Page 1 of 43 PROPERTY INSPECTION REPORT COTTON & CO. * 1-888-274-2161 Cotton and Co. LP 2226 Bauer Drive Houston, TX 77080 888.274.2161 Inspected By: JIM LARUE TREC# 8663 Inspection Date: 1/16/2009 Client John Doe Jane Doe Home 12345 GREEN ST (Sample) HOUSTON, TX Real Estate Agent Elisa McNinch The inspection of the property listed above must be performed in compliance with the rules of the Texas Real Estate Commission(TREC). The inspection is of conditions which are present and visible at the time of the inspection, and all of the equipment is operated in normal modes. The inspector must indicate which items are in need of repair or are not functioning and will report on all applicable items required by TREC rules. This report is intended to provide you with information concerning the condition of the property at the time of inspection. Please read the report carefully. If any item is unclear, you should request the inspector to provide clarification. It is recommended that you obtain as much history as is available concerning this property. This historical information may include relocation companies, municipal inspection departments, lenders, insurers, and appraisers. You should attempt to determine whether repairs, renovation, remodeling, additions or other such activities have taken place at this property. Property conditions change with time and use. Since this report is provided for the specific benefit of the client(s), secondary readers of this information should hire a licensed inspector to perform an inspection to meet their specific needs and to obtain current information concerning this property. ADDITIONAL INFORMATION PROVIDED BY INSPECTOR: TERMITE FHA Promulgated by the Texas Real Estate Commission(TREC) P.O. Box 12188, Austin, TX 78711-2188, 1-800-250-8732 or (512)459-6544 (http:\\www.trec.state.tx.us). REI 7A-0 Page 2 of 43 Report Identification 12345 GREEN ST (Sample) Report# 11609-01 Additional pages may be attached to this report. Read them very carefully. This report may not be complete without the attachments. If an item is present in this property but is not inspected, the "NI" column will be checked and an explanation is necessary. Comments may be provided by the inspector whether or not an item is deemed in need of repair. I=Inspected NI=Not Inspected NP=Not Present R=Not Functioning or in Need of Repair CR=Corrected on Reinspection I NI NP R CR Inspection Items I.. STRUCTURAL SYSTEMS / Other A. GRADING and DRAINAGE FOUNDATION: POURED CONCRETE METHOD USED TO OBSERVE CRAWLSPACE: NO CRAWLSPACE ROOF COVERING: METAL- SHINGLE ROOF STRUCTURE: STICK-BUILT, 2 X 6 RAFTERS, 2 X 8 RAFTERS, LATERAL BRACING, PLYWOOD, PALM BRACES, ROOF DECKING IS MISSING"H" CLIPS ROOF-TYPE: GABLE, HIP VENTILATION: RIDGE VENTS, SOFFIT VENTS, TURBINES VIEWED ROOF COVERING FROM: GROUND, Ground via high strength field glasses. INSULATION: BLOWN, BATT, FIBERGLASS R- VALUE: BELOW R-19 WALL STRUCTURE: WOOD, 2 X 4 WOOD, 2 X 6 WOOD, PLATFORM FRAME SIDING STYLE: SHIPLAP SIDING MATERIAL: WOOD FLOOR STRUCTURE: WOOD JOISTS, SLAB, Carpeted, CERAMIC TILE EXTERIOR ENTRY DOORS: WOOD, Glass and Wood WINDOW TYPES: AGED, SINGLE-HUNG, SINGLE PANE, Metal Frame WINDOW MANUFACTURER: SCOTCHCRAFT TYPES OF FIREPLACES: CONVENTIONAL, GAS/LP LOG STARTER OPERABLE FIREPLACES: ONE NUMBER OF WOODSTOVES: ONE CHIMNEY: BRICK, METAL FLUE APPURTENANCE: DECK, STAIRS FENCING: 6" PICKET, WOOD FENCING Comments: Areas of unfavorable grading include: rear of garage and flower beds - a minimum of 4 inches of slab should be showing above grade. Repair as necessary... ( Picture 1 ) Areas of unfavorable grading include: GARAGE REAR AND SIDES. REAR YARD - These areas do not appear to drain water away from home and needs landscaping and drainage corrected. Repair as necessary... ( Picture 2-3 ) A. Picture 1 A. Picture 2 Page 3 of 43 I NI NP R CR Inspection Items A. Picture 3 B. FOUNDATIONS (If all crawlspace areas are not inspected, provide an explanation. An opinion on performance is necessary) Comments: The foundation appears to be functioning as intended, no significant differential settling indicated. The foundation appears to be functioning as intended, significant differential settling is not indicated, however all structures settle and generally uniform settlement is not considered contraindicative. Stability of the foundation is not a value that can be determined from a single evaluation. I recommend that you visit the website www.houston-slab-foundations.info. This website was written specifically for home buyers to provide reliable information concerning slab-on-ground foundations in the Greater Houston Area. The website contains 37 of the most frequently asked questions about the performance of slab-on-ground foundations and how foundation performance is typically evaluated. Corner tension shearing is observed (Cosmetic) in concrete slab. Repair as necessary.( Picture 1 ) B. Picture 1 C. ROOF COVERING (If the roof is inaccessible, report the method used to inspect) Comments: Tree debris at the front valley needs to be removed. Repair as necessary... ( Picture 1 ) Roof jacks show minor damage due to squirrels. Jacks have damage at the tops and base. I recommend that these jacks be sealed and if needed replaced. Repair as necessary... ( Picture 2 ) Rear roof line ties in at the base of the window frame. I recommend that this area be flashed and sealed as this is an area that may become prone to leak as exterior finishes age. Repair as necessary... ( Picture 3 ) Lifted shingles noted at the front of the residence at the entry porch roof line. Repair as necessary... ( Picture 4) Page 4 of 43 I NI NP R CR Inspection Items C. Picture 1 C. Picture 2 C. Picture 3 C. Picture 4 D. ROOF STRUCTURE AND ATTIC (If the attic is inaccessible, report the method used to inspect) Comments: Pull down stairs is un-insulated and the unit is in need of servicing. Bolts have come loose that hold the unit together. Repair as necessary... ( Picture 1-2) Attic purlins are missing purlins struts and purlins are under-sized. Struts have been removed and should be replaced as purlins provide support to roof rafters in an attempt to limit deflection or sagging. Repair as necessary... Page 5 of 43 I NI NP R CR Inspection Items D. Picture 1 D. Picture 2 E. WALLS (interior and Exterior) Comments: Exterior siding and trim is starting to show age and is in need of repainting and resealing at joints and around window frames. Repair as necessary... Minor to moderate cubical rot noted in several areas at the exterior of the residence. Trim boards at the splash zones are damaged and have areas that are exposed. Repair as necessary... Wood trim at the front of the residence is in contact with the roof covering and has become damaged due to cubical rot. A one inch gap between wood trim and roof covering is needed to prevent this and to allow for an additional roof cover to be applied if needed. I recommend that when these boards are replaced that the needed space be given to prevent this in the future. Repair as necessary... ( Picture 1-2 ) Fascia boards at the left side of the residence. Mid-span is damaged due to cubical rot at the butt joint between the boards. Repair as necessary... ( Picture 3 ) Steel brick lentils over windows and doors