Arthur Bagirov. Residential and Commercial Property Inspections A Member of the Real Estate Inspection Group, Inc.

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1 Arthur Bagirov Residential and Commercial Property Inspections A Member of the Real Estate Inspection Group, Inc. Scheduling: (800) Contractor s License # Voice Mail: (408) figlimigli@sbcglobal.net ORDER INFORMATION July 31, :30 AM Fathom Drive San Mateo ,370 Fred Bertetta Greg Terry Alain Pinel Realtors (650) Greg@GregTerry.com $3, $3, REIG, INC. $3, Second Street, Suite A Los Altos CA Paid by check #6159 All directional references to left, right, front, or rear assume the reader is standing at the main entrance of the structure, facing the front door of the home. 8/5/12 i N/A N/A 735 Fathom Drive July 31, 2012

2 REAL ESTATE INSPECTION GROUP, INC. Residential and Commercial Property Inspections TABLE OF CONTENTS PAGE Order Information 1 Index 2 Scope of Inspection 3 Definitions 4 Exterior Section I 5 Exterior Section II 6 Electrical System 7 Heating and Air Conditioning Systems 8 Plumbing and Water Heating 9 Kitchen 10 Bathrooms 11 Interior 12 Foundation, Framing, & Insulation 13 Carry Over Pages (if any) Photos (if any) General Comments Appendix ASHI Standards of Practice PAGES InspecText Report System PRELIMINARY COMMENTS We have inspected the major structural components, plumbing, heating and electrical systems for visual signs of significant nonfunctional performance, excessive or unusual wear, and general conditions of the property. Our findings and recommendations are not intended as criticisms of the building, but as professional opinions regarding the conditions present. Please keep in mind that in some dwellings there may be features and systems that may not conform with current building standards. While we attempt to list any health, hazardous, and safety issues, we do not warrant that all non-conforming issues will be listed, as they may not have been a requirement at the time the house was built. The client should be aware that all dwellings need ongoing preventive maintenance in order to keep all aspects of the property in functional conditions. In most homes of similar age, there are typically some repairs needed. It is strongly recommended that any item noted for further evaluation should be evaluated before close of escrow by a properly licensed professional. Further evaluation PRIOR to the close of escrow is recommended so a properly licensed professional can evaluate our findings and inspect the remainder of the system or component(s) for additional concerns that mat be outside our area of expertise or the scope of our inspection. The inspector shall not be held liable for any item recommended for further evaluation if that item was not further evaluated as recommended. Ciel Associates, Inc Rev.01/1 735 Fathom Drive July 31,

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5 Items Inspected: Component Description: EXTERIOR WALLS ROOF COMPONENTS Plywood siding Metal tile Wood trim Tar and gravel Metal tiles Metal downspouts EXTERIOR WALL COVERING & TRIM: The exterior walls were inspected for evidence of damage and/or possible water penetration, and to determine their overall condition. They appeared to be in serviceable condition unless otherwise noted in the Action Items. The paint appeared to be in acceptable condition. Although wood damage has been noted in numerous locations, we do not perform pest control inspections and recommend that you retain an expert to do so. EXTERIOR DOORS & WINDOWS: The doors and hardware were tested to assure proper function. They appeared to be in serviceable condition unless otherwise noted in the Action Items. There were single pane, sliding and fixed windows in the building. A representative sampling of accessible windows (we do not move furniture) was operated. They appeared to be in serviceable condition unless otherwise noted in the Action Items. ROOF SYSTEM: The roof was inspected by walking on the surface. The roof coverings, flashings, penetrations, and the roof drainage control systems were inspected for signs of damage, water penetration, or other adverse conditions. They appeared to be in serviceable condition unless otherwise noted in the Action Items. EXTERIOR I ACTION ITEMS: 1. There was wood damage observed at the following locations: wall trim under the kitchen window in Unit #1, wall trim under the window in Unit #2, wall trim under the windows in Unit #3 breakfast room and master bedroom, wall trim under the window in Unit #3 master bedroom, partition wall trims to the left and right of the garage gate, wall trim at the south side of the building, post to the right of the lobby door, wall trim to the right of the lobby door, siding to the left of the kitchen window at the north side of the building, trims at Unit #22 breakfast room and bedroom windows (severely twisted vertical trims), trims at Units #23 and #27 breakfast room windows (severely twisted vertical trims), trims under Unit #32 breakfast room and both bedroom windows, trims under Unit #33 breakfast room windows and at least under master bedroom window, and trims under Unit #35 and #36 bedroom windows. I recommend further evaluation of the building exterior by a qualified and licensed general contractor to determine the extent of needed repairs. 2. The operable portions of the most windows in the breakfast and living rooms, bedrooms and common hallways were less than 24" above the floor, and the distance between the windows and the exterior grade was more than 72". For this type of condition, current safety standards require that the window sashes must be designed or modified to open no more than 4". This will help prevent children from falling out of the windows. The windows in the bedroom will still need to function as a secondary means of egress. I recommend consulting with a qualified and licensed glazing contractor to determine what corrective options are available. 3. Generally, the windows appeared to be outdated. Additionally, multiple windows in Units #1, 2, 3, 7, 22, 23, 24, 31, 32, 33, 34, 37 breakfast rooms; Unit #34 kitchen; Units #2, 4, 5, 6, 24, 26, 27, 31, 33, 34, 35, 36 bedrooms; window in the hallway in front of Unit #6; all windows in Unit #21 were wobbly. Numerous windows in Unit #3, 4, 24, 31, 32 bedrooms; Units # 4 and 7 kitchens; windows in common hallways in front of the Units #1, 3, 4, 5, 31, 32, 33, 34, 36; breakfast room windows in Units #4, 24 and 26; one of the breakfast room windows in Unit #7, and kitchen window in Unit #34 were difficult to operate, and/or difficult or impossible to latch. CONTINUED ON PAGE 14. Items Not Included: 735 Fathom Drive July 31, 2012

