How Agents Can Limit Their Liability with Regard to Home Inspections

1. Insist that your client hire a professional home inspector to inspect the property, and strongly recommend that the inspection also include ancillary inspections for the presence of wood-destroying insects, and such harmful pathogens as mold and radon.
   
2. Take the time to manage your clients’ expectations of what can reasonably be discovered by a limited visual inspection of a property that is full of furniture, carpets and stored items that further physically limit the scope of an already limited inspection.
   
3. Be sure to carry your own Professional Liability Insurance to protect yourself from allegations that you should have independently verified that the property was defect-free.
   
4. Review the inspector’s Pre-Inspection Agreement to make sure that it contains a Notice Clause that requires the buyers to notify the inspector within no more than 14 days of the discovery of any defect for which they believe he is responsible.
   
5. Avoid conflicts of interest. Never recommend an inspector who participates in preferred vendor schemes. All major inspector associations prohibit participation in such undue praise-purchasing schemes. You have a fiduciary duty to recommend the very best inspectors based solely on merit, not money. And it goes without saying that you should never recommend any inspector with whom you have a close personal or blood relationship.
   
6. Recommend the high-value inspector, not the low-price inspector. Good inspectors charge accordingly. Trying to save your client $100 on an inspection could cost them $10,000.
   
7. Only recommend inspectors who adhere to a strict Code of Ethics and Standards of Practice, such as members of InterNACHI.
   
8. Always attend the home inspection. Many real estate agents have been advised never to attend a home inspection, allegedly by real estate attorneys. Agents who say that they have received such advice are never able to articulate its rationale. You are not any less likely to be named in a suit by hiding during the inspection, and the reasons for attending the inspection are quite compelling. First, your presence is a clear indication of your professionalism and concern for your client’s interests, two factors well-known to engender referrals. Secondly, it affords a very cogent opportunity to refocus your client’s attention to the limited nature of the inspection. For example, you could note the numerous obstacles, such as furniture, carpets and appliances, that can obviously inhibit the inspector’s ability to see certain areas of the home. Finally, should this transaction come to grief, your interests are usually perfectly aligned with the inspector’s, and your recollection of such limiting factors would provide powerful corroboration of the exonerating reasons that a defect was not discovered during the inspection.

http://www.bengromicko.com

This is the introduction to a home maintenance book that you can provide to your client

INTRODUCTION

Nice house!

Now it is time to keep it that way.

Just like the engine of an automobile, your house works as a system of independent parts. Every part has an impact to the operation of many other parts. A typical home has over 10,000 parts. What happens when all the parts work together in the most desirable, optimal way? You are rewarded with a house that is durable, comfortable, healthy and energy-efficient.

And you can make it happen in just a few steps.

Step #1: Monitor the house

Step #2: Recognize potential problems

Step #3: Correct problems properly

This book will help you do all three steps.

If you hired a certified home inspector - that was a good decision and money well spent. As you know, the home inspector is not an expert but a generalist. Your home inspector inspected the home and reported the home’s condition as it was at the time of the inspection. That is the main responsibility of the home inspector. A home inspection does not include predictions of future events. Future events (such as roof leaks, water intrusion, plumbing drips and heating failures) are not within the scope of a home inspection and are not the responsibility of the home inspector.

Who’s responsible? You are. The new homeowner. Welcome to home ownership. The most important thing to understand as a new homeowner is that things break. As time moves on, parts of your house will wear out, break down, deteriorate, leak or simply stop working.

But relax. Don’t get overwhelmed. You’re not alone. This book is for you and every homeowner experiencing the responsibility of home ownership. Every homeowner has similar concerns and questions. And they are all related to home maintenance.

The following questions are those that all homeowners ask themselves:

#1 “What should I look for?”

#2 “What does a real problem look like?”

#3 “How should it be corrected?”

The answers to these questions are written in this book.

This book will guide you through the systems of a typical house, how they work and how to maintain them. The systems include the following: the exterior, interior, roof, structure, electrical, HVAC, plumbing, attic, insulation, bathroom and kitchen.

You will learn what to monitor (what to look for) as the house ages. Most of the conditions and events that you will see and experience will likely be cosmetic and minor. Most homes do not have major material defects.

Throughout the book, there will be references to the International Association of Certified Home Inspectors (www.InterNACHI.org). InterNACHI is the world’s largest trade association of residential and commercial building inspectors. The InterNACHI Residential Standards of Practice (SOP) defines what a home inspection is and lists the responsibilities of a home inspector. The SOP is located at http://www.nachi.org/sop.htm.

