Sonoran Property Inspections

Home Inspections Prescott, Prescott Valley, Cottonwood, Scottsdale, Arizona

Home Renovations

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If you are buying a home that needs work, or selling a home and want to renovate first, or most importantly just want to stay put and enjoy your home more, here are some tips from Sonoran Property Inspections to consider before you start your home renovation projects.  Getting ideas is easier now than ever. Use online tutorials and magazines to get ideas, and decide what you want to do yourself. Make sure you feel confident in taking on parts of the project or look into getting professional help.

Do you have the right equipment?

Research the needed tools to be sure you have everything you will need before starting the project. This includes safety equipment like gloves, eyewear, ear plugs, and masks to protect your lungs from harmful fumes.

Protect Furniture and other surfaces.

Before you actual start, cover furniture, flooring, countertops, and other surfaces to keep them clean and protected.

Be careful with harmful substances

Older homes may contain hidden dangers in the form of asbestos. There may also be hidden molds in basements, drywall, baths and kitchens. If the home was built before the mid 1970’s there may be lead based paints.  All of these potential issues should be considered before taking on a DIY project.

Final words on the subject

Do-it-yourself projects can be fun, save you money, and be immensely rewarding. For major renovations or projects that affect the overall value of your home, it’s best to seek out the help of professionals. Your home is a large investment and through taking necessary precautions you can do your best to minimize potential risks of a DIY project gone wrong. Do your research and don’t be afraid to reach out to a professional for a quote on a project you might feel unsure about.

 

Engineered Wood Flooring

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As a home inspector here in Arizona, I am seeing more engineered wood flooring being installed in homes that I inspect. Engineered wood flooring is an alternative to solid hardwood flooring made entirely out of real wood.  It’s currently the most popular type of flooring in the world.  North America is the only area left where traditional, solid wood floors still outnumber engineered floors, but engineered wood flooring is quickly catching up, with the rate of use for new builds, as well as remodels, increasing steadily every year for the past few decades.  As a homeowner you may be interested in how this product is manufactured and installed, and what its advantages are compared to older, more traditional forms of flooring.

Brief History

The beginnings of mass-produced wood flooring can be dated as far back as 1903, when an E. L. Roberts mail-order catalog offered “wood carpeting.”  This flooring consisted of 1½ x 5/16-inch wooden strips that were glued to heavy canvas that was then installed by tacking it down with brads.  The wood was then sanded and finished.  The varnishes used were usually slow-curing tung oils from China.  These were not durable in themselves, so the floors were hot-waxed and buffed to a shine with a floor brush.

Early examples of the “wood carpet” eventually evolved into more modern iterations, such as laminate flooring, which consists of melamine-infused paper as its upper layer, and wood-chip composite beneath.  Laminate flooring typically features a printed or embossed top layer meant to approximate the look of real hardwood.

The current incarnation of engineered wood flooring has been available since the 1960s, and has steadily increased in quality, leading to improved advantages over traditional hardwood flooring.

Composition

Engineered wood flooring is most commonly made with a plywood-core substrate and a real hardwood veneer or skin, which comes pre-finished from the factory.  The top veneer, which looks just like the top of a traditional solid wood plank, is called the lamella. 

Some engineered flooring utilizes a finger-core construction, with a substrate comprised of small pieces of milled timber running perpendicular to the lamella.  This can be made with an additional layer of plywood running parallel to the lamella, which gives it added stability.  Fiberboard-core flooring is also available, but it’s generally considered to be an inferior option.

Engineered wood flooring is meant to be indistinguishable from traditional hardwood floor once it’s installed, and only the lamella is visible.  The lamella veneers available are made from nearly every type of common wood, as well as many more exotic ones, in order to provide the same variety of aesthetics typical of quality hardwood floors.  The substrate that the veneer is attached to is just as strong and durable as hardwood — if not stronger — and the finish applied at the factory often outlasts one applied on-site to solid wood flooring.  Even surface effects are available that can be applied to the finish to give the flooring a time-worn look, such as light distressing.

Engineered flooring runs the gamut from the low end, starting at $3 per square foot, to the high, at $14 and more. To judge quality, check the thickness of the lamella, the number of layers in the substrate, and the number of finish coats.  Typically, the more layers, the better. Listed below are descriptions of the advantages of adding layers to the construction in the common classes of engineered boards:

  • 3-ply construction: 1- to 2-mm wear layer; five finish coats; 10- to 15-year warranty; 1⁄4-inch thick; current price is about $3 to $5 per square foot.  Options for lamella veneer are limited to common species, such as oak and ash, and just a few stains are available;
  • 5-ply construction: 2- to 3-mm wear layer; seven finish coats; 15- to 25-year warranty; 1⁄4-inch thick; about $6 to $9 per square foot.  More species, such as cherry, beech, and some exotics are available for lamella, as well as all stains, and a few surface effects, such as distressing; and
  • 7-ply or more: 3+-mm wear layer, which can be sanded two or more times; nine finish coats; 25+-year warranty; 5/8- to 3⁄4-inch thick; average price is about $10 to $14 per square foot.  The widest selection of species is available for lamella, including reclaimed options.  More surface treatments are also available, such as hand-scraped and wire-brushed.

The cost of engineered flooring can be around 20% more than that of traditional flooring, but the difference can be offset or recouped by saving on installation, staining and sealing.

Installation

Installation of engineered wood flooring is generally quite simple compared to the installation of traditional hardwood, and can often be accomplished by a homeowner without the help of a professional flooring contractor.  If the services of a professional are enlisted, the job can be done more quickly and cost-effectively than if solid hardwood were to be installed.  Engineered flooring can be fastened in place with screws or nails, glued down, or left to “float,” relying on its mass to hold it in place.  Listed below are several installation methods:

  • A bead of glue can be applied to the tongue of each board, which is then tapped into place with a block. The floor floats, unattached to the sub-floor except by force of gravity.
  • A floor stapler and compressor can be used to rapidly secure the boards to the existing floor, without having to deal with any glue.
  • Boards can be laid in a bed of adhesive, as is done with tile.  This approach works particularly well over cured concrete, which precludes the use of staples.
  • Some types of engineered floor are designed with milled tongues and grooves that lock together without glue or fasteners. It’s the quickest and cleanest installation method.

Advantages of Engineered Flooring

While solid hardwood is a great traditional building material that provides aesthetically pleasing and structurally sound flooring, it does have its limitations.  For example, it cannot be installed directly on concrete or below grade, such as in basements.  It is generally limited in plank width and is more prone to gapping, which is excessive space between planks, and cupping, which is a concave or “dished” appearance of the plank, with the height of the plank along its longer edges being higher than the center with increased plank size.  Solid hardwood also cannot be used where radiant-floor heating is in place.
Engineered wood flooring, on the other hand, can actually provide some distinct advantages over traditional hardwood in many instances and applications.  Some of these include:
  • Lamella veneer is available in dozens of wood species.
  • Surface effects can be applied to further enhance its appearance.
  • The factory finish can outlast site-applied finish on solid hardwoods.
  • Drying time for the finish is eliminated because it’s pre-applied at the factory.
  • It can be used in basements and over concrete slabs.
  • Installation is quick and easy.
  • It can be used over radiant-heat systems.
  • It can be refinished to repair normal wear and tear.
  • The core layer can expand and contract more freely without warping.
  • The flooring can be removed and re-installed elsewhere, if desired.
Engineered wood flooring is increasingly the first choice for floor installations, and its advantages, in many circumstances, can be exceptional.  Homeowners with a little DIY experience can usually install it themselves.  Inspectors are likely to encounter it in new builds as well as remodels even more frequently as it continues to gain in popularity every year.

