In California, the Seller is required by law to disclose to the buyer all material facts known to him/her that affect the value or desirability of the property.  However, the Seller may not be aware of some defects or conditions and does not have an obligation to inspect the property for the buyer's benefit.  For this reason, the buyer should conduct thorough investigations with professionals who provide written reports of their investigations. 

Buyers will have a specified number of days, typically 10 days - 17 days (per the ratified Purchase contract), to conduct investigations.  The California Statewide Buyer and Seller Advisory is a 10 page list of items to be considered and, if important, investigated during the time frame allowed. It is important that you read and understand every page of every disclosure and inspection. 

This is an overview of the inspections that should be considered during the inspection time frame allowed in the California Purchase Contract.

Inspections recommended for every real estate transaction:

Home Inspection  ($450 - $500)

This is an overview inspection of the condition of the property, its systems and components including heating, air conditioning, plumbing, mechanical, roof, foundation, security, safety, appliances and fixtures.  The Home Inspector will recommend additional inspections by qualified specialists if areas of concern are noted during the inspection.

The inspector does not appraise the property, determine building code compliance, guarantee the structural viability of the property or find "hidden defects".

This inspection is worth every dime!  Major issues can be addressed during negotiations while the remaining report becomes an excellent checklist for repairs and ongoing maintenance items.

Pest Inspection  ($150 - $245)

This inspection has two parts.  Section 1 identifies areas of the home that currently evidence the presence of wood destroying pests and other infestation.   Section 2 identifies areas where the conditions are likely to lead to infestation in the future.  The cost to repair both Section 1 and Section 2 items are included in the Summary. 

Most mortgage financing requires that Section 1 items be corrected prior to closing the transaction.

Roof Inspection  ($135 - $185)

Even if the roof is relatively new, I encourage a Roof Inspection.  While the roof material may be recent, a roof inspection will determine whether it was installed correctly.  On a recent transaction, the home had a roof less than 6 months old. While the buyers thought it was probably a waste of money to pay for a roof inspection, they fortunately agreed.  The roof had been installed by the homeowner.  The roof flashing was improperly installed and the shingles had insufficient overlap (by 2”) to facilitate proper water run-off.  The seller, rather than the buyers, paid to have the roof re-installed by a professional.

Sewer Inspection  ($250 - $295)

Sewer lines are the most common area of deferred maintenance.  In fact, many homeowners don’t conduct ANY sewer line maintenance until there is a problem.  This could result in an unexpected, significant expense to the buyer because a homeowner is responsible for the maintenance of the sewer line from their home to the middle of the street. 

Some common reasons to inspect sewer lines are:

·         Mature trees or bushes on the front or side of the property (over 60% of inspected lines are impacted by roots that penetrated and blocked the line)

·         Cracked or raised concrete

·         House has been vacant for a period of time

·         Capacity change – the buyers have a greater number of occupants than the sellers OR will entertain large groups at their new home

·         The home was built prior to 1975 (In Contra Costa county, many of the sewer lines are made of clay pipes which are nearing the end of their intended life span).

Inspections that should be ordered based on the condition or amenities of the home:

Chimney Inspection  ($145-$175)

If the home has a wood burning fireplace, absolutely get a chimney inspection.  Creosote buildup is very common and can be a major fire hazard.

Pool/Spa inspection

This inspection checks for cracks and leaks in the pool/spa as well as the operation of the filtration systems and solar panels, as applicable.

Foundation / Structural Engineer  ($250 - $500)

While the Home Inspector will typically note if foundation cracks are the result of normal settling or require additional review by a foundation specialist, homes built with brick foundations should always be inspected to ensure the earthquake retrofit has been completed.

Soil Stability / Geotechnical Inspection (cost varies based on scope)

If the home is built on a slope or resides at the bottom of a slope, a soil stability report will note any susceptibility to slippage, settling or movement and the adequacy of drainage.

Natural Hazard Disclosure Statement ($100 - $135, typically paid by the seller)

This report discloses whether the property is located in a designated Flood Area, Dam Inundation Area, High or Very High Fire Hazard Area, Wildland Fire Area, Alquist-Priolo Earthquake Fault Zone, and/ or a Seismic Hazard Zone.  Additionally, this report will include supplemental disclosures such as if the home is in a Habitat Sensitivity Area, how close it is to an airport, a military ordnance location and/or an area zoned for Commercial (versus residential).

The buyer is responsible for investigation of the following items if they are deemed important:

Square footage

Realtors provide the square footage based on verifiable third-party information such as public records or a recent appraisal.  If the exact square footage is important, the buyer should measure the property or request a copy of the independent appraisal ordered for mortgage approval.  Appraisers measure the exterior walls of the home to determine square footage.

Schools

For numerous reasons including (but not limited to) overcrowding and class size reductions, the ability to attend the school nearest the home is not guaranteed.  Buyers should contact the local school or school district to ensure access to the desired school during the Inspection period.

Boundary lines and easements

The Title company provides a copy of the boundary lines as they are reflected on public record.  However, the location of fences, hedges, etc. may not reflect those boundary lines.  The only accurate method to determine boundary lines is to conduct a Survey.

Building Permits, Zoning and Code compliance, Rental Property Restrictions

Realtors specifically shall not be responsible for researching the status of Building Permits, Zoning and Code compliance and Rental Property Restrictions.  The buyer is solely responsible for contacting the appropriate city or county agency.

Megan’s Law

Buyers are responsible for checking the Megan’s Law database.