Home Inspection Report

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1 Inspected on Wednesday, January 18, 2012 at 12:00 pm Realtors: ActiveKEY CARRIER PRO Rewards Home Inspection Report Prepared for: John & Jane Doe Property Address: 870 ABC, Westlake, Texas Inspector: Nathan Vick, TREC #20219 Online Services Include: SCHEDULING PAYMENTS PICK-UP REPORT WRITE A REVIEW HOME PRO Inspections, LLC

2 TABLE OF CONTENTS Property Inspection Report 3 Structure 5 Electrical 11 Heating, Ventilation & Air Conditioning Systems 12 Plumbing System 14 Appliances 17 Optional Systems 18 Report Summary 21 Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies 22 Inspection Agreement 23 Invoice 24 Page 2 of 24

3 PROPERTY INSPECTION REPORT Prepared For: Concerning: John & Jane Doe 870 ABC, Westlake, Texas By: Nathan Vick, Professional Inspector License, TREC # This property inspection report may include an inspection agreement (contract), addenda, and other information related to property conditions. If any item or comment is unclear, you should ask the inspector to clarify the findings. It is important that you carefully read ALL of this information. This inspection is subject to the rules ( Rules ) of the Texas Real Estate Commission ( TREC ), which can be found at The TREC Standards of Practice (Sections of the Rules) are the minimum standards for inspections by TREC-licensed inspectors. An inspection addresses only those components and conditions that are present, visible, and accessible at the time of the inspection. While there may be other parts, components or systems present, only those items specifically noted as being inspected were inspected. The inspector is not required to move furnishings or stored items. The inspection report may address issues that are code-based or may refer to a particular code; however, this is NOT a code compliance inspection and does NOT verify compliance with manufacturer s installation instructions. The inspection does NOT imply insurability or warrantability of the structure or its components. Although some safety issues may be addressed in this report, this inspection is NOT a safety/code inspection, and the inspector is NOT required to identify all potential hazards. In this report, the inspector will note which systems and components were Inspected (I), Not Inspected (NI), Not Present (NP), and/or Deficient (D). General deficiencies include inoperability, material distress, water penetration, damage, deterioration, missing parts, and unsuitable installation. Comments may be provided by the inspector whether or not an item is deemed deficient. The inspector is not required to prioritize or emphasize the importance of one deficiency over another. Some items reported as Deficient may be considered life-safety upgrades to the property. For more information, refer to Texas Real Estate Consumer Notice Concerning Recognized Hazards, form OP-I. This property inspection is not an exhaustive inspection of the structure, systems, or components. The inspection may not reveal all deficiencies. A real estate inspection helps to reduce some of the risk involved in purchasing a home, but it cannot eliminate these risks, nor can the inspection anticipate future events or changes in performance due to changes in use or occupancy. It is recommended that you obtain as much information as is available about this property, including any seller s disclosures, previous inspection reports, engineering reports, building/remodeling permits, and reports performed for or by relocation companies, municipal inspection departments, lenders, insurers, and appraisers. You should also attempt to determine whether repairs, renovation, remodeling, additions, or other such activities have taken place at this property. It is not the inspector s responsibility to confirm that information obtained from these sources is complete or accurate or that this inspection is consistent with the opinions expressed in previous or future reports. ITEMS IDENTIFIED IN THE REPORT DO NOT OBLIGATE ANY PARTY TO MAKE REPAIRS OR TAKE OTHER ACTIONS, NOR IS THE PURCHASER REQUIRED TO REQUEST THAT THE SELLER TAKE ANY ACTION. When a deficiency is reported, it is the client s responsibility to obtain further evaluations and/or cost estimates from qualified service professionals. Any such follow-up should take place prior to the expiration of any time limitations Page 3 of 24