Understanding the Electric Panel Box on your Home

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One item I usually try to go over with a home buyer after a home inspection is the electric panel.  Many homeowners who are unfamiliar with construction and wiring are timid when it comes to electrical work. It makes perfect sense to have a healthy respect for electricity—it can be dangerous if you don’t understand it.

To give you confidence and a little knowledge to help you discuss electrical problems with an electrician, let’s explore how the service panel (or panel box) controls your home’s electrical system.

 

The Service Panel

After passing through the electric meter, the local electrical utility provides electricity to your house through the service panel (also called the distribution center). The panel, which is usually located in a garage, basement or utility room, distributes electricity through individual circuits that run throughout your house.

The service panel in most homes contains circuit breakers, which look like little switches. Older homes may contain fuses, but they serve the same purpose as circuit breakers—to stop the flow of electricity when there is a problem.

As a homeowner, you need access to the panel for three tasks:

  • to shut off power to the whole house if needed (you do this by switching off the large breaker);
  • to reset a circuit breaker that trips; and
  • to turn off power to individual circuits when you are doing electrical work somewhere in the house.

You can also add new circuits to the panel box if there is room, but this is usually a job for a licensed electrician.

Why Do Circuit Breakers Trip?

If you plug too many appliances into a circuit, the system senses that they require more power than the circuit can accommodate and the circuit breaker trips, shutting off power completely. It’s a safety measure designed to protect the wiring in the circuit, as too great a demand can cause the wires to overheat.

Each circuit has a limit of how much power it can handle. You will find that limit printed on each breaker. The number represents the ampere, or amps, which measure the rate or quantity of electrical flow. The number printed on the main breaker is the upper limit your house’s service can accommodate.

For example, a 15-amp circuit is a light-duty circuit that may power something like living room and bedroom lights and electrical outlets, and there are usually several outlets on one circuit.  A 30- or 50-amp circuit is for appliances that use a lot of energy, such as an electric clothes dryer or an electric range. These kinds of appliances are usually the only thing hooked up to the circuit—called a dedicated circuit—and their wiring will have a larger diameter.

Stopping Circuit Breakers from Tripping

Reducing demand on the circuit is the best way to prevent breakers from tripping. Appliances list their energy demands on an identification label on the unit. Most services experience tripping when juggling power demands. For example, if the breaker trips when you use the microwave and the toaster oven at the same time, you will have to move one of those appliances to another circuit. However, if a circuit trips frequently, contact an electrician because there may be a problem in the wiring or a short circuit.

Reset a breaker in the service panel by first pushing it to the “OFF” position and then pushing it back to the “ON” position. Fuses in older panels can’t be reset but must be replaced. Always replace a fuse with another of the same amperage. Don’t be tempted to install a higher-amp fuse because wiring size corresponds to amps. Wiring that is too small for the new fuse could overheat.

Types of Circuit Breakers

Your home is connected to the electric utility by three wires. Two of the wires are charged with a nominal 120 volts each, and the third wire is neutral. Volts or voltage is the force with which electricity flows. Each of the two “hot” wires is attached to the power bus in the service panel. You can’t see the power bus because the panel box should have an inside cover that allows only the circuit breaker switches to be accessible inside the door or cover. As the name implies, the power bus energizes the circuits with either 120 or 240 volts.

The way the circuit is used determines the amount of voltage needed. A 15-amp circuit requires one hot wire or 120 volts. This type of circuit breaker is called a single-pole breaker. An electric range on a 50-amp circuit may need 240 volts, so it has two hot wires. This type of breaker is called a double-pole breaker.

Other circuit breakers include:

  • ground-fault circuit interrupters (GFCIs). These breakers can sense the slightest imbalance in the flow of electrical current when a hot wire touches a ground, such as the metal cabinet of an appliance. Any type of abnormal current flow is called a fault. GFCI breakers trip much more quickly than standard breakers. GFCI protection is required by the National Electrical Code (NEC) in wet areas, such as kitchens and bathrooms, as well as in attached garages. GFCI outlets—the outlets with the “Test” and “Reset” buttons on them—offer the same protection.

  • arc-fault circuit interrupters (AFCIs).  A disconnected hot wire can produce a small arc of electrical current. AFCIs are designed to shut down the circuit before the arc can cause a fire.

Don’t be alarmed if your panel box does not contain GFCI breakers. GFCI electrical outlets provide the same protection. The use of AFCI breakers is relatively new, and not every municipality includes their use in local codes. If you are concerned about arc faults, consult a licensed electrician.

Map the Circuits

Make sure that the inside of the panel door has a legend that clearly indicates which rooms and/or appliances are powered by which breakers.  Many service panels’ legends are missing, illegible or inaccurate.  Make sure that yours is up to date. Work with a helper and methodically go through the house testing the circuits. Don’t assume that all of the outlets in a room are on one circuit. Kitchen lighting and outlets, for example, should be serviced by two circuits. A simple rule of thumb is to check all electrical outlets.

Be Responsible and Safe!

Unless a breaker trips or you want to shut off power to do some electrical work, there’s no need to deal with your service panel.  But it’s important to know where it’s located and to keep the area around it clear so that it’s accessible in an emergency.  It’s also a good idea to store a working flashlight nearby in the event of a power outage.

If the door to your home’s electrical service panel has scorch marks, that could indicate dangerous arcing.  If it’s rusted, there may be a hidden water leak.  It’s best to call a licensed electrician to investigate such issues further.

If your home’s electrical service uses fuses, be sure to keep compatible replacements available.

And never insert any metal object (such as a screwdriver) into the panel or attempt to remove the dead front or cover behind the breakers.  One wrong move could prove fatal.

Do NOT attempt to perform electrical work yourself if you lack the proper experience and training.

Asbestos for a Prescott Home Inspection

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We were recently asked if we do asbestos testing for a buyer on a Prescott home inspection. Because it is a destructive testing procedure (ie – you need to scrape a sample and send off for testing, and it could become more lethal once disturbed), we are not able to do an actual test for it. However, there are certain items we can look for during home inspections that could be a red flag and make you aware of the potential dangers when buying a home. After 1980, asbestos was mostly banned and phased out of construction material, but homes in the 1980’s and 1990’s could still have materials containing asbestos. The following information may help buyers and sellers if there is a concern about asbestos in a home.
What is Asbestos?
Asbestos is a mineral fiber that can be positively identified only with a special type of microscope. There are several types of asbestos fibers. In the past, asbestos was added to a variety of products to strengthen them and to provide heat insulation and fire resistance.
 
How Can Asbestos Affect My Health?
From studies of people who were exposed to asbestos in factories and shipyards, we know that breathing high levels of asbestos fibers can lead to an increased risk of lung cancer in the forms of mesothelioma, which is a cancer of the lining of the chest and the abdominal cavity, and asbestosis, in which the lungs become scarred with fibrous tissue.