This book comments upon the responsibilities of a home inspector, because we are assuming that a home inspector has given you this book to read. Sometimes when a new homeowner is performing maintenance, apparent problems are discovered or revealed. Or as time goes by, things in the house leak or fail. A new homeowner experiencing a problem should refer to the Standards of Practice, which outlines the responsibilities and limitations of the home inspector.

The first nine chapters of this book describe the systems and components of a typical house.

Chapter 10 is about saving energy. This chapter describes how to make your home more comfortable and energy efficient by sealing air leaks and adding insulation —and you can do it yourself.

Chapter 11 has four maintenance checklists - one for each season.

Chapter 12 has a list of average life expectancies of systems, components and appliances in a typical home.

Home ownership is a great experience, and home maintenance is a great responsibility. This book will help you enjoy both.

Enjoy your house!

To read the table of contents and the first 32 pages of the book http://www.nachi.org/now

A Guide for Homeowners: Water Management and Damage Prevention

This article provides homeowners with basic information to make these decisions and take the appropriate actions to keep their homes dry and comfortable. Use the information in this article to effectively communicate to your clients about water management and moisture damage prevention.

© 2009 Ben Gromicko
Ben Gromicko
Boulder, CO
www.bengromicko.com
(303)862-261 ben@nachi.tv

Designing, building, and maintaining homes that manage moisture effectively is a process of making good decisions. While builders and designers provide most of the up-front decisions, like designing the roof system or specifying the foundation drainage details – over the long term the homeowner must understand basic moisture issues and make good decisions at the right times.

There is already plenty of useful guidance for homeowners on what to do (or not do) regarding moisture. This article does not “reinvent the wheel” but will instead rely on available guidance for homeowners.

This article includes inspection tips that may help an inspector to spot common types of home moisture problems during an inspection. Most (if not all) moisture-related problems could become serious and expensive if not taken care of quickly and completely. Therefore, it is important for an inspector to call out or recommend further evaluations and/or repairs by qualified professionals when any moisture intrusion is observed.

Houses and Water

Water, in its many forms, is an ever-present fact-of-life for a homeowner. Households can use hundreds of gallons of tap water on a daily basis. Lots of rainwater must be successfully shed by the roof and siding during rainstorms. Groundwater moves through the soil beneath the foundation. Indoor humidity levels are controlled for comfort. Moisture in the forms of condensation and water vapor is absorbed and released by the house itself.

When a well built home is properly maintained, water is a benefit and a pleasure. On the other hand, uncontrolled water in our homes can cause damage. It can lead to mold growth, rotten wood and structural damage.

It Repels Excess Water

The exterior surfaces of a house, from roof to foundation, make up its envelope or ‘skin’. The skin is designed to shed or repel excess water. If it doesn’t, expect trouble. When roof flashings, windows, foundation walls, and other building components are not properly maintained, rainwater will find its way into vulnerable parts of the house.

It Absorbs & Releases Excess Moisture

All houses must absorb and release moisture constantly, in order to maintain a healthy balance. If the house has ‘breathing’ problems, many types of moisture problems can develop. Trapped moisture - dampness that cannot be released, for one reason or another - is one of the primary causes of fungus and mold growth in a house. Fungi can literally ‘eat’ wood, causing decay, rot and, ultimately, structural damage. Trapped moisture in the walls can destroy the value of the insulation and raise heating and cooling costs. Wood that stays moist attracts carpenter ants and other insects that can accelerate structural problems.

It Transports Piped Water

Directly beneath the ‘skin’ of the house is a complex maze of pipes carrying fresh water through the house and drain lines to dispose of water after its use. There are dozens of pipe joints and specialized fittings throughout the house, any one of which can develop a leak and cause moisture damage.

It Needs a Firm, Dry Foundation

The best foundation is a dry foundation. A water-damaged foundation is extremely expensive to repair and can lead to damage in the rest of the house. Ground water, flood water, or even rainwater from a misdirected downspout, can undermine the foundation and cause settling cracks, wet floors and walls, and lead to undesirable conditions.

