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Not Just For Buyers It is a “must” in real estate to have two or more home inspections. It
has been our experience through hundreds of closings that no one wants to be
surprised by some essential part of the property they just purchased suddenly
turning out to be non-functional. Of course, a careful visual inspection and
a pre-closing walk-through can go quite a ways towards ensuring that there
are no unpleasant discoveries. However, very few buyers have the expertise to perform their own
inspections and, if they do, they usually don’t have the time. The most commonly used sales contracts in Florida and Virginia basically
states that the buyer may have the property inspected by a Certified or
Approved Pest Control Operator to determine if there is any “visible” active
“termite” infestation. This inspection is called the Wood Destroying Organism
(wdo) inspection. By definition, the word “termite” refers to all wood
destroying organisms required to be reported. The seller agrees to have this infestation treated and damage repaired by
spending up to two percent of the contract sales price in Florida and is
limited to one percent in Virginia. The 1 – 2% figure is sometimes capped at a lower amount by the seller.
However, we usually recommend that our sellers not place caps on repairs,
because it always makes it seem like the seller is worried and covering up
some hidden defect. If the required repair exceed 1-2%, the buyer has the
option of canceling the contract or proceeding and covering the additional
repair himself. Often both parties negotiate a settlement. It is currently required that the seller provide the buyer with copies of
all wdo inspections including roof inspections in Florida (recommended in
Virginia) that have been performed on the home within the past year. Hence,
if a contract falls apart due to an adverse inspection the seller really must
disclose the inspection to other potential buyers. If he isn’t willing to
repair the damage, it is quite possible that he won’t be able to sell the
property. The inspection must be made by a licensed Florida or Virginia pest
control inspector. In Florida purchase and sale agreements address the functional items in
the home. In Virginia most the widely used purchase and sale agreements state
that the seller warrants that there is no VISIBLE EVIDENCE of leaks, water
damage, standing water affecting the roof, interior, foundation, crawl space,
sea walls, and dockage and that the septic tank, pool, all appliances,
machinery are in WORKING CONDITION. Any additional items must be noted in a
separate addendum if the buyer wants them covered. The buyer may have the
property inspected by either a home inspector or a licensed contractor. The
buyer must them report in writing in a timely fashion the items which don’t
pass the inspection. The seller then agrees to repair these items by spending
up to three (3%) in Florida, one (1%) in Virginia of the contract sales
price, unless otherwise negotiated. If the repairs requires exceed the cap,
the buyer or seller may agree to pay the excess, or either party may cancel
the contract. Usually the seller must provide all utilities for a walk-through prior to
closing. The walk -through allows for the buyer to visually check all the
required repairs and any personal items which are included in the sale. There are many home inspectors in our local market. The thing to know
about home inspectors is that they are not all equally adept, since there is
no test or required standard for them at this time. Since they are paid by
the buyer, they look for everything they can find to protect the buyer. There
is a fine line between picking out items which are warranted by the seller
that under the terms of the contract and items which are not. This is why we
recommend that the buyer choose a home inspector who is a member of the
American Society of Home Inspectors. ENVIRONMENTAL ISSUES Beyond Home Inspections Home inspectors who primarily focus on structural integrity and working
systems might not be qualified to conduct specialized inspections for radon,
asbestos and lead paint – substances that in recent years have emerged as the
most common environmental concerns for home buyers. Testing for these
substances requires a specialist who will charge a fee beyond the basic cost
of a general home inspection. A Few Quick Facts on Radon Radon is a tasteless, odorless gas. It is a proven carcinogen and ranks
second only to cigarette smoking as a
cause of lung cancer. If you have a radon problem, it is usually easy and
inexpensive to abate. There are a number of radon sampling devices that you
can buy, or you can have a professional company conduct tests. Radon is
measured in pico Curies per liter (pCi/L). The EPA recommends that remedial
action be taken when a residence exceeds a radon level of four (4) pCi.L. Asbestos Many older homes have asbestos insulation in walls and ceilings, wrapped
around hot water pipes or in exterior shingles. It is dangerous! If you
suspect asbestos may be in your home, you should have a professional
inspection. Generally, asbestos is considered a health hazard when the
material is friable, that is, when it
crumbles, releasing tiny fibers into the air. Polybutylene Plumbing What is Polybutylene
Plumbing? • Polybutylene plumbing is marketed under the brand names “Qest,” “Thermogaurd,” and “Flextemp.” • Polybuylene pipe is a non-rigid, sometimes curved, usually gray silver
or black plastic pipe. When used in the underground service from the water
company to a structure (a “Yard Service Line”), the pipe is blue, gray or
black. • Polybutylene In-House Plumbing is a potable water supply system
containing polybutylene pipe and either plastic, copper or brass insert
fittings. • Polybutylene pipe is not used for drains, waste or vent piping. • For purposes of class action settlement claims, Polybutylene Plumbing
may NOT include yard sprinkler systems, irrigation systems, fire sprinkler
systems, sewer lines, faucets or fixtures. Although Polybutylene pipe may be
used in some hydro-heating systems, this may NOT be covered under any
settlement as well. Polybutylene Failure There have been numerous reports of failure in this plumbing system.
