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Inspector's Viewpoint
"Your Source For Independent Inspection Information"

Winter 2000 - By Dennis R. Robitaille, President Able Home Inspection, Inc.
Mailing Address PMB 155 - 643 Bway Saugus, MA 01906 - Phone 781-231-0236

Homeowners Sued For Accident:

A potential house buyer in Lynn, MA is suing the seller of a property for damages after falling off a step and fracturing her hip.

Kathleen McDermott, 26 Bow Ridge Road, Lynn, filed the personal injury court action this month (Nov 99) in Salem Superior Civil Court, accusing Richard and Carol DeRoche, of being negligent and careless in maintaining their property.

While McDermott was at 26 bow Ridge Road inspecting the home as a potential buyer, she fell off a step and onto the back deck of the property. The lawsuit accuses the property owners of failing to keep their property in a "reasonably safe condition" for use of patrons and failing to warn them of dangers that they might encounter while on the property.

As a result of the accident, McDermott fractured her left hip, requiring three surgeries, the suit says. She asks actual money damages currently in the amount of $77,000, according to court papers. The two count lawsuit also seeks monetary damages for suffering and future expenses she will incur for medical expenses.

Consumers Paying For Fraudulent Mortgages:

Almost a third of all mortgage loans are approved because of false information. Up to 20 percent of loans wouldn't be made if lenders knew all the facts, according to mortgage expert Richard D. Ward, and consumers are picking up the tab.

Ward, a former police officer who now works as president of Los Angeles based Affinity Corp. said that the money lost to fraud shows up in higher prices. "Consumers are paying for this through higher loan costs, higher lending fees and higher interest rates," Ward told the Mortgage Bankers Association convention this past Fall.

FBI statistics show that $1.7 trillion in residential mortgage loans or refinancing packages were issued in 1998. About $60 billion of that was fraudulent, said Roger A. Jackson, Affinity's chief financial officer.

One of the most common forms of fraud is "property flipping," in which a property is bought and then resold - or "flipped" - several times, each time at a falsely inflated higher price, among a single group of people.

The property is then sold to an unsuspecting mortgage company that, seeing the previous purchase and sales price, pays more for the property than its market value.

When the company tries to resell the property, it loses tens of thousands of dollars. Often, the property sellers can't be tracked down because they've left town.

New Regulations Increase Lead Paint Removal Options:

Up until now, removing lead paint has been very expensive for Massachusetts' homeowners, however, cost savings are on the way for 2000. Current regulations require that all measures designed to eliminate a lead paint hazard other than low risk deleading methods be performed by a licensed de-leader.

New state regulations will allow properly trained home owners to do a lot more work themselves, saving money and in many cases eliminating the need to hire a deleading firm. The regulations take effect Dec. 31, 1999.

The new regulations create a new category of moderate risk deleading methods, which trained homeowners and renovators will be able to perform. Moderate risk includes the removal of windows and woodwork found to have a lead paint hazard, as well as making intact, or repairing limited areas of deteriorated lead paint.

State health officials estimate as many as 80% of properties with a lead paint hazard can be brought into compliance with the new state's lead law using just low and moderate risk abatement measures. The new regulations will also make it easier for homeowners to use encapulants.

To take advantage of the new rules, homeowners and renovators must enroll in a day long course designed to teach them how to protect themselves and occupants from the dangers of lead dust. For more info check out the following links:

Update On Massachusetts Home Inspector Licensing Legislation:

HOME INSPECTION PROFESSIONAL LICENSING ACT PASSES.

BOSTON, MA -
State Senator Cheryl Jacques (D-Needham) and State Representative Kevin Honan (D-Boston) announced on 11/17/99 that the Legislature has enacted legislation they sponsored to provide consumer protection in the home inspection industry.

The bill stems from a report issued last year by the Senate Post Audit and Oversight Committee entitled, "A Crack in the Foundation: Unlicensed Home Inspectors in Massachusetts." The report found that anyone could call themselves a home inspector and begin practicing without any formal training or qualifications.

Moreover, the report found that home inspectors are not required to carry insurance to protect consumers who are victims of a faulty home inspection. Finally, there are no laws to prevent a real estate broker from recommending a particular home inspector, creating a potential conflict of interest. To address these concerns, the bill contains four essential components:

* Creates a board of registration for home inspectors to establish standards for the industry and administer a licensing system.
* Requires home inspectors to carry at least $250,000 in errors and omissions insurance to protect their clients.
* Prohibits direct referrals by real estate brokers to guard against conflicts of interest.
* Mandates a public education campaign regarding the home inspection industry.