at the exterior are starting to rust and are in need of paint. Repair as necessary... ( Picture 4 ) Open areas between the brick and wood trim at the exterior are in need of sealing. These areas can allow moisture and un-wanted pests to enter the residence. Repair as necessary... ( Picture 5 ) Minor cracks noted in the mortar joints at the front entry of the residence. These cracks are common and due to routine settlement. Repair as necessary... ( Picture 6-7 ) Exterior siding on the garage is damaged at the splash zones and the rear sections of the siding have been replaced with metal flashing. Repair as necessary... ( Picture 8-9 ) Rear of the garage has a hole in the siding that has been taped over and painted. Repair as necessary... ( Picture 10 ) Un-painted and exposed wood at the rear of the garage around the window frames. Repair as necessary... ( Picture 11 ) Siding corner 1x4 boards at the second floor are loose and need to be re-caulked and painted. Repair as necessary... ( Picture 12 ) Fascia is in contact with the roof covering at the rear of the residence and has started to become damaged due to cubical rot. Wood members in these areas need to be cut back to limit water wicking and damage. Repair as necessary... ( Picture 13 ) Page 6 of 43 I NI NP R CR Inspection Items Open hole in the siding at the rear of the residence at the hose bib has a piece of flashing that has been added to this area; however, the area above the bib still remains open. Repair as necessary... ( Picture 14 ) Damaged sheet rock noted at the master bathroom between the tub and shower areas. Repair as necessary... ( Picture 15 ) Loose base board noted in the master water closet on the left side of the commode. Repair as necessary... ( Picture 16 ) Loose trim work noted in the family room. Left of the entry to at the fireplace. Repair as necessary... ( Picture 17 ) Family room door trim is not set to the door jamb. A one inch gap is present between the jamb and the wood trim. Repair as necessary... Tile surround at bath tub on wall needs to be re-grouted and sealed (aged) at upstairs hall bath. Repair as necessary... ( Picture 18 ) Unfinished patch work at the hall bedroom on the 2nd floor at the closet. Repair as necessary... ( Picture 19 ) E. Picture 1 E. Picture 2 E. Picture 3 Page 7 of 43 I NI NP R CR Inspection Items E. Picture 4 E. Picture 5 E. Picture 6 E. Picture 7 Page 8 of 43 I NI NP R CR Inspection Items E. Picture 8 E. Picture 9 E. Picture 10 E. Picture 11 Page 9 of 43 I NI NP R CR Inspection Items E. Picture 12 E. Picture 13 E. Picture 14 E. Picture 15 Page 10 of 43 I NI NP R CR Inspection Items E. Picture 16 E. Picture 17 E. Picture 18 E. Picture 19 F. DOORS (Interior and Exterior) Page 11 of 43 I NI NP R CR Inspection Items Comments: Garage door unit is dented and inoperative. Repair as necessary... ( Picture 1 ) Side entry door unit to the garage is in need of adjustment. Door is in contact with the top of the jamb. I recommend that this unit have a threshold installed as the garage has been finished out and the bottom of the door is open to the exterior. Repair as necessary... ( Picture 2 ) All exterior door units are in need of new weatherstripping. All exterior door units show areas that are open or will not seal. Repair as necessary... ( Picture 3 ) Entry door to the family room has a gap between the door jamb and door trim. Repair as necessary... ( Picture 4) Laundry room door unit is missing. Repair as necessary... ( Picture 5 ) Double door units at the entry are in need of adjustment. Doors are in contact with each other at the tops of the units. Repair as necessary... ( Picture 6 ) Several areas have missing or damaged door stops throughout the residence. Repair as necessary... ( Picture 7 ) Bedroom entry door unit ( Purple room) is in need of adjustment. Door is in contact with jamb. Repair as necessary... ( Picture 8 ) Bi-fold door units in upstairs bedroom (Green room) are in contact with carpet. Repair as necessary... ( Picture 9) F. Picture 1 F. Picture 2 Page 12 of 43 I NI NP R CR Inspection Items F. Picture 3 F. Picture 4 F. Picture 5 Page 13 of 43 I NI NP R CR Inspection Items F. Picture 6 F. Picture 7 F. Picture 8 Page 14 of 43 I NI NP R CR Inspection Items F. Picture 9 G. CEILING and FLOORS Comments: Several areas throughout the residence have water stains in the ceiling. These areas were checked with a moisture meter and levels were found to be normal. Dining room ceiling is water stained. Repair as necessary... ( Picture 1 ) Minor separation in the tape joint noted in the dining room ceiling. Repair as necessary... ( Picture 2 ) Master bedroom ceiling is water stained in the rear corner. Repair as necessary... ( Picture 3 ) Visible touch-ups in the paint have been done in the master bathroom ceiling. Repair as necessary... ( Picture 4) Several hollow tile noted in the master bathroom and the entry. I recommend that these tile be monitored and if needed repaired or replaced. Repair as necessary... ( Picture 5-6 ) Carpet is stained and is damaged at in high traffic areas throughout the residence. Repair as necessary... ( Picture 7-8) 2nd floor hall bath tile at the floor is elevated as you enter the water closet. This can become a tripping hazard. Repair as necessary... ( Picture 9 ) Cracks in tile noted at the kitchen and living room. Repair as necessary... ( Picture 10-11 ) G. Picture 1 G. Picture 2 Page 15 of 43 I NI NP R CR Inspection Items G. Picture 3 G. Picture 4 G. Picture 5 G. Picture 6 Page 16 of 43 I NI NP R CR Inspection Items G. Picture 7 G. Picture 8 G. Picture 9 G. Picture 10 Page 17 of 43 I NI NP R CR Inspection Items G. Picture 11 H. WINDOWS Comments: Tracks and glides should be thoroughly cleaned to preserve operation. Glazing is slightly deteriorated, recommend replacement as necessary. Most windows are missing or have damaged screens. Repair as necessary... ( Picture 1-2 ) Window frames at the exterior brick are in need of re-sealing. Caulking has aged and several areas have openings or holes. Repair as necessary... ( Picture 3 ) H. Picture 1 H. Picture 2 H. Picture 3 I. FIREPLACE/CHIMNEY Page 18 of 43 I NI NP R CR Inspection Items Comments: Flashing at the chimney is aged and in need of re-sealing. Remember to seal all seams. Repair as necessary... ( Picture 1 ) I. Picture 1 J. PORCHES, DECKS AND CARPORTS (Attached) Comments: Porch post shows evidence of cubical rot and need to be sealed at the tops. Repair as necessary... ( Picture 1 ) J. Picture 1 K. OTHER Comments: Driveway sections have settlement cracks that are common for their age. No heaving was noted in any section at the time of this inspection. As these cracks open up, I recommend that they be sealed to limit moisture incursion. Repair as necessary... ( Picture 1 ) A/C in the garage has been removed. Repair as necessary... ( Picture 2 ) Garage has been built out. Access to the garage through the main door is not possible. Repair as necessary... ( Picture 3 ) An addition has been added to the side of the garage. This addition has limited clearance from the ground of 1 to 2 inches. The roof covering for this structure is missing or damaged and the wall lumber has become exposed and weathered. Repair as necessary... ( Picture 4-5-6 ) Debris at the rear of