Re-Inspections: Should I or Shouldn’t I Recommend?

Re-Inspections: Should I or Shouldn’t I Recommend?

As a longtime Home Inspector servicing the greater Jacksonville Florida market I will emphatically say, it depends.

If I had my way and could wave my magic wand, there would be no repairs conducted by a seller because, it’s been my experience, they will always be half done, not done, or done in an amateurish manner. Seemingly the seller is trying to maximize their sales price, minimize their pain, and maximize their gain (if any).

Ideally, the property buyer is always in a better position to make the repairs under their direct supervision, that way the decisions, priority of work, total costs, and choice of contractor is theirs to make.

I fully realize that most real estate contracts simply don’t work that way in our market. The Buyer has a home inspection, accepts or rejects conditions discovered, then places demands on the seller, who either accepts or rejects the demands of the buyer.

Repair/Replacement and Retreatment Agreement

Once you have acceptance of the Repair/Replacement and Retreatment Agreement there are several things you need to know as a profession real estate agent/property seller.

Things to Know

1.     According to Florida Statute 455.228, if you hire an unlicensed contractor, the Department of Business and Professional Regulations (D. B. P. R.) may issue a cease and desist order. They also may take you to Circuit Court, which has the authority to impose a civil penalty of up $5,000 for aiding and abetting unlicensed activity. You could also be liable for court cost.

2.     If you obtain a permit for an unlicensed contractor, you are held responsible for the work, not the contractor.

3.     If you hire an unlicensed contractor, you may actually pay more for the job than if you had hired a licensed contractor. Especially if the work is done incorrectly or never finished, you may have to pay twice or more for the same job to be corrected or finished.

4.     If the unlicensed contractor fails to pay his sub-contractors or suppliers, you may be required to pay them even though you have already paid the contractor.

5.     Plumbing, electrical, and heating and air conditioning work must be done only by contractors and craftsmen certified in those trades and require separate permits.

6.     Home improvement contractors must possess a license issued by the State of Florida as a general, building, or residential contractor.

7.     Roofing contractors are required to be certified or registered by the state.

8.     There is no such thing as a 'legal' jack-of-all-trades.

9.     An 'Occupational License' is not a regulatory license or a Certificate of Competency, but a tax for the privilege of engaging in or managing a business, profession, or occupation.

10. You may be held liable for injury on your property if the unlicensed contractor has no liability insurance or Worker's Compensation insurance.

So, its important that you and your sellers know their responsibilities as it relates to repairs.

The Process

Once complete the buyer may want someone to verify that the repairs requested have been completed. The Home Inspector may be asked to return to the property and conduct a verification of repairs.

He/she will want a copy of the executed Repair/Replacement and Retreatment Agreement and copies of all receipts and/or work orders prior to a revisit.

All parties must understand that the inspector will simply be verifying that the work has been done in a workmanlike manner and that all items have been addressed.

All parties should also understand that in many cases the scope of the work is not known to the inspector and will not be visible. He/she will only be able to state that there are visible signs that the repairs have been made. This fact emphasizes the importance of receipts and work orders.

Pitfalls

Waiting until the last minute to schedule the reinspection. The inspector could be busy and getting on the schedule can be difficult. Plan ahead. The also needs to understand this is not a free service and is relatively expensive.

Incomplete documentation. This creates heartburn to both the inspector and the buyer. The inspector needs documentation to track the requests and the buyer wants documentation for their permanent owner’s files.

Be prepared for missed items, items not done correctly or incomplete. In many cases the verification of repairs are done just prior to closing. This will certainly create heartburn to all sides. Please remember its not the inspector’s fault. He/she is just trying to do their job.  

A Few Examples of When Things Go Wrong

Replacing drain and waste vent stack flashings by simply caulking the rubber grommet. A licensed roofer would replace the entire assembly and in some cases shingles is surrounding area.

Flexible Trap/P traps. A licensed plumber doesn’t have flexible connectors in his work truck.

Putty repairs when wood should be replaced. A licensed contractor should be executing wood repairs. Reason, you don’t know what is behind the decay/rot.

Structural and siding repairs require a permit.

Truss repairs. Any truss repair or truss gusset plate repairs require a design drawing conducted by a licensed structural engineer.

Stucco Repairs. Simply said, stucco repairs are complicated. Stucco is a wall cladding but when it fails it often impacts the structure. Significant stucco repairs require a duly licensed residential contractor or higher and will require a permit.