"I was amazed to learn that anyone can call themselves a home inspector without any minimum level of training or expertise," said Jacques. "Buying a home is one of the largest financial decisions a person will ever make. It's devastating to put down your life savings on what you believe is a sound home and then discover, after it is too late, that the house was inaccurately or inadequately inspected.

This bill will help protect unsuspecting home buyers from putting their life savings into a 'money pit.' I am thrilled that both branches of the Legislature agreed that consumers deserve to be fully and adequately informed when making one of the biggest financial purchases of their lives."

"This is important legislation protecting consumers when purchasing a home in Massachusetts," said Honan, the Chief House Sponsor of the bill. "Currently there is nothing in the law to protect home buyers from inadequate inspections."

"I congratulate Senator Jacques and Representative Honan on the leadership they have taken on this issue," said Boston Mayor Thomas Menino. "Unexpected home repair costs can force new home buyers to take on high-interest debt and lead to bankruptcies and foreclosures. Licensing well trained and qualified home inspectors will provide much needed protection for home buyers who are making an investment in their neighborhood."

Senator Jacques initiated the Post Audit and Oversight Committee Investigation after hearing the stories of aggrieved home buyers who contacted her office to share their experiences with home inspectors and to advocate for consumer protections.

Elizabeth Tyson Smith detailed her experience of purchasing a home that sat in the dirt. The Smith's home inspection revealed no major problems with the home they eventually bought in suburban Boston. After purchasing the home, Mr. and Mrs. Smith discovered that the sills were decayed. The structural damage was so extensive that the entire house had to be demolished, and it will take months for the house to be rebuilt. The total estimated cost is about $200,000.

Deirdre Cummings, Consumer Protection Director for MASSPIRG, stated "For many consumers, buying a home is the single largest and most important transaction they will make for themselves and their family in a lifetime. The quality of a home inspection will affect the consumer's pocketbook and the quality of their day-to-day life for a long time. The Home Inspection Professional Licensing Act is a critical step forward in protecting the consumer from unscrupulous, substandard, and/or reckless home inspectors."

The Bill was signed by the Governor on 11/24/99. The Bill is due to be enacted in May 2001.

The entire Bill can be viewed at:

Home Inspector Licensing Law

PRODUCT RECALLS:

In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Fluke Corp., of Everett, Wash., is voluntarily recalling about 58,000 model T-2 hand-held electrical voltage and continuity testers. The batteries in the tester could fail to maintain proper contact due to corrosion within the battery compartment, causing the device to lose power. Consumers testing electrical sources could fail to be warned of the presence of live current if the tester is not powered, posing a risk of shock, electrocution, and thermal burns. For more info, a description and picture of the tester, click on the following link:

U.S. Consumer Product Safety Commission (CPSC) Electrical Tester Recall

CPSC, Holmes Products Corp. Announce Recall of Portable Heaters In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Holmes Products Corp., of Milford, Mass., is recalling about 45,000 heaters. The thermostats in some of these heaters are improperly positioned, which can cause them to overheat, posing a fire hazard. For more info, a description and picture of the heater, click on the following link:

U.S. Consumer Product Safety Commission (CPSC) Recall of Portable Heaters

CPSC, York International Corp. Announce Recall of York International Corporation Diamond 80 Furnaces. In cooperation with the U.S. Consumer Product Safety Commission (CPSC), York International Corp., of York, Pa., is recalling about 21,000 York International Corporation Diamond 80 downflow mid-efficiency furnaces with model numbers starting with P2DP, PBKD, and XED02. The insulation surrounding the heat exchanger can separate from the cabinet wall of the furnace, because of inadequate gluing, and fall onto the heat exchanger. This could cause surrounding combustible material and drywall to catch on fire, which has the potential to cause burn injuries and deaths. For more info, a description and picture of the furnace, click on the following link:

U.S. Consumer Product Safety Commission (CPSC) Furnace Recall

Lighthearted Inspector Stuff:

Question: What Do You Call An Inspector Who Wears A 3 Piece Suit & Tie?

Answer: A Defendant.

