Many different reasons such as that’s how the engineer spec’ed it out, the reason is irrelevant.
No, why do you think this?
Need to see a pic
Simon, I appreciate the help. I have another inspection close to this one tomorrow. I will stop by and take another peak. Any chance it could be connected to the other attached townhouse?
Typically, the OCPD protecting the feeder feeding power to the subpanel in your pic must be next to the meter, you cannot have a long run of exposed feeder that is not protected by OCPD.
The meter is on the outside of the other side of the garage
Best regards,
Jon Ruscoe
Home Run Inspections,LLC
CCB# 221100
John, in the pictures provided look for square covers or something similar at the meters. These will be covering the disconnect.
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On a Townhouse or Condo the Service Disconnect (Main Breaker) is almost Always going to be in a remote location and not in the Panel you find in the Home.
Reason? Because you do not want hundreds of feet of Unfused (unprotected) conductors running through the building, especially running through possibly other units in the complex. Even on Single Family Homes the length of those unprotected conductors should be kept to a minimum between Meter and Main Breaker.
I just did a condo yesterday and I really had to search for the meters and Main Breaker. It was in an outside enclosure (Closet) at the east end of the complex. The unit I was inspecting was in the middle, on top floor.
on a side note, make sure the meter and shut-off is labeled for the unit you are inspecting. I have run across this many times where the meters (electric or gas) are not labeled or are faded. In those cases I recommend they compare the meter # on their bill and Clearly Mark their Meter/ Main Breaker.
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Did you look on the other side of the wall where the meter is located? As others have stated once the service entrance conductors (SEC’s) enter the structure there needs to be service disconnect and an OCPD. If the SEC’s were run on the outside of the structure then their permitted length is unlimited.
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One problem I see here and it is common on other posts. A person asks a question. It may be because the person is not familiar with the device (think heat pump in the Adirondacks or Swamp Cooler in Coastal Maine), or, the questioning person is not all that experienced in the inspection profession. Trying to be helpful we answer with all sorts of acronyms and “standard to the trade” abbreviations. That can really get confusing to the questioning individual or others following the thread. I suggest that if you use an acronym or abbreviation, do it this way: FPD (First Point of Disconnect), DP (Drainage Plane), TRR (Tamper Resistant Receptacles). This can also help when putting your report together - remember, John and Jane Q. Public probably have NO idea what a OTP is! And, to complicate that, you may use an acronym that means something else in the profession of the Client; PE, a pulmonary embolisim to Jane the nurse or Polyethylene to an inspector.
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Good point, Thomas. 
What Thomas said! TY (Thank You) Took me a while to figure that one out. Don’t remember any acronyms growing up, they made us spell it out!
I recall reading that the disconnect should be within 6 feet of where the SE cables enter the house. In my area there are a lot of heavily renovated homes. Usually old fuse panels have been replaced and the electrical service upgraded. Sometimes as part of the reno the new panel is installed a ways away from the old location necessitating the “disconnect only” service panel near the meter, and the “big” panel with all the breakers needing to be set up as a subpanel, not as a main. I definitely second the recommendation to go through the lessons available on InterNACHI, there are so many slick tidbits of info like this in them.
Mike
There is no 6’ rule in the NEC so different locales have different interpretations. Around here 6’ inside the house would be too long.
Robert, doesn’t the NEC say, (“service disconnecting means” on a main breaker panel) must be located immediately at the nearest point of entrance of the service conductors?
And the AHJ’s dictate anything from 3’-4’ depending where.
Yes that’s correct and since the distance is undefined it’s open to interpretation. Here’s the NEC section:
Part VI. Service Equipment — Disconnecting Means
230.70 General. Means shall be provided to disconnect all
conductors in a building or other structure from the service-
entrance conductors.
(A) Location. The service disconnecting means shall be instal‐
led in accordance with 230.70(A)(1), (A)(2), and (A)(3).
(1) Readily Accessible Location. The service disconnecting
means shall be installed at a readily accessible location either
> outside of a building or structure or inside nearest the point of
> entrance of the service conductors.
One would think there is no interpretation to interpret for (nearest point of entrance), back to back would be nearest in my book. 
Thank you all for the information. I did go back to the property and yes I missed it. It was in a panel next to the meter.
I’m a little confused as why they would add an entire box on the exterior when all then could have done was put the switch on the main panel. Isn’t it more cost effective to have it in the main panel?
Best regards,
Jon Ruscoe
Home Run Inspections,LLC
CCB# 221100
Jon, we explained it… above, reread this thread carefully.
Please start thinking “service panel” instead of main and “panel” for subpanel. A panel can have a main breaker without being the service.
That is exactly how my detached garage was done.
By the literal wording you are correct but generally you’re allowed a little more than that. 
This will all go away in the 2020 NEC where the disconnecting means will be required to be on the outside.