the residence needs to be removed. Wood and other items are good attractions for wood destroying insects and un-wanted pests. Repair as necessary... ( Picture 7 ) Open expansion joints should be sealed. Sections between the house and the garage are open. Repair as necessary... ( Picture 8 ) Residence was treated for subterranean termites 4-8-97. ( Picture 9 ) Page 19 of 43 I NI NP R CR Inspection Items K. Picture 1 K. Picture 2 K. Picture 3 K. Picture 4 Page 20 of 43 I NI NP R CR Inspection Items K. Picture 5 K. Picture 6 K. Picture 7 K. Picture 8 Page 21 of 43 I NI NP R CR Inspection Items K. Picture 9 L. TRIM & MOLDING WORK Comments: Stair spindles do not meet today's current code. Spacing between spindles is greater than 4 inches. At the time that this residence was constructed, this was common and met the requirements for that time. I recommend that at some point these spindles be updated to meet today's current code. Repair as necessary... ( Picture 1 ) Handrail is loose at the bottom of the stairs. Repair as necessary... ( Picture 2 ) Several closets throughout the residence are missing closet rods. Repair as necessary... ( Picture 3 ) L. Picture 1 L. Picture 2 Page 22 of 43 I NI NP R CR Inspection Items L. Picture 3 M. PLANTS, SHRUBS & TREE'S Comments: Tree limbs at the front of the residence are within 3 feet of the roofline. I recommend that trees be trimmed back 3 to 4 feet to limit their contact with the roof covering. Repair as necessary... ( Picture 1 ) Tree limb was laying in the front yard at the time of this inspection. Repair as necessary... ( Picture 2 ) M. Picture 1 M. Picture 2 Page 23 of 43 Report Identification 12345 GREEN ST (Sample) Report# 11609-01 I=Inspected I NI NI=Not Inspected NP R NP=Not Present R=Not Functioning or in Need of Repair CR CR=Corrected on Reinspection Inspection Items II.. ELECTRICAL SYSTEMS A. SERVICE ENTRANCE AND PANELS ELECTRICAL CONDUCTORS: BELOW GROUND PANEL CAPACITY: 150 AMP PANEL TYPE: CIRCUIT BREAKERS BRANCH WIRE 15 and 20 AMP: COPPER ELEC. PANEL MANUFACTURER: BRYANT Comments: Some labels are present, but illegible or confusing. Recommend correcting for safety reasons. Repair as necessary... ( Picture 1 ) A. Picture 1 B. BRANCH CIRCUITS-CONNECTED DEVICES AND FIXTURES (Report as in need of repair the lack of ground fault circuit protection where required.) Comments: Garage electrical outlets at the ceiling and wall are missing switchplate covers and electrical fixtures. Loose or open wiring was found in the ceiling locations. I recommend that either new coverplates or fixtures be installed or that these areas be plated off. Repair as necessary... ( Picture 1 ) Smoke detectors were not found in bedrooms throughout the residence. Repair as necessary... ( Picture 2 ) Unguarded bulbs found in closets throughout structure - fire hazard. Repair as necessary... ( Picture 3 ) Master bath GFCI outlet - cover plate is damaged. Repair as necessary... ( Picture 4 ) Family room outlets have open grounds and appear to be wired in conjunction with the ceiling fan. I recommend that these items be corrected a licensed electrician. Repair as necessary... ( Picture 5 ) Open junction box found in attic space. Repair as necessary... ( Picture 6 ) B. Picture 1 Page 24 of 43 I NI NP R CR Inspection Items B. Picture 2 B. Picture 3 B. Picture 4 B. Picture 5 Page 25 of 43 I NI NP R CR Inspection Items B. Picture 6 Page 26 of 43 Report Identification 12345 GREEN ST (Sample) Report# 11609-01 I=Inspected I NI NI=Not Inspected NP R NP=Not Present R=Not Functioning or in Need of Repair CR CR=Corrected on Reinspection Inspection Items III.. HEATING, VENTILATION, AND AIR CONDITIONING SYSTEMS A. HEATING EQUIPMENT HEAT TYPE: FORCED AIR ENERGY SOURCE: GAS NUMBER OF HEAT SYSTEMS (excluding wood): ONE HEAT SYSTEM BRAND: UNKNOWN COOLING EQUIPMENT TYPE: AIR CONDITIONER UNIT COOLING EQUIPMENT ENERGY SOURCE: ELECTRICITY NUMBER OF A/C UNITS: ONE CENTRAL AIR MANUFACTURER: TRANE DUCTWORK: INSULATED FILTER TYPE: DISPOSABLE Comments: Heater is aged and shows excessive scaling at the platform in front of the unit. Burner compartment had uneven and multi-colored flames when tested at the time of this inspection. I recommend that this unit be evaluated for servicability by a licensed HVAC technician. Repair as necessary... ( Picture 1,2 ) Vent stack for heater is in contact with combustibles at the roof-line. Vent pipe is unstrapped. Repair as necessary... ( Picture 3 ) A. Picture 1 A. Picture 2 A. Picture 3 B. COOLING EQUIPMENT Comments: Page 27 of 43 I NI NP R CR Inspection Items Vapor return line at the exterior unit (condenser) is aged and in need of replacement. Repair as necessary... ( Picture 1 ) Exterior A/C unit data info.( Picture 2 ) B. Picture 1 B. Picture 2 C. DUCTS AND VENTS Comments: Return air grill at second floor is bent. Repair as necessary... ( Picture 1 ) Trunk line in attic leading to unit for the return air crosses the attic space at the backside of the attic access. No access is possible to the water heater without damaging this ductwork. Prior damage to ductwork was noted at the time of this inspection. I recommend that this ducting be re-routed to provide clear and unobstructed access to the water heater. Additionally, any ductwork that is in direct contact with ceiling joists (resting on) should be elevated and strapped in place. Repair as necessary... C. Picture 1 Page 28 of 43 Report Identification 12345 GREEN ST (Sample) Report# 11609-01 I=Inspected I NI NI=Not Inspected NP R NP=Not Present R=Not Functioning or in Need of Repair CR CR=Corrected on Reinspection Inspection Items IV.. PLUMBING SYSTEM A. WATER SUPPLY SYSTEM AND FIXTURES WATER SOURCE: PUBLIC PLUMBING SUPPLY: COPPER DISTRIBUTION: COPPER PLUMBING WASTE: PVC WASHER DRAIN SIZE: 2" DIAMETER WATER HEATER POWER SOURCE: GAS (QUICK RECOVERY) MANUFACTURER: BRADFORD-WHITE CAPACITY: 40 Gallon Comments: Vacuum Breakers (anti-siphon) missing from all exterior hose bibs. Repair as needed..( Picture 1 ) Hose bibs at exterior of residence are in need of insulation. Repair as necessary... Main water line to residence is in need of new insulation. Repair as necessary... ( Picture 2 ) Hose bib at rear of house is facing upward. Repair as necessary... ( Picture 3 ) Half bath sink drain was stuck and sink pull for stopper was inoperative. Repair as necessary... ( Picture 4 ) Half bath commode is loose at floor. Repair as necessary... ( Picture 5 ) Master bath vanity sink at the far right side - sink drain was stuck and sink pull for stopper was inoperative. Additionally, this vanity had an active water leak at the cold side control knob. Repair as necessary... ( Picture 6) Second floor hall bath - Shower control button is leaking water when depressed. Repair as necessary... ( Picture 7 ) A. Picture 1 A. Picture 2 Page 29 of 43 I NI NP R CR Inspection Items A. Picture 3 A. Picture 4 A. Picture 5 A. Picture 6 A. Picture 7 B. DRAINS, WASTES, VENTS Comments: Note: In addition, even though a test of lavatories, tubs, and toilets did not reveal any slow drains, this does not preclude the potential for blockages in the main routing to the sewer. Examination of this piping is beyond the scope of a typical property inspection. C. WATER HEATER EQUIPMENT (Report as in need of repair those conditions specifically listed as recognized hazards by TREC Rules) Comments: Page 30 of 43 I NI NP R CR Inspection Items NO ACCESS TO UNIT WAS POSSIBLE DUE TO THE ROUTING OF THE A/C DUCTING IN THE ATTIC SPACE. UNIT WAS NOT LIT AT THE TIME OF THIS INSPECTION AND NO EVALUATION WAS POSSIBLE OF IT AND/OR ANY SYSTEMS ASSOCIATED WITH OR REQUIRING HOT WATER.