Home Inspections: Definition and Common Problems Found

What is a home inspection in New Jersey and what does it cover?

The purpose of a home inspection is to provide you, as a consumer, with an understanding of the condition of the home you are purchasing. A home is likely to be one of the biggest purchases you will ever make, so whether or not you plan to use that information in negotiations with the home seller, it is important for you to know what you are buying.

In New Jersey, home inspectors are governed by the Home Inspection Advisory Committee, which has established regulations for inspections of NJ homes. The Advisory Committee defines a home inspection as a visual, functional, non-invasive inspection conducted for a fee or any other consideration and performed without moving personal property, furniture, equipment, plants, soil, snow, ice, or debris, using the mandatory equipment and including the preparation of a home inspection report. The following readily-accessible elements and components of a residential building are included in the inspection: structural components, exterior components, roofing system, plumbing system, electrical system, heating system, cooling system, interior components, insulation components, ventilation system, fireplaces and solid fuel burning appliances, and related residential housing components, and excluding recreational facilities and outbuildings other than garages or carports.

The job of the home inspector is to document any accessible and visible material defects found in the home. A material defect in New Jersey is defined as any defect that materially affects the value, safety, or habitability of the home and excludes cosmetic items. A reputable home inspector reports on material defects and nonmaterial defects.

 

Besides material defects, is any other defect specifically required by the NJ Home Inspection Advisory Committee to be identified and included in a home inspection report?

Yes, the presence of single strand aluminum wire must be reported according to the NJ Standards of Practice because it is a fire hazard. Aluminum wiring was used in some homes from the 1960s to the mid-1970s. Electrical current running through the wire causes the aluminum wire to expand. When the current stops, the wire contracts. Constant expanding and contracting can loosen the wire at its junction points, leading to arching, which can cause a fire. Homeowner’s insurance companies often will not write coverage on homes with active aluminum wiring. The safest way to correct this issue is to rewire the circuits in the home, which can be very expensive. The Home Inspection Advisory Committee understands that aluminum wire in a home is a big issue, so they specifically indicated in the Standards of Practice that its presence must be identified and reported on.

 

What are some of the larger “red flag” issues that are found on home inspections?

Roof issues: The most common roof issue is that the roof is old and near or past its life expectancy. The roof is an expensive system, and insurance companies are very conservative in insuring homes with older roofing.

Foundation issues: Problems with the foundation are the most expensive issues to repair. Problems with the foundation are usually caused by hydraulic loads pushing on the foundation walls from the exterior. This can cause cracking and water infiltration issues.

Electrical problems: Older homes in particular may have outdated or otherwise problematic electrical systems such as knob and tube wiring, aluminum wiring, unsafe electrical panels, and damaged wires. Even newer homes sometimes have electrical problems, especially if non-professional electrical work was performed in the home.

Heating and air problems: Occupant comfort is very important, so it is imperative for the home inspector to evaluate these systems. Problems with the heating and air conditioning systems are often challenging and/or expensive to correct.

Water intrusion: Water can cause extensive damage to homes. Typically, water intrusion occurs in basements or crawlspaces, and it can cause foundation problems, cracking, deterioration, mold growth, and unsafe living conditions.

Problems with the grading: A negative grade (when the property slopes toward the exterior of the house) directs water toward the home. If water controls are not up to par, significant long-term problems can result, as noted above.

Mold problems: Moisture in a house can lead to mold growth. Mold can cause allergies, asthma, infections, and other breathing issues. Mold-related health problems can be significant, especially for younger, older, and immunocompromised individuals.

Intentionally hidden defects: Sometimes sellers try to cover up issues in their home, even going as far as installing walls or ceilings over known issues. This is morally and legally wrong. A seller who does not disclose known problems in the home is committing fraud. Home inspectors do their best to find these cover ups; however, sometimes it is just not possible.

Non-professional or homeowner “DIY” work: Nonprofessional work on a home is a potential issue if the contractor was not skilled or cut corners. For example, we frequently find basements that have been nonprofessionally “finished” with non-professional electrical wiring and plumbing issues. We recommend that home buyers obtain copies of the closed permits for any plumbing, structural, or electrical modifications that were performed in the home.

 

Can a home fail a home inspection?