The risk of lung cancer and mesothelioma increase with the number of fibers inhaled. The risk of lung cancer from inhaling asbestos fibers is also greater if you smoke. People who get asbestosis have usually been exposed to high levels of asbestos for a long time. The symptoms of these diseases do not usually appear until about 20 to 30 years after the first exposure to asbestos.

Most people exposed to small amounts of asbestos, as we all are in our daily lives, do not develop these health problems. However, if disturbed, asbestos material may release asbestos fibers, which can be inhaled into the lungs. The fibers can remain there for a long time, increasing the risk of disease. Asbestos material that would crumble easily if handled, or that has been sawed, scraped, or sanded into a powder, is more likely to create a health hazard.

Where Can I Find Asbestos and When Can it Be a Problem?
Most products made today do not contain asbestos. Those few products made which still contain asbestos that could be inhaled are required to be labeled as such. However, until the 1970s, many types of building products and insulation materials used in homes contained asbestos. Common products that might have contained asbestos in the past, and conditions which may release fibers, include:
  • steam pipes, boilers and furnace ducts insulated with an asbestos blanket or asbestos paper tape. These materials may release asbestos fibers if damaged, repaired, or removed improperly;
  • resilient floor tiles (vinyl asbestos, asphalt and rubber), the backing on vinyl sheet flooring, and adhesives used for installing floor tile. Sanding tiles can release fibers, and so may scraping or sanding the backing of sheet flooring during removal;
  • cement sheet, millboard and paper used as insulation around furnaces and wood-burning stoves. Repairing or removing appliances may release asbestos fibers, and so may cutting, tearing, sanding, drilling, or sawing insulation;
  • door gaskets in furnaces, wood stoves and coal stoves. Worn seals can release asbestos fibers during use;
  • soundproofing or decorative material sprayed on walls and ceilings. Loose, crumbly or water-damaged material may release fibers, and so will sanding, drilling or scraping the material;
  • patching and joint compounds for walls and ceilings, and textured paints. Sanding, scraping, or drilling these surfaces may release asbestos fibers;
  • asbestos cement roofing, shingles and siding. These products are not likely to release asbestos fibers unless sawed, dilled or cut;
  • artificial ashes and embers sold for use in gas-fired fireplaces, and other older household products, such as fireproof gloves, stove-top pads, ironing board covers and certain hairdryers; and
  • automobile brake pads and linings, clutch facings and gaskets.
Where Asbestos Hazards May Be Found in the Home
  • Some roofing and siding shingles are made of asbestos cement.
  • Houses built between 1930 and 1950 may have asbestos as insulation.
  • Asbestos may be present in textured paint and in patching compounds used on wall and ceiling joints. Their use was banned in 1977.
  • Artificial ashes and embers sold for use in gas-fired fireplaces may contain asbestos.
  • Older products, such as stove-top pads, may have some asbestos compounds.
  • Walls and floors around wood-burning stoves may be protected with asbestos paper, millboard or cement sheets.
  • Asbestos is found in some vinyl floor tiles and the backing on vinyl sheet flooring and adhesives.
  • Hot water and steam pipes in older houses may be coated with an asbestos material or covered with an asbestos blanket or tape.
  • Oil and coal furnaces and door gaskets may have asbestos insulation.

What Should Be Done About Asbestos in the Home?

If you think asbestos may be in your home, don’t panic.  Usually, the best thing to do is to leave asbestos material that is in good condition alone. Generally, material in good condition will not release asbestos fibers. There is no danger unless the asbestos is disturbed and fibers are released and then inhaled into the lungs. Check material regularly if you suspect it may contain asbestos. Don’t touch it, but look for signs of wear or damage, such as tears, abrasions or water damage. Damaged material may release asbestos fibers. This is particularly true if you often disturb it by hitting, rubbing or handling it, or if it is exposed to extreme vibration or air flow. Sometimes, the best way to deal with slightly damaged material is to limit access to the area and not touch or disturb it. Discard damaged or worn asbestos gloves, stove-top pads and ironing board covers. Check with local health, environmental or other appropriate agencies to find out proper handling and disposal procedures. If asbestos material is more than slightly damaged, or if you are going to make changes in your home that might disturb it, repair or removal by a professional is needed. Before you have your house remodeled, find out whether asbestos materials are present.
How to Identify Materials that Contain Asbestos
You can’t tell whether a material contains asbestos simply by looking at it, unless it is labeled. If in doubt, treat the material as if it contains asbestos, or have it sampled and analyzed by a qualified professional. A professional should take samples for analysis, since a professional knows what to look for, and because there may be an increased health risk if fibers are released. In fact, if done incorrectly, sampling can be more hazardous than leaving the material alone. Taking samples yourself is not recommended. If you nevertheless choose to take the samples yourself, take care not to release asbestos fibers into the air or onto yourself. Material that is in good condition and will not be disturbed (by remodeling, for example) should be left alone. Only material that is damaged or will be disturbed should be sampled. Anyone who samples asbestos-containing materials should have as much information as possible on the handling of asbestos before sampling and, at a minimum, should observe the following procedures:
  • Make sure no one else is in the room when sampling is done.
  • Wear disposable gloves or wash hands after sampling.
  • Shut down any heating or cooling systems to minimize the spread of any released fibers.
  • Do not disturb the material any more than is needed to take a small sample.
  • Place a plastic sheet on the floor below the area to be sampled.
  • Wet the material using a fine mist of water containing a few drops of detergent before taking the sample. The water/detergent mist will reduce the release of asbestos fibers.
  • Carefully cut a piece from the entire depth of the material using a small knife, corer or other sharp object. Place the small piece into a clean container (a 35-mm film canister, small glass or plastic vial, or high-quality resealable plastic bag).
  • Tightly seal the container after the sample is in it.
  • Carefully dispose of the plastic sheet. Use a damp paper towel to clean up any material on the outside of the container or around the area sampled. Dispose of asbestos materials according to state and local procedures.
  • Label the container with an identification number and clearly state when and where the sample was taken.
  • Patch the sampled area with the smallest possible piece of duct tape to prevent fiber release.
  • Send the sample to an asbestos analysis laboratory accredited by the National Voluntary Laboratory Accreditation Program (NVLAP) at the National Institute of Standards and Technology (NIST). Your state or local health department may also be able to help.
How to Manage an Asbestos Problem
 
If the asbestos material is in good shape and will not be disturbed, do nothing! If it is a problem, there are two types of corrections: repair and removal. Repair usually involves either sealing or covering asbestos material. Sealing (encapsulation) involves treating the material with a sealant that either binds the asbestos fibers together or coats the material so that fibers are not released. Pipe, furnace and boiler insulation can sometimes be repaired this way. This should be done only by a professional trained to handle asbestos safely. Covering (enclosure) involves placing something over or around the material that contains asbestos to prevent the release of fibers. Exposed insulated piping may be covered with a protective wrap or jacket. With any type of repair, the asbestos remains in place. Repair is usually cheaper than removal, but it may make removal of asbestos later (if found to be necessary) more difficult and costly. Repairs can either be major or minor. Major repairs must be done only by a professional trained in methods for safely handling asbestos. Minor repairs should also be done by professionals, since there is always a risk of exposure to fibers when asbestos is disturbed.
Repairs 
 
Doing minor repairs yourself is not recommended, since improper handling of asbestos materials can create a hazard where none existed. If you nevertheless choose to do minor repairs, you should have as much information as possible on the handling of asbestos before doing anything. Contact your state or local health department or regional EPA office for information about asbestos training programs in your area. Your local school district may also have information about asbestos professionals and training programs for school buildings. Even if you have completed a training program, do not try anything more than minor repairs. Before undertaking minor repairs, carefully examine the area around the damage to make sure it is stable. As a general rule, any damaged area which is bigger than the size of your hand is not considered a minor repair.