4 such as option periods. Evaluations by qualified tradesmen may lead to the discovery of additional deficiencies which may involve additional repair costs. Failure to address deficiencies or comments noted in this report may lead to further damage of the structure or systems and add to the original repair costs. The inspector is not required to provide follow-up services to verify that proper repairs have been made. Property conditions change with time and use. For example, mechanical devices can fail at any time, plumbing gaskets and seals may crack if the appliance or plumbing fixture is not used often, roof leaks can occur at any time regardless of the apparent condition of the roof, and the performance of the structure and the systems may change due to changes in use or occupancy, effects of weather, etc. These changes or repairs made to the structure after the inspection may render information contained herein obsolete or invalid. This report is provided for the specific benefit of the client named above and is based on observations at the time of the inspection. If you did not hire the inspector yourself, reliance on this report may provide incomplete or outdated information. Repairs, professional opinions or additional inspection reports may affect the meaning of the information in this report. It is recommended that you hire a licensed inspector to perform an inspection to meet your specific needs and to provide you with current information concerning this property. ADDITIONAL INFORMATION PROVIDED BY INSPECTOR: 1) GENERAL: DOOR FACES SOUTH A Home Inspection is primarily visible and done in a limited time. Not every defect will be discovered. For further clarification of the components, procedures and limitations of the home inspection consult the Standard of Practice the inspection was performed under. 2) EXTERIOR: The visible condition of exterior coverings, trim, entrances and drainage are inspected with respect to their effect on the condition of the building. 3) ROOFINIG: The visible condition of the roof covering, flashings, skylights, chimneys and roof penetrations are inspected. The purpose of the inspection is to determine general condition, NOT to determine life expectancy. 4) STRUCTURE: The visible condition of the structural components is inspected. The determination of adequacy of structural components is beyond the scope of a property assessment condition inspection. 5) ELECTRICAL: The inspector can not inspect hidden wiring or verify if the number of outlets is per the National Electric Code. A representative number of outlets, switches and fixtures are tested for operation. 6) HEATING: The heating system is inspected visually and operated by normal controls to determine general condition NOT life expectancy. The capacity or adequacy of the heating system is beyond the scope of a home inspection. A licensed HVAC contractor should be consulted if in question. 7) COOLING: The cooling system is inspected by operation of the equipment by normal controls to determine general condition NOT life expectancy. The capacity or adequacy of cooling system is beyond the scope of a home inspection. A licensed HVAC contractor should be consulted if in question. 8) PLUMBING: The plumbing system is inspected visually and by operating a representative number of fixtures. Private water and waste systems are beyond the scope of a home inspection. 9) INTERIOR: The interior inspection is limited to readily accessible areas that are not concealed by furnishings or stored items. A representative number of windows and doors. Page 4 of 24

5 I. STRUCTURAL SYSTEMS A. Foundations Type of Foundation(s): Slab Material of Foundation(s): Concrete Comments 1: Foundation Performance Opinion: In my opinion, the foundation appears to be providing adequate support for the structure at the time of the inspection. I did not observe evidence that would indicate the presence of adverse performance or significant deficiencies in the foundation. The interior and exterior stress indicators showed little affects of adverse performance and I perceived the foundation to contain no significant unlevelness after walking the 1 st level floors. Figures 1-1& 1-2: Note Cracks along finish coat (stucco layer applied to foundation) located at north & west side of home. The outer finish coat, applied to a foundation, is not just for aesthetic purposes. They also serve as damp-proofing for the exposed exterior foundation footings, acting as a sacrificial layer. Typically, cracks form in the finish coat. Figure 1-1 Figure 1-2 B. Grading and Drainage Comments 2: Figure 2-1: Deficient Soil line is too high on the south-side of house. Current building standards require at least 4 inches of clear area between the ground and masonry veneer wall and 6 inches of clear area between to the ground and wood veneer wall. Proper drainage Page 5 of 24

6 is critical to the future performance of the foundation. If for any reason water is found standing near the foundation for an extended period of time, (more than 24hrs) drainage corrections will be necessary. Figure 2-1 C. Roof Covering Materials Type(s) of Roof Covering: 30 Year Viewed From: Arms Length Ventilation Present: Gable Ends, Ridge Vent Gutter Material: N/A Comments 3: Figure 3-2 & 3-3: Deficient Shrinkage cracks observed in plastic cement along chimney step-flashing need to be resealed. Figure 3-2 Figure 3-3 Figures 3-3& 3-4: Deficient North-slope of roof (solar water heating equipment), has signs of deterioration and water penetration. Area needs to be re-sealed with plastic cement to prevent further water penetration. Solar water heating equipment has been disconnected from water main, and is currently not in use. Page 6 of 24

