Level 12
What General Inspectors DO NOT Do
They can't detect all the flaws in the heating, ventilation, and air conditioning (HVAC) systems. Can't detect leaks if a house has been vacant for a while
PCBs may be present in products produced before the 1979 ban, including:
Transformers and capacitors Electrical equipment Oil used in motors and hydraulic systems Electrical devices or appliances Cable and thermal insulation Adhesives Oil-based paint Caulking Plastics Floor finish
Lead-Based Paints
Used in the US prior to 1978 Elevated levels of lead in the bloodstream can cause serious damage to the brain, kidneys, nervous system, and red blood cells Can cause intelligence and behavioral problems in children under 6 years old Can cause abnormal fetal development in pregnant women Approx 64 million dwellings still contain lead-based paint- when properly maintained and managed, this paint poses little risk
UST Hazards
When USTs become old and rust, they're prone to leakage. The toxic substances within the tanks leak into the surrounding groundwater, contaminating drinking water and polluting the soil. If you don't have a UST, but your neighbor does, a leakage on their property can affect your property too. Can cause fires and explosions
Chlordane
a chemical compound formerly used in pesticides in the United States from 1948 to 1988. can cause gastrointestinal distress and neurological symptoms, such as tremors and convulsions. Long-term inhalation results in effects on the nervous system. Banned by the EPA in 1988
Urea-formaldehyde foam insulation (UFFI)
a human-made insulation material that becomes dangerous because of gases released from the material after it hardens. contains formaldehyde banned in the 1980s for use in residences and schools
Clean Air Act
addresses the proper disposal procedures for older appliances containing chlorofluorocarbons stipulates that only certified professionals can maintain and repair damaged equipment.
Radon CANNOT enter a home through
broken weather seals on doors and windows
Waste Disposal Sites / Landfills
designed to receive specific kinds of waste, including municipal solid waste, construction and demolition debris, and hazardous waste must be designed to protect the environment from contaminants
Exposure to Asbestos
exposure may occur only when the material is disturbed or damaged in some way to release particles into the air.
Patent Defects
facts that are easily discoverable upon inspection. Do NOT need to be disclosed by the seller or listing agent
If the asbestos-containing material is damaged or could be disturbed, there are two types of actions that can be taken by asbestos professionals:
repair and removal repair is often the favored solution because the asbestos remains in place
Health Effects from Exposure to Radon
#1 cause of lung cancer among non-smokers nearly 1 out of every 15 homes in the United States is estimated to have an elevated radon level.
Buyer's Agent Responsibilities
- Advise buyers that sellers have a duty to provide a completed SPDS - Assure that the completed statement or the statement marked "refused" was delivered to the buyer prior to the execution of an agreement of sale
Listing Agent Responsibilities
- Advise sellers to disclose material defects by completing SPDS - Provide sellers with a disclosure form that meets or exceeds Pennsylvania's requirements - Deliver the completed statement to the buyer or their agent prior to the execution of an agreement of sale
Houses built to be radon resistant will typically include:
- Gas-permeable layer - Plastic sheeting - Sealing and caulking - Vent pipe
Lead Contamination
- in paint - in soil - in water
If SBS is suspected,
A building investigation will need to take place, with the goal to identify and solve indoor air quality complaints in a way that prevents them from recurring.
Polychlorinated Biphenyls (PCBs)
A group of human-made organic chemicals that were used in hundreds of industrial and commercial applications prior to being banned in 1979.
Asbestos
A naturally occurring mineral fiber that is commonly used in insulation. If airborne or inhaled, asbestos can cause severe respiratory health issues, including lung disease.
Limitations of the SPDS
A seller cannot be expected to disclose conditions of which they are unaware. the buyer should know that the seller's disclosure statement is NOT a warranty of any kind, and is not a substitute for any inspections or warranties the buyer may wish to obtain
Enclosure
AKA covering involves placing something over or around the material that contains asbestos to prevent release of fibers. Exposed insulated piping may be covered with a protective wrap or jacket.
Sick Building Syndrome (SBS)
Building occupants experience acute discomfort that appears to be linked to time spent in a building, but no specific illness or cause can be identified.
Seller Robby tells his listing agent Colleen that there are no foundation issues on the property, but Colleen spots a visible crack in the foundation. What should Colleen do next?
Colleen should point out the foundation crack to Robby and ask him about it. She should also remind him of his obligation to disclose this to buyers.