Before undertaking minor repairs, be sure to follow all the precautions described previously for sampling asbestos material. Always wet the asbestos material using a fine mist of water containing a few drops of detergent. Commercial products designed to fill holes and seal damaged areas are available. Small areas of material, such as pipe insulation, can be covered by wrapping a special fabric, such as re-wettable glass cloth, around it. These products are available from stores (listed in the telephone directory under “Safety Equipment and Clothing”) which specialize in asbestos materials and safety items.

Removal is usually the most expensive method and, unless required by state or local regulations, should be the last option considered in most situations. This is because removal poses the greatest risk of fiber release. However, removal may be required when remodeling or making major changes to your home that will disturb asbestos material. Also, removal may be called for if asbestos material is damaged extensively and cannot be otherwise repaired. Removal is complex and must be done only by a contractor with special training. Improper removal may actually increase the health risks to you and your family.
Asbestos Professionals: Who Are They and What Can They Do?
Asbestos professionals are trained in handling asbestos material. The type of professional will depend on the type of product and what needs to be done to correct the problem. You may hire a general asbestos contractor or, in some cases, a professional trained to handle specific products containing asbestos.
Asbestos professionals can conduct inspections, take samples of suspected material, assess its condition, and advise on the corrections that are needed, as well as who is qualified to make these corrections. Once again, material in good condition need not be sampled unless it is likely to be disturbed. Professional correction or abatement contractors repair and remove asbestos materials.
Some firms offer combinations of testing, assessment and correction. A professional hired to assess the need for corrective action should not be connected with an asbestos-correction firm. It is better to use two different firms so that there is no conflict of interest. Services vary from one area to another around the country.
The federal government offers training courses for asbestos professionals around the country. Some state and local governments also offer or require training or certification courses. Ask asbestos professionals to document their completion of federal or state-approved training. Each person performing work in your home should provide proof of training and licensing in asbestos work, such as completion of EPA-approved training. State and local health departments or EPA regional offices may have listings of licensed professionals in your area.

If you have a problem that requires the services of asbestos professionals, check their credentials carefully. Hire professionals who are trained, experienced, reputable and accredited — especially if accreditation is required by state or local laws. Before hiring a professional, ask for references from previous clients. Find out if they were satisfied. Ask whether the professional has handled similar situations. Get cost estimates from several professionals, as the charges for these services can vary.

Though private homes are usually not covered by the asbestos regulations that apply to schools and public buildings, professionals should still use procedures described in federal or state-approved training. Homeowners should be alert to the chance of misleading claims by asbestos consultants and contractors. There have been reports of firms incorrectly claiming that asbestos materials in homes must be replaced. In other cases, firms have encouraged unnecessary removal or performed it improperly. Unnecessary removal is a waste of money. Improper removal may actually increase the health risks to you and your family. To guard against this, know what services are available and what procedures and precautions are needed to do the job properly.

In addition to general asbestos contractors, you may select a roofing, flooring or plumbing contractor trained to handle asbestos when it is necessary to remove and replace roofing, flooring, siding or asbestos-cement pipe that is part of a water system. Normally, roofing and flooring contractors are exempt from state and local licensing requirements because they do not perform any other asbestos-correction work.

Asbestos-containing automobile brake pads and linings, clutch facings and gaskets should be repaired and replaced only by a professional using special protective equipment. Many of these products are now available without asbestos.

If you hire a corrective-action contractor:

  • Check with your local air pollution control board, the local agency responsible for worker safety, and the Better Business Bureau. Ask if the firm has had any safety violations. Find out if there are legal actions filed against it.
  • Insist that the contractor use the proper equipment to do the job. The workers must wear approved respirators, gloves and other protective clothing.
  • Before work begins, get a written contract specifying the work plan, cleanup, and the applicable federal, state and local regulations which the contractor must follow (such as notification requirements and asbestos disposal procedures). Contact your state and local health departments, EPA regional office, and the Occupational Safety and Health Administration’s regional office to find out what the regulations are. Be sure the contractor follows local asbestos removal and disposal laws. At the end of the job, get written assurance from the contractor that all procedures have been followed.
  • Assure that the contractor avoids spreading or tracking asbestos dust into other areas of your home. They should seal off the work area from the rest of the house using plastic sheeting and duct tape, and also turn off the heating and air conditioning system. For some repairs, such as pipe insulation removal, plastic bags may be adequate. They must be sealed with tape and properly disposed of when the job is complete.
  • Make sure the work site is clearly marked as a hazardous area. Do not allow household members or pets into the area until work is completed.
  • Insist that the contractor apply a wetting agent to the asbestos material with a hand sprayer that creates a fine mist before removal. Wet fibers do not float in the air as easily as dry fibers and will be easier to clean up.
  • Make sure the contractor does not break removed material into smaller pieces. This could release asbestos fibers into the air. Pipe insulation was usually installed in pre-formed blocks and should be removed in complete pieces.
  • Upon completion, assure that the contractor cleans the area well with wet mops, wet rags, sponges and/or HEPA (high-efficiency particulate air) vacuum cleaners. A regular vacuum cleaner must never be used. Wetting helps reduce the chance of spreading asbestos fibers in the air. All asbestos materials and disposable equipment and clothing used in the job must be placed in sealed, leakproof, and labeled plastic bags. The work site should be visually free of dust and debris. Air monitoring (to make sure there is no increase of asbestos fibers in the air) may be necessary to assure that the contractor’s job is done properly. This should be done by someone not connected with the contractor.
Caution! 

Do not dust, sweep or vacuum debris that may contain asbestos. These actions will disturb tiny asbestos fibers and may release them into the air. Remove dust by wet-mopping or with a special HEPA vacuum cleaner used by trained asbestos contractors.

Home Inspection of Windows

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Windows are one of the things that get looked at when we do a Scottsdale or Prescott home inspection for a buyer or seller. This evaluation of windows determines not only if they open and close properly, but also looks for issues like broken seals or other defects that may need to be addressed or looked at more closely. If you decide to replace defective windows either before or after the sale of the home, here are a few items that may help you understand what is best for you.

First of all, if you are the seller or the buyer and a home inspection reveals defective windows, don’t panic! The cost to repair or replace the window may not be all that bad, and the potential savings in energy even better.

The Potential Energy Payback

The U.S. Department of Energy estimates that the average household spends between $1,500 and $2,500 annually on energy bills, and attributes about 45% of the expense to heating and cooling. With a window replacement project, selecting the right windows can have significant impact not only on the price of the project, but also on the potential for cutting energy expenses, which is especially important for those who intend to remain in their homes for years after the project is completed.