7 CLOSE-UP VIEW Figure 3-3 Figure 3-4 Figure 3-1: Note Various areas of roofing shingles have minor damaged, such as the shingle located at north-west corner of roof. Figure 3-1 D. Roof Structure and Attic Viewed From: Inside Roof Structure: Wood Framed Approximate Average Depth of Insulation: 10 inches, Loose Fill & Batts Approximate Average Thickness of Vertical Insulation: undetermined Comments 4: Figure 4-1: Note Purlin boards and ridge boards are not sized properly according to modern building standards. This is an as-built condition and may not have been required when the house was built, but Per TREC Standards of Practice we are required o report this condition. This item reported would be considered upgrades to the property. Page 7 of 24

8 Figure 4-1 Figure 4-2: Note This residence has a combination of batt & loose fill insulation. The loose fill appears to be Wool Blown insulation. Based on the Wool Blown insulation R- value formulation, 3.30 inches equals 1 R-value, computing into an R-value of 36. However, the insulation is NOT spread out evenly, reducing the energy efficiency performance of the insulation, and making an R-Value determination inconclusive. Figure 4-1 Figure 4-4: Deficient Water stains were observed in the attic near dryer duct. Re-seal or re-place exterior vent flashing and re-seal underside area of roof decking to prevent further water intrusion. Figure 4-2 Page 8 of 24

9 E. Walls (Interior and Exterior) Walls Structure: Wood Framed Walls Exterior Covering: Stone, Siding Walls Exterior Trim Material: Wood Walls Interior Covering: Drywall Comments 5: Deficient No weep holes in the lower course masonry veneer walls or window lentels. On newly built homes, weep holes are installed at the base of the exterior walls (every 33 inches) to help ventilate moisture build-up between the airspace of the mason & framed wall. When a walls weep holes are not present, the moisture is unable to dry-out through ventilation, creating an opportunity for mold development. This is an as-built condition, and was not required when the house was built. F. Ceilings and Floors Ceiling Structure: Wood Framed Floors Structure: Wood Framed All components were found to be in satisfactory condition on the day of the inspection. G. Doors (Interior and Exterior) Entry Door Types: Hinged, Slide Entry Door Materials: Wood, Metal Comments 6: Figure 6-1: Deficient Glass panel seal on patio door has failed. With the glass panel seal failure, the silica desiccating materials in the thermal break seal are unable to absorb moisture sucked-in by a vacuum (solar pumping) created through the window & environment; trapping moisture in the glass panel causing white streaks (as seen inside the door glass panel.) The main concern, however, is water penetration and energy loss. Page 9 of 24

10 Figure 6-1 H. Windows Window Types: Single Hung, Casement, Slide, Vent Window Materials: Wood, Metal, Vinyl All components were found to be in satisfactory condition on the day of the inspection. I. Stairways (Interior and Exterior) Stairway Structure: Wood Framed, Metal, Concrete J. Fireplace/Chimney Fireplace/Stove Type: Manufactured Chimney Type: Wood Framed w/ Metal Duct Comments 7: Figure 7-1 & 7-2: Deficient Internal flue damper would not open completely and is missing damper screen. As routine maintenance, it is recommended that the fireplace flue be cleaned and internally inspected by a chimney sweep at least once a year. Figure 7-1 Figure 7-2 Type of Fireplace Page 10 of 24

11 Figure 7-2: Deficient Fire-place brick is cracked, which is systematic of high heat exposure. To re-pair, apply mortar mixture to affected areas with trowel. Figure 7-2 K. Porches, Balconies, Decks, and Carports Walking Surface Types: Walks, Steps, Porches Walking Surface Materials: Concrete All components were found to be in satisfactory condition on the day of the inspection. L. Other II. ELECTRICAL SYSTEMS A. Service Entrance and Panels Type of Service: Underground Service Panel Location: Exterior east wall Service Voltage: 240 Volts Service Amperage: 150 amps Over Current Devices: Breakers Main Disconnect Location: Service Panel Sub-Panel Locations: Interior east hallway Comments 8: Note This house does not meet current arch-fault circuit-interrupters (AFCI) requirements. This is an as-built condition, and was not required when the house was built, but Per TREC Standard of Practice we are required to report this Page 11 of 24

