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#71728 - 09/06/05 06:05 PM Unlicensed Inspector? - LONG
Anonymous
Unregistered


In Indiana, as of July 1, 2005, homes inspectors must be licensed with the state to continue their work. There is no "grandfathering" in of inspectors working in the field before this date. Having said that, I need to present a problem I am currently having.

I represent a seller of a home. The buyers had an inspection done that in the remarks section indicated "90% of the windows are bad - rotting on bottom." The seller took issue with this since the home is only 9 years old (I know that's irrelevant). The "windows and skylights" section of the same report indicated they were "satisfactory."

My first impression was that the physical report itself was the most unprofessional-looking document I had ever seen. The buyers promptly had 2 window contractors out who said 11 windows needed to be replaced at an average cost of $20,000. I tried to contact other contractors or window restorers to get another opinion. The seller, under time constraints of the inspection reply, had a very reputable handyman out who said six sashes needed the bottom trim replaced - nothing else.

We are now at the point where I can get a window restorer out, but the buyers say they will settle for nothing less than complete replacement. This brings me back to my Subject. I found out today that the person who inspected the home is not licensed by the State of Indiana. Again, judging by the quality of his report, this does not surprise me.

My question is, should this revelation in any way affect the contract to purchase? Is this inspection invalid? My seller wants to sell and is willing to have windows repaired or replaced if truly necessary, but believes this whole problem has grown as the result of an inspection that has no merit (legally as well as professionally).

Thanks.

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#71729 - 09/06/05 06:47 PM Re: Unlicensed Inspector? - LONG
Russel Ray Offline
Moderator

Registered: 12/30/04
Posts: 241
Loc: San Diego CA
Of course, the buyer can use anyone he wants to inspect his new home, and the person doesn't even have to be a home inspector. The buyer's dad can inspect it if he wants. However, holding oneself out as a home inspector and purporting to be a home inspector in a state that requires licensing of home inspectors provides a different perspective.

If I were the seller, I would require an inspection by a licensed home inspector. However, such a request should be part of the purchase contract. If it was not, then all bets are off.

However, the seller always has the opportunity/privilege to say no to something. Of course, they have to be prepared for the consequences of saying no, like the buyer walking and the house going back on the market. So if it's a buyer's market, then it might be worthwhile to work with the buyer. If it's a seller's market, then bye-bye-buyer-move-out-of-the-way-there's-people-behind-you.

I would certainly ask for clarification from the home inspector since he says that "90% of the windows are bad - rotting on bottom" but then says elsewhere that the "windows and skylights" were "satisfactory."

Window contractors, of course, are trying to make a living, so they will want to sell windows. No shock there, of course.

However, 11 windows at an average cost of $20,000 is outrageously expensive, even here in San Diego. Are you sure that's not $2,000 instead of $20,000? Someone's being taken to the cleaners in my opinion.

I'd probably go with the handyman myself.

So if there's licensing, then I think the unlicensed home inspector and his report could be shuttled to the invalid side and, therefore, affect the purchase contract.

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#71730 - 09/06/05 06:57 PM Re: Unlicensed Inspector? - LONG
Kevin McMahon Offline
Member

Registered: 12/28/04
Posts: 73
Loc: Wisconsin
I'm thinking he meant an average quote of $20,000 for the 11 windows (together).

And in WI at least, the inspector would be in big trouble for performing home inspections without a license.
Most RE contracts in licensed states specifically state in the contingency that a licensed home inspector perform the inspection. In which case, the inspection could be deemed "not valid". I'm no lawyer, but it appears that this is where this question needs to be referred to.

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#71731 - 09/06/05 07:10 PM Re: Unlicensed Inspector? - LONG
Kthor Offline
Member

Registered: 05/16/05
Posts: 93
Loc: CA- East Bay
It's one of the Reason why I always recommend to my seller to pay for both Pest and Home Inpection out front.

this way, I can tell the buyers, this are the problems, and my sellers will not fix anything..

I can go on for ages, but basically I find that this strategy gets me better negotiation position than when buyers do the inspection themselves.
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#71732 - 09/06/05 07:19 PM Re: Unlicensed Inspector? - LONG
Anonymous
Unregistered


I always recommend that the seller have a pre-emptive inspection done. Not all take my advice.

The quotes were actually $17,165 and $22,000 - for total windows.