But when it comes to replacement windows, one size does not fit all. Homeowners need expert guidance to select products that offer the best value for their budget, climate, and the orientation of their home with respect to sun and shade. They should also be careful to contract only with installers who are well trained, efficient, and guarantee their work.

Are Replacement Windows the Right Choice?

It’s important to first determine what type of window project is best for your home. Technically speaking, replacement windows are designed to fit inside an existing window frame so that the siding and trim needn’t be disturbed or replaced.

New-construction units have nailing fins and are designed for installation in a rough opening.

Installation of prime windows requires removal of siding and trim around the window, then restoration of the finishes once the window is in place.

If an existing window frame is relatively square and free of rot and other defects, replacement windows can work well and save lots of time and money. But if an existing window has shifted out of square or there are signs of moisture infiltration in the surrounding wall, the old window and surrounding finishes should be removed. This gives the installer a chance to inspect the framing, find and flash the infiltration source, add insulation where necessary, and seal the opening against water and air leakage.

Replacement Window Material Choices

Vinyl
Vinyl replacement windows are a popular choice due to their affordable cost and low transmission of heat and cold air through the frames. They require little or no maintenance, which should always be factored into the value proposition.

There’s wide variation in the quality of vinyl frames and sashes in the market. More dimensionally stable vinyl frames are extruded with matrices of reinforcing cells for greater strength, and have joints that are welded. These features improve the potential for weather-tightness, energy performance, and lasting attractiveness.

One note: Residents of historic districts and certain homeowners’ associations should be advised that vinyl replacement windows may be prohibited and should check with authorities before installing them.

Wood
Wood replacement windows are more expensive than vinyl but offer comparable heat/cold transmission ratings. Wood is a good choice for older, traditional homes and in districts where vinyl and metal are prohibited by code. Though wood frames require routine maintenance, the extra expense can usually be avoided with approved metal or vinyl cladding applied at the time of installation.

Composition or Fiberglass
Fiberglass replacement windows are comparable in price to wood windows, and they boast better dimensional stability than vinyl. They have inherently good heat/cold transmission resistance that can be augmented with foam insulation applied within voids in the extrusions. Fiberglass windows are available in an array of factory-applied colors that require no maintenance.

Aluminum
Aluminum replacement windows are relatively inexpensive but have poor thermal transmission characteristics, especially when frames are constructed without a thermal break. However, they may offer decent value with the right glazing in warm climates. Factory-applied finishes need no maintenance.

Glazing Choices

Along with selecting a frame and sash with high resistance to thermal transfer, the right glazing can have an enormous impact on a replacement window’s energy-saving performance and, therefore, its long-term value. Glass by itself is not a particularly good insulator, but most replacement window suppliers offer a number of glazing options that can double or triple energy performance, in comparison to single glazing.

Selecting Replacement Windows Based on Orientation

ENERGY STAR, the U.S. Environmental Protection Agency’s program to help consumers and businesses conserve energy, makes some very specific recommendations for window U-value and SHGC ratings with respect to their orientation toward the sun:

In cold climates:

  • South-facing walls: Shaded windows should have a higher SHCG for more passive heat gain in winter and lower U-values to reduce heat loss. Unshaded south-facing windows should have lower SHGC to prevent excessive heat gain in summer.
  • East- and west-facing windows should have lower SHGC ratings.
  • North-facing windows should have the lowest U-value possible; SHGC ratings are unimportant.

In warm climates:

  • East-, west- and south-facing windows should have low SHGC and should be shaded to prevent excessive heat gain.
  • All windows should have low U-values to minimize heat loss and reduce air-conditioning loads.

Go by the Numbers

For guidance in selecting the best values in replacement windows, analyze and compare the ratings found on the NFRC/ENERGY STAR labels on the products offered within your budget range.

Lots of info here, sorry if it is overwhelming, but all windows are clearly not the same, so ask your local expert to help you, and then enjoy those new windows and hopefully the energy you will save in the long run.

Monsoon Reminders for Home Owners

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Now that we are clearly in monsoon season (especially here in the Prescott area),  Sonoran Property Inspections has some helpful hints and reminders to share on dealing with the large amounts of water we can get during these storms. During recent home inspections we have seen the results of damage that may have been prevented with a few of these tips.

If you have gutters make sure they are clean and clear of debris so that they can do the job they were intended to do. Valley flashings on the roof should be clear of tree leaves to allow water to flow off the roof correctly.

Make sure your downspouts have a splash block that will move water away from the foundation. This is important since you want water as far from the foundation as possible before it starts to soak into the ground.

If you have an underground drainage system that the down spouts are connected to it’s important that they are clear of debris, tree roots etc. Trying to clean them in the monsoon season isn’t the best time as this is when you need them most.

Grading should slope away from the foundation if at all possible. Generally a home is set up to be 6” above grade, however this can easily change after the landscapers or home owners finish the landscape.

Flat roofs should be inspected yearly to have repairs done and be certain the coatings are in good condition. Generally the coating can last 5-7 years.

Monsoons can drop a tremendous amount of water in a short time frame, no roof is waterproof but you can help manage the flow of water by following the few tips above.

15 Essential Tools for Every Homeowner

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The following items are essential tools, but this list is by no means exhaustive. Feel free to ask your InterNACHI inspector – Jerry, at Sonoran Property Inspections in Prescott Valley, during your next inspection about other tools that you might find useful.  Jerry does home inspections in the Prescott area.
 
1.  Plunger
A clogged sink or toilet is one of the most inconvenient household problems that you will face. With a plunger on hand, however, you can usually remedy these plumbing issues relatively quickly. It is best to have two plungers — one for the sink and one for the toilet.

 

2.  Combination Wrench Set

One end of a combination wrench set is open and the other end is a closed loop. Nuts and bolts are manufactured in standard and metric sizes, and because both varieties are widely used, you’ll need both sets of wrenches. For the most control and leverage, always pull the wrench toward you, instead of pushing on it. Also, avoid over-tightening.

3.  Slip-Joint Pliers

Use slip-joint pliers to grab hold of a nail, a nut, a bolt, and much more. These types of pliers are versatile because of the jaws, which feature both flat and curved areas for gripping many types of objects. There is also a built-in slip-joint, which allows the user to quickly adjust the jaw size to suit most tasks.

4.  Adjustable WrenchCaulking gun

Adjustable wrenches are somewhat awkward to use and can damage a bolt or nut if they are not handled properly. However, adjustable wrenches are ideal for situations where you need two wrenches of the same size. Screw the jaws all the way closed to avoid damaging the bolt or nut.

5.  Caulking Gun
Caulking is the process of sealing up cracks and gaps in various structures and certain types of piping. Caulking can provide noise mitigation and thermal insulation, and control water penetration. Caulk should be applied only to areas that are clean and dry.
6.  Flashlight
None of the tools in this list is of any use if you cannot visually inspect the situation. The problem, and solution, are apparent only with a good flashlight. A traditional two-battery flashlight is usually sufficient, as larger flashlights may be too unwieldy.
7.  Tape Measure
Measuring house projects requires a tape measure — not a ruler or a yardstick. Tape measures come in many lengths, although 25 feet is best.  Measure everything at least twice to ensure accuracy.