12 condition as a deficiency. Some items reported as Deficient may be considered upgrades to the property. B. Branch Circuits, Connected Devices, and Fixtures Type of Wiring: Copper GFCI Tested: No Smoke Detectors Present: No Comments 9: Note The house does not meet current ground-fault circuit-interrupters (GFCI) requirements. GFCI receptacles (outlets) help protect against electrical shock. The National Electric Code (NEC) requires GFCI outlets in wet or damp locations. GFCI should be tested monthly to ensure they are providing protection. Press TEST button, then RESET button every month to ensure proper operation. If the indicator light does not go out & come back on or if the GFCI cannot reset, it must be re-placed. This is an as-built condition, and was not a requirement when the house was built. Figure 9-1: Deficient Exposed wires at south side of residence, near patio doors. This creates an electrical shock and fire hazard. Call Electrician to repair and investigate further. Figure 9-1 III. HEATING, VENTILATION AND AIR CONDITIONING SYSTEMS A. Heating Equipment Type of System: Forced Air Energy Source: Gas Page 12 of 24

13 Location: East hallway Comments 10: Deficient The operation of the heating systems was not checked due the furnace s inoperability. Call HVAC Technician to further inspect and give an evaluation on the operation of the equipment and any further concerns that may exist with this equipment. Therefore, a limited visual survey will be performed and if any defects are found they will be listed in this section. Figure 10-1: Internal air-chamber-wall is rusted. Figure 10-1 B. Cooling Equipment Type of System: Split System Energy Source: Electric Today s Temperature Differential (Delta-T): N/A Approximate System Size: 3 ton Location: East exterior wall Manufacturer: International Manufacturing Date: 2005 Comments 11: Deficient The operation of the cooling systems was not checked due the condenser s inoperability. Call HVAC Technician to further inspect and give an evaluation on the operation of the equipment and any further concerns that may exist with this equipment. Therefore, a limited visual survey will be performed and if any defects are found they will be listed in this section. Page 13 of 24

14 Figure 11-1: Deficient Suction (low pressure) line has damaged areas of pipe insulation. Pipe Insulation on the suction line will keep the line from sweating and while necessary, its main purpose is to protect the compressor against excessive superheat and to control superheat so that your compressor can be properly cooled. Damaged or missing pipe insulation can result in compressor failure. Figure 11-1 C. Duct System, Chases, and Vents Type of Distribution: Flexible Ducting All components were found to be in satisfactory condition on the day of the inspection. IV. PLUMBING SYSTEMS A. Water Supply System and Fixtures Location of water meter: Exterior, south-east corner of property near street Location of main water supply valve: At Meter Static water pressure reading: 90 psi Location of Fuel Shut-off: At Meter Comments 12: Figure 12-1: Deficient Water meter box has a water leak. Call City Water Dept. or Plumbing Contractor to diagnose and repair. Page 14 of 24

15 Figure 12-1 Figure 12-2: Deficient Water pressure exceeds normal operating conditions. Water pressure needs to be between psi. When water exceeds 65 psi, a water pressure regulator is required. Water pressure regulators regulate the amount of water pressure supplying your residence. With-out a water pressure regulator, plumbing fixtures will fail before their intended time. This is evident in the master bathroom due to the shower head failure. Deficient Figure 12-2 Back-flow preventers are missing. A backflow preventer works by using a one way valve, often called a check valve, to prevent water from backing up into the supply line. Basically, it only allows water to flow through the valve in one direction. When no supply is present, the valve automatically closes so that water on the other, or downstream, side of the valve cannot pass through the valve and contaminate the supply line. Page 15 of 24