No, because home inspectors do not grade homes on a pass or fail basis. The purpose of the home inspection is to provide the buyer of the property with objective detailed information about the condition of the home. It is up to you as the buyer to make intelligent decisions about the purchase of the home based on that information. If multiple significant issues are found, this may be grounds for cancelling the contract and not purchasing the home or for asking the seller to provide either credits or corrections to address the issues. However, no matter how many defects are found, the home cannot officially fail inspection, nor should you expect any documentation from your inspector saying the home failed.

 

Real Estate Contracting: How It Impacts Your Home Inspection

Should I hire an attorney who specializes in real estate transactions?

Yes, when purchasing a home, it is best to work with an attorney who specializes in real estate transactions. The attorney acts as your representative to the seller and seller’s attorney. Attorneys who work in many areas of law may not interpret a home inspection report properly or fully understand the problems that exist in the home. An attorney who has an in-depth understanding of homes and their potential problems can best represent you in the transaction by focusing on the largest, most important issues identified in the home inspection report and accurately communicating with the seller about them. When you interview attorneys, make sure the attorney you select is familiar with home systems and the potential issues that homes have and hire one who specializes in real estate.

 

Should I offer to limit my home inspection to make my offer more appealing to the seller?

This is a tough question. As noted above, this is now a common practice in New Jersey. Limiting the inspection typically means asking for remediation or credits only for structural, environmental, and mechanical concerns. Limiting your home inspection will certainly make your offer more appealing; however, it prevents you from asking for corrections or credits for small-to-medium issues and leaves you having to address them yourself at your own cost. If there are a lot of those, repairs can add up to considerable additional costs. If you plan to limit your inspection, make sure your overall budget for the home purchase includes money for such repairs.

Another problem with limiting the inspection to structural, environmental, and mechanical concerns is the murkiness regarding the definitions of those terms. For example, if a sewer line is cracked is that structure? That can be a huge expense but it is not universally accepted as part of the structure of the house. Are fireplace and chimney problems considered structure? If an HVAC unit is 25 years old and still operating is that something that can be negotiated? Is a garage door that does not open and close properly considered mechanical? These vague, undefined terms can lead to a long, drawn-out negotiation over inspection findings. Therefore, if you plan to include a clause in your real estate contract saying you will limit your inspection, it would be wise to have your attorney include definitions of what will be considered “structural, environmental, and mechanical concerns” before the inspection is done to minimize the risk of pushback if “grey area” issues are found on the inspection.

 

Should I waive my home inspection?

We strongly advise against this. It may be tempting to waive your inspection to make your offer more appealing to buyers when the housing market is extremely competitive, but if you waive your home inspection, you risk buying a home with expensive, unforeseen problems. Waiving the inspection puts you in a very vulnerable position that can lead to financial distress later, after the sale is complete.

When a prospective buyer looks at a house, they are generally looking at that home to see if it will suit the needs of their family. You may think you’ve found your dream home, but even if it appears to be move-in ready, there may be hidden problems that aren’t obvious on a cursory home tour. Even if you are very knowledgeable about houses and their systems, in today’s real estate environment, you likely won’t be able to spend hours at the home looking at all the areas and systems yourself. Home inspectors have to be given access to inspect the house, are trained in defect recognition, and understand where the problems are likely to be. We strongly encourage you not to forego a thorough home inspection so you are at least informed about what to expect after you close.

 

If the home inspection uncovers expensive issues in the home, can I negotiate with the seller?

The answer is maybe. It depends on what is stipulated in your real estate contract, so make sure you understand the contract and review that portion with your attorney during attorney review, before your inspection takes place. Many real estate contracts in New Jersey now stipulate that the buyers can only negotiate structural, environmental and mechanical concerns (see the next question below). If problems are found in the home that fall into these categories, you may be able to ask the seller for remediation or credit. Unfortunately, gone are the days when buyers can provide the seller with a long list of demands. Typically, smaller issues and cosmetic issues are not points of negotiation anymore. If buyers have questions about their real estate contract and what can be negotiated and what cannot be negotiated, they should consult with their real estate attorney.

 

How and When Does a Home Inspection Fit Into the Home-Buying Process?

When in the home-buying process is the inspection performed?

After an offer on a home is accepted by the seller and the contract is signed by both parties in New Jersey, the next two steps are usually attorney review of the contract followed by the home inspection contingency period.

Attorney review is typically a three-day period where the seller’s attorney and the buyer’s attorney review the contract and negotiate terms. During this time, the attorneys for either party can request changes be made to the real estate contract, and the contract can also be canceled by either party. Attorney review concludes when both parties have agreed to the terms of the existing or modified contract. After their attorney review period is over the inspection contingency period begins.

