A Property Condition Assessment (PCA) under ASTM E2018 or any successor standard;
• An engineering inspection, structural assessment, or code compliance evaluation;
• A Phase I or Phase II Environmental Site Assessment;
• A full commercial building inspection as defined by any trade association.

SECTION 2 — DEFINITIONS

SECTION 3 — GENERAL METHODOLOGY

3.1  Inspection Method

The LCVI is a non-invasive, visual examination of the storefront unit. The inspector shall:

• Walk through all readily accessible areas of the storefront unit;
• Observe systems and components listed in Section 5 to the extent visible and accessible;
• Use normal operating controls to test components where safe and appropriate;
• Report observed conditions, deficiencies, and items requiring further evaluation;
• Not perform any destructive, intrusive, or technically exhaustive procedures.

3.2  Inspection Conditions

The inspection reflects conditions present at the time of inspection only. The inspector is not required to:

• Move furniture, equipment, merchandise, or tenant personal property;
• Access areas that are locked, secured, or blocked;
• Enter spaces deemed unsafe or not readily accessible;
• Operate systems that are shut down, winterized, or lack utilities at the time of inspection.

3.3  Reporting

Findings are reported in a written inspection report delivered to the Client. The report shall identify:

• Systems and components inspected;
• Observed deficiencies or conditions warranting further evaluation;
• Items noted as excluded from the scope of this inspection;
• Recommendations for specialist evaluation where applicable.

Reported conditions reflect the state of the property at the time of inspection only. Conditions may change over time. The inspection report is not a prediction of future performance of any system or component.

SECTION 4 — SCOPE BOUNDARIES

4.1  Building-Wide Systems — NOT Part of the LCVI

The following systems serve the entire building and are evaluated under the residential home inspection (N.J.A.C. 13:40-15). They are NOT part of the LCVI and shall not be reported under the commercial section of the report:

• Roofing system (serves entire building);
• Foundation and primary structural components;
• Building exterior, siding, and grading;
• Main electrical service entrance and building-level electrical panel;
• Building plumbing mains, sewer lateral, and supply/drain lines serving the building as a whole;
• Basement and sub-grade areas outside the storefront unit;
• Common areas, shared hallways, stairwells, and building egress corridors.

NOTE: An inspector’s incidental observation of a building-wide system from within the storefront does not constitute an inspection of that system and shall not be construed as such.

4.2  Shared Systems

Where a system serves both the residential and commercial portions of the building (e.g., shared water heater, electrical panel, or plumbing stack), that system shall be referenced in both sections of the inspection report to the extent visible and accessible from each unit. Observations in one section do not supersede findings in the other section. The Client is advised to engage a licensed specialist to evaluate shared systems for adequacy and condition.

SECTION 5 — SYSTEMS AND COMPONENTS WITHIN SCOPE

The inspector shall observe the following systems and components within the storefront unit to the extent they are readily accessible and visible at the time of inspection:

5.1  Interior Surfaces

• Walls and ceiling surfaces — visible condition, evidence of staining, damage, or deterioration;
• Floor surfaces — visible condition, trip hazards, significant deterioration;
• Interior columns or posts within the unit space.

5.2  Doors and Windows

• Entry doors — operation, hardware, weatherstripping condition;
• Storefront glazing and window units — visible condition, operation of operable units;
• Roll-up doors, security gates, or overhead doors — visible condition and operation if accessible;
• Interior doors within the unit — condition and operation.

5.3  Interior Stairs and Means of Egress

• Interior stairs within the storefront unit — visible condition, handrails;
• Visible egress paths and exit door hardware;
• Exit signage — presence and visible condition (illumination not operationally tested);
• Emergency lighting — presence and visible condition only.

5.4  Electrical Systems (Unit-Level)

• Electrical sub-panel serving the storefront unit — visible condition, labeling, evidence of improper wiring;
• Accessible outlets — tested with a standard outlet tester for proper polarity and ground;
• Switches and lighting fixtures — visible condition and operation;
• Visible wiring within the unit — condition and method of installation where visible.
• NOTE: Building-level electrical service and main panel are excluded from the LCVI.

5.5  Plumbing (Unit-Level)

• Plumbing fixtures within the unit — sinks, toilets, lavatories as present and accessible;
• Visible supply and drain piping within the unit — condition and evidence of leaks;
• Water heater serving the unit if separately located within the unit — condition and operation;
• Visible condition of shut-off valves within the unit.
• NOTE: Building plumbing mains and sewer lateral are excluded from the LCVI.

5.6  HVAC (Unit-Level)

• Heating and cooling equipment serving the storefront unit — visible condition and operation;
• Accessible air distribution components — visible condition of registers, diffusers, and exposed ductwork;
• Thermostats — presence and basic operation;
• Visible fuel supply connections to unit HVAC equipment.

