I often get requests for summary reports to be attached to my inspection reports.
The Texas Real Estate Commission and its broker and agent minions foist numerous counterproductive ideas upon the home-buying public every chance they get. One of these is the summary inspection report.
Summary reports benefit mostly only the real estate agents by allowing them to better control the sellers, buyers and inspectors in property re-sales. The benefits include, but are not limited to:
1. The natural tendency for most buyers is to avoid reading too much of the mountains of paperwork produced during a real estate transaction. Who can blame them? So then, when confronted with one of my 100-page home inspection reports, they proceed to wilt. Instead of performing their duty of due diligence by actually reading the report, they want someone to predigest it and feed it back to them as pabulum. With the report dumbed-down and truncated, the agent has an easier time of dealing with the profusion of property defects found on every house by all but the agents’ pet inspectors.
2. The summary report also lends itself to becoming a repair list for the agent to present to the seller during a resale transaction. Though they make the lion’s share of profit from the transaction – 1.5% to 6% of the sales price on a $300K house is $4500 – $18,000 – as opposed to the average inspection fee of around $600, they avoid doing anything that resembles actual work.
My errors and omissions insurance carrier strictly prohibits summary reports, as they should. It is often the case that the buyer will simply refer to the summary without reading the entire report, thus missing much of the nuance and most of the significance of the whole document. Additionally, listing defects in an attempt to prioritize their importance is impossible. This sort of non-thinking requires not only the ability to predict the future, but also the ability to predict the timing of future failure events. Care to definitively state when your next flat tire will occur? Which tire will it be? What will be the exact cause of the flat? Good luck with that.
Home builders are also fond of summary reports. With one of these in hand a builder can easily deflect any supposed defects found by simply arguing around the brevity of the summary statements. New home defects must be identified by specific building code citations that do not lend themselves to abbreviation or curtailment.
Further, if all of the issues are already contained within a written report, exactly what is the purpose of reiterating these in the very same document?
Finally, if you find yourself terminally ensconced in one of the generations needing helicopter-parenting after leaving home, do us all a favor and find an inspector who will write you a flowery, Reader’s Digest version of a real inspection report and hand you those rose-colored glasses to boot. You won’t find him here.
The Texas Real Estate Commission (TREC) licenses home inspectors and publishes their standards of practice. In this SOP it states clearly that the inspector is not required to know the building codes, manufacturer’s or any other regulatory requirements. See for yourself:
Chapter 535 General Provisions
Subchapter R. Real Estate Inspectors
§535.227-§535.233. Standards of Practice
(3) The inspector is not required to:
(I) insurability, warrantability, suitability, adequacy, compatibility, capacity, reliability, marketability, operating costs, recalls, counterfeit products, product lawsuits, life expectancy, age, energy efficiency, vapor barriers, thermostatic performance, compliance with any code, listing, testing or protocol authority, utility sources, or manufacturer or regulatory requirements except as specifically required by these standards;
Wow. So how is it then that these inspectors are allowed to inspect new houses under construction or even in their final stage? Politics. The Texas builders’ lobby d.b.a. the Texas Homebuilders Association. This group has fought and won the battle to exclude any sort of governmental oversight of home builders since 1944. When third-party inspections of their new houses began during the late 90’s, they arranged with the TREC to allow their inspectors to inspect new houses both during construction and at the final stages.
The idea was sound, from the builders’ prospective. Arrange for unqualified inspectors with no knowledge of the building codes to bless their houses and dupe the home buyers. It was and is disastrous for unsuspecting home buyers. They move forward with the purchase of their new homes with the false confidence instilled in them by an inspection report written by an inspector with no knowledge of the building process or the codes governing it.
How does this directly affect you? Well, other than just the fact that your house will not be built to the minimal standards set forth in the requisite building codes, you will also have a big surprise when you find the need to invoke your builder’s warranty. Almost without exception, the builder warranties exclude any issues that were not code compliant at the time of construction.
One might think that, if the inspector SOP were artfully crafted, this might not be an issue. It is not. The technical provisions of the SOP consist of about 17 pages of poorly-conceived, often anecdotal, delusional meanderings intended to do nothing more than protect the brokers, agents, and inspectors. They provide zero protection for purchasers of newly-constructed homes.
One might also assume that, though the SOP is found technically wanting, inspectors certainly would be required to gain additional knowledge not required by the TREC. Most do not. Many claim to. There is only one method of proving one’s knowledge of the codes and that is through code certification.