8.  Hacksaw
A hacksaw is useful for cutting metal objects, such as pipes, bolts and brackets. Torpedo levelHacksaws look thin and flimsy, but they’ll easily cut through even the hardest of metals. Blades are replaceable, so focus your purchase on a quality hacksaw frame.

9. Torpedo Level
Only a level can be used to determine if something, such as a shelf, appliance or picture, is correctly oriented. The torpedo-style level is unique because it not only shows when an object is perfectly horizontal or vertical, but it also has a gauge that shows when an object is at a 45-degree angle. The bubble in the viewfinder must be exactly in the middle — not merely close.

10.  Safety Glasses / Goggles
For all tasks involving a hammer or a power tool, you should always wear safety glasses or goggles. They should also be worn while you mix chemicals.

11.  Claw Hammer
A good hammer is one of the most important tools you can own.  Use it to drive and remove nails, to pry wood loose from the house, and in combination with other tools. They come in a variety of sizes, although a 16-ounce hammer is the best all-purpose choice.

12.  Screwdriver Set
It is best to have four screwdrivers: a small and large version of both a flathead and a Phillips-head screwdriver. Electrical screwdrivers areWire cutter sometimes convenient, but they’re no substitute.  Manual screwdrivers can reach into more places and they are less likely to damage the screw.

13.  Wire Cutters
Wire cutters are pliers designed to cut wires and small nails. The side-cutting style (unlike the stronger end-cutting style) is handy, but not strong enough to cut small nails.

14.  Respirator / Safety Mask
While paints and other coatings are now manufactured to be less toxic (and lead-free) than in previous decades, most still contain dangerous chemicals, which is why you should wear a mask to avoid accidentally inhaling. A mask should also be worn when working in dusty and dirty environments. Disposable masks usually come in packs of 10 and should be thrown away after use. Full and half-face respirators can be used to prevent the inhalation of very fine particles that ordinary facemasks will not stop.

15.  Duct Tape
This tape is extremely strong and adaptable. Originally, it was widely used to make temporary repairs to many types of military equipment. Today, it’s one of the key items specified for home emergency kits because it is water-resistant and extremely sticky.
by Nick Gromicko and Ben Gromicko (used with permission from the interNACHI  website)

Roof Maintenance for Homes

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Unprofessional Roofing

As we approach our summer monsoon season here in Arizona, it’s time to inspect your roof -or have a home inspector inspect it for you- to make sure you are ready for the storms and the extreme heat.  In the Prescott area the rains are more prevalent (and steady) than in the Phoenix area (where there can be lots of dust storms and winds, followed by a little or a lot of rain). In either case you want your roof to do what it is designed to do, and we want to give you a few tips to help.

Whether your roof is tile, asphalt shingles, or metal there are things to look for and repair or replace as needed:

  • Broken tiles
  • Missing, broken or buckling shingles
  • Peeling paint under the overhangs
  • Rusty flashing on the roof
  • Trees or shrubs hitting the roof – clear all branches away from roof
  • Clogged gutters
  • Evidence of dampness inside the house around windows or fireplace
  • Dark patches (moisture) on the ceilings
  • Water stains on ceiling or walls

If you notice any of these things you may want to hire a roofing company to come take a closer look to determine if a quick repair is all that is needed to protect your home from future damage. Contrary to what some people believe, your roof will not last forever. While the tiles on the roof may last a long time, the underlayments still needs to be replaced every 15 years or so. Annual inspections will certainly help you maintain your existing roof in our harsh Arizona summers.

Helpful Tips for First-Time Home Buyers

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Building a New HomeCourtesy of InterNACHI

If you want to build a new home, there are things you need to know before you begin. Learn about construction standards and about buying land, so you know your rights.

MPS Supplementing Model Building Codes

The Minimum Property Standards (MPS) establish certain minimum standards for buildings constructed under HUD housing programs. This includes new single-family homes, multi-family housing and healthcare-type facilities.

HUD Minimum Property Standards and How They Supplement the Model Building Codes

Until the mid-1980s, HUD maintained separate Minimum Property Standards for different types of structures. Since that time, HUD has accepted the model building codes, including over 250 referenced standards and local building codes, in lieu of separate and prescriptive HUD standards. However, there is one major area of difference between the MPS and other model building codes — durability requirements. Homes and projects financed by FHA-insured mortgages are the collateral for these loans, and their lack of durability can increase the FHA’s financial risk in the event of default. More specifically, the model codes do not contain any minimum requirements for the durability of items such as doors, windows, gutters and downspouts, painting and wall coverings, kitchen cabinets and carpeting. The MPS includes minimum standards for these, and other items, to ensure that the value of an FHA-insured home is not reduced by the deterioration of these components.

HUD Field Office Acceptance for Areas Without Building Codes

HUD requires that each property insured with an FHA mortgage meet one of the nationally recognized building codes or a state or local building code based on a nationally recognized building code. In areas where such state or local codes are used, HUD determines if the state or local code is comparable to the model building code. There are also areas of the United States that do not have building codes. If no state or local building code has been adopted, the appropriate HUD Field Office will specify a building code that is comparable to one of the nationally recognized model building codes.

Interstate Land Sales

The Interstate Land Sales program protects consumers from fraud and abuse in the sale or lease of land. In 1968, Congress enacted the Interstate Land Sales Full Disclosure Act, which is patterned after the Securities Law of 1933, and requires land developers to register subdivisions of 100 or more non-exempt lots with HUD, and to provide each purchaser with a disclosure document called a property report. The property report contains relevant information about the subdivision and must be delivered to each purchaser before the signing of the contract or agreement.

Buying Lots from Developers

Be well informed when shopping for land. Lots may be marketed as sites for future retirement homes, for second home locations, or for recreational or campsite use. However, be wary of any investment aspect that may be stressed by sales personnel. If you plan to purchase a lot which is offered by promotional land sales, take plenty of time before coming to a decision. Before signing a purchase agreement, a contract, or a check:

  • know your rights as a buyer;
  • know something about the developer;
  • know the facts about the development and the lot you plan to buy; and
  • know what you are doing when you encounter high-pressure sales campaigns.

Generally, if the company from which you plan to buy is offering 100 or more unimproved lots for sale or lease through the mail or by means of interstate commerce, it may be required to register with the U.S. Department of Housing and Urban Development (HUD). This means that the company must file with HUD and provide prospective buyers with a property report containing detailed information about the property. Failure to do this may be a violation of federal law, punishable by up to five years in prison, a $10,000 fine, or both. The information filed by the developer and retained by HUD must contain such items as these:

  • a copy of the corporate charter and financial statement;
  • information about the land, including title policy or attorney’s title opinion, and copies of the deed and mortgages;
  • information on local ordinances, health regulations, etc.;
  • information about facilities available in the area, such as schools, hospitals and transportation systems;
  • information about availability of utilities and water, and plans for sewage disposal;
  • development plans for the property, including information on roads, streets and recreational facilities; and
  • supporting documents, such as maps, plans and letters from suppliers of water and sewer facilities.

