Home Inspection Agreements With Echosign

In November of 2009, a home inspector in North Vancouver was ordered to pay nearly $200,000 after a faulty home inspection.   I read about all of the mistakes that were made at this inspection, and the most important piece that I came away with was that the judge decided that the home inspector didn't give his client enough time to read the home inspection agreement, because the inspector had the client fill out the inspection agreement on-site, at the time of the home inspection.  You can read more about the story here.

That's the same procedure that we've always followed, and as far as I know, that's what most home inspectors do.... but to be proactive about this issue, we've changed our procedure.  Starting in January of this year, we began having our clients read and sign their home inspection agreements well in advance of the home inspection, and it's worked out quite well.

We signed up with Echosign, which give us the ability to email our clients a link to our inspection agreement, with can be viewed and completed online.  I've come up with nine great reasons to send out inspection agreements ahead of time with Echosign:

• This reduces our liability.
• It saves us time during the home inspection.
• It gives our clients the opportunity to address any potential concerns with the inspection agreement well in advance of the inspection, rather than at the time of the inspection while everyone is already there.
• It's green - no paper needed.
• I can read my clients writing.  I used to get a lot of email addresses and phone numbers that I couldn't read.  That doesn't happen any more.  I know this is a small benefit, but I really do appreciate this.
• We include a link to our web site in the email, so if our clients want to learn more about our company or about other services we offer, they now have the opportunity to do this.  This is especially helpful for the times when a third party, such as a real estate agent, arranges the inspection.
• For clients that can't attend the inspection, this is way easier than emailing the agreement and having our clients fax it back or scan it and email it back after they fill it out and sign it.k
• We include the date and time of the inspection as well as the cost of the inspection in our email - this definitely helps to eliminate any confusion.
• Our tech-savvy customers love this service.  I've received a ton of positive feedback from them.

So why am I telling you about Echosign?  I think it's a cool service that most people don't know about.  If you have a need for electronic signature captures, check them out.  They even have several standard forms, such as I-9, W-4, and W-9.  There's a similar competing service called Docusign, but it costs about ten times as much, and the only benefit that they could provide was 'better customer service'... at least that's what they told me.

If you'd like to see how this works, you can view a sample home inspection agreement.


Reuben Saltzman, Structure Tech Home Inspections - Email - Minneapolis Home Inspections



    

"You Won't Find Anything Wrong With This House"

I'm sure we all have a few phrases that we hear on a regular basis that make us cringe.  Here are a few of mine (all of which I recently heard in one day).

Confident Real Estate Agent:  "You won't find anything wrong with this house."

If you brought your infant to the doctor for their one month checkup, would you confidently tell the pediatrician that they won't find anything wrong with your child?
If you took your dog to the vet for an annual checkup, would you confidently tell the veterinarian that they won't find anything wrong with your dog?
If you hired a heating contractor to come out for an annual furnace check-up, would you confidently tell them they won't find anything wrong with your furnace?
I just don't get it.

Homeowner: "Why didn't the other inspector find that?"

Of course, I always answer I don't know.
You'd think that this would be a rhetorical question, but most homeowners genuinely want me to answer this question.  Here are a a few answers that I always want to say, but never do:
You hired a lazy inspector.
You hired the cheapest inspector you could find.
Your real estate agent picked an inspector that wouldn't 'blow the deal'.

Same homeowner as above: "I thought the other inspector did a good job... I mean, they gave me a nice three-ring binder and everything."

If you go to a restaurant and you get a free toy with your meal, do you expect it to be a good meal?
If you go to a hair salon  and you get a free fanny pack with your haircut, do you expect it to be a great hair cut?
Some of the most confusing (and worst) home inspection reports that I've seen have been accompanied by colorful three-ring binders.  Here at Structure Tech, we stopped giving out three-ring binders about eight years ago.  That's when we started focusing more time and effort in to really writing our reports - not checking boxes.

Homeowner: "I had the gas company out, and they couldn't find any problems."

My suggestion is usually to hire a licensed contractor.  The gas company does not send out licensed contractors, and I'm no longer surprised when they don't identify very real gas leaks.  For more info on this topic, click any of the links below.

• Gas Leak Video
• Why Can't The Gas Company Find These Gas Leaks?
• Furnace Certifications Might Be Useless (don't call the gas company for this).

Reuben Saltzman, Structure Tech Home Inspections - Email - Minneapolis Home Inspections



    

Cheap Vacuum Breakers Don't Meet Code

Vacuum breakers (aka - backflow preventers) have always been one of those pesky Truth-In-Housing repairs for homeowners in Minneapolis and Bloomington, but those aren't the only cities where they're required.  They're actually a requirement of the Minnesota State Plumbing Code, section 4715.2100 (D).

Cheap Vacuum Breakers Don't Meet Code

Part of the requirement for a vacuum breaker says any new device must be field testable. The minimum standard for a vacuum breaker meeting this requirement is ASSE 1052.  Vacuum breakers that conform to this standard are about twice the size of the really cheap vacuum breakers that you'll find at most home improvement stores, and they cost about four times as much.


