Kind of. The SoP require reporting of prior roof repair. Why, I do not know. It establishes a precedent to report any repair that could be argued “consequential” or “If I had know this I would have . . . .”. In this painting scenario IF the paint was in a crawlspace it would be unusual and lead one to suspect a past water or fire event. It would be prudent to report the condition as informational. Identifying it as a defect would be a judgment call.
I know we are talking basements but here is another Texas problem. Attic smoke damage has been historically painted with white or silver paint. Now there are companies spraying silver radiant barrier paint. Now we have no idea what to make of it. Fire or energy efficiency?
I agree with your argument. I spent years working on a defect only Standard and it was defeated by someone who wants to compare homes to new code and report missing drain stops.
As long as these people dictate insane logic all I can say is “If ya want to make the dough ya gotta do the show”.