6 Items Inspected: Component Description: DRIVEWAY & WALKWAYS: DONE The flatwork was inspected for evidence of extensive cracking, excessive lifting or settlement, or other damage. There were some cracks visible in the concrete flatwork, which are typical in this area, but they should be sealed to prevent water penetration and further deterioration from occurring. Periodic application of surface slurry sealer coats can improve water resistance and prolong service life of the asphaltic paving. Any conditions found to be in need of attention are noted in the Action Items. DECKS: The decks were inspected for visible evidence of damage or other conditions that may need further evaluation or correction. Any conditions found to be in need of attention are noted in the Action Items. Please note that the baluster spacing on the apartment deck railings was greater than 4 inches, which does not meet current standards and can be a hazard to small children. As an upgrade, I recommend the railing be modified or replaced for safer use. It should be noted that the exterior and interior concrete stairs and their metal railings do not meet currents standards as well (excessive baluster and tread spacing). Upgrades are recommended and should be considered. RETAINING WALLS: The retaining walls were inspected for visible evidence of damage or other conditions that may need further evaluation or correction. The pressure treated wood landscaping retaining walls appeared to be in serviceable condition. Retaining walls are only visually inspected and no comments can be made regarding their condition below the soil level, nor their future retaining ability. GROUNDS: There were no observed drainage or vegetation issues that adversely affected the structure. There was a surface drainage collection system that included area drains connected to buried discharge pipes. Please note that flow testing of the drainage capabilities of the underground drains is beyond the scope of our work and was not performed during the inspection. Area drainage should be observed during rainy periods and steps taken to eliminate any areas of standing water, and to direct surface flow away from the home s perimeter. The gutters and downspouts should be cleaned and the free flow of all buried drain lines verified at the beginning and in the middle of each winter season. Running water through the drains should be included as part of the regular maintenance of the property to flush any accumulated debris and verify the proper operation of the system. As with most other homes in this area, drainage control is an important element in the ongoing maintenance of the structure and the long-term successful performance of its foundation. The condition of the property s drainage control system is described, as it existed at the time of the inspection. The recommendations contained in this report are based on our construction experience with similar properties and our training as property inspectors (they must be followed to insure the optimal performance of the structure). It should be recognized that certain drainage conditions and latent problems could only be detected during the long-term occupancy of the building. I recommend the seller be consulted regarding any unusual or seasonal conditions. EXTERIOR II ACTION ITEMS: 1. The asphalt in front of the garage gate, and at least at the parking spaces #2, 22, 31 and 34 was in poor condition, with large cracks, uneven surface, potholes, surface deterioration and trip hazards noted. The asphalt near the parking drain was deteriorated as well. CONTINUED ON PAGE 15. Items Not Included: 735 Fathom Drive July 31, 2012

7 Items Inspected: Component Description: MAIN PANEL RATING & LOCATION *** amps *** of the building SERVICE VOLTAGE & MAIN DISCONNECT 120/240V *** amp circuit breaker SUB PANELS LOCATION Closets Garage WIRING METHOD(S) NMC Conduit run WIRING TYPE(S) Copper at 110/220V circuits Stranded aluminum at 220V circuits 220V SERVICE LOCATIONS Main & Sub panels Kitchen Space heaters ELECTRICAL PANEL(S) & WIRING: The commercial style main electrical panel was not opened; however, it appeared to be in serviceable condition. The sub panels in Units #2, 21, 22, 23 and 35 were inaccessible at the time of the inspection and they were not inspected. The interior components, wiring, and overcurrent-protection devices of the sub panels were inspected. Although acceptable at the time of construction, electrical panels are no longer permitted in closets. Keep stored items away from the front of the panels to provide easy emergency access. The circuit breaker sizes were consistent with the amperage ratings of the wires, and there were no double lugged circuit breakers. The GFCI circuit breakers in the accessible sub panels responded properly when tested. For safety and to assure proper function, GFCI circuit breakers should be tested by pressing the test button once a month. The sub panels appeared correctly grounded. Verify labeling of the panels and label the sub panel in Unit #33 so that the power can be turned off quickly in an emergency. Any conditions found to be in need of attention are noted in the Action Items. LUMINAIRES, FANS, RECEPTACLES & SWITCHES: A representative sample of the accessible receptacles (we do not move furniture), luminaries, and switches was tested. The visible receptacles in the apartments were three-prong type (mostly grounded). A few switches did not seem to have a use and the seller should be consulted regarding their purpose (possibly switch operated receptacles or burnt out light bulbs). Please note that per my conversation with the Manager, the intercom system is disconnected. Any conditions found to be in need of attention are noted in the Action Items. ELECTRICAL ACTION ITEMS: 1. The handle ties for the baseboard heater circuit breakers in Unit #1 were missing and should be installed for safety (please note that most of the baseboard heaters in Unit #1 were removed by the manager/tenant and their circuit breakers were turned off). 2. There was no GFCI circuit breaker installed in Unit #34 sub panel. For safety, I recommend installing a GFCI circuit breaker to protect bathroom and exterior receptacles (alternatively, both receptacles may be replaced with GFCI receptacles). 3. The stranded aluminum wires at the range circuits in the sub electrical panels had no oxide-inhibiting compound applied to the terminals. I recommend having an appropriate oxide-inhibiting compound applied to help avoid long-term oxidation and potential overheating. 4. The electrical sub panel in Unit #4 was manufactured by Federal Pacific Electric (FPE). CONTINUED ON PAGE 16. Items Not Included: 735 Fathom Drive July 31, 2012