At left is a vacuum breaker conforming to ASSE 1052.  You can see that it's about twice the size of the cheap vacuum breakers that conform to ASSE 1011, shown at right.

Cheap Vacuum Breakers Are Still Allowed...

So why do you see the cheap vacuum breakers all over the place in Minneapolis and Bloomington, and why are they allowed for Truth-In-Housing evaluations?
Minneapolis and Bloomington allow these because they don't want to place too large of a burden on homeowners.  They want homeowners to be able to pick up a cheap vacuum breaker at the neighborhood hardware store for a couple bucks.  They figure it's better than nothing.

...But Not On New Construction

If you look at any new construction home or at any sillcock that has been recently installed with a plumbing permit, you'll find the larger vacuum breaker, or the sillock will have an integral vacuum breaker.  If the sillcock has an integral vacuum breaker, it doesn't need to be field testable.

The photo at left shows a standard sillcock with an integral vacuum breaker, and the photo at right shows a frost-free sillcock with an integral vacuum breaker.  Both of these sillcocks meet the minimum requirements of the Minnesota State Plumbing Code.

Why Just Minneapolis and Bloomington?

So why is it that only Minneapolis and Bloomington require vacuum breakers for their Truth-In-Sale of Housing programs?  I suspect there has been too much complaining from residents in other cities.  Even though this is the cheapest, easiest 'repair' item required in Minneapolis and Bloomington, I hear more complaints about this one item than anything else.

RELATED POST: Why Do I Need A Vacuum Breaker?

Reuben Saltzman, Structure Tech Home Inspections - Email - Bloomington Home Inspections



    

Four Common Water Heater Installation Defects

Gas water heaters are a lot like decks, in the sense that most handymen feel qualified to install one.  Thanks to these handymen, I find more installation defects on these two items than just about any other component in the home, and today I'm going to share my list of the most common gas water heater installation defects.

Improper Discharge Pipe

If the water heater were to malfunction and the burner just kept heating the tank, the water heater tank could would eventually rupture, turning the water heater in to a missile.  Mythbusters did a great re-creation of this - click hereto see quick video of it.

To prevent this from happening, a valve is installed on the water heater which is set to go off at 150 psi, or 210 degrees Fahrenheit.  This valve is called the temperature and pressure relief valve.  To prevent this valve from shooting scalding hot water or steam in to someone's face, the Minnesota State Plumbing Code (Section 4715.2210) requires a discharge pipe to be attached to this valve.  A few requirements for this pipe are as follows:

• Must be full sized.  This almost always means it must be a 3/4" pipe.  
• Must terminate within 18" of the floor (6" for the rest of the country - we're special here in Minnesota).
• Must not be threaded or capped at the end.  If it were threaded at the end and the valve started leaking, some dope might screw a cap on the end, thus disabling it.
• In some jurisdictions, such as Minneapolis, only metal is allowed.

This seems like a really easy thing to get right, but experience has told me that it definitely isn't.

Improper Gas Piping

The installation requirements for the gas piping that leads to water heaters is the same as that for just about any other gas appliance, but again, I find the most problems at water heaters.

• There must be an approved gas valve installed within three feet of the water heater.
• There must be a way to disconnect the gas piping to the water heater after the valve.  This could be through the use of an appliance connector or a union.
• There must be a sediment trap installed just before the water heater.

Improper Water Piping

• The water supply pipes must be at least 3/4".
• Only metal pipes are allowed within the first 18" of the tank.
• There must be a shutoff valve installed on the cold water supply pipe that feeds the water heater.  Note:  a common myth among home inspectors is that there should never be a valve on the hot water side... but this is perfectly acceptable.
• Flexible water supply connectors are prohibited in Minnesota.  

Improper Venting

• The vent connector must have three screws at every joint.
• For a single-wall vent, six inches of clearance must be maintained to any combustible surface, such as wood or drywall.  For a double-wall vent (B-vent), the clearance can be reduced down to one inch.  
• The vent must pitch upwards with a minimum slope of 1/4" per foot. This is a minimum requirement - just following this requirement does not mean the water heater will draft properly, but it's a start.
• For a powervent water heater, the manufacturer's installation instructions must be followed: they all use the diagram below for the vent termination location.  

That wraps up my list of the most common installation defects.  This is by no means an all-inclusive list of the requirements for a water heater installation, but it probably covers 95% of the installation defects that I find during home inspections in the Twin Cities.  For Minneapolis Truth In Housing evaluations, any installation that is three years old or less must be completely up to code; failure to follow any of these requirements would require repair.




Reuben Saltzman, Structure Tech Home Inspections - Email - Home Inspector Twin Cities

    

Does The Seller Need To Fix This?

