component was performing its intended function; installation and condition were appropriate for age and use.

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April 23, 2012 Dear Home Seller, On April 6, 2012, Cities Inspection Service, Inc. completed a home inspection of the property located at 123 Oak Drive, Somewhere, Minnesota for you. Doug Hastings did all the fieldwork related to this project. Doug used the national home inspection protocol; the American Society of Home Inspectors (ASHI) Standards of Practice. The method used for this inspection was visual. There was no destructive analysis or technical testing of any building component. The project excluded all environmental health hazards, such as concealed mold, mildew and fungal growth; and any insect and vermin infestations. The purpose of this inspection was to observe the physical condition of this building. The intent was to identify defects or conditions that adversely affected the structure and its components. This report contains the results of the inspection. These definitions were used in this report: Functional Minor Defect Major Defect component was performing its intended function; installation and condition were appropriate for age and use. component deficiency was insufficient to be major defect; but it requires repair, normal maintenance, or a safety improvement. component was not performing its intended function and requires repair or replacement. 1

Exterior Description of Exterior This home is located in a suburban neighborhood and is positioned on a sloped site. The building is a two level single family home with an attached two car garage. The structure is approximately 43 years old and, for the purpose of this report, the front entry door faces south. The weather condition, at the time of the inspection, is fair. The walls are covered with one layer of wood lap and wood panel siding which are approximately 43 years old. The windows are casement and double hung with insulated glass and are not original to the house. The roof is steep sloped; there are two layers of asphalt composition shingles and the materials are approximately 22 years old. The components are viewed by walking on the roof. Functional Minor Defect Major Defect A. Grounds Observations Explanation of Problems 1. Landscape grading inadequate drainage swale & negative slope (west side) / flat grade (under deck) / possible ponding of water in egress window well (east side) retaining walls fence shed 2. Hardscape walks steps patio driveway 3. Utilities / other electric service gas meter outlets/fixtures water faucets 2

A1. Proper slope A1. Negative slope / poor drainage swale A1. 3

A1. Ponding water in egress window well / no drain pipe 4

B. Building Exterior Observations Explanation of Problems 1. Wall covering siding warped & worn wood / deteriorated bricks / decayed wood (on roof) windows doors deck missing middle beam posts / painted wood floor boards 2. Roof covering shingles split shingles / loose nails / old / short useful life (less than 2 years) flashing improper vent pipe cover (remove rain cap) chimney deteriorated bricks & mortar overhangs inadequate amount overhang ventilation 3. Garage walls window fire barrier floor slab pitted, cracked & settled concrete / ponding water overhead door service door roof family room attic nailed shut & not visible Probability of Moisture Intrusion grounds high walls roof high Limitations to Exterior Observations o Leaking insulated window and door glass air seals may not be visible, because of outside air temperature. o Fireplace chimney flue tiles are inaccessible and condition is not visible (gas pipe insert). 5

B1. Decayed piece of wall siding B1. Missing deck beam posts B2. Split roof shingles 6

B2. Split shingles B2. Broken wall shingles B2. Loose nails 7

B2. Remove plumbing vent cap B2. Moisture damaged chimneys B2. Deteriorated chimney bricks 8

B2. Deteriorated chimney bricks B2. Deteriorated chimney bricks B3. 9

Structure Description of Structure The foundation is concrete block with no visible insulation. This home has no crawl space. The floor systems are solid wood joists and subfloor with rim joist insulation. The above ground walls are wood frame; the type, depth, and condition of insulation are not visible. The attic is constructed with wood truss rafters and solid wood sheathing. There is approximately 8 of fiberglass attic insulation without a vapor retarder. The attic is viewed from access opening because of headroom. Functional Minor Defect Major Defect C. Structure Observations Explanation of Problems 1. Foundation stairs non continuous (from top to bottom step) handrail walls limited view insulation not visible floor slab moisture prior mold remediation in rec room drain tile partial new drain tile system (portion of rec room) with battery backup sump pump / balance of basement not drain tiled (sump basket with holes) 2. Floors joists insulation posts/beam moisture limited view 3. Walls walls insulation not visible moisture not visible 10

4. Roof rafter s chimney moisture water stained sheathing insulation ventilation vent pipes improperly vented or unvented bath exhaust fan Probability of Moisture Intrusion foundation medium (grading) floors walls roof medium (old roof shingles) Probability of Failure foundation floors walls roof Limitations to Structure Observations o Foundation is 90% covered and condition not visible. o Floors are 100% covered and condition not visible. o Wall structure is 100% covered; wood decay and molds are not visible. o Family room attic is 100% inaccessible and condition not visible. C1. Non continuous handrail 11

C1. C1. Basement moisture C1. New rec room drain tile 12

C4. Improperly vented or unvented bath fan 13

Electrical Description of Electrical The public utility service is overhead and the voltage is 110/220. There is one 150 amp main electrical panel and it is approximately 43 years old. The service entrance wires are aluminum, the main disconnect is circuit breaker and it is located on the north basement wall. The branch circuit distribution wiring is copper with circuit breakers. Functional Minor Defect Major Defect D. Electrical Observations Explanation of Problems 1. Main panel size condition grounding wiring melted wire insulation / double tapped circuit breakers / unapproved circuit breakers 2. Subpanel condition grounding wiring 3. Outlets/fixtures basement attic smoke detector old / replace with battery backup hard wired smoke detector Limitations to Electrical Observations o None. 14