8 Items Inspected: Component Description: PRIMARY HEAT SOURCE: The accessible electric baseboard heaters were tested and operated for about five minutes each. They appeared to be functional and serviceable unless otherwise noted in the Action Items. Please note that most of the baseboard heaters in Unit #1 were removed by the manager/tenant and their circuit breakers were turned off. The baseboard heaters in Unit #22, as well as Units #23 and #32 master bedrooms, were not accessible and could not be tested. HEATING AND COOLING ACTION ITEMS: 1. The baseboard heaters in Unit #6 living room (small heater) and Unit #36 living room did not respond to their integral thermostatic controls, and should be repaired or replaced. 2. The long baseboard heater in Unit #24 living room was loose and should be properly secured at the wall. 3. The control knob at the baseboard heater in Unit #33 hallway bedroom was broken and should be replaced. Items Not Included: 735 Fathom Drive July 31, 2012

9 Items Inspected: Component Description: WATER SUPPLY PIPING MAIN WATER SUPPLY LINE DRAIN, WASTE & VENT PIPING Copper Undetermined MAIN WATER SHUTOFF VALVE LOCATION MAIN GAS SHUTOFF VALVE LOCATION Cast iron Copper Storage room at NE corner of the building NW corner of the building WATER HEATER BRAND TYPE CAPACITY LOCATION Rheem Gas Boiler 2nd Floor Hallway Closet Rheem Hot water storage tank 115 gallons 2nd Floor Hallway Closet WATER & GAS SUPPLY, AND WASTE LINES: The visible components of the plumbing system were inspected for evidence of leaking or unusual corrosion, and the plumbing fixtures were tested. They appeared to be functional and serviceable unless otherwise noted in the Action Items. The water pressure appeared to be acceptable even with multiple fixtures in use in the bathrooms. The water pressure may drop when multiple fixtures are tested simultaneously in different bathrooms. The water pressure may vary at any time due to landscape irrigation and neighborhood usage. In the event of an emergency, the gas may need to be turned off quickly. Attach an earthquake wrench to the meter so that it can be shut off in an emergency. Test the main gas shutoff valve and contact the local utility company if the valve is difficult to operate. BOILER & HOT WATER STORAGE TANK: The boiler (according to its serial number, it was manufactured in 2001) and hot water storage tank were visually inspected for any conditions that may require correction or further evaluation. The boiler was functional at the time of the inspection. The boiler vent and expansion tank appeared to be in serviceable condition. The boiler and storage tanks had temperature and pressure relief (TPR) valves installed. Three circulation pumps were installed at the boiler and storage tank to lower the hot water response time. There was a floor drain noted in the boiler room. Current safety standards require seismic straps; however, none were installed at the storage tank. Any conditions found to be in need of attention are noted in the Action Items. PLUMBING ACTION ITEMS: Current safety standards require seismic straps; however, none were installed at the storage tank. As of 1/1/96, sellers are obligated to strap water heaters according to current safety standards (Health & Safety Code sections ). The standard calls for two (2) 24 gauge straps, one within 9" of the top, and the second at the bottom third of the tank. The Division of State Architect recommends an additional (third) bracing strap at mid-height of the tank for water heaters with a capacity greater than 52 gal. All straps must be secured with 1/4" X 3" lag bolts. Provisions to support the back of the tank are required to resist falling or horizontal displacement due to earthquake motion and must be of a non-combustible material. Guidelines for proper water heater bracing can be found at: CONTINUED ON PAGE 16. Items Not Included: 735 Fathom Drive July 31, 2012

10 Items Inspected: Component Description: BRAND Amana Frigidaire GE Hotpoint Magic Chef Broan NuTone GE ISE APPLIANCE TYPE Electric ranges Ducted fans with hoods above the ranges Dishwashers with air gap valve Garbage disposals APPLIANCES: The installed cooking appliances were tested for proper response and function. All of the other installed appliances were inspected and tested to assure they were fully functional and free of leaking or damage. They appeared to be functional and serviceable unless otherwise noted in the Action Items. Temperature and other types of exhaustive testing are not performed on the kitchen appliances. As information, the laundry rooms were plumbed for gas clothes dryer usage only. Please note that per my conversation with the Manager, the trash chute is no longer used and/or inoperable. SINKS & PLUMBING: The sinks were tested, and the faucets and drain lines were inspected. They appeared to be functional and serviceable unless otherwise noted in the Action Items. SURFACES & CABINETS: The floors, cabinets, countertops, walls, and ceilings were inspected. They appeared to be functional and serviceable unless otherwise noted in the Action Items. We do not inspect for cosmetic damage; however, there were some cracks in the tile countertops. ELECTRICAL SYSTEMS: The accessible receptacles and outlets were tested, and the visible wiring was inspected. Any conditions found to be in need of attention are noted in the Action Items of the Electrical System. We recommend that GFCI receptacles be installed within 6 feet of the sinks for safety, but none were installed in any apartment kitchens. KITCHEN ACTION ITEMS: 1. Units #1, 3-5, 7, 21, 23-27, 31, 33-37: To reduce the risk of tipping of the range, it must be secured to the floor by a properly installed anti-tip bracket. Failing to do so will allow the range to tip over if excessive weight is placed on an open door or if a child climbs on it. Serious injury might result from a hot liquid spill or from the range itself. 2. The range in Unit #34 was installed on a 2x4 lumber, which is an improper installation, and should be corrected. 3. The right rear burner at the range in Unit #24 and left rear burner at the range in Unit #32 were inoperable and should be repaired (the burner drip pan in Unit #32 was missing and should be replaced). 4. The oven light in Unit #25 was not functioning, possibly due to burnt-out light bulb. 5. The old range in Unit #23 is inoperable and should be replaced. 6. Although the range and ventilation hood in Unit #2 responded to their controls, they were older or outdated appliances, and their heating and temperature control abilities may no longer meet original specifications. Replacement is recommended and should be considered. CONTINUED ON PAGE 17. Items Not Included: 735 Fathom Drive July 31, 2012

