The Michigan Inspector

Who Are The Stakeholders?

2011-11-06T12:33:00.002-05:00

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

2011-02-11T13:08:00.001-05:00

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

2010-12-17T11:26:00.005-05:00

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

2010-11-06T22:05:00.001-04:00

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?

2010-10-24T21:33:00.002-04:00

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

2010-10-24T20:24:00.001-04:00

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

2010-08-01T19:18:00.004-04:00

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.

More On Licensing

2010-04-29T19:38:00.000-04:00

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.

A Book Worth Reading

2010-02-06T20:14:00.004-05:00

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.

Free Radon Test Kits

2010-01-24T13:15:00.002-05:00

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.

January is Radon Action Month

2009-12-31T16:16:00.004-05:00

Radon gas is the second leading cause of cancer in the United States. It is estimated that 22,000 people die of lung cancer due to Radon gas per year. Radon gas is present in soil and water, and enters homes through the foundation. You can not see, taste, smell, or feel Radon gas in your home. The only way to know if your home has a Radon problem is to test for it.

Testing is simple. Test kits are available from many government sources, as well as local hardware stores and home centers. Professional testing by Radon professionals is also an option. Regardless of the method of testing or the cost of testing, all homes should be tested for Radon gas.

If your home tests high for Radon gas, it can be fixed. Radon mitigation systems can be installed to remove Radon gas for $800.00-1200.00 for the average home. New homes should be constructed using Radon resistant construction techniques.

Facts about Radon:

Although some scientists dispute the precise number of deaths due to radon, all the major health organizations (like the Centers for Disease Control and Prevention, the American Lung Association and the American Medical Association) agree with estimates that radon causes thousands of preventable lung cancer deaths every year. This is especially true among smokers, since the risk to smokers is much greater than to non-smokers.
Radon testing is easy. You can test your home yourself or hire a qualified radon test company. Either approach takes only a small amount of time and effort.
There are simple solutions to radon problems in homes. Hundreds of thousands of homeowners have already fixed radon problems in their homes. Most homes can be fixed for about the same cost as other common home repairs; check with one or more qualified mitigators. Call your state radon office for help in identifying qualified mitigation contractors.
House construction can affect radon levels. However, radon can be a problem in homes of all types: old homes, new homes, drafty homes, insulated homes, homes with basements, and homes without basements. Local geology, construction materials, and how the home was built are among the factors that can affect radon levels in homes.
High radon levels have been found in every state. Radon problems do vary from area to area, but the only way to know your radon level is to test.
Although radon gets into some homes through water, it is important to first test the air in the home for radon. If your water comes from a public water supply that uses ground water, call your water supplier. If high radon levels are found and the home has a private well, call the Safe Drinking Water Hotline at 1 800-426-4791 for information on testing your water.
You will reduce your risk of lung cancer when you reduce radon levels, even if you've lived with a radon problem for a long time.
A short-term test, followed by a second short-term test can be used to decide whether to fix your home. However, the closer the average of your two short-term tests is to 2.7 pCi/L, the less certain you can be about whether your year-round average is above or below that level. Keep in mind that radon levels below 2.7 pCi/L still pose some risk. Radon levels can be reduced in most homes to 2 pCi/L or below.

For further informaiton:

www.epa.gov/radon

1-800-767-7236 (1-800-SOS-RADON)

Eddie's Story:

http://www.youtube.com/watch?v=kmOUY2Fc9yU

Please consider having your home tested for Radon.

Radon Action Week

2009-10-19T22:37:00.005-04:00

Governor Granholm has declared the week of October 18-24, 2009, to be Radon Action Week in Michigan.

Nearly 1 in 15 homes in the United States would be expected to have an elevated indoor radon level, and in Michigan approximately 1 in 8 homes would be expected to have a radon problem. That number may be higher in Michigan's southern-most counties, from Kalamazoo to Washtenaw counties south.

Radon is a tasteless, odorless, colorless, radioactive gas that is naturally occurring in soil and rock. It enters buildings through openings in the foundation floor or walls (sump openings; crawl spaces; floor/wall joints; cracks; space around plumbing, wiring, or ductwork; etc.).

Radon has no warning symptoms (it does not cause headaches, nausea, fatigue, etc.); the only known health effect is an increased risk of lung cancer!

Any home could have a radon problem. It doesn’t matter whether it’s old or new; energy efficient or drafty; or built over a basement, over a crawlspace, or built slab-on-grade; it could have a problem. All homes should be tested. The only way to know if your home has a radon problem is to test it!