16 B. Drains, Wastes, and Vents Waste Pipe Material: Plastic Supply Pipe Material: Copper All components were found to be in satisfactory condition on the day of the inspection. C. Water Heating Equipment Energy Source: Gas Location: Mechanical room near carport. Capacity: (1) 40 gal, (1) 80 gal Manufacturing Date: (1) 40 gal 2007 & (1) 80 gal Comments 13: Figure 13-1: Deficient Water heaters missing drip pan. Water heaters shall be provided with an auxiliary drain pan when damage to any building components will occur as a result of leakage or stoppage. A separate overflow drain line shall be connected to the drain pan. This overflow drain shall discharge to a conspicuous point of disposal. Drain lines size shall be not less than 3/4 inch internal diameter and shall not decrease in size from the appliance or drain pan to the place of disposal. Figure 13-1 Figure 24-1: Deficient Water heater is missing die-electric connectors for supply lines. When two dissimilar types of metals are in contact and water, the weaker metal becomes sacrificial and Galvanic corrosion occurs. Galvanic corrosion can lead to thread failure, resulting in water leaks. Page 16 of 24

17 Figure 13-2 D. Hydro-Massage Therapy Equipment Access Panel: N/A V. APPLIANCES A Dishwasher B. Food Waste Disposer Comments 14: Deficient The Romex type branch circuit wiring to the disposal is exposed and should be enclosed in conduit. C. Range Exhaust Vent Ventilation Type: Exhaust This component appears to be performing adequately at the time of the inspection. It is achieving an operation, function, or configuration consistent with accepted industry practices for its age. D. Ranges, Cooktops, and Ovens Range Fuel: Gas This component appears to be performing adequately at the time of the inspection. It is achieving an operation, function, or configuration consistent with accepted industry practices for its age. Page 17 of 24

18 E. Microwave Oven This component appears to be performing adequately at the time of the inspection. It is achieving an operation, function, or configuration consistent with accepted industry practices for its age. F. Trash Compactor G. Mechanical Exhaust Vents and Bathroom Heaters This component appears to be performing adequately at the time of the inspection. It is achieving an operation, function, or configuration consistent with accepted industry practices for its age. H. Garage Door Operator(s) Carport only I. Doorbell and Chimes All components were found to be in satisfactory condition on the day of the inspection. J. Dryer Vents All components were found to be in satisfactory condition on the day of the inspection. VI. OPTIONAL SYSTEMS A. Lawn and Garden Sprinkler Systems Comments 15: Deficient I was unable to locate the rain/freeze sensor for the sprinkler system. This is an as-built condition and may not have been required at the time of installation, but Per TREC Standards of Practice we are required to report this condition as a deficiency. Page 18 of 24

19 Figure 15-1: Deficient Sprinkler head in zone 1 has failed. Figure 15-1 B. Swimming Pools, Spas, Hot Tubs, and Equipment Type of Construction: C. Outbuildings D. Outdoor Cooking Equipment Energy Source: E. Gas Supply Systems F. Private Water Wells (A coliform analysis is recommended.) Type of Pump: Type of Storage Equipment: G. Private Sewage Disposal (Septic) Systems Type of System: Location of Drain Field: Page 19 of 24

20 H. Whole-House Vacuum Systems I. Other Built-in Appliances Page 20 of 24

21 ADDENDUM: REPORT SUMMARY The following is a synopsis of potentially significant improvements that should be budgeted for over the short term. Other significant improvements, outside the scope of this inspection, may also be necessary. Please refer to the body of this report for further details on these and other recommendations. STRUCTURAL SYSTEMS 1. Soil line is too high on the south-side of house. 2. North-slope of roof (solar water heating system), has signs of deterioration by water penetration. 3. No weep holes in masonry exterior walls 4. Glass panel seal on patio door has failed 5. Internal flue damper would not open completely and is missing damper screen 6. Fire-place brick is cracked ELECTRICAL SYTEMS 7. Exposed wires at south side of residence, near patio doors. 8. This house does not meet current arch-fault circuit-interrupters (AFCI) requirements. 9. This house does not meet current ground-fault circuit-interrupters (GFCI) requirements. HEATING, VENTILATION AND AIR-CONDITIONING SYSTEMS 10. Internal air-chamber-wall is rusted. 11. Furnance would not operate. Call licensed HVAC Contractor to diagnose and repair. 12. Cooling equipment would not operate. Call HVAC Contractor to diagnose and repair. 13. Suction (low pressure) line has damaged areas of pipe insulation PLUMBING SYSTEMS 14. Water meter box has a water leak. 15. Water pressure exceeds normal operating conditions. 16. Back-flow preventers are missing. 17. Water heaters missing drip pan. 18. Water heater is missing die-electric connectors for supply lines. APPLIANCES 19. The Romex type branch circuit wiring to the disposal is exposed and should be enclosed in conduit. OPITIONAL SYSTEMS: LAWN AND GARDEN SPRINKLER SYSTEMS 20. I was unable to locate the rain/freeze sensor for the sprinkler system. 21. Sprinkler head in zone 1 has failed. Page 21 of 24