Expert opinions regarding the failures include: • Plastic fittings are stressed and cracked by pressure used to secure
the fittings, leaving the material vulnerable to attack by chlorine and other chemicals in the water supply. • Brass fittings can increase the rate of oxidation, making the pipe
brittle and prone to cracking. • The metal fittings and plastic piping have different expansion rates,
exerting pressure on the connections, causing the pipes to sprout leaks,
rupture. THE CLASS ACTION SUIT: Cox
vs Shell Oil Co., et al. There have been a number of lawsuits and settlements across the nation.
Cox vs Shell, et al. is one of the largest and well known. The Cox Class
Settlement was approved by the Court on November 9, 1995, requiring Shell Oil
to commit a minimum of $50 million to a settlement fund. This Settlement
allows homeowners who had (or have) 1 qualifying leak within the appropriate
time period to be eligible to recover property damages, repair costs and a
complete replumb of the property at no cost. Keep in mind that this was a
settlement, and due to strict guidelines, many do not qualify for recovery. “Who’s Eligible For
Recovery?” Call 1 (800) 392-7591 to inquire on eligibility status. Claimant must
meet ALL of the following criteria: • Own or have previously owned a dwelling or other unit plumbed with a
Polybulylene system or a Polybutylene Yard Service Line, or both. • The Polybutylene Plumbing System or Polybutylene Yard Service Line must
have been installed between 1/78 and 7/31/95. • The Polybutylene System or Polybutylene Yard Service Line must have at
lease one “Leak” as defined in Cox vs Shell Oil, et al.. For additional information you may visit web sites such as
www.pbpipe or call the Consumer Recovery Center at 1-800-392-7591. If you would like you may call Time Residential Realtors toll free at
1-888-714-6768 for up to date pamphlets and Fax-on-demand information. This information is provided as a public service. Time Residential
believes this information to be correct, but will not be liable for any
errors or omissions. Information was gathered from various articles; the
Consumer Plumbing Recovery Center; and from the Cox vs Shell Oil, et al Class
Action Settlement document. Lead-Based Paint Approximately three-quarters of the housing in the United States built
before 1978 (about 64 million dwellings) contain lead-based paint. When
properly maintained and managed, this paint possesses little risk. However,
1.7 million children have blood-lead levels above safe limits, mostly due to
exposure to lead-based paint hazards at home. Often Found in Pre-1978
Housing The Residential Lead-based Paint Hazard Reduction ACT of 1992 directs the
Department of Housing and Urban Development (HUD) and the Environmental
Protection Agency (EPA) to ensure people receive information needed to
protect themselves from lead-based paint hazards. New Rule Most home buyers and renters must receive information on lead-based paint
and lead-based paint hazards when they buy or rent housing built before 1978.
Some housing, such as efficiency
apartments, dormitories, vacation rentals, adult housing and
foreclosure sales are not covered. Under the rules, sellers, landlords, and
their agents will be responsible for providing information to buyers or
renters before a sale or lease. Home buyers will have 10 days to conduct a lead-based
paint inspection or risk assessment at their own expense. The rule gives both
parties flexibility to negotiate key terms of the evaluation. The new rule does not require
any testing or removal of lead-based paint by sellers or landlords and does
not invalidate leasing and sales contracts. Pamphlet Available For a copy of the Environmental Protection Agency pamphlet, Protect Your Family from Lead in Your Home, sample disclosure
forms, or the rule itself, call the National Lead Information Clearinghouse
(NLIC) at: 1 (800) 424-5323, or Time Residential Realtors at: 1 (888)
714-6768. Homepage |
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