Radon is the second leading cause of lung cancer in the United States, resulting in more than 21,000 new lung cancers each year (more than 600 of those in Michigan alone!). EPA and the Surgeon General recommend that all homes be tested for Radon. Protect yourself and your loved ones! Test your home for radon today! 1-800-RADON GAS/1-800-723-6642 OR www.michigan.gov/deqradon

An Argument in Favor of Licensing

2009-08-01T13:21:00.003-04:00

One argument often brought up in favor of home inspector licensing is that licensing gives the consumer relief from bad home inspectors, because it allows the State to take action against a bad home inspector if licensing regulations are violated. Opposition to that argument often comes from those who are members of professional associations which require certain standards be met or maintained for continued membership or certification. However, this is dependent on enforcement of those standards. Here are a few examples:

Not too long ago, a story was related to me by a client who had recently experienced a bad home inspection, along with a particularly grievous insult after the fact. He had retained a home inspector to conduct an inspection for the fee of $225.00. During the inspection, which he attended, the home inspector failed to note a stain on the ceiling. The client took note, and brought this stain to the inspector's attention. The inspector assured the client that the stain was old, and would be fine. On the assurances of the home inspector, the client proceeded to closing. On final walk-through the day before closing, the client noted that the "old stain" had increased in size significantly, and was now growing mold. The client backed out of the deal. The sellers sued for breach of contract. In the court affidavit, the inspector stated that he had indicated the the stain was damp, and required immediate attention. Based on this false affidavit, the court awarded for the seller in the amount of $25,000.00. Thus, this fellow's home inspection ended up costing him $25,225.00. The client felt he had no recourse. He did not have information about the home inspector's certification, nor information on how to file a complaint. In addition, it was his opinion that the certifying association would take no putative action.

In another case, where the home inspector is certified by the same association, documentation and public information reveal that the home inspector provides bids for work after inspecting residential properties, in direct conflict with that association's code of ethics. What's more, this inspector is married to a real estate agent - information that is not disclosed to potential clients, but may be important for clients to know. While it is widely known that this is happening within the local professional home inspection community, no complaints have been filed, and the practice continues.

In both of these cases, licensing may provide the only means to eliminate unethical behavior. Without proper and effective policing from within, any association can claim to be regulating its members, but in reality they are simply covering up incompetent, unethical, and dangerous practices. Before accepting the claim that an organization does police its membership, proof should be on hand demonstrating that they do in fact do this. Cases should be made public, and the docket should show regular and current activity. Without valid proof, the claim of self-policing is mute, and should not be accepted as an argument against protecting the public through home inspector licensing.

Legislation

2009-07-18T13:23:00.001-04:00

Michigan does not currently require home inspectors to be licensed. When looking for a home inspector, be sure to verify what license is being referred to when a home inspector advertises "licensed". Many home inspectors are licensed builders. Michigan recently changed its builder licensing law to require continuing competency training.

Representative Richard LeBlac of Michigan's 18th District introduced House Bill 4162 earlier this year. This bill is currently being held by the Regulatory Reform Committee. Representative Bert Johnson is chair of this committee.

Senator Glenn Anderson or Michigan's 6th District introduced a companion bill, Senate Bill 0355. This bill is also delayed in the Economic Development and Regulatory Reform committee. Senator Alan Sanborn chairs this committee.

The current bills represent 4 years of hard work on the part of Michigan's Legislature and professional home inspectors working to address the question of licensing. These bills are good legislation. They protect the consumer, and assist the inspector in eliminating conflict of interest issues. The single shortcoming is the absence of a prohibition against real estate agents steering home buyers to specific home inspectors.

To show your support for this legislation, contact your State Senator or Representative. To contact the sponsors of these bills, telephone Richard LeBlanc at 517-373-2576 or 888-737-5325. Senator Glenn Anderson can be reached at 517-373-1707 or 866-262-7306. Let them know that you support this legislation, and would like to see it move out of committee.

Professionalism

2009-06-08T12:30:00.001-04:00

"Whether a person can be deemed a professional is determined by the degree to which he or she has internalized certain values pertinent to the profession. Although there is some disagreement, four areas appear to be important.

Expertise. The professional requires some expertise. This includes specialized knowledge and skills that can be obtained only through training (usually through academic study and experience).
Autonomy. The professional claims autonomy. Professionals reserve the right to decide how their function is to be performed and to be free from restrictions.
Commitment. Professionals feel a commitment to the discipline. They are more likely to identify with members of their profession in other organizations than with their own organization.
Code of ethics. Finally, there is a responsibility to society for the maintenance of professional standards of work. They adhere to professional self-discipline and a code of ethics."

Brown & Harvey, An Experiential Approach to Organization Development, 7th Ed.

Licensing

2009-05-10T14:12:00.000-04:00

Is it time to license home inspectors in Michigan? Some think so, and legislation has been introduced in both houses of the Michigan Legislature. The current bills are fairly well written, and appear to be the best that have been introduced to date. If you favor this legislation, contact your Representative or Senator in Lansing, and ask them to support this legislation.