Frequent Causes of Moisture Damage

• Unwanted water can intrude through cracks in the protective skin of the house. It can also accumulate from interior moisture sources.
• The most common sources of moisture problems at the exterior a house include:

Roof and Flashing

• Roofing materials can wear out, break, rust, blow off, or otherwise fail and expose the roof deck and structural components beneath to moisture intrusion and damage.
• Most leaks occur around penetrations through the roof, such as at a chimney, plumbing vent, exhaust fan or skylight. Flashings and sealant joints around these penetrations can crack, fail and leak. Intersections of roof surfaces with walls are also a common leakage point.
• Old or defective shingles can curl and crack, allowing moisture intrusion. If old shingles aren’t removed before new roof shingles are applied, it can reduce the life of the new roof. Chimney caps can crack allowing water into interior areas of the chimney.
• Shingle edges can fail, forcing rainwater to accumulate between the roof and gutter.
• Flat or low-pitched roofs have unique maintenance needs and are susceptible to water problems because they may not drain as quickly as roofs with a steeper pitch.
• Flat roof drains or scuppers can clog and hold water on the roof, increasing the risk, not only of a leak, but also of a possible collapse of the entire roof under the weight of the water.

Gutters & Downspouts

• Clogged gutters can force rainwater to travel up onto the roof under shingles, or to overflow and travel down the inside of the wall, or to overflow and collect at the home’s foundation.
• First floor gutters can overflow if second floor gutters have been mistakenly directed to drain into them.
• An insufficient number of or undersized downspouts can cause gutters to overflow.
• Downspouts that don’t empty far enough away from foundation walls can lead to foundation wall damage and a wet basement.

Ice Dams

• Inadequate attic insulation allows heat to escape from the house into the attic, which can turn rooftop snow into an ice-dam along the eaves. Ice dams frequently force moisture to back up under the roof shingles where it can drip into the attic or walls.
• Clogged or frozen gutters can act like ice dams, pushing moisture up under the shingles and into the house.

Soffits and Fascias

• Damaged soffits (horizontal surfaces under the eaves) can allow snow or rain to be blown into the attic, damaging the insulation, ceilings and walls.
• Fascia boards (vertical roof trim sections) are damaged, allowing the moisture from rain and snow into the attic and atop interior walls.

Weep Holes

• Weep holes, which are designed to allow moisture to escape from behind walls, can become blocked.
• Weep holes can freeze, forcing moisture to back up inside the wall cavity.
• Weep holes can become clogged with landscape mulch, soil or other material.

Landscape or Grading

• Recent landscape modifications may have resulted in water drainage back towards the foundation, rather than away from it.
• A newly built home lot may have been graded improperly, or the original foundation backfill may have settled over time, causing drainage problems.
• Automatic sprinklers may be spraying water onto or too close to the foundation walls.

Window & Door Flashing or Seals

• Cracked, torn or damaged seals, weather stripping, and flashing around windows or doors can allow windblown moisture to penetrate your house.
• Improperly installed windows and doors can allow moisture into the wall.
• Failed or worn weather-stripping can allow wind-driven rain to penetrate a closed window or door.

Groundwater or Rainwater

• Groundwater or misdirected rainwater collects during wet seasons along the foundation wall or beneath the floor or slab. Unless it is directed away from the structure by a sump pump or corrected drainage, this moisture can lead to mold growth, wall failure and other destructive moisture problems.

Condensation

• Condensation on windows can, at a minimum, damage windowsills and finishes. At worst it can damage walls and floors as well.
• Condensation on un-insulated pipes can collect nearby or travel along a pipe, to accumulate far from the original source.
• Condensation can form inside improperly built walls, and lead to serious water damage and biological growth that are hidden from sight.

HVAC

• Lapses in regular maintenance can lead to moisture and comfort problems, ranging from clogged drain pans to iced-up cooling coils and mold within the system.
• Failure to clean and service air conditioners regularly can lead to diminishing performance, higher operating costs and potential moisture problems.
• Humidifiers can add too much moisture to a house, leading to dampness and mold.

Sump Pump

• Neglecting to test a sump pump routinely - especially if it is rarely used - can lead to severe water damage, especially when a heavy storm, snow melt, or flooding sends water against the home.
• Overload of the sump pump, due to poor drainage elsewhere on the property, can lead to pump failure. Frequent sump operation can be a sign of excessive water buildup under the basement floor, due to poorly sloped landscaping, poor rain runoff, gutter back-flows and other problems.
• Lack of a back-up sump pump, which can be quickly installed in the event the first pump fails, can lead to serious water damage and property loss. This is especially important if the sump pump is relied upon to maintain a dry basement, or if the house is located in an area of seasonally high groundwater. Sump failure can cause extensive water damage and the loss of valuable personal belongings.