11 Items Inspected: Component Description: SINKS & FIXTURES: The sinks were filled, and the faucets, water shutoff valves and drain lines were tested. They appeared to be functional and serviceable unless otherwise noted in the Action Items. TOILETS: The toilets were inspected, and the flush mechanisms and water shutoff valves under the toilets were tested. They appeared to be functional and serviceable unless otherwise noted in the Action Items. SHOWERS & BATHTUBS: The faucets were operated and the drains were tested. All of the visible bathroom surfaces were inspected. They appeared to be functional and serviceable unless otherwise noted in the Action Items. ELECTRICAL SYSTEMS: The accessible electric receptacles and switches were tested. Any conditions found to be in need of attention are noted in the Action Items of the Electrical System. GENERAL COMMENTS & MAINTENANCE: Caulking around a tub or shower enclosure (especially at the floor line) should be examined regularly and properly renewed at the first signs of failure to help avoid possible water damage. Any voids noted in tile grout should also be properly corrected to help avoid water penetration and possible damage. Our primary goal is to determine whether or not a component is in serviceable condition or is significantly deficient. Conditions related to appearance only, known as cosmetic defects, are not within the scope of this inspection, which includes but is not limited to the following: commonly occurring surface cracks in synthetic sinks, countertops, tubs and showers; deterioration of finishes on faucets, spouts, shower heads, drains and metal trim; failed silver backing on mirrors; chipped tiles; and natural variation in stone surfaces. BATHROOMS ACTION ITEMS: 1. Numerous water shutoff valves under the sinks and toilets (where accessible) in all apartments were stuck. 2. The vanity faucet aerators in Unit #3 master bathroom and Unit #22 bathroom were not properly installed or they were fouled and/or damaged, and should be replaced to better control the flow of water (the vanity faucet in Unit #22 splashes water all over the bathroom). 3. The P-traps under the sinks in Units #25 and 34 were reversed, which is an improper installation. 4. The vanity floors in Units #3-7 (very limited access in Unit #7, but it appeared that the sink faucet or sink drain were leaking), 24, 25, 34, 35, 37 were water damaged. 5. The drain stops for the sinks in Units #4, 23, 24, 27, 32, 33 (master bathroom), 34, 35 were not operating properly or damaged. 6. The sinks in Units #24, 34, 35, 36 bathrooms were slow draining and may be partially clogged or the stoppers may need adjustment. The P-traps should be cleared and the drains retested. 7. The sink faucet in Unit #7 leaked at the handle during use. 8. The toilets in Units #1, 3-7, 21, 23, 24, 26, 27, 31, 34, 35, 36, 37 were loose and should be refastened to the floor to prevent leaking and possible water damage. New wax seals may be needed and there may be concealed damage at the sub floor. 9. The toilet flush mechanisms in Units #33, 34 and 36 were not working properly. Pressing the lever only partially lifts the flapper, so the lever must be pressed for several seconds to flush the toilet. Furthermore, the resulting flush is weaker than it should be. CONTINUED ON PAGE 18. Items Not Included: 735 Fathom Drive July 31, 2012