The inspection contingency period, also called the due diligence period, is typically 7 to 14 days. All planned inspections of the home must be completed within this time frame. Generally, the home inspection report should be delivered to the home buyer within 24 hours of the inspection to help keep to the timeline, because any buyers’ requests for repairs, or credits for repairs, must be sent in writing by the buyer’s attorney to the seller’s attorney during the inspection contingency period. If both attorneys agree, there can be extensions to the contingency period, which is sometimes done to allow for radon results, other lab results, and to allow for additional due diligence to be performed on the home. For example, an extension is sometimes necessary to allow a professional engineer or architect to evaluate a problem that was found during a home inspection.

 

What is the best time to start contacting home inspectors?

The purchaser should contact home inspectors as soon as they enter attorney review. This will give the purchaser three or four days to put together a short list of home inspectors and interview them before contracting one to do the inspection. Waiting until the inspection contingency period to begin the process may not leave you enough time to research and interview inspectors, get on the schedule of your preferred inspector, and complete all of the inspections, report, and negotiations within the allotted time. This is especially true during the busiest times of the real estate season, which are in the spring and summer. If you wait too long, it is possible that your preferred home inspector will be booked and not able to complete your inspection within the required timeframe, forcing you to hire your second or third choice. Starting as early as possible puts you in a more advantageous position to find, hire, and schedule the best person for the job.

 

What should I look for when hiring a home inspector?

The most important quality you should look for in a home inspector is years of experience. A home inspection career is one of learning in the field to see and identify problems. A home inspector who has had a successful multi-decade career has been exposed to many more complex home issues than the neophyte home inspector whose learning may consist mainly of seeing pictures in a textbook. Look for a home inspector who has performed thousands of home inspections.

Patience and communication skills are also necessary to be a successful home inspector. Home inspectors work with clients from all types of home knowledge backgrounds and skill sets, from people buying their first home who may have a zero-knowledge base to more seasoned home buyers with years of experience in home ownership and repairs. You want a home inspector who will take the time to give clear, easy-to-understand answers to all of your questions no matter what level you are at. The ability to communicate well both verbally and in writing is also paramount because if the home inspector does not have the ability to bring his or her knowledge to you in a useful way you will not get the most out of the home inspection. Also, if the home inspector cannot write well and transfer the information in his/her mind to paper then you will have a sub-par home inspection report. (See more about this important aspect of your inspection in the section on Home Inspection Reports).

 

What are some useful questions I should ask home inspectors as I interview them?

1. How many years of experience do you have?
2. Are you a full-time home inspector?
3. What associations are you a member of in good standing?
4. Do you use infrared technology in your home inspections?
5. How long do your home inspections take to perform?
6. Are you available after the inspection to answer my questions?
7. Will you enter and inspect the crawlspaces and attic?
8. Can I attend the home inspection and follow you?
9. When should I expect the home inspection report to be completed?
10. Can you send me two sample home inspection reports?

 

What are the two largest home inspector associations, and why is it important to hire a home inspector who is a member of one or both?

The two major home inspector associations are the American Society of Home Inspectors and Inter-Nachi the International Association of Certified Home Inspectors. Home inspectors who are members of these associations make a commitment to furthering their education in the field. The Home Inspection Advisory Committee has established continuing education requirements for home inspectors; however, each association has additional educational requirements. Being a member does not make someone a competent home inspector, but it does show additional commitment to continuing education.
 

What to Expect the Day of Your Home Inspection

Should I attend my home inspection?

Yes, you should attend your home inspection. Attending the home inspection allows you to interact with the home inspector, watch him or her inspect the home, and ask questions. Observing the issues in person may give you more perspective on the potential problems than just reading about them in a home inspection report and allows you to ask questions about those issues while at the site. Attending the home inspection also allows you to see the home inspector in action and determine if you are satisfied with the quality and length of the home inspection.

 

How long should a home inspection take to perform?

Home inspections should not be rushed, and it should be as long as it takes to do the job thoroughly and correctly. A home inspection on an average-sized house should take about three to four hours to perform. Sometimes it takes 60 minutes to completely inspect just the exterior of the house.