Also, the purchase agreement states that inspections "...are to be at Buyer's expense by qualified inspectors..." The way I read it, as of July 1st, to be qualified you must be licensed.

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#71733 - 09/06/05 10:03 PM Re: Unlicensed Inspector? - LONG
Russel Ray Offline
Moderator

Registered: 12/30/04
Posts: 241
Loc: San Diego CA
 Quote:
Originally posted by Kevin McMahon:
I'm thinking he meant an average quote of $20,000 for the 11 windows (together).
I also think he meant that. However, without using my calculator, that's about $1,850 per window! Huh? I can get 48" dual-pane vinyl windows installed in stucco for $500 apiece here. And if I do that, I get the next 48" dual-pane vinyl window free, effectively bringing the cost down to $250 apiece. I find almost $2,000 for one window to be excessive price gouging to the max. Does he think he's in New Orleans?

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#71734 - 09/06/05 10:05 PM Re: Unlicensed Inspector? - LONG
Russel Ray Offline
Moderator

Registered: 12/30/04
Posts: 241
Loc: San Diego CA
 Quote:
Originally posted by Kthor:
It's one of the Reason why I always recommend to my seller to pay for both Pest and Home Inpection out front.

this way, I can tell the buyers, this are the problems, and my sellers will not fix anything..

I can go on for ages, but basically I find that this strategy gets me better negotiation position than when buyers do the inspection themselves.
I think you'll find virtually 100% of home inspectors agree with you. Unfortunately, too many Realtors here in San Diego still seem to think that what they don't know won't hurt them.

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#71735 - 09/06/05 10:06 PM Re: Unlicensed Inspector? - LONG
Russel Ray Offline
Moderator

Registered: 12/30/04
Posts: 241
Loc: San Diego CA
 Quote:
Originally posted by bburgrealtor:
The quotes were actually $17,165 and $22,000 - for total windows.

Also, the purchase agreement states that inspections "...are to be at Buyer's expense by qualified inspectors..." The way I read it, as of July 1st, to be qualified you must be licensed.
And that includes installation in wood? Wow!

And I would be inclined to agree with your interpretation of "qualified" as of July 1.

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#71736 - 09/07/05 08:20 AM Re: Unlicensed Inspector? - LONG
B4U Close Offline
Member

Registered: 01/08/05
Posts: 44
Loc: Georgetown, KY
The Indiana Home Inspector Licensing Board (HILB) website does list provisions for obtaining a "grandfather" license (though its listed as "grandparenting", I guess to be "politically correct") Not that it has anything to do with your situation.

But to your question, "My question is, should this revelation in any way affect the contract to purchase?"

No it shouldn't. Two separate issues. The seller is aware of a recognized defect, the buyer is aware of a recognized defect. The resolution of the defect doesn't have anything to do with the "licensing question". You should help your seller negotitiate a satisfactory solution to the defect.

THEN, either the seller or you or both should consider notifying the HILB of the unlicensed inspector working in the state.

http://www.in.gov/pla/bandc/home/
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#71737 - 09/07/05 08:41 AM Re: Unlicensed Inspector? - LONG
Russel Ray Offline
Moderator

Registered: 12/30/04
Posts: 241
Loc: San Diego CA
While I generally agree with Erby, in this specific case I don't because of the inconsistency in the home inspector's report which, I believe, has created the problems to begin with since no one seems to know what is required: repair or replacement.

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#71738 - 09/07/05 09:05 PM Re: Unlicensed Inspector? - LONG
Kthor Offline
Member

Registered: 05/16/05
Posts: 93
Loc: CA- East Bay
this shoud'nt affect the contract at all...
negotiate with the buyer to see who's going to pay for the repairs or damages. and 11 windows
don't cost 20k even with root .. I just had a client home whole house windows replaced and repair with dry root for less than 10k..

maybe you can negotiate for seller to pay half of cost or give credit to buyers..and make sure should seller agree to replced windows, it would be standard one.


btw : the buyers are probably asking the window people to qoute on the most expensive window type available =hence the 20k price tag..?
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#71739 - 01/08/06 04:10 PM Re: Unlicensed Inspector? - LONG
Kathy578 Offline
Member

Registered: 01/05/06
Posts: 66
Loc: Ohio
Okay I'm going to reopen this issue. Because it does happen a lot and people need to know what to do when it happens.

