Understanding the Home Inspection Process

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Understanding the Home Inspection Process
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California Association of Realtors Residential
Purchase Agreement

• Paragraph 7 Conditions Affecting Property
• C. NOTE TO BUYER You are strongly advised to
  conduct investigations of the entire Property in
  order to determine its present condition since
  Seller may not be aware of all defects affecting
  the Property or other factors that you consider
  important. Property improvements may not be built
  according to code, in compliance with current
  law, or have permits issued.

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US Department of Housing and Urban Development
(HUD)

• For Your Protection Get a Home Inspection
• A home inspection gives the buyer more detailed
  information about the overall condition of the
  home prior to purchase. In a home inspection, a
  qualified inspector takes an in-depth, unbiased
  look at your potential new home to

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US Department of Housing and Urban Development
(HUD)

• For Your Protection Get a Home Inspection
• Evaluate the physical condition structure,
  construction, and mechanical systems
• Identify items that need to be repaired or
  replaced
• Estimate the remaining useful life of the major
  systems, equipment, structure, and finishes

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What is a Home Inspection?

• CA BP Code 7195 (a) reads
• "Home inspection" is a noninvasive, physical
  examination, performed for a fee in connection
  with a transfer, as defined in subdivision (e),
  of real property, of the mechanical, electrical,
  or plumbing systems or the structural and
  essential components of a residential dwelling of
  one to four units designed to identify material
  defects in those systems, structures and
  components.

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Home Inspection - Like a Physical Check-Up

• If problems or symptoms are discovered, the
  Inspector may recommend
• Repair
• Replacement
• Further evaluation by a Specialist
• A Home Inspector is a generalist

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Home Inspector - Like a General Practitioner

• There may be differences in
• Training
• Knowledge
• Experience
• Professionalism
• Customer Service

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California Licensing

• The State of California currently has NO license
  available for Home Inspectors
• Without such licensing, how do you choose a
  qualified inspector?

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The Home Inspector

• Important Questions to Ask
• How much experience does the Inspector have?
• Has the Inspector been formally trained?
• What professional memberships, designations, etc
  do they hold?
• Do they have references?

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Is your Home Inspector Insured?

• Errors Omissions
• Not required by law
• General Liability / Workers Comp
• Residential Purchase Agreement
• (C.A.R. Form RPA-CA, Revised 1/06)
• Paragraph 11. Buyer Indemnity and Seller
  Protection
• Buyer shall carry, or Buyer shall require anyone
  acting on Buyers behalf to carry, policies of
  liability, workers compensation and other
  applicable insurance, defending and protecting
  Seller from liability for any injuries to persons
  or property occurring during any Buyers
  Investigations

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CREIA

• California Real Estate Inspection Association
• Is a voluntary, non-profit public benefit
  organization
• Founded in 1976
• Chapters are located state-wide
• Largest state home inspection association in the
  U.S.
• Provides education, training and support services
  to its members and the real estate community
• Find a CREIA inspector
• www.creia.org

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CREIA Members

• Before any inspector is authorized to identify
  himself or herself as a CREIA Certified Inspector
  (CCI), they must pass a rigorous inspection
  knowledge exam and agree to abide by CREIAs
  Standards of Practice and Code of Ethics in their
  business conduct
• Exam has approximate 50 pass rate
• More stringent testing experience requirements
  for
• Master CREIA Inspector (MCI)
• CREIA New Construction Specialist (CNCS)

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CREIAs Educational Mission

• Is to expand the technical knowledge of its
  members through continuing education
• All members must complete as minimum of 30 hours
  of continuing education annually through
• Monthly meetings
• Seminars
• Conferences
• Mentoring programs

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Code of Ethics

• California law also contains provisions similar
  to those in the CREIA Code of Ethics, including
  prohibitions on
• Repairing properties on which an inspection was
  performed in the last 12 months
• Accepting kickbacks
• Payment of referral fees to agents

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Home Inspection Report

• CREIA Standards of Practice states
• A real estate inspection report provides written
  documentation of material defects discovered in
  the inspected buildings systems and components
  which, in the opinion of the inspector, are
  safety hazards, are not functioning properly, or
  appear to be at the ends of their service lives.
  The report may include the inspectors
  recommendations for correction or further
  evaluation.

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Home Inspection Report

• Narrative
• Checklist
• Combination
• Computer-generated or handwritten
• Hardcopy, email, or both

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Home Inspection Report

• Inspectors do not prescribe repairs. Corrections
  should be performed by a qualified licensed
  contractor or technician.
• Further evaluations and estimates for repairs
  should be completed during the inspection
  contingency.

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REO Short Sale Inspections

• Conditions of the house still exist regardless if
  the property is sold as is or without a request
  for repairs.
• You need to know the condition of your
  investment.
• An informed buyer is a good buyer.

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CREIA Standards of Practice

• Specific areas and systems to be inspected, and
  certain exclusions with each
• 1 - Foundation, Basement, and under-floor Areas
• 2 - Exterior
• 3 - Roof Covering
• 4 - Attic Areas and Roof Framing
• 5 - Plumbing
• 6 - Electrical
• 7 - Heating and Cooling
• 8 - Fireplaces and Chimneys
• 9 - Building Interior

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Foundation, Basement and under-floor Areas

• Improper Post (Column)

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Foundation, Basement and under-floor Areas

• Foundation Crack

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Foundation, Basement and under-floor Areas

• Cut Floor Joist

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Foundation, Basement and under-floor Areas

• Damaged Subfloor

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Exterior

• Stairways

Mail Box
Missing
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Exterior

• Wall Cladding

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Roof Covering

• Asphalt Shingles

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Roof Covering

• Wood Shake

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Roof Covering

• Vegetation

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Attic Areas and Roof Framing

• Sheathing

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Plumbing

• Water Supply Pipe

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Plumbing

• Improper Drain Trap

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Plumbing

• Drainage

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Water Heaters

• Disconnected Vents

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Electrical

• Grounding Electrode

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Electrical

• Overheated Panel

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Electrical

• Paint or Plaster in Panel

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Electrical

• Attic Light

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Heating and Cooling

• Heater Vent

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Heating and Cooling

• Ducts

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Heating and Cooling

• Electric Heater

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Fireplace and Chimney

• Older

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Fireplace and Chimney

• Cracked

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Building Interior

• Wall Cracks

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Building Interior

• Doors

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Building Interior

• Vehicle Door Opener

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Look for the Logo
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Questions?