Most inspections start with a phone call, usually from a property buyer who wants to buy a property, sometimes from a property seller who wants to find out about any problems with the property before it is advertised for sale, or in the case of a multi-occupancy building, one or more of the stakeholders. Sometimes the call is from a real estate agent who is acting for a client who would rather not deal with locating an inspector, and sometimes it is from a developer who is getting close to accepting handover of a development from the contractor.
Every part of the inspection process is handled assuming the worst; that there will be problems resulting in legal action, and so it is important to adhere to a process that will help protect the inspector if they have to go to court.
Upon receiving the call, the inspector asks key questions and uses the answers to fill out a booking sheet that provides key information. Where practically possible, Inspectors will see the property prior to providing a price, although it is not strictly necessary.
The booking sheet often looks something like this:
- 1.Booking date:
- 2.Client name:
- 3.Property address:
- 4.Property size: ___________________ square meters
- 5.Year Built:
- 6.General Condition:
- 7.Ancillary Inspections:
- 8.Inspection Fee:
- 9.Date of Inspection:
- 10.Utilities are on/off:
- 11.Animals on Property:
- 12.Occupants at Property:
- 13.Directions to Property:
Booking Schedule Explanation
1.Inspections are typically performed anywhere from 1 day to 3 weeks after the date upon which the inspection is scheduled, and it’s a good idea to keep an accurate record of the date upon which the inspection was actually scheduled.
2.This is the name that will appear on the Inspection contract.
3.The property may be located outside the area served by the inspector, or the inspector may charge travel time to perform inspections that involve significant travel time.
4.Property size is often the primary basis for determining inspection fees.
5.If a property is exceptionally old, it may require more time, or special skills to inspect.
6.Properties in exceptionally poor condition often take longer to inspect and fees need to reflect this. Foreclosures are often in poor condition. Very expensive properties carry higher liability. If a solid gold doorknob is inoperable and needs replacement and you miss that, you may be asked to pay for replacement. So you would take plenty of time with this type of property and would charge accordingly. These properties are out there!
7.In addition to the standard property inspection, other types of inspections may be requested. Some common types of ancillary inspections for which inspectors might charge extra are, private water well/bore equipment performance and condition, yield, and water quality, septic systems, wood-destroying insects, security systems,Property inspectors with the proper qualifications can perform some of these. Inspectors who are not qualified will sometimes charge a fee for arranging for the services of a qualified contractor.
8.Inspection fees are set by each individual inspector according to the method that each thinks best. The fee for inspecting a property is usually based on the amount of time estimated for the standard property inspection, the quality of the property, the complexity of the property systems, and those factors mentioned in numbers 3-7 above. Payment is due at the inspection before the report is supplied. Clients who are unhappy with what the report has to say about the property may refuse to pay. “No payment at the inspection, no report supplied” is the universal practice, although part-payment (50% +) with order is also acceptable.
9.Recording the date makes for easy reference.
10.When the occupier is absent for an extended period, or when a property is in foreclosure, the utilities are sometimes turned off. For inspection purposes, the utilities should all be on. When scheduling the inspection, the inspector should confirm that they are on, and if they are off, request that a qualified contractor turn them on for the inspection. Inspectors should never activate a system that has been shut down, since this transfers to the inspector large amounts of liability, mainly related to flooding and fire. With the water off, leaks may not be detectable plumbing traps/bends may be empty and may allow sewer gas into the property. With electricity or gas off, the inspector may not be able to determine the functionality of key systems or components. If an inspector in forced to inspect a property in which some utilities are shut off it is important to ensure that the client understands that the inspection was limited. It should be mentioned both verbally and in the inspection report. The inspector should recommend that any affected systems be inspected once the utility has been turned on.
11.The animals of concern are those that bite people, mainly dogs. If upon inquiry an inspector is told that there will be a dog on the property, the inspector should request that the dog be removed, or restricted to an area away from the property so that the inspector can move about freely without having to worry about coming into contact with the dog. Do not believe anyone who tells you that a dog will not bite. You’ll read more about this in the Safety Course.The other concern is that the occupant will leave a dog or cat in the property that will rocket past your legs and disappear down the street the moment you open the door.
12.Most inspectors request that the occupants leave the property for the duration of the inspection. The occupant may be a renter who resents the intrusion and the inconvenience of having to find another property once the sales transaction is successfully completed, or a seller who wants to argue the inspectors findings during the inspection. Sellers have a right to have their agent present, but the inspector should be free to perform the inspection without interference. Inspectors should be civil but firm in insisting on compliance. Under no circumstances should an inspector tolerate harassment from anyone during the inspection. It sets a bad precedent.
Inspection Booking Process
After filling out the booking sheet and agreeing on a fee, the inspector will ask whether the client is familiar with the inspection process, and try to ensure that the client understands the limitations of a standard property inspection.
Clients, especially first time property buyers who think that inspectors are experts in every property system, will be disappointed when an inspector recommends further evaluation by a specialist. Inspectors want to avoid disappointing clients, so in addition to a verbal explanation, inspectors often refer the client to the page on the inspector’s website that contains the Standards of Practice, which define clearly what an inspector is and is not required to inspect.
Before performing an inspection, the inspector should have an agreement signed by the client, which also states what is and is not included in the inspection.
InterNACHI Middle East has an inspection contract for use by its members, but inspectors should have it approved by their lawyer before actual use, since laws can vary by country.
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