Be wary of inspectors who tell you they only need 60 to 90 minutes for the entire inspection because there are so many areas, systems, and components of a home that it is not possibly to properly inspect them all and document issues in that short a timeframe. It is advisable that you find a home inspector who takes his or her time to do the job correctly rather than rushing it to get to their next inspection. When interviewing home inspectors, ask how many inspections they typically book on the same day, and look for a home inspector who will make your inspection their priority.

 

Will a home inspector tell me how old the heating and air conditioning systems are?

A good home inspector will tell you how old the heating and air conditioning equipment is. At a minimum, home inspectors should determine the age of the central air conditioner, air conditioner coil, water heater, and heating equipment. Even when this equipment is working, it is useful for the home buyer to understand the age of the equipment because all mechanical equipment has a statistical life expectancy. Knowing the age and life expectancy can tell you if the equipment is likely to need replacing or repair soon.

 

Can a home inspector test the central air conditioner in the winter?

Home inspectors cannot test an air conditioning unit if it is below 60 degrees Fahrenheit outside because doing so can result in a failure of the compressor unit.

When the air conditioner is running, refrigerant in the coils is converted from a liquid to a gas and back again as it travels through the system. Operating the air conditioner in less than 60-degree weather can prevent the refrigerant from converting to a gas. The compressor unit (the exterior unit) is designed to handle the refrigerant when it is in gas form only, so if it remains in liquid form throughout the cycle, this can cause the compressor unit to become damaged and fail.

Home buyers should speak to their real estate attorney and real estate agent about what protection is available if it is not possible to test the air conditioning unit during the inspection contingency period. One option is to hold some funds in escrow until the unit can be tested in the spring. Another option is to ask the seller to purchase a warranty on the unit and other equipment in the home for you. Be sure to read the warranty paperwork fully to understand what is and what is not covered. A third option is to acquire a signed official statement from the seller that indicates that the unit was in satisfactory operating condition. If the unit is not operational then the necessary repairs or replacement should be done.

 

Will the home inspector evaluate crawlspaces?

The home inspector should inspect a crawlspace if it is feasible to enter. Having a crawlspace makes things tighter to access, but if the crawlspace was designed and built correctly, they are not inherently a bad thing for a home to have. When considering a home for purchase, you should note the size of the crawlspace and the ability of a repair person to enter and traverse the space. Ideally, the crawlspace should be large enough to move around in and to perform any repairs needed to malfunctioning electrical, plumbing, and HVAC components located within the crawlspace.

Inaccessible crawl spaces present great challenges to home inspectors because as their name suggests they cannot be accessed to be inspected. Buying a home with an inaccessible crawl space means the buyer has to accept the open-ended risk of unforeseen issues with the areas of the home that could not be inspected. The home inspector should document any areas of the home that were not accessible during the inspection and note this as a limitation in the home inspection report.

 

What if other areas of the home lack accessibility?

Home inspections are visual inspections of the accessible areas of the home. From time to time there will be areas in a home where a home inspector cannot access. For example, in addition to sealed crawlspaces this might include a garage that is packed with storage. In such cases, the home inspection report will document the areas that were not accessible. Sometimes the areas can be made accessible after the home inspection, allowing the home inspector to return for inspection. Typically, home inspectors charge a fee for any return visit to the home. It is in the best interest of the purchaser to have the seller make all areas of the home accessible, ideally before the initial inspection. If there are inaccessible areas in the home, the inspection will not be comprehensive, which leaves open risks to the buyer.

 

What is an infrared camera used for in a home inspection?

An infrared (IR) camera is an important piece of equipment that can help the home inspector find problems that are not readily apparent to the naked eye during a visual home inspection. One of the most important benefits of using an IR camera is its ability to detect temperature variations in walls and ceilings, which can alert the home inspector to potential water leaks. IR cameras can detect such leaks because water typically shows up as a cooler area with a different thermal signature than the surrounding walls and ceilings. The use of an IR camera to detect cold and hot areas is also useful in finding areas where there are insulation deficiencies. It can identify areas where heat is escaping, such as around windows, doors, or poorly insulated walls, which can significantly affect a home’s energy efficiency. Similarly, IR cameras can detect and help locate electrical hotspots and overloaded circuits, which are problems that can lead to electrical fires. IR cameras can help identify roof leaks (which show up as cold spots) and inadequate attic ventilation (which appear as hot spots). Addressing such issues can help prevent further damage to the roof and structure.