12 Items Inspected: Component Description: FLOOR COVERINGS Wall to wall carpeting Linoleum Linoleum tile Vinyl Area rugs WALLS CEILINGS Sheetrock Veneered plywood Wall paper on some surfaces Sheetrock FLOOR COVERINGS: The visible floor coverings were inspected for evidence of damage or other problems. They appeared to be functional and serviceable unless otherwise noted in the Action Items. We did not inspect under rugs or carpeting or for cosmetic damage, and we do not move furniture. No assessment of floor level was undertaken. WALLS, CEILINGS & INTERIOR DOORS: The ceilings and walls were inspected for evidence of damage or other problems. Some cosmetic cracks were noted, especially around the door and window openings, apparently due to seasonal shifting common in the Bay Area. Most buildings in the Bay Area shift slightly each year due to changing moisture content of the soil resulting from the winter rains. This shifting is the cause of most of the cosmetic cracks noted in the sheetrock and plaster around the door and window openings. Control of the roof runoff water can reduce the degree of this seasonal shifting and reduce the number of the cosmetic cracks noted. The acoustic ceilings ( popcorn ceiling texture) may contain some asbestos fibers. See Hazardous Materials at the bottom of page 4 for important information. Since all apartments were occupied at the time of the inspection, substantial part of the floors and walls in the interior, including cupboards and closets could not be inspected, as visibility was obscured by furniture and storage (several apartments, such as Unit #2, were cluttered and mostly inaccessible). I recommend that at your request, I return and inspect these areas when they are made accessible. A representative sampling of accessible interior doors were tested to assure they operated properly. They appeared to be functional and serviceable unless otherwise noted in the Action Items. FIREPLACES: The fireplace pilot lights in Units #1-3, #31-33 were turned off, so the fireplaces could not be tested (we do not light pilot lights). Please note that the fireplaces in Units #1, 3, 21, 32 and 33 were inaccessible and could not be inspected. SMOKE & CARBON MONOXIDE ALARMS: Most of the smoke alarms were installed in the proper locations, but were not tested. Any conditions found to be in need of attention are noted in the Action Items. The fire extinguishers, fire hydrants and hoses, exit signs and emergency light fixtures appeared to be in serviceable condition. INTERIOR ACTION ITEMS: 1. The transition floor molding at the bedroom doorway in Unit #24 was improperly installed and should be corrected. The transition floor molding at the kitchen doorway in Unit #34 was loose and may be a trip hazard, and should be properly installed. 2. There were some wrinkles noted in the carpeting in Units #2, 22, 24 and 32. I recommend re-stretching or other corrective action as needed to ensure a smooth surface. 3. The bathroom doors in Units #2 and 23 were rubbing on the door casings and need to be adjusted. 4. The strike plates for Units #4, 23, 24, 33, 35 bathroom doors and Unit #37 bathroom closet door need to be adjusted so that the doors will latch properly. CONTINUED ON PAGE 19. Items Not Included: 735 Fathom Drive July 31, 2012

13 Items Inspected where visible: Component Description: FOUNDATION TYPE FLOOR STRUCTURE WALL STRUCTURE ROOF & CEILING Concrete perimeter Wood framing Wood framing Wood framing FOUNDATION AND FRAMING: The garage foundation was observed, where visible, at its exterior perimeter. There was no visible evidence of unusual settlement or failure to the foundation. ATTIC: Not applicable. INSULATION: There was no visible access to verify wall and ceiling insulation; however, thermal insulation is commonly found in buildings constructed since mid 1970's. FOUNDATION AND FRAMING ACTION ITEMS: None noted. Items Not Included: 735 Fathom Drive July 31, 2012

14 CONTINUED FROM PAGE 5: One of the windows in Unit #3 breakfast room, a window at the fire stairs, a window in the hallway between the Units #3 and #4, and a window in front of Unit #35 were stuck. The sliding glass doors in Units #3, 22, 23, 34 were difficult operate (likely due to dirty and/or worn tracks and/or rollers). 4. There were several areas of exposed tar on the roof that should be re-covered with gravel. Multiple plumbing vents didn't appear to be adequately sealed from leakage to the attic area. A buildup of debris was visible on the roof in various locations. There were missing and/or loose metal tiles noted on the deck roofs in Units #33, 34, 36 and 37, on the south wall above Unit #33, under the window in Unit #35, and on the wall between Units #32 and 33. There were water stains on the living room ceiling in Unit #31, which may indicate previous or ongoing leaking at the roof. Please note that there were loose and/or missing tiles on the north wall and Unit #34 deck roof in building 730 Mariners Island Boulevard. Have a qualified and licensed roofing contractor reinspect the roof and perform routine maintenance and/or make recommendations for repairs. 5. The wall trim at Unit #2 bedroom and breakfast room windows was cracked, twisted and unsealed. There was water damaged wood trim (horizontal and vertical) noted under the breakfast room window in Unit #3. 6. The glazing in the exterior lobby doors did not have visible markings indicating that it was safety glass. I recommend upgrading to safety glass to help minimize possible injuries in case the glass is broken. 7. Per my conversation with the Manager, the automatic garage gate opener does not have an automatic safety reverse mechanism. Upgrades are recommended and should be considered. 735 Fathom Drive July 31,

15 CONTINUED FROM PAGE 6: I recommend further evaluation by a qualified and licensed paving contractor to determine the extent of needed repairs. 2. The uneven concrete surfaces at the walkway in front of the building lobby entrance (at the water meter box) could be trip hazards. I recommend further evaluation by a qualified and licensed specialty contractor to determine the extent of needed repairs. 3. The decks in Units #1-7, Units #21-26 and Units #32-35 and 37 had water damaged walking surface and/or posts, and/or fascia. These observed conditions could also indicate hidden damage below the deck floors. Please note that the strength of the deck floors at least in Units #3, 7, 22, 32, 34, 35 appears to have been compromised (soft when stepped upon). The partition wall trim at least at Units #21 and 23 decks were water damaged as well. I recommend further evaluation of the decks by a qualified and licensed general contractor to determine the extent of needed repairs. 735 Fathom Drive July 31,