( Picture 1 ) Vent pipe for water heater appears to be single wall pipe that is not secure at the roof line and piping does not transition above the roof the required 24 inches. Repair as necessary... ( Picture 2 ) I recommend that this unit be evaluated by a licensed plumber and the necessary corrections be made. Roof decking is discolored due to excessive heat above this unit. Repair as necessary... ( Picture 3 ) C. Picture 1 C. Picture 2 C. Picture 3 D. HYDRO-THERAPY EQUIPMENT Comments: Master bath tub (whirlpool tub) is void of GFCI protection and does not meet today's current code. Repair as necessary... ( Picture 1 ) Page 31 of 43 I NI NP R CR Inspection Items D. Picture 1 E. Gas Lines Comments: Uncapped gas valve in laundry room - gas valves for dryers and other appliances that are not in use should be sealed off to prevent accidental discharge of gas into the living quarters when not in use. Repair as necessary... Page 32 of 43 Report Identification 12345 GREEN ST (Sample) Report# 11609-01 I=Inspected I NI NI=Not Inspected NP R NP=Not Present R=Not Functioning or in Need of Repair CR CR=Corrected on Reinspection Inspection Items V.. APPLIANCES A. DISHWASHER DISHWASHER: WHIRLPOOL DISPOSER: KENMORE EXHAUST/RANGE: VENTED, JENN AIR RANGE/OVEN: ELECTRIC OVEN, ELECTRIC COOKTOP, JENN AIR BUILT-IN MICROWAVE: JENN AIR TRASH COMPACTORS: NONE EXHAUST FAN TYPES: FAN WITH LIGHT GARAGE DOOR OPERATOR MANUFACTURER: N/A DRYER VENT: METAL or METAL HUB Comments: Functioning as intended. B. FOOD WASTE DISPOSER Comments: Unit is aged and making noise. While unit could last for some time, this unit should be a candidate for replacement. Additionally, the guard is missing from the sink drain. Repair as necessary... B. Picture 1 C. RANGES/OVENS/COOKTOPS Comments: Functioning as intended. D. MICROWAVE COOKING EQUIPMENT Comments: Turn table for unit was inoperative at the time of this inspection. Repair as necessary... ( Picture 1 ) D. Picture 1 E. BATHROOM EXHAUST FANS AND/OR HEATERS Comments: Functioning as intended. F. DOOR BELL AND CHIMES Comments: Functioning as intended. Page 33 of 43 I NI NP R CR Inspection Items G. DRYER VENTS Comments: Exterior dryer vent is make-shift in its design. I recommend that the proper exterior dryer vent be installed. In the current installation, this area is open to the exterior and can allow unwanted pests and insects access. Repair as necessary... ( Picture 1 ) G. Picture 1 Page 34 of 43 Report Identification 12345 GREEN ST (Sample) Report# 11609-01 I=Inspected I NI NI=Not Inspected NP R NP=Not Present R=Not Functioning or in Need of Repair CR CR=Corrected on Reinspection Inspection Items VI.. LAWN SPRINKLERS A. SPRINKLER OPERATION Comments: Sprinkler system was inoperative at the time of this inspection. The controller for the system was found on an exterior wall at the rear of the residence. This type of controller is intended for indoor use or to be installed in a dry area. I recommend that this system be inspected by a licensed irrigator or a company that provides servicing to sprinkler systems. All necessary repairs should be done at that time. Repair as necessary... ( Picture 1 ) A. Picture 1 Prepared Using HomeGauge http://www.homegauge.com SHGI (c) 2000-2004 : Licensed To Cotton and Co. LP Page 35 of 43 Date: 1/16/2009 Property: 12345 GREEN ST (Sample) HOUSTON, TX Time: 2:50 PM Report ID: 11609-01 Customer: John Doe Jane Doe Real Estate Professional: Elisa McNinch Homes more than 5 years old may have areas that are not current in code requirements. This is not a new home and this home cannot be expected to meet current code standards. While this inspection makes every effort to point out safety issues, it does not inspect for code. It is common that homes of any age will have had repairs performed and some repairs may not be in a workmanlike manner. Some areas may appear less than standard. This inspection looks for items that are not functioning as intended. It does not grade the repair. It is sometimes common to see old plumbing or mixed materials. Sometimes water signs in crawlspaces or basements could be years old from a problem that no longer exists. Or, it may still need further attention and repair. Determining this can be difficult in a lived in home. Sometimes homes have signs of damage to wood from wood eating insects. Having this is typical and fairly common. If the home inspection reveals signs of damage you should have a pest control company inspect further for activity and possible hidden damage. The home inspection does not look for possible manufacturer re-calls on components that could be in this home. Always consider hiring the appropriate expert for any repairs or further inspection. Client Is Present: Yes Age Of Home: Over 10 Years Radon Test: No Water Test: No Weather: Cloudy Temperature: Below 65 Rain in last 3 days: No Page 36 of 43 General Summary Cotton and Co. LP 2226 Bauer Drive Houston, TX 77080 888.274.2161 Customer John Doe Jane Doe Property Address 12345 GREEN ST (Sample) HOUSTON, TX I. STRUCTURAL SYSTEMS / Other A. GRADING and DRAINAGE Inspected, Not Functioning or in Need of Repair Areas of unfavorable grading include: rear of garage and flower beds - a minimum of 4 inches of slab should be showing above grade. Repair as necessary... ( Picture 1 ) Areas of unfavorable grading include: GARAGE REAR AND SIDES. REAR YARD - These areas do not appear to drain water away from home and needs landscaping and drainage corrected. Repair as necessary... ( Picture 2-3 ) FOUNDATIONS (If all crawlspace areas are not inspected, provide an explanation. An opinion on performance is necessary) Inspected, Not Functioning or in Need of Repair B. The foundation appears to be functioning as intended, no significant differential settling indicated. The foundation appears to be functioning as intended, significant differential settling is not indicated, however all structures settle and generally uniform settlement is not considered contraindicative. Stability of the foundation is not a value that can be determined from a single evaluation. I recommend that you visit the website www.houston-slab-foundations.info. This website was written specifically for home buyers to provide reliable information concerning slab-on-ground foundations in the Greater Houston Area. The website contains 37 of the most frequently asked questions about the performance of slab-on-ground foundations and how foundation performance is typically evaluated. C. Corner tension shearing is observed (Cosmetic) in concrete slab. Repair as necessary.