Ask The Inspector:

"I had a home inspection done last year on the home I now own. The inspector did find termite damage but verbally stated it wasn't a big deal. I recently decided to repair the damage, but the contractor I hired claimed the damage was very extensive and brought in a structural engineer. The cost of repairs and replacements specified by the engineer ran over $25,000. Do I have any recourse to recover money from the inspector?"

First, let me state I am not an attorney, so I can not give out legal advice. I will, however, comment on the situation. Having been involved in numerous expert witness cases, I have seen different (unscrupulous) tactics used by certain home inspectors, including the type of situation you have described.

The situation you have experienced is not uncommon. The inspector has probably covered himself (legally) by stating in the report that there was termite damage. If in fact this inspector knew (or suspected) the damage was extensive, then he did a disservice to you for not fully informing you or at least advising you to have the situation further investigated prior to your purchase.

Since you did purchase the home, the inspector's (adverse) findings apparently were not stressed enough to either give you leverage for renegotiating or to scare you off from buying the home. I refer to this tactic as "toning down". This means the inspector covers or protects himself by writing up the problem situation in the report, but verbally talks down the situation to make you feel better about the home.

The most likely reason for this "toning down" is when an inspector relies upon real estate agents for client leads. If the inspector " scares" off the prospective home buyer, the inspector might jeopardize receiving future client leads from the agent.

Although it's too late in your case, there are two things a prospective buyer should do when a home inspector uncovers a problem situation. One, make sure the inspector explains the situation to you in writing and gives you reasons why he thinks the situation is a minor or major one. Two, consult with the appropriate tradesperson or specialist to get their idea of the possible consequences of the problem situations uncovered. This holds true whether it's an electrical, plumbing, heating, roofing, structural, or any other component or system.

Remember, further investigation will only benefit you if it is done before finalizing your transaction to purchase the home.

Thought For The Quarter:

The next time you are speeding down the highway in your car,
remember there are thousands of parts in your car,
and each one was supplied by the low bidder!

War Story
(When home inspectors get together they often talk about the unusual situations they have encountered,
these are known as "war stories".)

Clients often ask me, "what's the worst home you've ever inspected?"

The answer is that there hasn't been any one "worst" home. That's because there have been a number of really "bad" homes, each with their own "worst" situation. Some were ready to burn down because of hazardous electrical conditions, some had water leaking all over the place due to freeze damaged plumbing, some had serious health hazards because of asbestos contamination or carbon monoxide leakage.

The worst structural situation I've ever encountered was with a home I inspected a few years ago for a client buying a home in a Boston suburb. It was a 90 year old 2 story colonial. The basement had a dirt floor. Termite damage with active termites was found at most of the wood structural members, including the sills, floor joists, and beams .

I was amazed at the amount of termite damage and infestation that had taken place. I told my client that this was one of the worst termite damaged homes I had looked at. Based on what I found in the basement I suspected the damage and infestation extended up into the wood structure above the basement. (I was thinking to myself that this might be one of those rare homes that could actually collapse from termite damage.)

Going through the living areas of the house it was obvious that the wood structure had shifted over the years. The interior door frames were out of square and some of the doors could not be fully closed. There were numerous cracks in the walls and the floors sloped downward towards the center of the house. I expressed my concern to the prospective buyer and he calmly stated he wasn't too concerned about the problem. I thought maybe he didn't really comprehend what I was showing him. My client was a first time homebuyer and very excited about the prospect of owning his own home.

Although I have found serious termite damage in the past at other homes I've inspected, I was not quite expecting what I found in the attic. Termite shelter tubes were hanging from some of the roof rafters. When I put my screwdriver through one of the rafters, my client finally realized his plans for buying and living in this home were not going to materialize.

Product Warning:

On Children's Alphabet Blocks:

WARNING: Letters may be used to construct words, phrases or sentences that may be deemed offensive.

Send your home questions, news / legal articles or lighthearted quips to:

Dennis Robitaille

Newsletter Archives - From Winter 1999

Attorney
Reference 		Past Client
Comments 		Special
Investigations 		About The Inspector Inspection & Fees
Expert Witness Asbestos Carbon Monoxide Radon Gas

Truth About Real Estate Agent
Referred Home Inspectors 		Do You Need An Engineer
Or A Home Inspector?		 Difference Between Appraisals
And Home Inspections
Questions To Ask A
Prospective Home Inspector 		Top Of Page Able Home Inspection, Inc.
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