Not all home inspectors use IR cameras, but doing so makes for a more thorough and complete home inspection. IR cameras can add another layer of information if used correctly and can aide in finding issues that are not readily visible. When interviewing potential home inspectors, consider asking whether they plan to make use of an IR camera during your inspection.

Additional Inspections

Should I have a radon test?

Yes, it’s important to have a radon test as part of your home inspection. Radon is a colorless gas that can cause lung cancer with long-term exposure. Radon is the second leading cause of lung cancer in the United States, with smoking being the first. A radon test is an inexpensive way to protect your family from this increased risk of cancer.

Home inspectors usually will perform a radon test by leaving two radon test kits at the lowest living level of the home. The home inspector or a radon tech then retrieves the test two to six days later and sends those kits to a lab for analysis. The NJ Department of Environmental Protection indicates that radon levels over 4 picocuries per liter of air (pCi/L) should be remediated. High radon levels easily can be lowered to safer levels by installing a sub-slab depressurization system.

 

Should I have a wood-destroying insect (WDI) inspection?

Yes, having a WDI inspection is an important part of a comprehensive home inspection. Termites, carpenter ants, carpenter bees, and other WDIs can cause thousands of dollars in damage that you likely want to have addressed before closing on the home. Home inspectors will either provide this inspection themselves or have a third-party pest control company perform it.

 

What is a level II chimney inspection?

During your main home inspection, the home inspector will perform a visual inspection of the fireplace and chimney and report on visible deficiencies. A level II chimney inspection is a more focused detailed inspection of the chimneys and fireplaces in the home and includes use of a camera system to view the interior of the chimney that may not have been visible during the home inspection. Having a level II chimney inspection performed adds another layer of due diligence and can reveal more issues than the standard visual inspection performed by the home inspector.

 

Should I have a septic inspection?

A septic system is a below-ground wastewater treatment system. Septic systems are generally found in rural areas that have no city sewer connection. If the home has a septic system, you should absolutely have it inspected. Septic systems that fail inspection must be reported to the Board of Health, and must be repaired or in most instances replaced, which can be an expensive undertaking. Septic system failure is something that typically can be negotiated with a seller. Generally, homes cannot change hands with a failed septic system until it has been remedied, but the Board of Health will make that decision.

 

Should I have a sewer line inspection?

Yes, if you have a city sewer line, then a sewer line inspection is a very important part of a complete home inspection. The sewer line is the main waste pipe that delivers wastewater from the home to the municipal connection. After you purchase the home, you will own this sewer line and will be responsible for any problems and damage. Replacement or repair of a sewer line can cost thousands of dollars.

The only way to know if problems exist with the underground sewer line is to perform an inspection with a push camera. This inspection will identify problems like water retention, tree root intrusion, damage, cracking, large offset joints, and channeling. Some home inspectors can provide this important inspection, but if your home inspector cannot do so, you should contract with a third-party inspection company to perform a sewer line inspection.

 

Should I have a “tank sweep” (oil tank location service) performed?

Oil tank location is part of the due diligence process. In New Jersey, there are a lot of below-ground oil tanks. Unless you are sure of the home’s oil tank history, or the home is newer, you should have an oil tank location service performed to determine if there are any underground oil tanks on the property. If you buy a home with an oil tank that has leaked, you as the owner will be liable for the cleanup, which can cost tens of thousands of dollars or more. If you buy a home with a below ground tank that is not leaking, you should assume it will leak at some point because the majority of these below-ground tanks are past their life expectancies. Most attorneys will advise you to negotiate the removal of any underground tanks even if they were legally decommissioned.

Oil tank location is not very expensive and generally worth the peace of mind it provides. If a tank is found, the buyer will be able to either cancel the contract or have the seller remove the oil tank, test for any leaks, and be responsible for any associated clean-up costs.

Home inspectors can perform tank location services; however, we caution against this because home inspectors generally do not do a sufficient volume of these inspections to have a vast knowledge of this very nuanced field. Oil tank location is challenging, and a high level of proficiency is needed in understanding underground anomalies. You should seek a reputable company that has done thousands of oil tank sweeps. Proper environmental insurance is also required, so that if the company misses a below-ground tank you will be covered for the tank removal and the possible environmental clean-up. If you do hire a home inspector to do this work, make sure they have adequate environmental insurance to cover you if they miss an oil tank on the property.