The International Code Council (ICC) authors all of the building codes in 49 states and a few foreign countries. This organization provides both training and rigorous examinations for those desiring to prove their knowledge of the codes regulating the construction of houses. Four separate exams lead to a Residential Combination Inspector certification or ICC R-5. If your inspector does not have these credentials he is not qualified to inspect your new home, or any other home for that matter.
Let’s do a straight up comparison of the volume of information needed to obtain a TREC license vs. an ICC R-5 certification. I already mentioned that the TREC SOP consists of 17 pages of mumbo jumbo. I’ll be generous and include two volumes that are often used during the training or TREC inspectors. The Principles of Home Inspection Systems and Standards 3rd Edition is a 1086-page tome used by many of the training schools. Add to that the National Home Inspector Examination Home Inspection Manual which weighs in at 659 pages. We now have a total of 1762 pages of required knowledge to obtain and maintain a TREC inspector license.
If your inspector is ICC-certified the volume of information required to have been mastered grows exponentially. One must peruse and fully understand the International Residential Code (IRC) at 2903 pages and the National Electrical Code (NEC) 1371 pages. What’s more, the IRC, in Chapter 44, lists an additional 26 pages of referenced standards that are, by reference, an integral part of this code. Likewise, the NEC lists pages of referenced standards that are to be treated as a part of that code. All of the pages of reference standards add roughly an additional 1500 pages of information.
Further, the IRC often defers to the International Building Code (IBC), for some items in the IRC such as slab-on-ground foundations in expansive soils, et al. The IBC adds yet another 2908 pages to the mix. Then there is the International Energy Conservation Code (IECC), the International Fuel Gas Code (IFGC), the National Fire Protection Association’s various publications pertaining to natural gas, propane gas, fire safety, smoke alarms, et al.
OK, enough. Perhaps you get the picture. The basic TREC inspector might know about 1762 pages of information while the ICC-certified inspector must know at least 10,444 pages of info. That, of course is not all-inclusive. Materials and equipment manufacturers’ installation instructions, Consumer Products Safety Commission requirements, . . . etc. ad infinitum, must be in the inspector’s wheelhouse if he or she is to steer your new house safely to the point of occupancy.
Yet another ploy you should be aware of is the multi-inspector firm whose principal may indeed be ICC-certified, but is not actively involved in the inspections performed by his company. He uses the certification to lure customers in and then sends out his uncertified lackeys to inspect your house. Cheesy, but common.
Another thing that might interest you is that HUD requires an ICC R-5 certified inspector to perform inspections on all FHA and VA loans for new construction.
So, if you are in the market to purchase a new home, hire only a qualified inspector who is ICC R-5 certified, or roll the dice on the other guy. It’s your money.
It is commonly understood that governmental agencies are
notorious for distributing “information” that is, how shall I say,
specious. In my profession, dealing as I do with home builders, municipal
building inspectors, real estate brokers, agents, et al., I am accustomed to
being inundated by a tsunami of bullshit. That said, occasionally some
outrageous statement appears that astounds even jaded me. Something so
stupefying and outrageous that it defies the wildest imagination. You know, presidential
I came across this wild-eyed quote while keeping up with the
meanderings of the folks who issue one of my licenses – The Texas Real Estate
Commission (TREC). This agency was recently reviewed by the Texas Sunset
Advisory Commission regarding its efficiency and found wanting in many areas.
One that affects home buyers more than the others is the educational
requirements for licensing home inspectors. The Sunset Commission opined that
the requirements were in need of a change in order to produce more informed and
competent inspectors. The TREC perfunctorily agreed. The following statement
reflects just how they plan to go about this.
“The Inspector Committee met on October 7 at the Texas Real Estate Commission. Many of the items before the committee were proposed at the July meeting. The Committee received public comments on the proposed changes. The Committee considered those comments, and the proposals moved forward as written. The most notable changes in the rules are those to the pre-licensure for home inspectors in Texas. The new process cuts the number of hours required approximately in half for the most utilized track to become an inspector while equipping inspectors to more readily be able to perform an inspection upon completion.” (Bold and italics are mine)
If you find nothing askew with the preceding statements
issued forth from the Texas Real Estate
Commission’s Inspector Committee, then read no further, this is not for you.
You’ll find your designated reading corner in the children’s section of the
local library next to the wooden blocks and the Big Bird stuffed toys.
