North Carolina Home Inspection Reports Are About to Change
October 19th, 2007 Categories: Buying a Home, Real Estate Tips, Selling a Home
You may not be aware but a controversial issue is being decided by the NC Home Inspector Licensure Board that could affect how the inspection report on the next home you buy is structured. The issue is whether or not recommendations by the inspector on upgrades that could possibly enhance the function, efficiency or safety of the home can be included in the summary section of the report. Right now there is no standard and it is left to the inspector’s discretion as to whether or not these items are included in the summary.
The key thing to remember is this debate is over where these “non-repair” items will be mentioned in an inspection report, not if they will be allowed in the report. Currently an inspector is free to put anything he feels is worth noting in the summary regardless of whether it is in need of repair. The new rule would only allow items in the summary that do not function as intended and are in need of immediate repair, or warrant further investigation.
Under the new rule any item that is not eligible for repair consideration that an inspector wishes to mention for enhanced function, efficiency, or safety can be included in the appropriate section in the body of the report. It just will not be allowed in the summary. It seems that those opposed to the changes fear that buyers will not read the whole report and might miss some of the inspector’s recommendations for non-repair types of improvements.
Any recommendations for future enhancements to the home that an inspector wishes to provide will be right there in the body of the report. Hey, give the buyer some credit. Don’t you think they will have at least a little interest in reading beyond the summary section of a report for which they just paid hundreds of dollars? Especially when it contains important information regarding the condition of a home they are paying hundreds of thousands of dollars for!
From my perspective, I think this is a good idea. With the new rule the summary section will serve as a place in the report where items can be listed that more closely match the real estate contract’s definition of repairable items. The NC Offer to Purchase and Contract says that all of the major systems of the house, such as plumbing, electrical, HVAC, etc, “shall be performing the function for which intended and not be in need of immediate repair.” Previously the summary section of an inspection report could be cluttered with items that did not meet this repair standard.
The new rule for the summary section will make it much easier for buyers, sellers and their agents to focus on repair negotiations that are covered in the contract as agreed to by both parties. The only items that a buyer and their agent have any authority to request action on is these repair items. Why add more drama to the negotiations with discussions regarding items that the seller is under no obligation to address? The primary purpose of the home inspection is to discover any of the items listed in the real estate contract that need repair. It makes sense to me to have a clean list of those items that can be the topic of repair negotiations between the buyer, seller and their agents.
Great post Bob! Home Inspections don’t have to be what they’ve become–and this new law may give the Buyer Agent the room to educate their buyer on the difference between “noted” items, and items meeting the definitions of inspectable items. A very useful distinction. I’ll see you on the vine.
Thanks for your comments! I agree that the biggest benefit of the proposed changes is keeping the buyer focused on “repair items”. i look forward to reading your new Tomato blog. When are you scheduled to go live?