 

The Home Inspection Report: a Key Component of Your Inspection

What is a home inspection report?

The home inspector prepares a detailed home inspection report for the prospective homebuyer. A good home inspection report documents both in writing and with photographs the findings of the home inspection, particularly any material and nonmaterial defects found and the potential ramifications if those problems are not fixed. The home inspector may make recommendations regarding repair of deficient items and may recommend further evaluation of some of the defects found. The report should also note any systems or components that were not inspected at the time of the home inspection and document why they were not inspected. Home inspectors should strive to deliver the report to the client within 24 hours.

 

What makes for a good home inspection report?

A home inspection report should be detailed, comprehensive, and easy to read and understand. Narrative home inspection reports that include pictures of each issue are the optimal format. A good home inspection report should be written in plain English that any homebuyer can understand, and should not be filled with industry jargon or fluff. Good home inspection reports are lengthy and cover all the many system components and areas in the home but also include a section summarizing the major issues. The buyer should read the entire home inspection report, but the summary provides a holistic view of all of the major problems present in the home.

While some inspectors offer shorter checklist style reports, those are less useful to the homebuyer because they lack the detail necessary to fully and accurately describe the problems present. Beware of home inspectors who create on-site home inspection reports. Generally, these reports lack detail and specificity. Some home inspectors use software with standardized templates and generic prepopulated comments. That may lead to reports that are not specifically tailored to each unique home. A good home inspection report provides details and recommendations about the specific problems found in the home being inspected. Some home inspection reports are poorly written and are very difficult to understand.

Before contracting a home inspector, ask for sample home inspection reports so you can see what to expect and compare with reports from several other home inspectors. Make sure the level of detail and readability of the report will meet your needs and be usable in a productive way.

 

What should I do after I receive the home inspection report?

Upon receiving the home inspection report, you should send it to your real estate attorney and also read the report in its entirety. If you do not understand something, you should immediately call your home inspector for clarification. Next, make note of any major issues that you want the seller to address via corrections or credits, and prepare a list of those to give to your attorney. If you attended the home inspection, you likely already are familiar with any larger issues present in the home. The summary section of the report may help you to identify which things are major issues, and you may be able to copy and paste from there, with or without the addition of a few other items copied from elsewhere in the report, to create the list for your attorney. After your attorney receives your list, it is prudent to have a meeting or follow-up phone call so you and your attorney can align on the path forward. Do not leave it to your attorney to choose the list of items for you. Attorneys are not contractors or home inspectors, so they may have limited knowledge about home repairs, and ultimately you are the one who must incur the cost of any repairs that are not included in the negotiations.

If you waived your inspections completely or severely limited your ability to ask for credits, then the report will be for your information only. In that case, you can use the report as a resource to help you prioritize and implement necessary repairs on the home.

 

Should I share the home inspection report with my real estate agent?

Yes, you should share the report with the agent. Your agent is part of your team along with your home inspector and real estate attorney. The agent should be familiar with the contract terms, the home, and how the issues may impact the home’s market value. Therefore, your agent may be able to provide useful feedback regarding what issues should be addressed. Everyone on your team should be working together for your best interests and outcome.

 

Requesting Permits and Other Public Records on the Home

Why are permits important to request?

Building permits show a prospective buyer that changes, modifications, and additions have been made correctly and that the work met code requirements. Permits provide a buyer with another level of security because the building department of the town has inspected and approved the work performed.

Building permits are required in many instances when structure, plumbing, and electrical systems are modified or added to a home. For example, if there is a new electrical panel, there should be a closed electrical permit. If a bathroom was added to the home, there should be a closed electrical and plumbing permit. If the boiler was replaced recently, there should be a closed permit. Building permits ensure that the new modifications or additions meet code requirements for safety and habitability.

If work was done in a home without permits, that leaves the buyer vulnerable because the quality of that work is unknown. Home inspectors can view only what is accessible, so if problems exist with plumbing or electrical work that is now behind walls or ceilings, those problems cannot be assessed and reported on. Municipality building code officials should have inspected those modifications or additions before the work was covered with interior finishes and the permits were closed.

 

What is an OPRA request?

The Open Public Records Act (OPRA) is a means for someone to access government records. As a prospective buyer of a home, you can use OPRA to request the public records on the home that you are thinking about buying. Some of the relevant documents that may be obtained via an OPRA request include building permits; property tax records, including the date of the last tax assessment; records of fire department response to the property; and health department records regarding any septic and water well issues if applicable.