This is a common question I’m asked when I find defects at houses that I inspect, and the answer is always no. When I find defects during a buyer’s inspection (and I always find defects), there are four ways for the buyer to deal with them: Do nothing, have the seller do repairs, have the seller fund repairs, or cancel the purchase of the home. I’m going to discuss these different options, and go over why some are better than others... in my opinion, of course.

Do Nothing. This is usually the best option for buyers. When buying a used home, buyers shouldn't expect everything to be perfect, because it never is. Walls get damaged, showers leak, appliances age. This doesn’t mean buyers shouldn’t address defects after they’ve bought the house, but it’s unrealistic to expect sellers of used houses to fix every little defect. Asking sellers to address a long list of minor repairs will often make the seller feel defensive about their home, make the buyers look petty, and make the home inspector get labeled ‘nit-picky’. Bad feelings all around :(. This typically comes from a misunderstanding of what a home inspection is for; home inspections are meant to allow the buyers to make an informed decision about their potential purchase, not to give sellers a long list of little repairs.

Ask The Sellers To Make Repairs. This is usually, but not always, the worst option. If a seller has done work at their home and it was done wrong, why would they get it right the second time? When a buyer asks a seller to repair things, they are basically making the seller the general contractor for their new home. I don’t think this makes any sense.  The seller has no motivation to do high quality work, and I know from experience that the work is usually done wrong, or the work will be sub-par and the materials will be the cheapest possible. It’s a very frustrating situation for buyers when I go out to verify repairs the day before closing and nothing is done right.  What happens now?   If the seller is going to do repairs, language should be included in the purchase agreement that requires licensed contractors to do the work, permits pulled and inspected by the authority having jurisdiction (the city), and proof of both should be given to the buyer well in advance of the closing date.  Just about anything related to plumbing, electrical, or HVAC requires a permit, and most work performed by carpenters also requires a permit.  This should be done for projects of any size; if a project is too small to require a permit, why have the seller do it at all?

Ask The Sellers To Fund Repairs. This is usually a much better option than having the seller do repairs.  The buyer can hire their own contractors to do the work, and they can oversee the whole project after they own the house.  This is definitely the most logical approach, but it doesn’t happen as much as it should because emotions get in the way.  Many home buyers have a mindset that they’re not getting a good deal if they buy a house and need to do repairs right away, no matter what the price is… and family members help perpetuate this idea, especially fathers (I'll probably do it too someday).

Cancel The Purchase. This happens when the buyer decides there are too many problems with the house and they don’t want to spend their time dealing with repairs, or when buyers and sellers can't come to an agreement.  In most instances when a deal falls apart because of an inspection, it happens because neither the buyers nor the sellers are aware of a major problem, and the buyers don’t want to spend their time and energy overseeing repairs.  This is a great reason to have a pre-listing inspection!
Sometimes issues come up during an inspection where the extent of the damage or the cause of the problem is not always apparent, and these are times when a buyer should definitely not wait until they own the home to undertake repairs, or have invasive / destructive inspections performed.

Reuben Saltzman, Structure Tech Home Inspections - Email - Minneapolis Home Inspections

Buying A Townhouse? Have The Exterior Inspected Too.

If you’re buying a townhouse, have the common areas inspected; not just the inside of the home.  I always quote the same price to inspect a townhouse as a single family home, because I inspect townhouses the same way; the roof, siding, windows… everything on the outside.  Some people feel that these items don’t need to be looked at because they’re covered by the association, but these are well worth having inspected, regardless of whether they’re covered or not.

The most obvious and logical reason to have the common areas at a townhouse inspected is to make sure you know what you’re buying.  Home buyers frequently assume that the common areas, such as the roof, don’t need inspection on a townhouse because it’s not their responsibility.  What happens if the roof starts leaking and causes a big stain on your ceiling?  The association will likely be responsible for repairing or replacing the roof, but who takes care of the water damage in your unit?  Even if you don’t end up spending a dime on the repairs, just the amount of time you could spend dealing with these types of repairs would make it well worth your while to have the common areas on a townhouse inspected.

Another great reason to have the common areas inspected is that the association may not be aware of problems, and may not have repairs in the budget.  If an association is budgeting to replace the roofs 10 years from now, but there’s only two years left on the roofs, who pays for it?  The owners, of course. This is what assessments are all about!  I was once a member of an association where we had several assessments in one year, the largest of which was a $1200 assessment to replace the failing driveways.  The extra money you pay to have these items inspected is a wise investment.

If one of my customers specifically doesn’t want the common areas inspected, I’ll skip them and typically charge $75.00 - $100.00 less for the inspection, but I strongly advise against this.  In the long run, this fee is a drop in the bucket compared to the repair costs that just one failed component could cost.  Below are some photos of a few costly repairs I’ve identified at townhouses just within the last year.  As you look through these photos, just ask yourself if the association is aware of these issues, and has a budget to repair or replace these items.  The answer is often no.

Click any of these photos for a larger version.

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Reuben Saltzman, Structure Tech Home Inspections - Email - Minneapolis Townhome Inspections