16 CONTINUED FROM PAGE 7: There have been numerous reports of circuit breakers in FPE "Stab-Lok" electrical panels that fail to trip in an overload condition, which could result in overheating or fire. Additionally, these panels and their circuit breakers are known to have design deficiencies, one of them being poor contact between the bus bar and circuit breakers, which may affect the safety of the installation. Additional information about FPE panels is available at an independent building failures research website: It would be prudent to upgrade to a new electrical sub panel for safety. 5. The sub panel cover in Unit #4 was secured with sharp-pointed screws, which could damage the wiring and possibly cause an electrical short. These screws should be replaced with proper machine screws, which are designed for use with electrical panels. 6. A missing filler plate was noted in Unit #4 sub panel. A rigid filler plate should to be installed to prevent possible contact with the live circuits in panel. 7. There were unprotected wiring splices and an unprotected wiring cable in the kitchen cabinet above the ventilation fan in Unit #26. All wiring splices should be contained in properly sized, secured and covered junction boxes. The wiring cable should be protected in conduit or behind an appropriate wall covering. 8. One of the breakfast room receptacles in Unit #4, as well as receptacle in the common hallway between the Units #5 and #6, were not properly grounded, and should be re-wired. 9. The exterior receptacles at Units #22 and #37 decks had their covers propped open by plugs. For this type of installation, it would be worthwhile to install weatherproof covers on the receptacles that will protect the receptacles from moisture, even when plugs are inserted. 10. The receptacle in Unit #36 bathroom was incorrectly wired (hot and neutral wires reversed) and should re-wired. 11. The bathroom ventilation fans in Units #5 and 22 were noisy. The bathroom ventilation fan in Unit #7 was noisy at startup and shutdown. The ventilation fans in the laundry rooms appeared to be inoperable. All malfunctioning fans should be repaired or replaced. 12. The power cords for the garbage disposals in Units #7 and #21 didn t have strain relief clamps installed on the cords at the disposal units. I recommend that they be installed to prevent accidental pull-out of the cords. CONTINUED FROM PAGE 9: Please note that although functional, the storage tank is an older unit (according to its serial number, it was manufactured in January 1991) and may be at or nearing the end of its life expectancy (the typical life expectancy of an average hot water storage tank is about 10 to 12 years). Potential buyers should plan for replacement of this tank in the near future. 735 Fathom Drive July 31,

17 CONTINUED FROM PAGE 10: 7. The range in Unit #35 is outdated, and its oven elements were inoperable. Replacement is recommended due to the age of the appliance and the fact that the cost of repair is no longer economically sensible. 8. The kitchen ventilation fan in Unit #4 was noisy and its surface light bulb was missing. 9. The kitchen ventilation fan in Unit #34 was missing its light bulb and mesh filter. 10. The dishwasher in Unit #7 appeared to be leaking. The floor under and in front of the dishwasher, as well as a cabinet toe-kick and baseboard to the right of the dishwasher, were water damaged. 11. The dishwasher in Unit #21 was not tested due to the storage in the dishwasher. 12. The dishwasher door lock in Unit #23 was difficult to operate and should be repaired. 13. The air gap valves or drain lines in Units #32 and 33 were plugged, as indicated by water flowing from the air gaps during the dishwashers drain cycle. I recommend that the air gaps, and/or the drain lines between the air gap and the disposal be cleared of any obstruction(s) and/or debris. 14. The garbage disposals in Units #21, 24, 33, 35 were older units and/or corroded and should be scheduled for replacement in the near future (the disposal in Unit #24 was noisy as well). Please note that the garbage disposal rubber splash guard in Unit #21 was damaged and should be replaced. 15. Although functional, the garbage disposal in Unit #27 appeared to be outdated and has likely surpassed its life expectancy, and should be scheduled for replacement in the near future. 16. The sink faucets in Units #3, 6, 22-24, 26, 31-33, 35 and 36 leaked at the handles and/or spout O-rings during use. 17. The kitchen sink faucet in Unit #25 was loose. 18. The kitchen sink faucet aerator in Unit #7 was not properly installed or its was fouled, and should be replaced to better control the flow of water. 19. Numerous water shutoff valves under the kitchen sinks in all apartments were stuck. The dishwasher water shutoff valve in Unit #3 was missing its handle. 20. The P-trap under the sink in Unit #7 was out of plumb. 21. The kitchen sink drain in Unit #24 was leaking. 22. Substandard flexible P-trap was used for part of the drain plumbing under the kitchen sink in Unit #35, which should be replaced with rigid, smooth-walled pipe. Please note that P-trap was out of plumb which is an improper installation and should be corrected. 23. The kitchen cabinet drawer to the left of the range in Unit #33 was missing and should be replaced. 24. The drawer to the right of the kitchen sink in Unit #1 was missing its pull. 25. The cabinet floors under the kitchen sinks in Units #2, 5-7, 21, 22, 23-26, 31, and 37 were water damaged and need to be replaced. 26. Some of the tiles at the kitchen window sill and/or around the sink in Unit #4, 23 and 24 were cracked and/or loose (tapping on the tiles produced a hollow noise which may be an indication of water damaged or inadequate substrate material). 27. There were cracked and very sharp countertop tiles noted at the kitchen sink in Unit #36. I recommend replacing the broken tiles as necessary for safety. I recommend further evaluation of the items listed above by a qualified and licensed appliance service technician, plumbing and general contractors, and repairs as necessary. 735 Fathom Drive July 31,