Radon gas can enter a house through:
Cracks in solid foundation floors or slabs Construction joints (between floors and walls) Cracks in walls (especially concrete walls) Mortar joints Gaps around service pipes Drainage system (with interior, exposed sump) Exposed dirt in sump pump area Gap between exterior brick or siding and top of foundation wall Open top of concrete blocks in foundation wall Some building materials Water supply (well system)
Repair usually involves either sealing or covering asbestos material in these two processes:
Encapsulation and Enclosure
Other Zoning Concerns:
Encroachments Easements Zoning violations Nonconforming uses
Health Risks of Formaldehyde
Known to cause cancer in animals Causes respiratory problems, eye and skin irritations in humans SPDS states that the seller MUST disclose whether they are aware of any UFFI in the property
Most common examples of material facts:
Land and soil conditions Accuracy of lot or improvement size, encroachments, or easements affecting use Structural issues Condition of major systems and equipment Known alterations or additions Environmental hazards
Red Flags 🚩
Old plumbing Sewer problems Worn roofing Old electrical wiring Pest damage Foundation issues
Agent's Responsibility to the Buyer
Once a buyer is seriously interested in a property and planning to put in an offer, their agent should make sure to get them a copy of the Seller Property Disclosure Statement to review. The buyer should receive this disclosure before or at the time of putting in an offer.
Indoor air quality (IAQ)
Refers to the air quality within and around buildings, especially as it relates to the health and comfort of building occupants.
Common causes of SBS
Sick building syndrome can be caused by inadequate ventilation, chemical contaminants (pollutants from motor vehicle exhausts, plumbing vents, and building exhausts), biological contaminants (bacteria, molds, pollen, and viruses), or some combination of these factors.
PCBs in drinking water
Since the EPA considers PCBs a probable human carcinogen, it restricts PCBs in water supplies to 0.5 parts per billion.
Health effects of mold
Some people are sensitive to mold and can experience nasal stuffiness, eye irritation, wheezing, or skin irritation. Severe reactions generally occur only among persons with impaired immune systems or chronic lung illnesses, and workers exposed to large amount of molds in occupational settings.
If a buyer finds problems during an inspection...
The buyer can send a request to ask the seller for the repairs.
Condition of Major Systems
The condition of major systems (electrical, plumbing, and HVAC), equipment, and appliances that are fixtures are material facts. Buyers tend to expect the major systems to, ya know, work.
Environmental Hazards
The homeowner has a duty to disclose any known environmental hazards on their property. This can include things like lead, asbestos, mold, radon, carbon monoxide, etc.
Agent's Responsibility to the Seller
The listing agent should give the seller a Seller Property Disclosure Statement to fill out at the initial listing appointment. It's an ideal time for the agent to learn more about the property and for the seller to ask questions about what must be disclosed. The form must be signed and witnessed.
Size, Encroachments, and Easements
The seller is responsible for making claims about the size of the lot or improvements on the lot, encroachments, or easements affecting its use
Re-painting over lead-based paints
The seller is still required to present the buyer with the lead-based paint disclosures required in Title X Unless the building was bulldozed and replaced with new construction
Liability of the Agent
The seller's agent will not be liable for any violation of the Real Estate Seller Disclosure Law by the seller UNLESS the agent knowingly acts with or otherwise aids the seller in committing the violation.
Requirements of The Residential Lead-Based Paint Hazard Reduction Act
1. Disclose any known information concerning lead-based paint or lead-based paint hazards 2. Provide any records and reports on lead-based paint and/or lead-based paint hazards which are available to the seller or landlord. 3. Include an attachment to the contract or lease of a warning statement 4. Give the buyer or tenant an EPA-approved information pamphlet entitled "Protect Your Family from Lead in Your Home" 5. Sellers must provide homebuyers a 10-day period to conduct a paint inspection or risk assessment for lead-based paint or lead-based paint hazards. Homeowners may waive this opportunity.
Exceptions to the requirement that residential sellers must fill out a SPDS:
A seller may be off the hook IF - The home is new construction, and no one has ever occupied it. - The owner dies and the transfer of property is made by a fiduciary in the court. only applies if the administrator has no knowledge of any material defect
Encapsulation
AKA sealing involves treating the material with a sealant that either binds the asbestos fibers together or coats the material so fibers are not released. Pipe, furnace, and boiler insulation can sometimes be repaired this way.
Symptoms of SBS
Acute discomfort, such as headaches; eye, nose, or throat irritation; cough; dry or itchy skin; dizziness and nausea; difficulty concentrating; fatigue; etc. The cause of the symptoms is not known, most people report relief soon after leaving the building
Chlorofluorocarbons (CFCs) aka Freon
Chemical compounds containing chlorine, fluorine and carbon atoms that were once used in refrigerator coolant, air conditioners, and dehumidifiers VERY harmful to the ozone layer - banned in the 1970s and replaced with hydrofluorocarbons
Land and Soil Conditions
For most residential sales transactions, licensees should be able to identify if there are signs of flooding and erosion on a property
Federal Regulations for USTs
Heavily regulated by the EPA, which estimates approx 40% of tanks are leaking. Regulations are designed to reduce the chance of releases from USTs, detect leaks when they occur, and secure prompt cleanup. UST owners and operators are responsible for reporting and cleaning up any releases
Health effects from exposure of meth
Home meth manufacturing produces toxic gases that can seep into the walls, floorboards, carpet, and vents - causing respiratory problems, migraines, skin and eye irritation, and even cancer children are more vulnerable than adults
Radon Testing
Homes in an area known to have radon issues should be tested every two years. You can purchase a home radon testing kit or hire a qualified radon tester. In any case, the radon test will need to be sent to a laboratory for results. You can also purchase and install continuous electronic radon monitors, which measure and record the amount of radon or its decay products in the air.