First off though I would like to know why the issue of the windows is still an issue. I realize the very mention of the problem opened a can of worms with the buyer. And I know time is of the essence in a real estate transaction but I do not understand why that seller should have to even negotiate anything in an inspection report that was illegal...invalid...null and void from the start?! Why wasn't the fact the person was breaking the law and should be reported addressed before the bogus contents of the bogus report were addressed?

If I were the seller I wouldn't bow to this level of extortion and I would not hear one word about this idiots fraudulent report. Maybe everything he said was true...the fact that he operated illegally makes everything null and void. Even his findings.

Report the jerk! Where did he come from anyway...who recommended this guy? You know there IS a way to check to see if a person is properly licensed PRIOR to hiring them. Evidently someone felt that checking out this minor detail was unnecessary because the state has a licensing law. That excuse only works if you are 2 years old and live in candy land.

For those of you in Ohio (realtors and homebuyers)

1) Termite inspectors must be licensed by the state. NO a home inspector is not automatically qualified to do termite inspections he/she must have a specific license from the Ohio Department of Agriculture AND a business license also issued by the ODA. You can check to see if a termite inspector is properly licensed by doing an online search at:
http://www.ohioagriculture.gov/pubs/divs/plnt/ebus/pr/index_1.htm

If you do not know the name of the inspector call the ODA directly (614) 728-6200 and they will look it up by company name. Keep in mind that the law requires that every inspector must be licensed. No longer can he work under anothers license. If you want more detailed info about a licensee such as past enforcement actions, complaints, etc you can request this information be sent to you by calling the same number.

For home inspectors no they are not licensed in Ohio however they are still obligated by law to comply to the Consumer Protection Act enforced by the Ohio Attorney General. To look up a company to see how many complaints they have received try this link: http://www2.ag.state.oh.us/sections/consumer/ccapsplus/welcome.asp
Additional information is available to the public from the AG's office upon request by calling: (614) 466-4320.
To look up a company to see if their business is registered with the Secretary of State and other information regarding their business filing status...Corporation, sole proprietor, LLC etc. Name of statutory agent etc. check this link: http://www2.ag.state.oh.us/sections/consumer/ccapsplus/welcome.asp
The Better Business Bureau is another good place to look. http://www.bbb.org/

It just takes a matter of seconds to do these free online checks. I'm sure many other states have online databases that are just as easily checked.

Public record exists for a reason. Anyone getting duped by hiring an unlicensed inspector in a state with licensing law really needs to question their abilities to handle matters of any importance.

OOPS I can't leave out the realtors...to look up a realtors license status online in Ohio: http://elicense1-lookup.com.ohio.gov/SearchCriteria.asp

You can also request information sent to you about a realtor regading enforcement issues etc by calling: (614) 466-4100.

I'm not telling agents what to do but I would think a little less hand holding and a bit more effective sharing of important information is what a home buyer really needs. As a home buyer from time to time I feel perfectly qualified to make that statement.

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#71740 - 01/09/06 05:02 AM Re: Unlicensed Inspector? - LONG
Russel Ray Offline
Moderator

Registered: 12/30/04
Posts: 241
Loc: San Diego CA
You sure you don't want to move to San Diego, Kathy? The winters are a little warmer. 80° yesterday.

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#71741 - 01/09/06 09:37 PM Re: Unlicensed Inspector? - LONG
Kathy578 Offline
Member

Registered: 01/05/06
Posts: 66
Loc: Ohio
That's sweet of you Russell...I could really go for your climate. However I'm not too crazy about the way the earth shakes in those parts. \:\)

Although freezing to death isn't much of a better choice is it!

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#71742 - 01/10/06 01:52 AM Re: Unlicensed Inspector? - LONG
Russel Ray Offline
Moderator

Registered: 12/30/04
Posts: 241
Loc: San Diego CA
I moved from hurricane/tornado country (Texas) to earthquake country. I decided long ago that if Mother and Father Nature are having a spat, there's not too much that I can do about it regardless of where I live.

People who move here from places like Michigan, Utah, and New England, where the fall colors are so beautiful and then the snow comes and then the new leaves on the trees and then the flowers say we don't have any seasons here. I would submit that we do, indeed, have four seasons: Summer (which lasts about 10 months), rain, mudslide, and fire.

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