The company filing this information must swear and affirm that it is correct and complete, and an appropriate fee must accompany submission. The information is retained by HUD and is available for public inspection. The property report, which is also prepared by the developer, goes to the buyer. The law requires the seller to give the report to a prospective lot purchaser prior to the time a purchase agreement is signed. Ask for it. The seller is also required to have the buyer sign a receipt acknowledging receipt of the property report. Do not sign the receipt unless you have actually received the property report. Check the developer’s property report before buying. This is the kind of information you will find in a property report:

  • distances to nearby communities over paved and unpaved roads;
  • existence of mortgages or liens on the property;
  • whether contract payments are placed in escrow;
  • availability and location of recreational facilities;
  • availability of sewer and water service or septic tanks and wells;
  • present and proposed utility services and charges;
  • the number of homes currently occupied;
  • soil and foundation conditions which could cause problems in construction or in using septic tanks; and
  • the type of title the buyer may receive and when it should be received.

Read the Property Report Before Signing Anything

This report is prepared and issued by the developer of this subdivision. It is not prepared or issued by the federal government. Federal law requires that you receive this report prior to signing a contract or agreement to buy or lease a lot in this subdivision. However, no federal agency has judged the merits or value of the property. If you received the report prior to signing a contract or agreement, you may cancel your contract or agreement by giving notice to the seller any time before midnight of the seventh day following the signing of the contract or agreement. If you did not receive this report before you signed a contract or agreement, you may cancel the contract or agreement any time within two years from the date of signing.

Your Contract Rights

If the lot you are buying is subject to the jurisdiction of the Interstate Land Sales Full Disclosure Act, the contract or purchase agreement must inform you of certain rights given to buyers by that Act. The contract should state that the buyer has a “cooling-off” period of seven days (or longer, if provided by state law) following the day that the contract is signed to cancel the contract, for any reason, by notice to the seller, and get his or her money back. Furthermore, unless the contract states that the seller will give the buyer a warranty deed, within 180 days after the contract is signed, the buyer has a right to cancel the contract for up to two years from the day that the contract is signed, unless the contract contains the following provisions:

  • a clear description of the lot so that the buyer may record the contract with the proper county authority;
  • the right of the buyer to a notice of any default (by the buyer), and at least 20 days after receipt of that notice to cure or remedy
  • the default;
    a limitation on the amount of money the seller may keep as liquidated damages, of 15% of the principal paid by the buyer (exclusive of interest) or the seller’s actual damages, whichever is greater.

Contract Rights Concerning Property Reports

It has always been the law that if the developer has an obligation to register with the Interstate Land Sales Division, the developer or sales agent must give the buyer a copy of the current property report before the buyer signs a contract. Otherwise, the buyer has up to two years to cancel the contract and get their money back. That fact must also be clearly set forth in all contracts. You may have the right to void the contract if the subdivision has not been registered with HUD, or you were not given a property report.

Furthermore, if the developer has represented that it will provide or complete roads, water, sewer, gas, electricity or recreational facilities in its property report, in its advertising, or in its sales promotions, the developer must obligate itself to do so in the contract, clearly and conditionally (except for acts of nature or impossibility of performance). In addition to the right to a full disclosure of information about the lot, the prospective buyer may have the right to void the contract and receive a refund of their money if the developer has failed to register the subdivision with HUD or has failed to supply the purchaser with a property report.

While a purchaser may have the right to void the contract with the developer under these conditions, the purchaser may still be liable for contract payments to a third party if that contract has been assigned to a financing institution or some similar entity. The registration is retained by HUD and is available for public inspection. If the property report contains misstatements of fact, if there are omissions, if fraudulent sales practices are used, or if other provisions of the law have been violated, the purchaser may also sue to recover damages and actual costs and expenses in court against the developer. However, depending on when your sale occurred, you may be barred from taking further action due to the Act’s statute of limitations. Your attorney can advise you further on this matter.

“Cooling-Off” Period

Even if you received the property report prior to the time of your signing of the contract or agreement, you have the right to revoke the contract or agreement by notice to the seller until midnight of the seventh day following the signing of the contract. You should contact the developer, preferably in writing, if you wish to revoke your contract and receive a refund of any money paid to date. Even if the property report is delivered to you before you sign a sales agreement, the law gives you a “cooling-off ” period. This right cannot be waived.

A Word About the Interstate Land Sales Division

The HUD unit which administers the law, examines the developer’s registration statement, and registers the land sales operator is the Interstate Land Sales Division. Except for disclosure purposes, this office is not concerned with zoning or land-use planning, and has no control over the quality of the subdivision. It does not dictate what land can be sold, to whom, or at what price. It cannot act as a purchaser’s attorney. But it will help purchasers secure the rights given to them by the Interstate Land Sales Full Disclosure Act. HUD is authorized by law to conduct investigations and public hearings, to subpoena witnesses and secure evidence, and to seek court injunctions to prevent violations of the law. If necessary, HUD may seek criminal indictments. HUD is authorized by law to conduct investigations and, if necessary, seek criminal indictments.

Exemptions from the Law

The prospective buyer should be aware that not all promotional land sales operations are covered by the law. If the land sales program is exempt, no registration is required by HUD, and there will be no property report. Here are some of the specific situations for which the statute allows exemptions without review by HUD, including the sale of:

  • tracts of fewer than 100 lots which are not otherwise exempt;
  • lots in a subdivision where every lot is 20 acres or more in size;
  • lots upon which a residential, commercial or industrial building has been erected, or where a sales contract obligates the seller to build one within two years;
  • certain lots which are sold only to residents of the state or metropolitan area in which the subdivision is located;
  • certain low-volume sales operations (no more than 12 lots a year);
  • certain lots that meet certain local codes and standards and are zoned for single-family residences or are limited to single-family residences by enforceable codes and restrictions; and
  • certain lots, contained in multiple sites of fewer than 100 lots each, offered pursuant to a common promotional plan.

Other exemptions are available which are not listed above. If you have reason to believe that your sale is not exempt and may still be covered by the law, contact the Interstate Land Sales Division.

Know the Developer

Knowing your rights under the law is the first step in making a sensible land purchase. To exercise those rights, you also must know something about the honesty and reliability of the developer who offers the subdivision that interests you. Don’t fail to ask questions. Whether you are contacted by a sales agent on the phone or by mail, at a promotional luncheon or dinner, in a sales booth at a shopping center, or in the course of your own inspection of the subdivision, make it your business to find out all you can about the company and the property. In addition, get any verbal promises or representations in writing.

Don’t fail to ask questions. If you are seriously interested in buying a lot, ask if the company is registered with HUD or is entitled to an exemption. Request a copy of the property report and take the time to study it carefully and thoroughly. If you still have unanswered questions, delay any commitment until you have investigated. Discuss current prices in the area with local independent brokers. Talk to other people who have purchased lots.

A local Chamber of Commerce, Better Business Bureau, or consumer protection group may have information about the seller’s reputation. Inquire through county or municipal authorities about local ordinances or regulations affecting properties similar to that which you plan to buy. Don’t be high-pressured by sales agents.