Groundwater Contamination causes
Human-made: underground storage tanks, septic tanks, toxic chemical spills on the ground's surface, pesticides, herbicides, and waste disposal sites Natural sources: radon gas, arsenic and lead
Symptoms of IAQ
Immediate, Short term effects: irritation of the eyes, nose, and throat; headaches; dizziness; and fatigue. Long-term effects: include some respiratory diseases, heart disease, and cancer, can be severely debilitating or fatal.
What If the Buyer Doesn't Want an Inspection?
In the event that a buyer chooses NOT to have a property inspected, the licensee should secure a signed, written statement from the prospective buyer stating that they made this choice despite the licensee's recommendation that the property be inspected.
Treatments of IAQ
It helps to pay attention to the time and place symptoms occur. Sometimes treatment is simply eliminating the person's exposure to the source of the pollution.
Real Estate Seller Disclosure Law
Law in Pennsylvania that governs what sellers must disclose to prospective buyers regarding their property: applies to all sellers of residential property (not commercial), whether they are individuals, partnerships, trustees, corporations, or anything in between. The seller must disclose all known material facts about the property that could reasonably influence a buyer's decision to buy. most often achieved via the seller filling out a standardized Seller Property Disclosure Statement
Structural Issues
Licensees will also be expected to conduct visual inspections of structural components such as: - Roofs - Gutters - Downspouts - Doors - Windows - Foundations
Alterations or Additions
Listing agents should ask the seller if there are any alterations or additions on the property i.e. garage or guest house This is especially important if they were constructed without the appropriate permits. The buyer could end up inheriting a problem with the local zoning authorities.
Seller Property Disclosure Statement (SPDS)
Multi-page document that asks the seller about issues affecting the property, including: - Mechanical - Environmental - Structural - Related to title
Radon in New Construction
Newer homes are built with the goal of being airtight, increasing the severity of exposure for the inhabitants
The general inspector is typically expected to:
Operate fixed or installed equipment and appliances Visually inspect accessible systems and components Complete a standard inspection report
Pests and the Real Estate Professional
Pest infestations and damage will need to be disclosed in a real estate transaction. Advise your seller clients on how to proceed when an insect problem is suspected or discovered.
4 Phases of Environmental Assessments
Phase I: Investigation Phase II: Testing Phase III: Remediation Phase IV: Management
Today, PCBs can still be released into the environment from:
Poorly maintained hazardous waste sites Illegal or improper dumping Leaks or releases from electrical transformers Improper disposal of consumer products Burning wastes in incinerators PCBs do NOT readily break down once in the environment- they can remain for long periods of time cycling between air, water, and soil
Zoning and Planning
Regulate, designate, and restrict the location and use of buildings, structures, and land to ensure that residential, commercial, agricultural, industrial, special purpose, and recreation areas are protected from harmful encroachment by incompatible uses. it's your duty as a licensee to disclose any known zoning and planning information about the property.
Lead-Based Paint Disclosures
Residential Lead-Based Paint Hazard Reduction Act (Title X) - protects people from exposure to lead Directed HUD and EPA to require the disclosure of known information on lead-based paint and hazards before the sale or lease of homes built before 1978. the buyer has up to 10 days after the disclosure to choose to conduct a lead inspection
Inspection Contingencies
Sales contracts will typically contain contingencies that allow the buyer to arrange for these inspections, as well as stipulate the date on which those contingencies would expire. Once these inspection reports are produced in a manner satisfactory to the buyer, the transaction can proceed.
Bedbugs 🛏🐞
Some signs of bedbug infestation include rusty or reddish stains on bed sheets or mattresses caused by bedbugs being crushed, or dark spots Bites from bedbugs are not poisonous, but they do cause skin irritation.
Health effects of EMFs
The electromagnetic fields produced by power lines are suspected of causing cancer, hormonal changes, and behavioral abnormalities in humans. Significant controversy concerning these claims- scientists have not proved if it causes cancer or not
After the inspection, the buyer has to determine:
What needs to be repaired, and who will do it? What things should be credited, and how much should the credits be? What issues can be ignored? What issues are deal breakers?