Your real estate attorney may submit an OPRA request or you as the buyer can send the request yourself. The request must be in writing and delivered in person, by mail, or electronically to the appropriate custodian. For documents related to real estate transactions, you are most likely need to write to the Municipal Clerk of the municipality where the home is located. Most agencies have an online OPRA form that may make the process easier. The agency has seven days to fulfil the request.

Much more information about OPRA can be found in the NJ Government Records Council’s Citizens Guide to Open Public Records.

 

Will submitting an OPRA request be sufficient to determine if proper permits were obtained for the home I’m purchasing?

The OPRA request should identify any open permits, but you must still reconcile the permits with the work that was performed in the home. If additional electrical or plumbing modifications were made in the home that are not reflected in the OPRA document, then further inquiry is needed on your part to determine if the required permits for that work were opened and then closed. If no permits exist for modifications or additions to the home, you as the buyer will inherit any issues with the non-permitted additions, plumbing, or electrical system. If you do not want to take that chance, consider asking the seller of the home to open and close the required permits before you close on the home.

 

Considerations Regarding Homeowner’s Insurance

Does the home inspection impact ability to get homeowner’s insurance?

Insurance companies are very conservative and are getting more and more restrictive to prevent losses. They commonly perform their own inspection of the home. Homeowner’s insurance companies may hire third-party insurance inspectors to visit home and take photos before agreeing to issue a policy. Sometimes they require an interior visit for higher-end homes. While you as the home buyer may be willing to accept some of the issues found during an inspection, your insurance company may not be that accommodating. For example, even if a home buyer is willing to accept a home with an older roof, the insurance company may require that a new roof be installed. If there are handrails missing or walkways are uneven, insurance companies may require that these potential liability issues be fixed within a certain timeframe in order to maintain coverage.

Insurance company requirements are an important consideration because many NJ homes are now sold “as is” or with restrictions in the real estate contract that limit what the buyer can ask to have fixed or credited. Buyers may want to speak to their insurance company and determine what type of issues would cancel coverage. The insurance companies have different requirements. It is up to the purchaser of the home to understand if the inspection items found will hinder them from obtaining homeowner’s insurance coverage.

What is a comprehensive loss underwriting exchange (CLUE) report and why is it important in real estate transactions?

A CLUE report contains detailed homeowner’s insurance loss information about a property. A CLUE report provides the past seven years of insurance claims history on the home and is generated by the consumer reporting agency LexisNexis. These reports can provide additional information about any history of water damage, structural damage, fires, mold, damage to the roof or foundation, and theft claims.

CLUE reports cannot be requested by the buyer, however. They can only be requested by the seller of the property. As a buyer, you can request that the seller of the property access their CLUE report and share it with you.

 

Other Important Considerations

What is a “flipped” house and are there any increased risks to buying one?

A “flipped” home is a home that was purchased to be resold for profit. This does not necessarily make it a bad home to purchase, and buying a home that has been freshly renovated for resale can be great. However, you should be aware that there is an increased likelihood that issues will be covered up or concealed. This does not mean you should avoid buying a “flipped” house, but if you are purchasing such a home, it is especially important to hire a home inspector who is very thorough. Even so, keep in mind that a home inspection is a visual inspection of the accessible components and areas of the home. If problems have been covered up with wall or ceiling finishes, then the home inspector will not have a means of viewing these issues. If you want to limit your risk of unforeseen issues, then purchasing a home that has been the primary residence of the previous owner and not recently renovated may be a safer option.

 

Can home inspectors repair homes that they have inspected?

No, home inspectors cannot perform service or repair work in homes that they have inspected. Doing so would be a conflict of interest. It would be a breach of ethics policy for a home inspector to identify a problem and then ask to be contracted to repair it. Home inspectors must be completely objective when they inspect homes.

 

 

Residential air conditioning units cool the air by changing the pressure and the state of the refrigerant in the system. Operating the air conditioner changes the refrigerant from a gas to a liquid and then reverses this process. As the refrigerant is moved across the air conditioner coils, heat inside the home is absorbed by the refrigerant in the coils. The heated air then is delivered to the exterior of the home through the exterior compressor fan unit. Colder air is distributed to the interior. During this process, the liquid refrigerant is turned back into a liquid and the process cycles on.

The refrigeration process works efficiently when temperatures are mild.