5.7  Fire and Life Safety (Observable Only)

• Smoke detectors — presence and visible condition (operability not tested);
• Carbon monoxide detectors — presence and visible condition;
• Portable fire extinguisher — presence noted (service tag not evaluated);
• Visible egress hardware, panic hardware, and self-closing devices on exit doors.
• NOTE: Building fire sprinkler systems are excluded. See Section 6.

SECTION 6 — EXPLICIT EXCLUSIONS

The following items and systems are explicitly excluded from the scope of the LCVI regardless of whether they are observed, noted, or photographed during the inspection:

6.1  Commercial Kitchen and Food Service Equipment

• Commercial cooking equipment — ranges, fryers, ovens, broilers, steamers, griddles, and associated gas connections;
• Commercial hood, exhaust ventilation, and grease duct systems;
• Ansul, wet chemical, or any other commercial kitchen fire suppression system;
• Walk-in coolers, walk-in freezers, and all refrigeration equipment;
• Grease traps, grease interceptors, and associated commercial drain systems;
• Commercial dishwashers, food prep equipment, and food service appliances;
• Health department compliance, food safety systems, and sanitation equipment;
• Gas supply lines serving cooking or food service equipment;
• Equipment installed by or belonging to a current or prior tenant.

The inspector shall note in the report whether a commercial kitchen was observed. The Client is strongly advised to engage a licensed commercial kitchen equipment contractor, licensed fire suppression contractor, and licensed plumber to evaluate these systems independently prior to closing or occupancy.

6.2  Technical and Specialty Systems

• ADA / accessibility compliance determination;
• Security systems, alarms, surveillance cameras, intercoms, and low-voltage wiring;
• Elevator, wheelchair lift, or any lifting equipment;
• Building-wide fire sprinkler system — testing, flow, or code compliance;
• Signage — structural adequacy or electrical supply to exterior or illuminated signs.

6.3  Engineering and Code Analysis

• Code compliance, permit history, or certificate of occupancy status;
• Design adequacy or fitness for any specific occupancy or use;
• Engineering analysis, structural calculations, or load assessments;
• Determination of remaining useful life of any system or component;
• Zoning compliance or land use determinations.

6.4  Environmental and Specialty Testing

• Environmental hazards, asbestos, lead paint, mold, or radon;
• Air quality, indoor environmental quality, or industrial hygiene assessments;
• Phase I or Phase II Environmental Site Assessments.

6.5  Tenant and Personal Property

• Assessment of tenant improvements, installed tenant equipment, or personal property;
• Any equipment, fixtures, or systems that are the property of a current or prior tenant.

6.6  Inaccessible Areas

• Areas that are concealed, inaccessible, locked, or deemed unsafe at the time of inspection;
• Spaces requiring removal of personal property, merchandise, or stored goods to access.

SECTION 7 — INSPECTOR OBLIGATIONS

7.1  Qualifications

All LCVI inspections shall be performed by an inspector holding a current and valid New Jersey Home Inspector License issued by the New Jersey State Board of Home Inspectors, N.J.S.A. 45:8-61 et seq. The inspector shall conduct the LCVI in a professional and competent manner consistent with this Standard and with the inspector’s training and experience.

7.2  Conduct

The inspector shall:

• Maintain objectivity and professional independence;
• Disclose any limitation to access or observation at the time of inspection and in the written report;
• Recommend specialist evaluation for any observed deficiency, system beyond the scope of this Standard, or condition requiring further investigation;
• Decline to inspect any area deemed unsafe.

7.3  Conflicts of Interest

The inspector shall not perform, estimate the cost of, or solicit repair work on systems inspected for a period of twelve (12) months following the inspection, except as otherwise permitted by applicable law.

SECTION 8 — LIMITATION OF LIABILITY

The findings of the LCVI reflect conditions visually observed at the time of inspection only. The inspection report is not a warranty, guarantee, certification, or insurance policy of any kind. The scope of this evaluation is limited by design and is not a substitute for a full commercial property condition assessment.

The Company’s total liability arising from the commercial storefront portion of this inspection is limited to the fee allocated to that evaluation, as stated in the Pre-Inspection Agreement. The Client acknowledges that the fee paid for this inspection reflects the limited, visual nature of the service provided and the defined scope of this Standard.

This Standard and the inspection report prepared under it are not transferable and are prepared for the exclusive use of the named Client only. Any third party who relies on this report without the prior written consent of the Company does so at their own risk and without recourse against the Company.

SECTION 9 — AMENDMENTS AND REVISIONS

This Standard is a proprietary document of the Company and may be amended or revised at the Company’s sole discretion. The version of this Standard in effect on the date of the inspection shall govern the services provided. The Client may request a copy of the applicable version at any time.