( Picture 1 ) ROOF COVERING (If the roof is inaccessible, report the method used to inspect) Inspected, Not Functioning or in Need of Repair Tree debris at the front valley needs to be removed. Repair as necessary... ( Picture 1 ) Roof jacks show minor damage due to squirrels. Jacks have damage at the tops and base. I recommend that these jacks be sealed and if needed replaced. Repair as necessary... ( Picture 2 ) Rear roof line ties in at the base of the window frame. I recommend that this area be flashed and sealed as this is an area that may become prone to leak as exterior finishes age. Repair as necessary... ( Picture 3 ) Lifted shingles noted at the front of the residence at the entry porch roof line. Repair as necessary... ( Picture 4 ) ROOF STRUCTURE AND ATTIC (If the attic is inaccessible, report the method used to inspect) Inspected, Not Functioning or in Need of Repair D. Pull down stairs is un-insulated and the unit is in need of servicing. Bolts have come loose that hold the unit together. Repair as necessary... ( Picture 1-2) Attic purlins are missing purlins struts and purlins are under-sized. Struts have been removed and should be replaced as purlins provide support to roof rafters in an attempt to limit deflection or sagging. Repair as necessary... WALLS (interior and Exterior) Inspected, Not Functioning or in Need of Repair E. Exterior siding and trim is starting to show age and is in need of repainting and resealing at joints and around window frames. Repair as necessary... Minor to moderate cubical rot noted in several areas at the exterior of the residence. Trim boards at the splash zones are damaged and have areas that are exposed. Repair as necessary... Wood trim at the front of the residence is in contact with the roof covering and has become damaged due to cubical rot. A one inch gap between wood trim and roof covering is needed to prevent this and to allow for an additional roof cover to be applied if needed. I recommend that when these boards are replaced that the needed space be given to prevent this in the future. Repair as necessary... ( Picture Page 37 of 43 1-2 ) Fascia boards at the left side of the residence. Mid-span is damaged due to cubical rot at the butt joint between the boards. Repair as necessary... ( Picture 3 ) Steel brick lentils over windows and doors at the exterior are starting to rust and are in need of paint. Repair as necessary... ( Picture 4 ) Open areas between the brick and wood trim at the exterior are in need of sealing. These areas can allow moisture and un-wanted pests to enter the residence. Repair as necessary... ( Picture 5 ) Minor cracks noted in the mortar joints at the front entry of the residence. These cracks are common and due to routine settlement. Repair as necessary... ( Picture 6-7 ) Exterior siding on the garage is damaged at the splash zones and the rear sections of the siding have been replaced with metal flashing. Repair as necessary... ( Picture 8-9 ) Rear of the garage has a hole in the siding that has been taped over and painted. Repair as necessary... ( Picture 10 ) Un-painted and exposed wood at the rear of the garage around the window frames. Repair as necessary... ( Picture 11 ) Siding corner 1x4 boards at the second floor are loose and need to be re-caulked and painted. Repair as necessary... ( Picture 12 ) Fascia is in contact with the roof covering at the rear of the residence and has started to become damaged due to cubical rot. Wood members in these areas need to be cut back to limit water wicking and damage. Repair as necessary... ( Picture 13 ) Open hole in the siding at the rear of the residence at the hose bib has a piece of flashing that has been added to this area; however, the area above the bib still remains open. Repair as necessary... ( Picture 14 ) Damaged sheet rock noted at the master bathroom between the tub and shower areas. Repair as necessary... ( Picture 15 ) Loose base board noted in the master water closet on the left side of the commode. Repair as necessary... ( Picture 16 ) Loose trim work noted in the family room. Left of the entry to at the fireplace. Repair as necessary... ( Picture 17 ) Family room door trim is not set to the door jamb. A one inch gap is present between the jamb and the wood trim. Repair as necessary... Tile surround at bath tub on wall needs to be re-grouted and sealed (aged) at upstairs hall bath. Repair as necessary... ( Picture 18 ) Unfinished patch work at the hall bedroom on the 2nd floor at the closet. Repair as necessary... ( Picture 19 ) DOORS (Interior and Exterior) Inspected, Not Functioning or in Need of Repair F. Garage door unit is dented and inoperative. Repair as necessary... ( Picture 1 ) Side entry door unit to the garage is in need of adjustment. Door is in contact with the top of the jamb. I recommend that this unit have a threshold installed as the garage has been finished out and the bottom of the door is open to the exterior. Repair as necessary... ( Picture 2 ) All exterior door units are in need of new weatherstripping. All exterior door units show areas that are open or will not seal. Repair as necessary... ( Picture 3 ) Entry door to the family room has a gap between the door jamb and door trim. Repair as necessary... ( Picture 4 ) Laundry room door unit is missing. Repair as necessary... ( Picture 5 ) Double door units at the entry are in need of adjustment. Doors are in contact with each other at the tops of the units. Repair as necessary... ( Picture 6 ) Several areas have missing or damaged door stops throughout the residence. Repair as necessary... ( Picture 7 ) Bedroom entry door unit ( Purple room) is in need of adjustment. Door is in contact with jamb. Repair as necessary... ( Picture 8 ) Bi-fold door units in upstairs bedroom (Green room) are in contact with carpet. Repair as necessary... ( Picture 9 ) CEILING and FLOORS Inspected, Not Functioning or in Need of Repair G. Several areas throughout the residence have water stains in the ceiling. These areas were checked with a moisture meter and levels were found to be normal. Dining room ceiling is water stained. Repair as necessary... ( Picture 1 ) Minor separation in the tape joint noted in the dining room ceiling. Repair as necessary... ( Picture 2 ) Master bedroom ceiling is water stained in the rear corner. Repair as necessary... ( Picture 3 ) Visible touch-ups in the paint have been done in the master bathroom ceiling. Repair as necessary... ( Picture 4 ) Several hollow tile noted in the master bathroom and the entry. I recommend that these tile be monitored and if needed repaired or replaced. Repair as necessary... ( Picture 5-6 ) Carpet is stained and is damaged at in high traffic areas throughout the residence. Repair as necessary... ( Picture 7-8) 2nd floor hall bath tile at the floor is elevated as you enter the water closet. This can become a tripping hazard. Repair as necessary... ( Picture 9 ) Cracks in tile noted at the kitchen and living room. Repair as necessary... ( Picture 10-11 ) WINDOWS Inspected, Not Functioning or in Need of Repair H. Tracks and glides should be thoroughly cleaned to preserve operation. Glazing is slightly deteriorated, recommend replacement as necessary. Most windows are missing or have damaged screens. Repair as necessary... ( Picture 1-2 ) Window frames at the exterior brick are in need of re-sealing. Caulking has aged and several areas have openings or holes. Repair as necessary... ( Picture 3 ) FIREPLACE/CHIMNEY Inspected, Not Functioning or in Need of Repair I. J. Flashing at the chimney is aged and in need of re-sealing. Remember to seal all seams. Repair