D1. Melted & double tapped wires D1. 15

Plumbing Description of Plumbing The main water supply is public and the visible pipe material is copper. The interior water pipes are copper. The main water shutoff valve is located in the basement bedroom closet. The gas water heater is 40 gallons and is approximately 2 years old. The public underground sewer pipe is not visible; the soil stack is cast iron. The drain and vent pipes are copper. The appliance fuel supply is natural gas and the main shutoff valve is located at the exterior utility meter. Functional Minor Defect Major Defect E. Plumbing Observations 1. Water supply main pipe interior pipes Explanation of Problems 2. Waste pipes soil stack leaking cast iron to copper connections drain/vent pipes floor drain laundry tub 3. Gas piping interior pipes appliances 4. Water heater storage tank vent pipe 5. Appliances water softener clothes washer clothes dryer Probability of Failure Water pressure Plugged sewer Water heater 16

Limitations to Plumbing Observations o Condition of underground sewer pipe is not visible. E1. Leaking connections E1. Leaking connections 17

Mechanical Description of Mechanical The central heating is forced air furnace. The fuel source is natural gas and the system is approximately 10 years old. There is a central air conditioner that is approximately 17 years old. Functional Minor Defect Major Defect F. Mechanical Observations 1. System jacket heat exchanger distribution vent/flue pipes Explanation of Problems 2. Air conditioner condenser compressor cold weather & not viewed operating / not visible piping wiring 3. Other electronic filter humidifier Probability of Failure Heating Air conditioner unknown Limitations to Mechanical Observations o System heater exchanger is 100% inaccessible and condition is not visible. o Air conditioner is not viewed operating due to cold weather conditions. 18

Interior Description of Interior Rooms There are 5 bedrooms and 4 baths. The basement is completely finished. There is a basement bedroom that meets egress specifications. Functional Minor Defect Major Defect G. Interior Room Observations 1. Rec room walls/ceiling floor windows doors outlets/fixtures heating Explanation of Problems 2. Basement bedroom walls/ceiling floor window doors outlets/fixtures heating smoke/co smoke detector too close to ceiling (er to 6 ) 3. Basement bath walls/ceiling floor door outlets/fixtures heating fixture/faucet water pressure cabinet/top exhaust fan 19

4. Kitchen walls/ceiling floor windows door outlets/fixtures heating fixture/faucet water pressure cabinet/top 5. Kitchen appliances refrigerator stove dishwasher no dishwasher drain pipe air gap disposal worn shredder plate microwave exhaust fan 6. Living/dining walls/ceiling floor windows door outlets/fixtures heating 7. Family room walls/ceiling floor windows door outlets/fixtures heating fireplace gas insert & flue tiles not visible 8. Main bath walls/ceiling floor door outlets/fixtures heating fixture/faucet water pressure cabinet/top exhaust fan 20

9. Half bath walls/ceiling floor door outlets/fixtures no outlet heating none fixture/faucet water pressure cabinet/top exhaust fan 10. Master bath walls/ceiling floor window door outlets/fixtures heating fixture/faucet water pressure cabinet/top exhaust fan none 11. Upper bedrooms walls/ceiling floor windows door outlets/fixtures heating smoke/co improperly located carbon monoxide detector 12. Den walls/ceiling floor window door outlets/fixtures heating 21

13. Hallways/entries walls/ceiling floor window door outlets/fixtures heating smoke detector stairs Probability of Moisture Intrusion Ceiling Walls Floor Limitations to Interior Observations o Only appliances listed in this report are included in this inspection. o Fireplace chimney flue tiles are 100% inaccessible and condition is not visible. D5. Example dishwasher drain pipe air gap 22

G5. Shredder plate 23

Conclusions Major Defects A. Grounds Earth grade does not slope away from the foundation (basement moisture). B. Building Exterior Missing wood deck beam posts. Damaged and worn roof shingles; short useful life (less than 2 years). Deteriorated chimney bricks and mortar. Cracked, settled, and worn garage floor. C. Structure None. D. Electrical Melted main panel wire insulation, double tapped and unapproved circuit breakers. E. Plumbing Leaking basement waste pipe (soil stack) connections. F. Mechanical None. G. Interior Room Improperly vented main bath exhaust fan. Minor Defects A. Grounds None. B. Building Exterior Worn wall siding and deteriorated front wall bricks. Painted wood deck floor boards. Unapproved rain cap on roof vent pipe. Minimal amount overhang vents (ice dams). C. Structure None. D. Electrical No half bath outlet. E. Plumbing No dishwasher drain pipe air gap. Worn disposal shredder plate. F. Mechanical None. 24

G. Interior Room Non continuous basement stair handrail. Replace all hard wired smoke detectors that do not have battery backup. Test all smoke detectors for proper operation every 6 months. Lower basement smoke detector to a minimum of 4 from the ceiling. State law requires a carbon monoxide detector within 10 all bedrooms. Potential Defects 1. Not visible or limited view: Fireplace chimney flue tiles (metal liner) Family room attic (access nailed shut) Underground sewer pipe (inaccessible) Owner disclosed rec room mold remediation work was done, extent and completeness of work is not visible. 2. Not viewed operating: Air conditioner (too cool) 25