18 CONTINUED FROM PAGE 11: 10. The toilet flush handle in Unit #22 was broken and should be replaced. 11. The toilets in Units #21 and 31 were cracked and should be replaced. 12. The fixed showerhead in Unit #1 was broken and should be replaced. 13. Loose plumbing piping was noted at the shower arms in Units #1, 5, 33 and shower valve in Unit #22, and may be due to the improper or minimal anchoring of the piping inside of the wall cavity. 14. The tub/shower valves in Unit #1, 3, 21, 22, 23, 24, 25, 26, 32 and 36 and the vanity faucets in Units #22, 24, 25, 26 were stiff and difficult to operate, likely due to a deteriorated valve cartridges. 15. The hot and cold water for the tub/shower faucets in Units #2, 32 and 37 were reversed, which is an improper installation and a possible safety hazard. 16. The diverter valves on the tub spouts in Units #5, 7, 22, 27 and 37 didn t completely divert water to the shower head. The tub spouts should be replaced. 17. The shower heads in Units #23, 33, 35 and 36 bathrooms leaked from their connection with the shower arm, and/or from the swivel fitting. 18. The outer shower glass door in Unit #3, both shower doors in Units #21 and 23, as well as inner shower door in Unit #37, were difficult to operate and should be adjusted and/or repaired. 19. There was visible discoloration from possible mold growth on the ceiling in Units #21, 24, 26 and 33 bathrooms (likely related to inadequate or absent bathroom ventilation). 20. The caulking around the tub in Unit #21 was deteriorated and should be replaced. 21. The bathroom in Unit #26 had curled linoleum adjacent to the tub, which revealed a gap. The gap may allow (or have already allowed) water penetration in this area (the subflooring and vinyl in front of the tub appeared to be water damaged already). Current/previous moisture penetration and possible damage was noted on the flooring at the left corner of the tub in Unit #31 bathroom. 22. There was staining on the ceiling and plumbing wall above the tub in Unit #26, which appeared to have been caused by leaking from the bathroom in Unit #36 above. 23. There was damaged ceiling above the tub in Unit #22, which appeared to have been caused by leaking from the bathroom in Unit #32 above. I recommend further evaluation of the items listed above by a qualified and licensed plumbing and general contractors, and repairs as necessary. 735 Fathom Drive July 31,

19 CONTINUED FROM PAGE 12: 5. The bathroom closet door lock in Unit #24 and bathroom door lock in Unit #37 were loose and should be properly secured. 6. One of the closet sliding doors in Unit #33 master bedroom was damaged and should be replaced. 7. The inner living room closet door in Unit #5 was broken (it was off its tracks) and should be repaired. 8. Although its pilot light was on, the fireplace in Unit #22 did not respond to its wall switch and should be repaired. 9. At least one smoke alarm is required at the entrance to any bedroom sleeping area, more if the house has been remodeled or built since August 1992 (Health & Safety Code ). The smoke alarms in Units #1, 3, 21, 23 and 31 were installed in the bathrooms, which is incorrect and should be moved to the living rooms or living room hallways. The smoke alarms in Unit #2 hallway, Unit #4 living room hallway, Unit # 6 and 7 hallways, Unit #21 bathroom, Units #22, 24, 25 and 27 hallways appeared to be outdated. The hard-wired smoke alarms in Unit #24 hallway and Unit #34 hallway were hanging by their wiring and/or disconnected, and should be properly installed as soon as possible. I recommend that smoke alarm batteries be replaced every 12 months, and the alarms themselves be replaced every 10 years. The client is strongly advised to check the installed alarms for safety before occupying the house. 10. Although carbon monoxide alarms will not be required in condominiums until 2013, I recommend installing one in the bedroom hallway as an upgrade for safety. Please note that according to a new state law that went into effect on July 1, 2011, all single-family homes and townhouses are required to have carbon monoxide (CO) alarms installed. The new standard requires CO alarms outside each separate sleeping area and on every level of the dwelling that has a fuel burning appliance, fireplace or attached garage. I recommend installing CO alarms in accordance with this requirement. 735 Fathom Drive July 31,

20 Photo 1 Cracked trim at Unit #2 window. Photo 3 Damaged partition trim at Unit #21 deck. Photo 2 Damaged wall trim under Unit #3 window. Photo 4 Damaged wall trim at Unit #23 window. 735 Fathom Drive July 31,

21 Severely twisted at Unit #23 window. Photo 7 Damaged wall trim. Photo 5 Photo 6 One of severely damaged decks. Photo 8 Damaged window trim in Unit # Fathom Drive July 31,

22 Photo 9 Damaged window trim in Unit #32. Photo 11 Missing roof gravel. Missing roof gravel. Missing roof tiles. Photo 10 Photo Fathom Drive July 31,

23 Debris on the roof. Photo 13 Photo 14 Unsealed plumbing vents. Photo 15 Photo 16 Hot water boiler. Absent seismic strapping at the hot water storage tank. 735 Fathom Drive July 31,

24 Photo 17 Photo 18 Uneven concrete surfaces and trip hazards. Deteriorated asphalt. Photo 19 Photo 20 Cracked and uneven asphalt, and trip hazards. Example of inaccessible fireplace (Unit #3). 735 Fathom Drive July 31,

25 Photo 21 Leaking bathroom sink drain in Unit #3 and water damaged vanity. Photo 23 Possibly leaking dishwasher in Unit #7, and water damaged kitchen floor and cabinets. Photo 22 Outdated Federal Pacific electrical sub panel in Unit #4. Photo 24 Example of limited access (Unit #2). 735 Fathom Drive July 31,

26 Loose smoke alarm in Unit #24. Photo 27 Photo 25 Unprotected wiring and wiring splices in kitchen cabinet above ventilation hood in Unit #25. Photo 26 Loose baseboard heater in Unit #24. Photo 28 Water damaged ceiling in Unit #26 (possibly due to leaking tub plumbing in Unit #36). 735 Fathom Drive July 31,

27 Photo 29 Photo 30 Improperly installed range in Unit #34. Improperly installed kitchen sink drain in Unit # Fathom Drive July 31,

