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.
Friday, December 17, 2010
Saturday, November 6, 2010
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/
Sunday, October 24, 2010
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.
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
Sunday, August 1, 2010
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.
Thursday, April 29, 2010
More On Licensing
Here we are, well into the second quarter of 2010. The Michigan legislature has yet to move on House Bill 4162, or Senate Bill 355. Both of these bills license home inspectors in Michigan, and were introduced over a year ago. They have but once been addressed by the House Committee on Regulatory Reform, and at that time were vehemently opposed by the Michigan Association of Home Inspectors, while the Michigan Coalition of Professional Inspectors supported the legislation. Many special interest groups are asking for changes to these bills. It is important, when considering the changes that are being requested, to look at what the real issue is in regard to licensing.
In searching for data about bad home inspectors, or bad home inspections, there is little to none readily available. This is still a "project" that is being pursued. However, in speaking with clients, potential clients, and people who have experienced a "bad home inspection", the tipping point seems to be that the offending home inspector either failed to report a readily apparent and significant finding, or they failed to report same in a factual manner, making clear the implications of their findings.
One argument, which seems to be very popular, is that this is due to a poorly trained or unprofessional home inspector. Another view suggests that it may not be the home inspector, as much as it is external influences that feel that they are "stakeholders" in the home inspection. The third most popular reason cited was greed on the part of the home inspector. While all of these may have some element of truth to them, the first and third are easily and simply regulated by government by requiring minimum training standards and continuing education throughout the license term, and adherence to state consumer protection law. It is the second reason cited that is problematic, and perhaps attracts the most attention.
When a party that is not a party to an agreement feels that they should have some degree of influence over that agreement, then there is an inherent conflict of interest. There is typically but one or two methods of regulating this kind of conflict of interest. Professional ethics, usually in the form of a Code of Ethics, often is sufficient. However, when large amounts of money are involved, the "interpretation" of professional ethics, or a Code of Ethics, can become skewed. Legislation is another form of regulation used to deal with this type of conflict of interest. For either of these forms of regulation to be effective, however, they must be enforceable, and enforcement action must be made available to those parties who would be impacted the most by a violation: the consumer.
When there is poor enforcement, poor enforceability, or when enforcement records are not made available to the public, problems can continue. When people feel that they can get away with doing something that is questionable, or outright wrong, then bad things begin to happen. So, when a home inspector finds shifting of the foundation, and reports it as such along with the recommendation that a structural engineer be consulted, the circumstances are now set for conflict.
From the professional home inspector's view, and likely his client's view as well, the home inspector has properly executed his duty and performed his job with integrity. However, if the client then rescinds their offer to purchase based on the home inspector's findings, the home inspector is often faulted by others who feel that they are "stakeholders" in the inspector-client relationship. If they have suffered a perceived loss due to the home inspector's work, they may attempt to "pay the inspector back."
Financial professionals and real estate professionals are very close. They talk amongst themselves and between professions regularly. They have large political action committees. On occasion , they have been known to speak bad about a home inspector, due to their perceived loss. The usual intent of this idle chatter can be be summed up by a threat made to one home inspector by a real estate agent: "I'll see to it that you never do any home inspections in this town again." This returns us to our original topic: licensing home inspectors. Is it necessary? Will it be effective, if home inspectors are not protected from conflicts of interest? These are questions that remain to be answered.
In searching for data about bad home inspectors, or bad home inspections, there is little to none readily available. This is still a "project" that is being pursued. However, in speaking with clients, potential clients, and people who have experienced a "bad home inspection", the tipping point seems to be that the offending home inspector either failed to report a readily apparent and significant finding, or they failed to report same in a factual manner, making clear the implications of their findings.
One argument, which seems to be very popular, is that this is due to a poorly trained or unprofessional home inspector. Another view suggests that it may not be the home inspector, as much as it is external influences that feel that they are "stakeholders" in the home inspection. The third most popular reason cited was greed on the part of the home inspector. While all of these may have some element of truth to them, the first and third are easily and simply regulated by government by requiring minimum training standards and continuing education throughout the license term, and adherence to state consumer protection law. It is the second reason cited that is problematic, and perhaps attracts the most attention.
When a party that is not a party to an agreement feels that they should have some degree of influence over that agreement, then there is an inherent conflict of interest. There is typically but one or two methods of regulating this kind of conflict of interest. Professional ethics, usually in the form of a Code of Ethics, often is sufficient. However, when large amounts of money are involved, the "interpretation" of professional ethics, or a Code of Ethics, can become skewed. Legislation is another form of regulation used to deal with this type of conflict of interest. For either of these forms of regulation to be effective, however, they must be enforceable, and enforcement action must be made available to those parties who would be impacted the most by a violation: the consumer.
When there is poor enforcement, poor enforceability, or when enforcement records are not made available to the public, problems can continue. When people feel that they can get away with doing something that is questionable, or outright wrong, then bad things begin to happen. So, when a home inspector finds shifting of the foundation, and reports it as such along with the recommendation that a structural engineer be consulted, the circumstances are now set for conflict.
From the professional home inspector's view, and likely his client's view as well, the home inspector has properly executed his duty and performed his job with integrity. However, if the client then rescinds their offer to purchase based on the home inspector's findings, the home inspector is often faulted by others who feel that they are "stakeholders" in the inspector-client relationship. If they have suffered a perceived loss due to the home inspector's work, they may attempt to "pay the inspector back."
Financial professionals and real estate professionals are very close. They talk amongst themselves and between professions regularly. They have large political action committees. On occasion , they have been known to speak bad about a home inspector, due to their perceived loss. The usual intent of this idle chatter can be be summed up by a threat made to one home inspector by a real estate agent: "I'll see to it that you never do any home inspections in this town again." This returns us to our original topic: licensing home inspectors. Is it necessary? Will it be effective, if home inspectors are not protected from conflicts of interest? These are questions that remain to be answered.
Saturday, February 6, 2010
A Book Worth Reading
An interesting story came to the attention of The Michigan Inspector this week. It is from the book The Pied Piper of South Shore: Toys and Tragedy in Chicago. In the book, author Caryn Lazar Amster talks about the decline of the South Shore neighborhood of Chicago. An interesting quote from the book: "By the summer of 1963, white homeowners who had lived in South Shore for many years, some all of their lives, were being pushed out of the neighborhood by greedy real estate agents embroiled in panic selling. They wanted white homeowners to sell now and sell cheap--a strategy that generated sales and made a killing for the realtors, the only ones who profited from the racism and fear." (p. 131). This says quite a lot. It is important for home owners, sellers and buyers of real estate, and others involved in the transfer of real estate, that things may not always be as they appear.
Sunday, January 24, 2010
Free Radon Test Kits
Dr. Richard Tooker, the chief medical officer in Kalamazoo County, Michigan recently wrote to the Kalamazoo Gazette about the issue of Radon for National Radon Action Month. Through the grapevine, it was overheard that Kalamazoo County Health and Community Services on Gull Road is offering free Radon test kits during the month of January. Radon is an important environmental issue that is frequently ignored. Unfortunately, ignoring Radon can result in lung cancer for those exposed. To learn more about Radon gas, visit www.mi.radon.com or www.epa.gov/radon. Test your home. If you have Radon, fix it. The life you save may be your own.
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