as necessary... ( Picture 1 ) PORCHES, DECKS AND CARPORTS (Attached) Inspected, Not Functioning or in Need of Repair K. Porch post shows evidence of cubical rot and need to be sealed at the tops. Repair as necessary... ( Picture 1 ) OTHER Inspected, Not Functioning or in Need of Repair Driveway sections have settlement cracks that are common for their age. No heaving was noted in any section at the time of this inspection. Page 38 of 43 As these cracks open up, I recommend that they be sealed to limit moisture incursion. Repair as necessary... ( Picture 1 ) A/C in the garage has been removed. Repair as necessary... ( Picture 2 ) Garage has been built out. Access to the garage through the main door is not possible. Repair as necessary... ( Picture 3 ) An addition has been added to the side of the garage. This addition has limited clearance from the ground of 1 to 2 inches. The roof covering for this structure is missing or damaged and the wall lumber has become exposed and weathered. Repair as necessary... ( Picture 4-5-6 ) Debris at the rear of the residence needs to be removed. Wood and other items are good attractions for wood destroying insects and unwanted pests. Repair as necessary... ( Picture 7 ) Open expansion joints should be sealed. Sections between the house and the garage are open. Repair as necessary... ( Picture 8 ) Residence was treated for subterranean termites 4-8-97. ( Picture 9 ) TRIM & MOLDING WORK Inspected, Not Functioning or in Need of Repair L. Stair spindles do not meet today's current code. Spacing between spindles is greater than 4 inches. At the time that this residence was constructed, this was common and met the requirements for that time. I recommend that at some point these spindles be updated to meet today's current code. Repair as necessary... ( Picture 1 ) Handrail is loose at the bottom of the stairs. Repair as necessary... ( Picture 2 ) Several closets throughout the residence are missing closet rods. Repair as necessary... ( Picture 3 ) PLANTS, SHRUBS & TREE'S Inspected, Not Functioning or in Need of Repair M. Tree limbs at the front of the residence are within 3 feet of the roofline. I recommend that trees be trimmed back 3 to 4 feet to limit their contact with the roof covering. Repair as necessary... ( Picture 1 ) Tree limb was laying in the front yard at the time of this inspection. Repair as necessary... ( Picture 2 ) II. ELECTRICAL SYSTEMS A. B. SERVICE ENTRANCE AND PANELS Inspected, Not Functioning or in Need of Repair Some labels are present, but illegible or confusing. Recommend correcting for safety reasons. Repair as necessary... ( Picture 1 ) BRANCH CIRCUITS-CONNECTED DEVICES AND FIXTURES (Report as in need of repair the lack of ground fault circuit protection where required.) Inspected, Not Functioning or in Need of Repair Garage electrical outlets at the ceiling and wall are missing switchplate covers and electrical fixtures. Loose or open wiring was found in the ceiling locations. I recommend that either new coverplates or fixtures be installed or that these areas be plated off. Repair as necessary... ( Picture 1 ) Smoke detectors were not found in bedrooms throughout the residence. Repair as necessary... ( Picture 2 ) Unguarded bulbs found in closets throughout structure - fire hazard. Repair as necessary... ( Picture 3 ) Master bath GFCI outlet - cover plate is damaged. Repair as necessary... ( Picture 4 ) Family room outlets have open grounds and appear to be wired in conjunction with the ceiling fan. I recommend that these items be corrected a licensed electrician. Repair as necessary... ( Picture 5 ) Open junction box found in attic space. Repair as necessary... ( Picture 6 ) III. HEATING, VENTILATION, AND AIR CONDITIONING SYSTEMS A. HEATING EQUIPMENT Inspected, Not Functioning or in Need of Repair Heater is aged and shows excessive scaling at the platform in front of the unit. Burner compartment had uneven and multi-colored flames when tested at the time of this inspection. I recommend that this unit be evaluated for servicability by a licensed HVAC technician. Repair as necessary... ( Picture 1,2 ) Vent stack for heater is in contact with combustibles at the roof-line. Vent pipe is unstrapped. Repair as necessary... ( Picture 3 ) COOLING EQUIPMENT Inspected, Not Functioning or in Need of Repair B. C. Vapor return line at the exterior unit (condenser) is aged and in need of replacement. Repair as necessary... ( Picture 1 ) Exterior A/C unit data info.( Picture 2 ) DUCTS AND VENTS Inspected, Not Functioning or in Need of Repair Return air grill at second floor is bent. Repair as necessary... ( Picture 1 ) Trunk line in attic leading to unit for the return air crosses the attic space at the backside of the attic access. No access is possible to the water heater without damaging this ductwork. Prior damage to ductwork was noted at the time of this inspection. I recommend that this ducting be re-routed to provide clear and unobstructed access to the water heater. Additionally, any ductwork that is in direct contact with ceiling joists (resting on) should be elevated and strapped in place. Repair as necessary... IV. PLUMBING SYSTEM A. WATER SUPPLY SYSTEM AND FIXTURES Inspected, Not Functioning or in Need of Repair Vacuum Breakers (anti-siphon) missing from all exterior hose bibs. Repair as needed..( Picture 1 ) Hose bibs at exterior of residence are in need of insulation. Repair as necessary... Main water line to residence is in need of new insulation. Repair as necessary... ( Picture 2 ) Page 39 of 43 Hose bib at rear of house is facing upward. Repair as necessary... ( Picture 3 ) Half bath sink drain was stuck and sink pull for stopper was inoperative. Repair as necessary... ( Picture 4 ) Half bath commode is loose at floor. Repair as necessary... ( Picture 5 ) Master bath vanity sink at the far right side - sink drain was stuck and sink pull for stopper was inoperative. Additionally, this vanity had an active water leak at the cold side control knob. Repair as necessary... ( Picture 6 ) Second floor hall bath - Shower control button is leaking water when depressed. Repair as necessary... ( Picture 7 ) DRAINS, WASTES, VENTS Inspected B. C. Note: In addition, even though a test of lavatories, tubs, and toilets did not reveal any slow drains, this does not preclude the potential for blockages in the main routing to the sewer. Examination of this piping is beyond the scope of a typical property inspection. WATER HEATER EQUIPMENT (Report as in need of repair those conditions specifically listed as recognized hazards by TREC Rules) Inspected, Not Functioning or in Need of Repair NO ACCESS TO UNIT WAS POSSIBLE DUE TO THE ROUTING OF THE A/C DUCTING IN THE ATTIC SPACE. UNIT WAS NOT LIT AT THE TIME OF THIS INSPECTION AND NO EVALUATION WAS POSSIBLE OF IT AND/OR ANY SYSTEMS ASSOCIATED WITH OR REQUIRING HOT WATER.