Realtor Wants the Best for Clients Without Liability
Question: Disclosure of property defects is an essential part of my business. As a professional Realtor, I don’t want to be liable for problems that surface after the close of escrow. To protect my clients and myself, I always choose the most thorough home inspector available. Now agents are being warned not to recommend any particular inspector, but to give a list of inspectors to the buyers and to let them choose. The problem with this approach is that my clients may choose an inspector with less experience. If the inspector misses a problem, I could have liability problems later. How do you advise dealing with this problem?
Answer: Liability concerns have become a dominant force in nearly every field of business, and exposure runs high for those in real estate sales. Even when an agent sets a high priority on full disclosure, along comes another liability anxiety to complicate the picture.
How can you ensure the choice of a qualified home inspector without influencing the decision-making process yourself? One practical solution is to provide a complete profile of each available inspector and to let the inspectors themselves dispense that information.
To initiate this process, you can request a resume or flier from each inspector, explaining that the information should be their best effort to sell themselves and their qualifications. Assemble these fliers into packets, and give a set to any client. Explain that after reading and comparing the information, they should call each of the finalists before making a decision.
Home buyers have every reason to choose the most detailed and experienced home inspectors. By equipping them with the right information, material that has been prepared by the inspectors themselves, you can ensure the best liability protection without directly influencing the buyer’s choice.
Repair of Dry-Rot Best Left to Experts
Q: Before selling my home, I hired a termite inspector, as advised by my agent. No termites were found, but the inspector did discover some dry-rot on the eaves. His estimated cost for repairs seemed high, so I hired a carpenter at about half the price. That seemed to be the end of the matter until a home inspector found that not all the rotted wood had been removed. Now I’ve got to pay to have the work redone. Is there any way to beat the high price for these kinds of repairs?
A: People often complain about repair estimates quoted by termite companies, and in some cases such protests may be justified. What people seldom realize, however, is that licensed pest control operators (the grand, euphemistic title for termite inspectors) offer a level of knowledge and expertise not possessed by carpenters and general contractors on the causes, effects and subtle characteristics of wood-destroying organisms. Because the intricacies of this field are not commonly understood, unqualified craftsmen are often hired to correct dry-rot problems. Frequently, the outcome is disappointing.
The condition commonly known as dry-rot is actually damage caused by fungus infection (athlete’s foot of the wood), wherein the fibrous structure of wood is digested by microorganisms. Mere replacement of visibly damaged wood may not constitute adequate repair. The slightest infection on adjacent wood pieces inevitably will spread, infecting attached portions of the structure. If residual infection, left behind by a well-intentioned carpenter, is concealed within hidden recesses of the eaves, ongoing destruction of the wood might not become apparent for many years. By that time, damage could be extensive, and repairs quite costly.
To guard against continued infestation, all repairs, if not performed by the pest control company, should at least be reviewed and approved by them to ensure that all infested wood components have either been removed or chemically treated.
Code Intent Is Clear on Water Heater Overflow
Q: We just purchased a brand new home and had it professionally inspected, just to play it safe. One of the problems listed in the home inspector’s report involves the water heater. The report recommended that the overflow pipe be extended to the outside of the building, rather than into the garage. When we checked with the building department, the local inspector told us that the water heater is correctly installed and that the overflow pipe complies with the intent of the building code. With two conflicting opinions, how do we decide who is right?
A: Building codes are often the subject of interpretation, controversy and debate among professional inspectors. In some cases, codes are written in ambiguous terms, making compliance difficult or downright impossible. In this case, however, the code verbiage is clear and concise, leaving little room for uncertainty or divergent opinions.
According to the Uniform Plumbing Code, a water heater shall be equipped with a pressure temperature relief valve. The purpose of this valve is to prevent the water heater from exploding in the event of an overheated tank. It is further required that the relief valve be connected to an overflow pipe, to direct escaping steam and hot water to a safe location where bystanders are not likely to be scalded.
In 1988, a new provision was added to this code, requiring the overflow pipe to be terminated at the exterior of the building. Prior to this code change, it was permissible for an overflow pipe to terminate at the interior of a garage or dwelling. The purpose for altering this regulation was to prevent water damage to the interior of the building and to personal property.
When disagreements arise regarding interpretations of various building codes, a reliable rule of thumb is to ask, “What is the intent of the code?” When we consider the intended purpose, it is often quite simple to render a reasonable interpretation.
In this case, the intent is to prevent interior water damage. If a building inspector contends that an interior overflow pipe is in keeping with that intent, common sense would suggest that he reconsider that position.
Accordingly, the overflow pipe should terminate at the exterior of the building.
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If you have questions or comments, contact Barry Stone through his Web site at https://www.housedetective.com. Distributed by Access Media Group.
