Who Are The Stakeholders?

Many home inspection firms are operated as sole-proprietorships or owner-operated limited liability companies. The differences are minimal, but the point is that home inspection firms are typically small companies. So this narrows down who the stakeholders are relevant to any decision made by a home inspection firm. The stakeholders become the home inspection firm, and stockholders or investors, and the clients that the firm serves.

Over the years, many professional home inspection associations have suggested that stakeholders include the seller of a property, the real estate agents involved, and the mortgage broker in addition to the home inspection firm, investors, and the firm's clients. This is improper and wrong. Real estate agents have no interest in the home inspection firm, therefore they are not a stakeholder. Likewise with the seller of a property, or a mortgage broker. While these parties may be indirectly impacted by decisions made by the home inspection firm, they have no legal or financial interest in the firm. They should not be considered stakeholders.

Home buyers should be wary of home inspection firms that consider parties that do not have a financial or legal interest in the firm as stakeholders. This will more often than not muddy the agency dilemma faced by the home inspection firm, and could create a scenario where the client's interests are not a priority. As the saying goes, buyer beware.

Radon Action Month

Michigan Radon Action Month is January, and this year it seems to have passed by without a lot of attention. Radon gives off radiation as it deteriorates. As a gas, Radon is easily inhaled, and tends to attach itself to dust and other particulates in the air. Once Radon enters the lungs, radioactive solids are formed as the gas deteriorates. As these solids sit in the lungs, they give off radiation, which can alter the makeup of lung cells, thereby causing cancer. The only way to know if your home has elevated Radon levels is to test for Radon. There are many ways to do this. Some methods are free, such as procuring test canisters from your local health department, exposing them as directed, and sealing them and sending them to a lab for analysis. For more reliable tests, professional testing can be done. This typically costs between $95.00 and $130.00, depending on the testing agency and method. If you have not tested your home for Radon, please consider doing so. It could save your life.

Field Notes: Real Stories from Home Inspectors

1. A home inspector found termites in the garage of a home that was going to be purchased and renovated, then used as a rental. The bank refused to underwrite the loan for the buyer on account of the termites. Both the buyer and the buyer's real estate agent asked the home inspector to falsify his report, and retract the information in the report about the termites in the garage. The inspector refused.

2. A home inspector arrived at the house to be inspected, and received a telephone call from the bank employee doing the paperwork for the buyer's loan. The banker tells the home inspector that there can be nothing negative in the home inspection report, or the loan will not go through. The banker is married to the real estate agent representing the buyer. The home inspector refuses to compromise his integrity.

3. The home inspector performs a Radon test along with the home inspection, and the results come back high. The real estate agent suggests that the home inspector falsified the results. The inspector uses a continuous Radon monitor that is calibrated annually. Falsifying the data would be hard to do.

4. A home inspector performs a home inspection while the buyer is detained by the real estate agent in the living room. The buyer's son accompanies the inspector through the inspection. Several problems were found and reported, both verbally and in writing. Months later, the real estate agent is caught lying about the home inspector, claiming that the inspector failed to find various items, in an effort to dissuade a buyer from using that inspector. The real estate agent is successful in her efforts to manipulate the buyer. The home inspector is preparing to sue the real estate agent for slander and defamation of character.

5. A real estate agent has been working with a young family on finding a home. After the third home does not proceed to closing, the real estate agent suggests to the home inspector, on the fourth home, that the home is in very good condition and should not have any thing wrong with it. This is the third inspection that the inspector has done for this buyer. One of the previous inspections was done by an inspector claiming to be HUD certified. HUD does not regulate home inspectors. The real estate agent had been successful in lying to the buyer that they needed a HUD certified inspector for that inspection.

Not all real estate agents are deceivers and cheats. But many of them seem to be. The writer does know of one real estate agent who will not compromise his integrity under any circumstances.

Urgent News on CSST

The Subrogation and Recovery Law Blog has recently posted a report that a jury in Pennsylvania has found that corrugated stainless steel tubing, or CSST, is a defective product. The case arose from a claim that CSST does not properly disapate the energy from a direct or indirect lighting strike, resulting in serious fire fed by pressurized fuel gas. If you have CSST in your house, you should immediately contact the manufacturer to ask if they are considering replacement. You should also contact reputable licensed contractors for estimates on replacing any CSST in your home. For more information, visit http://www.subrogationrecoverylawblog.com/2010/10/articles/products-liability/csst-1/jury-rules-that-csst-is-a-defective-product-in-landmark-case/

Did You Miss Radon Action Week?

If you missed Radon Action Week, it is not too late to test your house for Radon. Radon is a naturally occurring radioactive gas that has been linked to lung cancer. The federal government cites it as the second leading cause of lung cancer in the United States, killing some 20,000 people per year. The U.S. E.P.A has set an action level of 4.0 pCi/l, and the World Health Organization has set an action level of 2.7 pCi/l. Find out more:

Michigan Department of Environmental Quality
Drinking Water and Radiological Protection Division
Radiological Protection Section
Environmental Monitoring Unit
Radon Program
3423 Martin Luther King Jr., Blvd.
P.O. Box 36030
Lansing, MI 48909
1-800-RADON GAS (1-800-723-6642)
State Radon Program Hotline that offers information and referrals.

Deck Inspections Can Save Lives

According to some home insurance underwriters, deck failures account for more injuries and deaths than any other part of the home. Deck inspections are recommended annually by the North American Deck and Railing Association. Look for the following signs of trouble: split or decaying wood, loose or missing fasteners, missing or failing flashing on decks attached to the house, loose beams or supports, loose planks or boards, loose or raised nails or screws, wobbly railings or railings that move when lateral force is applied. Any new deck work should have a permit if required. Review construction plans or repair plans with the local code authority to make sure that the deck will be sound and meet any building code requirements. Go to the NADRA website for more information: www.nadra.org

Hot Summer And Sizzling Electric Bills

South-west Michigan has experienced a hot July, and August is showing promise of more hot weather. If you are not on a budget plan with your electric utility, check your electric bill to see if the meter reads are estimated or actual. If the reads are estimated, check your electric meter. There are reports that estimated readings are excessively high, resulting in over-billing. To correct this, telephone your electric utility with the correct meter reading, and ask them to generate a corrected bill. This has saved some consumers hundreds of dollars on their July electric bills alone.