( Picture 1 ) Vent pipe for water heater appears to be single wall pipe that is not secure at the roof line and piping does not transition above the roof the required 24 inches. Repair as necessary... ( Picture 2 ) I recommend that this unit be evaluated by a licensed plumber and the necessary corrections be made. Roof decking is discolored due to excessive heat above this unit. Repair as necessary... ( Picture 3 ) HYDRO-THERAPY EQUIPMENT Inspected, Not Functioning or in Need of Repair D. E. Master bath tub (whirlpool tub) is void of GFCI protection and does not meet today's current code. Repair as necessary... ( Picture 1 ) Gas Lines Inspected, Not Functioning or in Need of Repair Uncapped gas valve in laundry room - gas valves for dryers and other appliances that are not in use should be sealed off to prevent accidental discharge of gas into the living quarters when not in use. Repair as necessary... V. APPLIANCES B. FOOD WASTE DISPOSER Inspected, Not Functioning or in Need of Repair Unit is aged and making noise. While unit could last for some time, this unit should be a candidate for replacement. Additionally, the guard is missing from the sink drain. Repair as necessary... MICROWAVE COOKING EQUIPMENT Inspected, Not Functioning or in Need of Repair D. G. Turn table for unit was inoperative at the time of this inspection. Repair as necessary... ( Picture 1 ) DRYER VENTS Inspected, Not Functioning or in Need of Repair Exterior dryer vent is make-shift in its design. I recommend that the proper exterior dryer vent be installed. In the current installation, this area is open to the exterior and can allow unwanted pests and insects access. Repair as necessary... ( Picture 1 ) VI. LAWN SPRINKLERS A. SPRINKLER OPERATION Inspected, Not Functioning or in Need of Repair Sprinkler system was inoperative at the time of this inspection. The controller for the system was found on an exterior wall at the rear of the residence. This type of controller is intended for indoor use or to be installed in a dry area. I recommend that this system be inspected by a licensed irrigator or a company that provides servicing to sprinkler systems. All necessary repairs should be done at that time. Repair as necessary... ( Picture 1 ) Prepared Using HomeGauge http://www.homegauge.com SHGI (c) 2000-2004 : Licensed To Cotton and Co. LP Page 40 of 43 Cotton and Co. LP JIM LARUE TREC# 8663 2226 Bauer Drive Houston, TX 77080 888.274.2161 Page 41 of 43 INVOICE Cotton and Co. LP 2226 Bauer Drive Houston, TX 77080 888.274.2161 By: JIM LARUE TREC# 8663 Activity Date: 1/16/2009 Report ID: 11609-01 Customer Info: Location: John Doe Jane Doe 12345 GREEN ST (Sample) HOUSTON, TX Customer's Representative: Elisa McNinch Fees: Service Termite Inspection Heated Sq Feet 2,001 - 2,500 Price 85.00 270.00 Amount 1 1 Sub-Total 85.00 270.00 Tax $0.00 Total Price $355.00 Payment Method:Credit Card Payment Status:Paid Note: Page 42 of 43 INSPECTION AGREEMENT AGREEMENT The parties agree to the following: in consideration for the fee received, Cotton & Company is providing (at the request of the client) a real estate inspector to perform an inspection on the property located as herein described. The cursory limited visual inspection pertains solely to items listed on the inspection report that are readily accessible at the time of inspection. The inspection to be done under this agreement is only an attempt to identify items in need of immediate repair or specific recognized hazards as defined by T.R.E.C. The presence of Client(s) has been requested and encouraged during the inspection and shall be at Client(s) own risk. This inspection is supplemental to any real estate transfer or seller's Disclosure Statement and shall not be used as a substitute for such disclosure statement(s). The Client(s) agree that the Texas Real Estate Commission (including any reporting departures made by Cotton & Company) defines the scope of the inspection to be provided. A copy of the Standards has been made available to you in our supplemental package and on the T.R.E.C. website at www.trec.state.tx.us. These are the agreed Standards of Practice for the performance of this inspection. The cursory limited inspection is intended to reduce risk but will not eliminate risk, therefore the inspection to be done will not identify all repairs needed or potential hazards whether in accessible or inaccessible areas. When inspection of any system or component is limited or designated as not inspected due to inaccessibility or for any other reason, the client(s) must understand that conditions affecting the structure, systems, or components may be present and go unreported. All findings should be considered partial or incomplete until further evaluated by a qualified repair person prior to closing. Since this inspection is based upon visual observations made on one day, during a limited time period, Cotton & Company cannot be responsible for any condition affecting any system or component that is intermittent in function and may not be detectable during the inspection. No warranties or guarantees are expressed or implied. The inspector will not light pilot lights, activate the main water supply, gas or electric systems, energize electrical circuits which are off or otherwise operate any component other than user controls. The written inspection report provided by Cotton & Company will contain the opinions of the inspector. These opinions would not be applicable to future changing conditions. Although code compliance and engineering evaluation are specifically excluded from the inspection, some codes may be used as a reference and bias for the opinion of the inspector. The inspection services provided are further defined and limited by the report and any attached addenda. General Statements and Agreements that apply to Home Inspections What we do: 1. The inspection report provided by Cotton & Co will contain the good faith opinions of the inspector regarding the observable need of any repairs, replacements, or further evaluation by specialists of the items inspected. The report will not include and should not be interpreted to indicate any opinion regarding compliance with codes, ordinances, statues, or restrictions; nor the insurability, efficiency, durability, life expectancy and future performance of any particular item inspected. 2. The purpose of our reports is to inform our clients whether or not the items inspected are functioning as intended, or is in need of repair or further evaluation. 3. We perform our inspection/evaluations from physical observation only. In other words we can only inspect and report on those items and defects that are observable by ordinary senses without dismantling portions of the property or appurtenances, or removal of any items (such as clothing or furniture) to facilitate inspection. 4. If you have any questions about our report, we will be happy to explain our observations. -------------------------------------------------------------------------------What we do not do: 1. We do not make guarantees, nor offer warranties or representations, insure future performance or the condition of any item. 2. We will not make observations of any item that is not physically visible during the course of an inspection. For example, we do not move furniture, rugs, clothing, paintings or wall furnishing, appliances or other furnishings. We do not uncover buried pipes or electrical distribution circuits. We cannot see or make observations regarding items covered by wall coverings, furniture, flooring, or enclosed wall spaces. Past repairs/remodeling may hide evidence of prior damages or defects. 