28 This inspection was performed in accordance with the Standards of Practice of the American Society of Home Inspectors (ASHI), a copy of which is included in the Appendix of this report, and also available at Please be sure to read Page 3 of this report and the Standards of Practice of ASHI, which delineate the areas and items that we inspect, and those which are excluded. There were numerous deferred maintenance conditions throughout the apartments that are in need of correction. It is not possible within the scope and time constraints of this inspection to enumerate and describe every item observed. An attempt has been made to describe as many conditions as possible, with the major items of concern given top priority. Please note that failures and leaks can sometimes develop between the time of the inspection and the close of escrow, which is the determining factor in why this report is not a guarantee or warranty, as the tenants will continue to use the items inspected. The buyer is obligated to exercise some due diligence in performing his or her own inspection of the property before the close of escrow (check appliances and fixtures, floor and wall finishes, etc. during a walk through). This inspection was performed for the seller. If the subsequent buyer of the property from the seller that contracted this inspection and report is relying on this inspection report for the purchase of this property; he/she must read, date, sign and return a copy of the Claims Procedure and Arbitration Agreement on Page 3 to the inspector, or the report will serve as "Information Only" to the buyer, with no Errors or Omissions warranties applicable to the inspection or report. Please fax a signed and dated copy of Page 3 within 30 days of the close of escrow to A. Bagirov at (408) , or mail the copy to 180 Second Street # A, Los Altos, CA This report contains relevant information throughout all sections and paragraphs. It is designed to work as a unit, connecting all the information of all areas of the property. The information provided herein is considered of importance to the client s transaction. The client(s) MUST read the report in its entirety and SHOULD NOT rely only on specific individual phrases or words of the report. This report is narrative, thus, all lines and sentences contain pertinent information. Failing to read the entire report and acting on the recommendations contained in it does not mean that the information on the property was not provided or disclosed by the inspector. Where comments and/or recommendations are given, the client(s) are solely responsible for acting on the information provided by deciding to have the deficiencies corrected, retrofitted, or left in the condition reported. Although I may give recommendations for repairs, I cannot enforce or require that the repairs or work be performed, as this is the responsibility of the client(s). This report should not be considered or used as a repair bidding document, and a contractor so using it, must do so at his own risk. We recommend that all conditions be verified in the field. Any item or condition indicated in this report as being in need of further evaluation, correction, repair, or replacement should be examined on site by contractors or other specialists who are licensed and experienced in the appropriate fields. Please read through this entire report, review the 30 photos, and call if you have any questions. Sincerely, Arthur Bagirov California A General Engineering Contractor License # California B General Contractor License # California C36 Plumbing Contractor License # California C20 Warm-Air Heating, Ventilating and Air-Conditioning Contractor License # ASHI Certified Inspector # Fathom Drive July 31,

29 The Standards of Practice and Code of Ethics of THE AMERICAN SOCIETY OF HOME INSPECTORS ASHI Standards of Practice Effective October 15, 2006 Copyright 2006 American Society of Home Inspectors, Inc. All rights reserved

30 The Standards of Practice and Code of Ethics of the American Society of Home Inspectors Page ASHI Standards of Practice Section Description 1. Introduction Purpose and Scope Structural System Exterior Roofing Plumbing Electrical Heating Air Conditioning Interiors Insulation and Ventilation Fireplaces and Solid Fuel Burning Appliances 13. General Limitations and Exclusions Glossary Code of Ethics Distribution of this material is not an indication of ASHI Membership. For a free listing of the Membership go to Find an Inspector at To obtain additional copies or request permission to reprint The ASHI Standards of Practice and Code of Ethics, contact: The American Society of Home Inspectors, Inc. 932 Lee Street, Suite 101 Des Plaines, IL ASHI/2744 TABLE OF CONTENTS No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. HOME INSPECTION Home inspections were being performed in the mid 1950s, and by the early 1970s were considered by many consumers to be essential to the real estate transaction. The escalating demand was due to a growing desire by homebuyers to learn about the condition of a house prior to purchase. Meeting the expectations of consumers required a unique discipline, distinct from construction, engineering, architecture, or municipal building inspection. As such, home inspection requires its own set of professional guidelines and qualifications. The American Society of Home Inspectors (ASHI) formed in 1976 and established the ASHI Standards of Practice and Code of Ethics to help buyers and sellers make real estate transaction decisions based on accurate, objective information. American Society of Home Inspectors As the oldest, largest and highest profile organization of home inspectors in North America, ASHI takes pride in its position of leadership. Its Membership works to build public awareness of home inspection and to enhance the technical and ethical performance of home inspectors. Standards of Practice The ASHI Standards of Practice guide home inspectors in the performance of their inspections. Subject to regular review, the Standards of Practice reflect information gained through surveys of conditions in the field and of the consumers interests and concerns. Vigilance has elevated ASHI s Standards of Practice so that today they are the most widely-accepted home inspection guidelines in use and are recognized by many government and professional groups as the definitive standard for professional performance. Code of Ethics ASHI s Code of Ethics stresses the home inspector s responsibility to report the results of the inspection in a strictly fair, impartial, and professional manner, avoiding conflicts of interest. ASHI Membership Selecting the right home inspector can be as important as finding the right home. ASHI Members have performed no fewer than 250 fee-paid inspections in accordance with the ASHI Standards of Practice. They have passed written examinations testing their knowledge of residential construction, defect recognition, inspection techniques, and report-writing, as well as ASHI s Standards of Practice and Code of Ethics. Membership in the American Society of Home Inspectors is well-earned and maintained only through meeting requirements for continuing education. Find local ASHI Members by calling or visiting the ASHI Web site at 2 ASHI Standards of Practice Effective October 15, 2006 Copyright 2006 American Society of Home Inspectors, Inc. All rights reserved

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