Buyers right to an inspection?

Originally Posted By: jmichalski
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A client purchasing a new home wants a pre-settlement inspection - nothing new there.


I generally offer to go in a few days in advance to do a thorough job and compare specs to product delivered, copy serial numbers, etc. It cuts down on the settlement day and ensures a smooth day for everyone. Clients love it - they have a lot on their mind settlement day.

In contacting the builder to arrange for me to get in, he was told I am not allowed access before settlement day (some stock wording about insurance and liability, etc.). I was surprized because this has never been denied before.

Have I just encountered the reasonable builders until now? Think this guy is hiding something? Or is this a legitimate insurance issue?

Also, does the buyer have the right to an inspection at any time, or only the time designated by the builder? anyone know for sure?


Originally Posted By: troberts1
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I bet that the builder does not turn away the inspector that inspects for the bank that issues his drawls. icon_twisted.gif


I was a builder for years and never had a problem with future owner having an inspection.


Originally Posted By: ssmith3
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My question is how long has he been a builder/contractor?


I did several of these last year and NEVER had a problem with builders letting me in. They liked it cause it gave them a way to fix little things before the "final" walk-thru with the new owners.



I found a disposal that was never wired. Builder was glad I found it before the owners took possession of the property.



Scott Smith


Marinspection


Vice President NorCal NACHI Chapter


I graduated from collage. Now my life is all mixed up.

Originally Posted By: jmichalski
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That’s what I would have thought, too. No one has ever batted an eye at this.


The builder is a middle tier builder for the area. Not one of the giants, but they do several major developments in the Philly burbs.

It all leads me to wonder if they are really far behind schedule or something....


Originally Posted By: ssmith3
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Sounds like a case of how many corners were cut.



Scott Smith


Marinspection


Vice President NorCal NACHI Chapter


I graduated from collage. Now my life is all mixed up.

Originally Posted By: Blaine Wiley
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It is the builders property until he turns it over at settlement. I have a couple of very reputable builders here that will not allow any private inspector on the property until the day of settlement. Both builders also do their best to correct any issues I find, which at both of them are usually few.


Some builders in the area will not allow an inspector on site unless he carries 1,000,000 General Liability and workers compensation insurance. They write the rules for their property, just get in when you can and do the best you can.

BTW, Is that a tract builder like Toll Brothers, US Home, or K. Hovnanian?


Originally Posted By: pdacey
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bwiley wrote:
Some builders in the area will not allow an inspector on site unless he carries 1,000,000 General Liability and workers compensation insurance.


Same here. They even make you (the inspector) sign a hold harmless agreement.


--
Slainte!

Patrick Dacey
swi@satx.rr.com
TREC # 6636
www.southwestinspections.com

Originally Posted By: Blaine Wiley
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pdacey wrote:

Same here. They even make you (the inspector) sign a hold harmless agreement.


Oh yeah, I forgot about that one. And that we're responsible to clean anything we mess up.


Originally Posted By: jpope
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KB Homes, one of our area’s biggest builders, will not allow “home inspectors” onto properties for these inspections. It is their property, it is their right.


Generally, this is standard practice for track developments, otherwise, there may be 100 different home inspectors wanting access at any given time.

Custom builds are generally a different story. Usually, the client already owns, and has right to the property. The client may allow access to whomever they please, regardless of the contractor/builder preference.

Here is what I have been doing, and it seems to be working.

Explain the situation to the client (it's the builders property and therefore, the builders rules).

Offer to come in and do the inspection on two dates;

1) When the client gets the keys
2) 10 to 11 months after transfer

Collect the fee for both inspections when performing the first inspection as it is a "package deal."

Here's the catch - it's your responsibility to make it back out in 11 months. I have two of these coming due next month. ![icon_biggrin.gif](upload://iKNGSw3qcRIEmXySa8gItY6Gczg.gif)


--
Jeff Pope
JPI Home Inspection Service
"At JPI, we'll help you look better"
(661) 212-0738

Originally Posted By: pdacey
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jpope wrote:
KB Homes, one of our area's biggest builders, will not allow "home inspectors" onto properties for these inspections. It is their property, it is their right.


Must be a regional thing. I've had no trouble doing inspections on KB homes at all phases of construction. They don't even require any paperwork (ie.. proof of insurance, harmless agreement)


--
Slainte!

Patrick Dacey
swi@satx.rr.com
TREC # 6636
www.southwestinspections.com

Originally Posted By: jpope
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The key (IMHO) is getting to know the superintendent(s). I don’t have too much trouble anymore with KB. In fact, there is one super who recommends me and has a stack of my business cards.