3. We do not inspect for compliance with building codes, soil analysis, adequacy of design, capacity, termite infestation including but not limited to potentially toxic strains of mold (including stachybotrys, aspergillus, and penicillium). We do not check for funguses or spores, including but not limited to, any substance, vapor, or gas produced by or arising out of any funguses or spores or any material, product, building component, building, or structure that contains, harbors, nurtures, or acts as a medium for any funguses or spores. Funguses include, but are not limited to, any reproductive body produced by or arising out of any funguses. We also do not check for HVAC efficiency and size, property value, flood plain location, pollution, environmental issues such as lead paint , asbestos, etc., or habitability. 4. Out inspectors are not allowed to change or alter these written provisions in any way. 5. We do not hold ourselves out to be specialists or professional engineers for any particular items or systems. We are a general quality assurance and real estate inspection firm. If we report any item as nonfunctional or in need of repair, you are urged to acquire a second opinion from a specialist for the item(s) cited. We do not perform repairs or provide binding estimates of costs to repair any item. Before completion of any contractual agreements on the property inspected, Client(s) agree to obtain second opinions or cost estimates by appropriate specialist on items where performance may be reported as questionable, in need of repair or unsafe. It is specifically understood and agreed that Cotton & Company are bound only by the terms and conditions of this agreement and have not relied on any other representations, oral or otherwise. Any conditions requiring repair, replacement, or servicing should be by professionals in appropriate trades before closing. Client(s) give permission to Cotton & Company to discuss report findings with Realtors, owners, repair persons and other interested persons. The Client(s) agree to notify Cotton & Company in writing of any complaints or items in question within 14 days of discovery and allow Cotton & Company access to the property to evaluate these items before corrective action is taken. Life threatening situations should be addressed immediately. In other than life threatening situations, Client(s) failure to permit Cotton & Company to re-inspect the item at issue shall mean the client(s) has waived any claim against Cotton & Company for breach of this Agreement and/or any error or omissions claim that results. Dispute Resolution: Upon written request by either party that is submitted according to the applicable rules for arbitration, any claim, demand or cause of action, which arises out of or, is related to this Agreement, (collectively "Claims") shall be resolved by binding arbitration in the County of Harris, Texas, in accordance with (1) the Federal Arbitration Act; (ii) the Code of Procedure ("code") of the National Arbitration Forum ("administrator" or "NAF") and (iii) this Agreement, which shall control any consistency between it and the law and be in writing setting forth the finding of fact and law and the reasons supporting the decision. Such decision shall be final and binding upon the parties, subject to the Page 43 of 43 right of the appeal described below. Judgment upon any arbitration award may be entered in any court having jurisdiction. The arbitrator has exclusive authority to resolve any dispute relating to the applicability or enforceability of the Agreement. Either party shall have the right to appeal to the appropriate court any errors of law including a limited number of depositions (including the production of documents) by mutual agreement or as permitted by the arbitrator. Certificate of Merit: The client shall make no claim of professional negligence unless the client has first provided me with a written certification executed by an independent Texas Professional Engineer currently practicing in the area of house inspections in the Greater Houston Area for home buyers. The certification shall: a)contain the name and license number of the certifier; b)specify what research the certifier has performed to discover the standard of care, c)specify the acts or omissions that the certifier contends are not in conformance with the standard of care for a registered structural engineer performing professional services under similar circumstances; and d)state in detail the basis for the certifier’s opinion that such acts or omissions do not conform to the standard of care. This certificate shall be provided to me not less than thirty (30) days prior to the presentation of any claim, or the institution of any arbitration or legal proceeding. This certificate of merit clause will take precedence over any existing state law in force at the time of the claim or demand for arbitration. Insurance: Insurance to pay undiscovered repairs and unsafe conditions is not carried Cotton & Company. Some error in the inspection process is inevitable; however Cotton & Company provides a standard of care substantially better than the industry average. If there are concerns raised by the inspection, you should have comprehensive inspection(s) by an appropriately rated and licensed engineer, specialist, or repair contractor conducted. Client(s) agrees that in the event any portion of the contract, report or addenda is ruled inadmissible as evidence that the remainder of all aforementioned documents, or any portion therefore, shall remain admissible as evidence. Changes to this contract are not accepted without specific written approval of Cotton & Company. Entire Agreement: This Agreement and no other implied, or verbal pronouncements by Cotton & Company or the client(s) shall be relied upon. Third Party Indemnification: This inspection and the report are not intended for the use or benefit of anyone other than the Client(s). No third party shall have any right arising from the inspection or the report. In consideration for Cotton & Company furnishing the report, Client(s) shall indemnify and hold Cotton & Company harmless from any claims, demands or costs as a result of any third party demand or claim arising out of the inspection or report. Hold Harmless Agreement: CLIENT agress t hold any and all real estate agents involved in the purchase of the property to be inspected harmlessand keep them exonerated from all loss, damage, liability or expense occassioned or claimed by reasons of acts or neglects of INSPECTOR or his employees or visitors or independent contractors engaged or paid by INSPECTOR for the purpose of inspecting subject home. ______________________________________________________________________________________________________________________________________________ CLIENT ACKNOWLEDGES HAVING READ THIS CONTRACT, AND WILL READ THE REPORT AND ALL ATTACHMENTS BEFORE PURCHASING THE PROPERTY. FURTHER, THAT CLIENT UNDERSTANDS THE TERMS AND CONDITIONS AND AGREES TO BE BOUND BY THESE TERMS AND CONDITIONS AND TO PAY INSPECTION FEES AS AGREED AT THE TIME OF INSPECTION. THE FINAL REPORT WILL NOT BE RELEASED UNTIL PAYMENT IS RECEIVED BY COTTON & COMPANY. Payment of fees indicates acceptance of these provisions.
© Copyright 2024