Know the Facts About the Lot

Once you have decided on an appealing subdivision, inspect the property. Don’t buy “sight unseen.” Better yet, hire an InterNACHI inspector to perform a thorough property inspection. Also, check the developer’s plans for the project and know what you are getting with your lot purchase. It’s a good idea to make a list of the facts you will need to know. Some of the questions you should be asking, and answering, are these:

  • How large will the development become?
  • What zoning controls are specified?
  • What amenities are promised?
  • What provision has the developer made to assure construction and maintenance?
  • What are the provisions for sewer and water service?
  • Are all of the promised facilities and utilities in the contract?
  • Will there be access roads or streets to your property, and how will they be surfaced? Who maintains them? How much will they cost?
  • Will you have clear title to the property? What liens, reservations or encumbrances exist?
  • Will you receive a deed upon purchase or a recordable sales contract?
  • What happens to your payments? Are they placed in a special escrow account to pay for the property, or are they spent at once by the developer?
  • If the developer defaults on the mortgage or goes bankrupt, could you lose your lot and investment to date to satisfy a claim against the development?
  • What happens when the developer moves out? Is there a homeowners’ association to take over community management?
  • Are there restrictions against using the lot for a campsite until you are ready to build?
  • Are there any annual maintenance fees or special assessments required of property owners?

This is a partial list of points to consider before you commit your money or your signature.

Know What You are Doing

Interstate land sales promotions often are conducted in a high-pressure atmosphere that sweeps unsophisticated buyers along. Before they are aware that they have made a commitment, these buyers may have signed a sales contract and started to make payments on a lot. They may be delighted with the selection made, but, if not, it may be too late for a change of mind.

Nine Dishonest Sales Practices

Here are some of the practices avoided by reliable sales operations. Watch out for them and exercise sales resistance if you suspect they are occurring:

1. concealing or misrepresenting facts about current and resale value. Sales agents may present general facts about the area’s population growth, industrial or residential development, and real estate price levels as if they apply to your specific lot. You may be encouraged to believe that your piece of land represents an investment which will increase in value as regional development occurs. A sales agent may tell you that the developer will re-sell the lot, if you request. This promise may not be kept. Future resale is difficult or impossible in many promotional developments because much of your purchase price — sometimes as much as 40% — has gone for an intensive advertising campaign and commissions for sales agents. You are already paying a top price and it is unlikely that anyone else would pay you more than you are paying the developer. You may even have to sell for less than the price you originally paid for the lot. Sales promotions often are conducted in a high-pressure atmosphere. Furthermore, when you attempt to sell your lot, you are in competition with the developer, who probably holds extensive, unsold acreage in the same subdivision. In most areas, real estate brokers find it impractical to undertake the sale of lots in subdivisions and will not accept such listings. It is unlikely that the lot you purchase through interstate land sales represents an investment, in the view of professional land investors. Remember, the elements of value of a piece of land are its usefulness, the supply, the demand, and the buyer’s ability to re-sell it. The Urban Land Institute estimates that land must double in value every five years to justify holding it as an investment. In some areas, the cost of holding the land, such as taxes and other assessments, can run as high as 11% a year.

2. failure to honor refund promises or agreements. Some sales promotions conducted by mail, email or long-distance telephone include the offer of a refund if the property has been misrepresented, or if the customer inspects the land within a certain period of time and decides not to buy. When the customers request the refund, s/he may encounter arguments about the terms of the agreement. The company may even accuse its own agent of having made a money-back guarantee without the consent or knowledge of the developer. Sometimes, the promised refund is made, but only after a long delay.

3. misrepresentation of facts about the subdivision. This is where the property report offers an added measure of protection. A sales agent may offer false or incomplete information relating to either a distant subdivision or one which you visit. Misrepresentations often relate to matters such as the legal title, claims against it, latent dangers (such as swamps or cliffs), unusual physical features (such as poor drainage), restrictions on use, or lack of necessary facilities and utilities. Read the property report carefully with an eye to omissions, generalizations, or unproved statements that may tend to mislead you. If you are concerned about overlooking something important, discuss the report and the contract with a lawyer who understands real estate matters. The developer also may use advertisements that imply that certain facilities and amenities are currently available when they are not. Read the property report to determine whether these facilities and amenities are actually completed, or proposed to be completed in the future. If the company advertises sales on credit terms, the Truth in Lending Act requires the sales contract to fully set forth all terms of financing. This information must include total cost, simple annual interest, and total finance charges.

4. failure to develop the subdivision as planned. Many buyers rely upon the developer’s contractual agreement or a verbal promise to develop the subdivision in a certain way. The promised attractions that influenced your purchase (golf course, marina, swimming pool, etc.) may never materialize after you become an owner. If they are provided, it may be only after a long delay. If you are planning on immediate vacation use of the property, or are working toward a specific retirement date, you may find that the special features promised of the development are not available when you need them.

5. failure to deliver deeds and/or title insurance policies. Documents relating to the sales transaction may not be delivered as promised. Some sales in the promotional land development industry are made by contract for a deed to be delivered when the purchaser makes the last payment under the terms of the contract. A dishonest developer may fail to deliver the deed, or deliver it only after a long delay. A sales agent may offer false or incomplete information.

6. abusive treatment and high-pressure sales tactics. Some sales agents drive prospective customers around a subdivision in automobiles equipped with citizen band radios which provide a running commentary on lot sales in progress. The customer may be misled by this and other sales techniques to believe that desirable lots are selling rapidly and that a hurried choice must be made. Hurrying the buyers into a purchase they may later regret is only one ploy of high-pressure sales agents. More offensive is abusive language used to embarrass customers who delay an immediate decision to buy. In some instances, hesitant buyers have been isolated in remote or unfamiliar places where transportation is controlled by the sales agent or the agent’s organization.

7. failure to make good on sales inducements. Free vacations, gifts, savings bonds, trading stamps, and other promised inducements are used to lure people to sales presentations or to development sites. These promised treats may never materialize. Sometimes, special conditions are attached to the lure, or a customer is advised that gifts go only to lot purchasers. A “free vacation” may be the means of delivering the prospective buyer to a battery of high-pressure sales agents in a distant place. The promised attractions may never materialize.

8. “bait and switch” tactics. Lots are frequently advertised at extremely low prices. When prospective buyers appear, they are told that the low-priced lots are all sold and then are pressured to buy one that is much more expensive. If the cheaper lot is available, it may be located on the side of a cliff or in another inaccessible location. If accessible, it may be much too small for a building or have other undesirable features. The buyers may be lured to the property with a certificate entitling them to a “free” lot. Often, the certificate bears a face value of $500 to $1,000. If the buyers attempt to cash it in, the amount is simply included in the regular price (often inflated) of the lot they choose. Often, this so-called “bait and switch” technique has a delayed fuse. Buyers who purchase an unseen lot for later retirement may be unpleasantly surprised when they visit the development. The lot they have paid for may be remote from other homes, shopping and medical facilities. It may be insufficiently developed for use. When the buyers complain, sales personnel attempt to switch them to a more expensive lot, applying the money paid for the original lot to an inflated price for the new one, and tacking on additional financing charges. If the unhappy purchasers lack sufficient funds to accept this alternative, they are left with an unusable, unmarketable first choice.

9. failure to grant rights under the Interstate Land Sales Full Disclosure Act. Purchasers may not be given copies of the property report before they sign a sales contract. Some sales agents withhold this detailed statement until customers choose a specific lot. Sometimes, the buyers receive the report in a mass of promotional materials and legal documents. Unaware that the report is in their possession, they fail to read and understand it before signing a sales contract.