22 APPROVED BY THE TEXAS REAL ESTATE COMMISSION (TREC) P.O. BOX 12188, AUSTIN, TX , , (512) TEXAS REAL ESTATE CONSUMER NOTICE CONCERNING HAZARDS OR DEFICIENCIES Each year, Texans sustain property damage and are injured by accidents in the home. While some accidents may not be avoidable, many other accidents, injuries, and deaths may be avoided through the identification and repair of certain hazardous conditions. Examples of such hazards include: improperly installed or missing ground fault circuit protection (GFCI) devices for electrical receptacles in garages, bathrooms, kitchens, and exterior areas; improperly installed or missing arc fault protection (AFCI) devices for electrical receptacles in family rooms, dining rooms, living rooms, parlors, libraries, dens, bedrooms, sunrooms, recreations rooms, closets, hallways, or similar rooms or areas; ordinary glass in locations where modern construction techniques call for safety glass; the lack of fire safety features such as smoke alarms, fire-rated doors in certain locations, and functional emergency escape and rescue openings in bedrooms; excessive spacing between balusters on stairways and porches; improperly installed appliances; improperly installed or defective safety devices; and lack of electrical bonding and grounding. To ensure that consumers are informed of hazards such as these, the Texas Real Estate Commission (TREC) has adopted Standards of Practice requiring licensed inspectors to report these conditions as Deficient when performing an inspection for a buyer or seller, if they can be reasonably determined. These conditions may not have violated building codes or common practices at the time of the construction of the home, or they may have been grandfathered because they were present prior to the adoption of codes prohibiting such conditions. While the TREC Standards of Practice do not require inspectors to perform a code compliance inspection, TREC considers the potential for injury or property loss from the hazards addressed in the Standards of Practice to be significant enough to warrant this notice. Contract forms developed by TREC for use by its real estate licensees also inform the buyer of the right to have the home inspected and can provide an option clause permitting the buyer to terminate the contract within a specified time. Neither the Standards of Practice nor the TREC contract forms requires a seller to remedy conditions revealed by an inspection. The decision to correct a hazard or any deficiency identified in an inspection report is left to the parties to the contract for the sale or purchase of the home. This form has been approved by the Texas Real Estate Commission for voluntary use by its licensees. Copies of TREC rules governing real estate brokers, salesperson and real estate inspectors are available at nominal cost from TREC. Texas Real Estate Commission, P.O. Box 12188, Austin, TX , or (512) ( Page 22 of 24