Occasionally I'll get the "new guy" and have to start all over, but I understand that it's just policy.


--
Jeff Pope
JPI Home Inspection Service
"At JPI, we'll help you look better"
(661) 212-0738

Originally Posted By: jmichalski
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I have had no problem with Toll Bros or THP locally - two of the biggies. This is a mid-size company that seems to have their own way of doing things.


I do have the insurance, and I really don't mind signing hold harmless agreements. I just want to get the thing done! I know it is the builder's house technically, but the client has a clause in teh agreement that says he can be penalized up to $250 per day for every day he delays closing after they deem the house livable.

So what if I find somethign significant (unlikely, but what if?). He has no ability ot dispute this, at least not without costing himselgf $250 per day. Something sounds awry with this company, and I think I will follow Jeff's lead and see if I can't go meet someone there and talk to them about it - even if only for future need.


Originally Posted By: jpope
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jmichalski wrote:
So what if I find somethign significant (unlikely, but what if?).


Simple. If it's habitable, they move in and the defect is repaired/corrected while they are living there.

If it is uninhabitable, they don't move in until it's repaired/corrected with no fear of sanctions/fines for not closing.


--
Jeff Pope
JPI Home Inspection Service
"At JPI, we'll help you look better"
(661) 212-0738

Originally Posted By: fmagdefrau
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Why don’t you just simply go through the Real-Estate agent instead of the builder ?


Once my clients hire me for the inspection, I always tell them to have their agent contact me to set up a time to open the home. This way they can inform the builder or seller an inspector needs access to the property before closing.

If for what ever reason they do not have an agent I ask them to inform the builder they have hired an inspector. If he refuses (Which as happened once) they called me back and said they found another home they want me to inspect.

It's seems unfair to question his building ability. He may be a very good builder.

Frank


Originally Posted By: jmichalski
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Jeff, I guess the issue is the client feels that if they won’t let me in a few days early and choose to hide behind some formality, they may not be so trustworthy. If I turn up something and the clinet goes to settlement and moves in anyway, and the builder summarily dismisses the finding, what recourse does the client have?


I have never encountered this before, and the whole process has usually been a positive one for the client, reinforcing his belief in the builder. This is a whole new ball of wax, and a very odd negative feeling going in to it.

Frank, I am not questioning anything about the builder except why he won't allow an inspection a week early to make the process smoother for all. The client seems committed to this house already and there is no agent in the process. Just the word of the builder that it will all be all right...now hurry up with that inspection, you're holding up settlement!


Originally Posted By: jpope
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Quote:
If I turn up something and the clinet goes to settlement and moves in anyway, and the builder summarily dismisses the finding, what recourse does the client have?


The same recourse they have at 11 months, a one year builders warranty. This begins at day one.


--
Jeff Pope
JPI Home Inspection Service
"At JPI, we'll help you look better"
(661) 212-0738

Originally Posted By: mkober
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Ask the grinch builder if he wouldn’t prefer doing the first round of call-backs before the buyer’s furniture and other stuff is in the way, right after you tell him what fine work he does and how many future customers you plan on sending his way (of course, by doing nothing more than keeping a stack of his business cards available should the need arise). If he’s anything close to logical, maybe he’ll start to see the light.



Michael J. Kober, P.E. and H.I.


"NACHI Member and Proud Of It!"

Originally Posted By: jmichalski
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I called yesterday to try to set up a brief interview so they could get to know me, ask question, and just have a quick, little informal meeting. Maybe even begin to build a realtionship.


No interest. They have decided that I am an adversary and they want no parts of it at all, in any form.

Oh well. Thanks for all the input!


Originally Posted By: vprimaky
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I have had several occasions where some builders did not allow me to go do the inspection at a property. They wanted for me to sign a contract that basically states that if there is anything wrong with the house, that I am held responsible, and that they want a minium of $1M coverage for the HI (which I have), and that they want to be covered in my insurance. Of course when I say (in a nice way) that I do not sign anything of that sort, they do not allow me on the propertyas the house is still theirs until the final signing, even though the buyer has every right to have the home inspected. At that time, I tell the buyer to letr me know when they paln on moving in, and to let me know a couple of days ahead, so that I can do the inspection while the house is still vacant.


This mostly accepted by the buyer. I have only known a couple of times when the buyer backed out of buying the house because, I was not allowed to do the inspection.


Vladimir


Originally Posted By: bsaugen
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In California, about 3 or so years ago our governor sign into law that the builders have to allow the buyer to have an inspection if so desired. The problem right now is the home sell so fast, that the buyers do not want to rock the boat and loose the home. So many of them are not requesting for home inspections.