Disclosing Environmental Hazards
With Seller Clients: As a real estate agent, it's your responsibility to disclose hazards for which the seller is aware, but has failed to disclose or is attempting to conceal With Buyer Clients: Advise them of the possible environmental hazards surrounding a property
formaldehyde
a chemical that can also be found in building materials, glues, permanent press fabrics, paints and coatings, paper products, fertilizers, pesticides, and even in preservatives in medicines and cosmetics.
Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards.
a form that ensures compliance with Title X
General Inspector
a generalist looking for areas of concern. NOT concerned with the age, quality, or expected life span of items. They are simply stating whether that item is functioning properly at the time of inspection. concerned with determining the utility of systems, equipment, appliances, and structural elements
Lead
a naturally occurring mineral that has been used in paint to protect wood from damage by water; it also has been used in the manufacturing and installation of water pipes. becomes a health hazard when ingested or inhaled
Methamphetamine
a popular drug for people to manufacture in their own homes, because of how easy the ingredients are to obtain. can cause chemical explosions resulting in property damage or death toxic environments unsuitable for humans to inhabit
Environmental Assessment (aka environmental site assessment)
a report prepared for a real estate holding that identifies potential or existing environmental contamination liabilities.
Seller's Duty to Disclose
a seller has the duty to attempt to discover any such latent defects in order to share them with prospective buyers licensees have a should have known disclosure standard to live up to based on the expertise and experience they are assumed to have.
Mold
a type of fungus found in damp building materials that can release toxins into the environment.
Due Diligence Property Inspections
a walk-through inspection that you can perform in order to discover material facts about the property.
Carbon Monoxide (CO)
an odorless, colorless gas that occurs as a by-product due to incomplete combustion when burning such fuels as wood, oil, and natural gas. Improper ventilation or equipment malfunction may result in carbon monoxide poisoning or even death
Radon Gas
an odorless, radioactive gas produced by the decay of other radioactive materials in rocks under the surface of the earth enters in places where air is able to penetrate through a home from the ground in some way.
Latent Defects
any structural defects that cannot be detected by ordinary inspection. The seller and the listing agent have a duty to disclose
Carpenter Ants 🔨🐜
chew through wood, leaving behind a trail of sawdust - a telltale sign that you've got carpenter ants and not termites.
Groundwater Contamination
contamination of not only the runoff at ground level, but also the underground water systems that are sources for public water supplies and private wells.
Utility
he measure of the degree to which something performs a desired function.
Carbon Monoxide Poisoning Symptoms
headache, dizziness, weakness, upset stomach, vomiting, chest pain, and confusion "flu-like" people who are sleeping or drunk can die from CO poisoning before they have symptoms
Electromagnetic Fields (EMFs)
invisible fields of energy produced by electricity generated by the movement of electrical current through electrical appliances that are plugged in and turned on. properties located in close proximity to power lines have become stigmatized. 😕due to their high voltage
Asbestos is a friable material, meaning that
it crumbles easily or becomes powdery when touched. dangerous for humans when inhaled
Housing and Urban Development (HUD) Form
outlines what the buyer can expect from a professional home inspection
Underground Storage Tanks (USTs)
tanks located in the ground underneath properties that store chemicals, fuels, toxic wastes, and other potentially harmful substances ex: a UST that stores oil for furnaces & one that is placed beneath gas stations and contain gasoline
When it comes to lead-based paint, sellers are NOT legally required to
test for lead or make any repairs on the lead hazards.
Who is responsible for filling out the property disclosure statement?
the SELLER, NOT the seller's agent This is to ensure that the disclosures being made in writing are done by the seller, thus protecting you as a licensee.
Final Walk-Through
the buyer can also confirm that no damage has occurred since the offer was made and that none of the fixtures have been removed or altered.
Environmental Hazards: Limiting Risk With Due Diligence
the buyer is ultimately responsible for identifying environmental hazards on the property, however buyers and lenders may conduct due diligence prior to the transaction due diligence can include an environmental assessment
If a seller refuses to repair defects discovered during the inspection and the buyer terminates the contract, the seller must be aware that
the disclosure statement will need to be updated with the new information for any future buyers.
Radon Mitigation
the process of reducing or removing radon from a building must be performed according to standards set forth by the EPA, as well as by state and local authorities.
The material facts you uncover in your due diligence property inspection are
things that you, as a licensee, reasonably should have known about. This is especially important because when it comes to liability as an agent, you can be held liable for failing to disclose material facts or defects that you should have been aware of.
Termites
tiny insects that eat your house - specifically the wooden parts. travel in large numbers
The Purpose of Home Inspections
to locate any physical faults that may affect the safety or value of a home the buyer typically pays for inspections, though negotiable A seller's disclosure statement does NOT serve as a substitute for a proper home inspection.