23 INSPECTION AGREEMENT Nathan Vick performs real estate inspections for Austin and the surrounding communities. Home Pro Inspections, herein after known as the Inspector agrees to conduct an inspection for the purpose of informing the client of major deficiencies in the condition of the property listed above. THE WRITTEN REPORT IS THE PROPERTY OF THE CLIENT AND Home Pro Inspections, AND SHALL NOT BE USED BY OR TRANSFERRED TO ANY OTHER PERSON OR COMPANY WITHOUT BOTH THE INSPECTOR S AND THE CLIENT S MUTUAL CONSENT. 1) This inspection of the subject property shall be performed by the Inspector for the Client in accordance with the Standards of Practice of the Texas Real Estate Commission. 2) The purpose of this inspection is to identify and disclose visually observable major deficiencies of the inspected systems and items AT THE TIME OF THE INSPECTION ONLY. The inspector will not attempt to determine the life expectancy or future performance of any system or component. The inspector does not have x-ray vision and will not attempt to report on systems, items, or conditions that are not readily accessible. Detached structures are not included in the inspection unless specifically agreed upon by both the inspector and the client. 3) This inspection is not intended to be technically exhaustive nor is it considered to be a GUARANTEE OR WARRANTY, EXPRESSED OR IMPLIED, REGARDING THE CONDITIONS OF THE PROPERTY, ITEMS AND SYSTEMS INSPECTED AND IT SHOULD NOT BE RELIED ON AS SUCH. The Inspector shall not be held responsible or liable for any repairs or replacements with regard to this property, systems, components, or the contents therein. Company is neither a guarantor or insurer. 4) LIMITATION OF LIABILITY. By agreeing to this contract, the client acknowledges that the Inspection Fee paid to Home Pro Inspections is nominal given the risk of liability associated with performing home inspections if liability could not be limited. The client acknowledges that without the ability of limit liability, Home Pro Inspections would be forced to charge the client much more than the Inspection Fee for Home Pro Inspection services. Client acknowledges being given the opportunity to have this agreement reviewed by council of his or her own choosing and further acknowledges the opportunity of hiring a different Inspector to perform the inspection. By accepting this agreement, Client agrees to liability to the amount of the Inspection Fee paid by the client. 5) THE INSPECTION AND REPORT DO NOT ADDRESS AND ARE NOT INTENDED TO ADDRESS CODE AND REGULATION COMPLIANCE, THE POSSIBLE PRESENCE OF OR DANGER FROM ASBESTOS, RADON GAS, LEAD PAINT, UREA FORMALDEHYDE, MOLD, FUNGUS, SOIL CONTAMINATION AND OTHER INDOOR AND OUTDOOR SUBSTANCES. THIS INSPECTOR IS NOT A STRUCTURAL ENGINEER. WHILE VISUAL OBSERVATIONS WILL BE MADE AT TO THE CONDITION OF THE FOUNDATION, EXACTING MEASUREMENTS OF PREVIOUS MOVEMENT AND OR PREDICTIONS ABOUT FUTURE MOVEMENT ARE BEYOND THE SCOPE OF THIS INSPECTION. THE CLIENT IS URGED TO CONTACT A COMPETENT SPECIALIST IF INFORMATION, IDENTIFICATION, OR TESTING OF THE ABOVE IS DESIRED. 6) Any matter concerning the interpretation of this Agreement, of the Inspection Report, or any claim based upon either of them shall be subject to mediation between the parties or failing such mediation shall be resolved by binding arbitration in accordance with the Construction Arbitration Services, Inc. Should such a need for mediation, arbitration and/or litigation arise, the inspector retains the right to collect all expenses incurred for defense, from the client or party, should the inspector be found innocent of negligence, errors or omissions. 7) Home Pro Inspections will perform this inspection in accordance with the TREC standards of practice and provide as much information as could reasonably be expected, based on those standards. We will be direct and fair in our methods of inspecting, discussing and reporting. We expect our clients to be fair as well. If you have previous knowledge of the home or specific concerns, we expect that this information will be shared with the inspector. If a problem is present upon moving into the home that you feel should have been reported; we expect to be notified and allowed access to the property to inspect such problems prior to repairs being made, unless the situation is a true emergency. It should also be understood that all items listed on the report should be repaired and/or evaluated by a licensed professional prior to closing on the home. It is possible for undisclosed issues that were not apparent to the inspector to be discovered in the process of repair. Repair prior to closing will help reduce the possibility of unexpected expenses related to repairs. By receiving this Inspection Report, the client named below, understood and accepted the terms and conditions of this agreement and agree to pay Home Pro Inspections$489.00, plus any additional fees incurred, at or before the time of inspection. Home Pro Inspections: NATHAN W. VICK, Professional Inspector, TREC#20219 CLIENT: John & Jane Doe By: Nathan Vick, President Page 23 of 24

24 Invoice From Home Pro Inspections, LLC 307 Cullen Blvd. Buda, Texas (512) To John & Jane Doe 123 Abc Austin, Texas (512) Standard Inspection Irrigation Property Inspected: 807 ABC, Westlake, Texas Inspection Date: 01/18/2012 Description TOTAL $ Thank you for your business! Please makes payable to: Home Pro Inspections Payment of this invoice is due upon receipt. The late payment charge rate of interest is 1.5% monthly (18% per annum), after 30days. Credit Card payments will be charged an additional 3% for processing. Page 24 of 24