Download a pdf of this article to email to your next client, visit http://www.bengromicko.com/water-management-and-damage-prevention-a-guide-for-homeowners.aspx

A home maintenance book http://www.nachi.org/now.htm

Amidst a wave of Chinese import scares, ranging from toxic toys to tainted pet food, reports of contaminated drywall from that country have been popping up across the American Southeast. Chinese companies use unrefined “fly ash,” a coal residue found in smokestacks in coal-fired power plants in their manufacturing process. Fly ash contains strontium sulfide, a toxic substance commonly found in fireworks. In hot and wet environments, this substance can off-gas into hydrogen sulfide, carbon disulfide, and carbonyl sulfide and contaminate a home’s air supply.

The bulk of these incidents have been reported in Florida and other southern states, likely due to the high levels of heat and humidity in that region. Most of the affected homes were built during the housing boom between 2004 and 2007, especially in the wake of Hurricane Katrina when domestic building materials were in short supply. An estimated 250,000 tons of drywall were imported from China during that time period because it was cheap and plentiful. This material was used in the construction of approximately 100,000 homes in the United States, and many believe this has lead to serious health and property damage.

Although not believed to be life- threatening, exposure to high levels of airborne hydrogen sulfide and other sulfur compounds from contaminated drywall can result in the following physical ailments:

• sore throat;
• sinus irritation;
• coughing;
• wheezing;
• headache;
• dry or burning eyes; and/or
• respiratory infections.

Due to this problem’s recent nature, there are currently no government or industry standards for inspecting contaminated drywall in homes. Professionals who have handled contaminated drywall in the past may know how to inspect for sulfur compounds but there are no agencies that offer certification in this form of inspection. Homeowners should beware of con artists attempting to make quick money off of this widespread scare by claiming to be licensed or certified drywall inspectors. An inspector can use the following tips to identify if a home’s drywall is contaminated:

• The house has a strong sulfur smell reminiscent of rotten eggs.
• Exposed copper wiring appears dark and corroded. Silver jewelry and silverware can become similarly corroded and discolored after several months of exposure.
• A manufacturer’s label on the back of the drywall can be used to link it with manufacturers that are known to have used contaminated materials. One way to look for this is to enter the attic and remove some of the insulation.
• Drywall samples can be sent to a lab to be tested for dangerous levels of sulfur. This is the best testing method but also the most expensive.

Contaminated Chinese drywall cannot be repaired. Affected homeowners are being forced to either suffer bad health and failing appliances due to wire corrosion or replace the drywall entirely, a procedure which can cost tens of thousands of dollars. This contamination further reduces home values in a real estate environment already plagued by crisis. Some insurance companies are refusing to pay for drywall replacement and many of their clients are facing financial ruin. Class-action lawsuits have been filed against homebuilders, suppliers, and importers of contaminated Chinese drywall. Some large manufacturers named in these lawsuits are Knauf Plasterboard Tianjin, Knauf Gips, and Taishan Gypsum.

The Florida Department of Health recently tested drywall from three Chinese manufacturers and a domestic sample and published their findings. They found “a distinct difference in drywall that was manufactured in the United States and those that were manufactured in China.” The Chinese samples contained traces of strontium sulfide and emitted a sulfur odor when exposed to moisture and intense heat, while the American sample did not. The U.S. Consumer Safety Commission is currently performing similar tests. Other tests performed by Lennar, a builder that used Chinese drywall in 80 Florida homes, and Knauf Plasterboard, a manufacturer of the drywall, came to different conclusions than the Florida Department of Health. Both found safe levels of sulfur compounds in the samples that they tested. There is currently no scientific proof that Chinese drywall is responsible for the allegations against it.

Regardless of its source, contamination of some sort is damaging property and health in the southern U.S. The media, who have publicized the issue, almost unanimously report that the blame lies with imported Chinese drywall that contains corrosive sulfur compounds originating from ash produced by Chinese coal-fired power plants. Homes affected by this contamination can suffer serious damage to the metal parts of appliances and piping and lead, potentially leading to considerable health issues. While no governing body has issued regulations regarding contaminated drywall, it is advisable that home inspectors be aware of the danger it poses and learn how to identify it.

For more information about other inspection topics, visit http://www.bengromicko.com and http://www.nachi.tv