Would you assume that reducing the amount of children’s
education to half of what it is now would somehow miraculously increase their
K-6 ≥ K-12
is math that simply does not compute.
The requirements to become a home inspector in the great
state of Texas
have always been minimal. No real construction experience is required. No
building code knowledge is required. Simply take a course for $3000 (less if
online) that teaches the multiple-choice test one must pass, pass the exam, and
voila! you get your Cracker Jack box license. No sweat.
This has led to some, if not most, folks who hire home inspectors in Texas apparently being led down the garden path by questionably-educated, ill-informed, quasi-competent “inspectors”, who are foisted on us all by the folks who brought you the revelations quoted at the beginning of this vociferation. But, let me not cast aspersions.
The moral of this story is that you must thoroughly vet your
home inspector. Relying on a mere state-issued license to do business and/or a
referral from your avaricious agent will not protect you. Practice the level of
due diligence that accrues with becoming an adult and buying a house.
I’ll end this now before I segue into deviant terminology .
The bedlamites in Austin have been at it again. As of September 1, 2019, in all municipalities in Texas, the minimal building codes will be dealt a severe blow. The morons whom some folks have voted into the legislature, in their infinite ignorance, have deemed that Texas municipal building inspectors can no longer choose to adopt any building codes that are more stringent than the national model codes. As if the current codes are not lenient enough the builders can now skirt the building officials who want to eliminate the use of questionably safe, durable, or outright dangerous building products and procedures.
This is yet another move on the part of the powerful Texas homebuilders lobby
to gut the codes, thumb their noses at regulation, and proceed to make a profit
to the detriment of the home buying public. Previously the same regime that has
been in power in the state for decades negated the code requirements for
fire-suppression sprinkler systems in all houses.
If you voted for these imbeciles, please take a moment prior to the next election to actually think about who you are supporting. Regardless who you voted for please consider contacting your senators and representatives to complain about the passage of House Bill 2439 during the last session of lunacy.
Those of you who know me understand that I rarely have a
good word to say regarding all things governmental. That said, the FHA
surprised me last August by eliminating their in-house approval process for FHA
inspectors and requiring that those doing FHA inspections be certified by the
International Code Council as R-5 Residential Combination Inspectors, as I have
been for over 20 years.
The approval process in the past was minimal. The inspector
had merely to “prove” (read: claim) three whole years construction experience
and be in possession of a feckless license to do business from the Texas Real
Estate Commission. This ensured that whatever was being inspected, it was being
scrutinized by know-nothings. ICC Combination Inspectors look for compliance
with local building codes as well as specific HUD requirements.
When a person applies for an FHA/HUD/VA/USDA loan it is
usually because they cannot qualify for a conventional loan. This person also typically
does not have the means to foot the bill for any major repairs required due to the
typical and widespread lackluster Texas home builder performance. These folks
need protection and the FHA has finally taken a step in the right direction for
providing this to their borrowers.
Kudos to the FHA Commissioner for doing the right thing.
We should all be waiting for June 16th with bated breath when the half-baked 2019 Texas legislative session finally comes to an end. Every two years the drooling idiots we elect gather in Austin to torment us with their seeming lack of understanding of nearly everything.
This session has proven especially egregious in many
respects. To avoid waxing partisan I will spare you my opinions on most of these,
e.g. immigration, abortion, cannabis, taxes, health care, gun control,
education, et al. I want to focus on just one issue: plumbers.
The Texas legislature, hereinafter known as “the Morons” has,
in their infinite stupidity, decided to eliminate the Texas Board of Plumbing
Examiners. That is the group that is (was) responsible for overseeing the
education and licensing of plumbers.
Texas plumbers have been growing in importance in the eyes
of the Morons for decades. A few years back they decided that plumbers could
also legally perform electrical work on any system they were repairing or
installing – without an electrician’s license. Before that, it was decided that
a master plumber could perform whole-house building code inspections – without code
certification. Renaissance men, I assume.
Now, we have the ultimate. Plumbers have busted out of their legendary phone booth and are prepared to fly above the rest of us unencumbered by any of those pesky plumbing regulations and codes.
That leaves the rest of us circling the proverbial bowl.
Those familiar with my reports know that I devote several paragraphs to information on proper lot drainage. The following article penned by Angie Bersin of Redfin focuses on this critical topic. Enjoy!