Property Condition Assessment. Summary Report

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www.real-estate-inspections.com Property Condition Assessment Summary Report Subject Property Prepared for: Client in Detroit File Number: 05-15-005 Inspector: Craig Milliken, PE CPM Real Estate Inspections, Inc. Date of Inspection: Monday, August 1, 2005 Weather: 89º F partly cloudy, no recent showers 1

Scope of Inspection A visual inspection of the subject property was preformed on Monday, August 1, 2005 at 8:30 AM. This Property Condition Assessment addresses general items of interest that were visible to the inspector during this limited inspection. Reasonable effort was made to view all safely accessible areas of the Subject Property. Concealed items cannot normally be inspected without using invasive procedures or special testing equipment that is beyond the scope of this type of general inspection. This Property Condition Assessment Report may not address every problem that may exist with this property at the time of this inspection. CPM Real Estate Inspections, Inc. makes no warranty that there are no other defects with this property. The following attendees were present at the inspection: Craig Milliken, PE Tom Wood Frank Ludlow, Jr. Nancy Markovitch Gregory Mermigas Inspector, CPM Real Estate Inspections, Inc. (CPMREI) Rack Inc. (electrician for CPMREI) Builder Buyer s Representative, Coldwell Banker Listing Agency Representative, Premier Estate Properties This property consists of three two story buildings consisting of approximately 30,000 total square foot on a 4.3 acre lot. Construction of this property was not complete at the time of this inspection. Construction was halted for approximately 2 ½ years. The following sections of this report describe key areas of interest pertaining to the property Roof The roofs over the three separate buildings were completed prior to the halt in construction. There is one small flat section of roofing covered with a modified bitumen cap sheet over the main building. The remaining sections of roofing are covered with clay roofing tiles that are attached to the roof with foam adhesive. This type of attachment is superior to other attachment methods and helps hold the roof tiles in place during hurricane force winds. The interior side of the roof sheathing has been coated with foam insulation. All roofing materials appear to have been professionally installed and are in good condition except for some minor items needing attention. There are 50 + tiles that are chipped, cracked or broken from foot traffic. These tiles should be repaired or replaced. There are several pieces of construction materials left on the roof that should be cleared. There is broken masonry and a 5 gallon can of roofing mastic on the roof near the east balcony overlooking the pool There are several small plants that have taken root in cavities between the roofing tiles. These need to be removed before their roots cause damage. 2

Roof Continued There is a small section of the flat roof over the main house that has standing water due to inadequate slope. This section is at the NW corner of the flat roof near a chimney. This area should be reworked to improve drainage. Standing water can accelerate the deterioration of the roofing materials in this area. Several stains were noted on the exterior walls of the main house. These stains are caused by rain run-off that is not being sufficiently managed by the gutter system. Flashing and tile placement needs to be adjusted in a few areas to avoid perpetual stains on the walls. One section of a roof leader (east of the main entrance) is missing. This needs to be replaced. Foundation and Structure The building shell is formed with steel reinforced concrete (blocks and formed beams) with a stucco finish applied to the exterior surfaces and covered with masonry blocks or formed concrete architectural reliefs. The second floor slabs and roofs are supported by an engineered open web truss system. All structural elements appear to be professionally installed and in new condition. All floor slabs appear to be in excellent condition. No concerns were noted in any structural elements. Building Exterior The three buildings exterior doors, windows and surfaces are all constructed from premium materials. The masonry blocks have not yet been attached to the boat/guest house. All doors and windows appear professionally installed and water tight. There were no signs of leaks around any of the windows and door openings when inspected from the interior side. The following issues were noted: It is not certain what wind load and impact resistance ratings the doors and windows have. Insurance carriers offer substantial discounts for high impact rated doors and windows. The buyer should ask the builder for any documentation that can be presented to an insurance underwriter. Minor cracks were noted in several architectural reliefs around the buildings. These minor cracks are from normal settling, curing of the stucco and thermal stress and are not due to structural or material defects. Many of the architectural reliefs are made from stucco. The cracked stucco surfaces will need to be cleaned and sealed with a good primer prior to painting to hide some of the larger cracks. One window in the east rotunda has a small crack. The impact rating of the glass can be compromised by this type of defect. The window may need replacement. There are many stains on the exterior of the building from roof run-off and other weather conditions. Dirt has collected under all exterior doors and windows. All of this should be pressure cleaned prior to any painting. 3

Building Exterior (continued) There are several exterior doors that have not yet been installed. This unfinished work needs to be quantified and scheduled by the builder. Building Interior The building s floor, wall and ceiling surfaces all appear to be in good condition. Doors, frames and millwork have been substantially completed except for finishes and hardware. All work present appears to be professionally installed. No deterioration due to the 2 ½ year idle state was noted in any interior elements. Electrical Systems All panels and wiring appear to have been professionally installed to date; however, there is still a substantial amount of work remaining. Power cannot be turned on until all outlets, switches, panels and loads are checked for proper and secure connections. There is an emergency generator and transfer switch behind the carriage house. This device was not run (it has been idle for a long period and should not be started until it is serviced). It will be difficult for an electrician (unfamiliar with the work to date) to estimate the scope and cost of the remaining work needed. A Time & Material type of contract should be considered to complete the work. There are also many voice-data type cables throughout the site that need to be completed. Typically voice-data cabling and associated equipment are not handled by the electrician. Plumbing The plumbing has been completed except for the installation of fixtures. All visible exposed plumbing appears to be professionally installed and in good condition. There were not indications of plumbing leaks during the last 2 ½ years. The Le Lac community is not connected to city water and sewer. There is a well, water treatment equipment and septic system for this property. The builder stated that the well pump had a problem and needs to be repaired. Air Conditioning Systems The three buildings on this property have fan coil units supported by a central water chiller behind the carriage house. The system was completed and functioning at one time; however, the chiller has been idle for 2 ½ years and can not be started again until it is serviced. The installations of the chiller, fan coil units, associated plumbing and controls appear to be professionally performed. Chilled water piping is well insulated in most locations; however, there are some small gaps in the insulation that need to be covered to avoid chronic sweating and possible water damage to the interior walls and ceilings. The coils and ductwork throughout the system are very clean and free of mold or dirt. There should be no concerns about air quality when the system again becomes operational. 4

Site Drainage Drainage seems adequate away from the structure. The roof runoff is managed by a gutter and leader system that carries water away from the structures. There was no indication of any rainwater entering the structures in the past 2 ½ years. Environmental Concerns There were no obvious concerns with any environmental issues. This inspection does not include a Phase I Environmental Assessment. This type of report is typically performed when a land development is first permitted. Mold No mildew stains, residue or odors were noted in any of the space within the three structures. There were no signs of problems with the air conditioning system, plumbing system or roof that would contribute to this type of concern. Wood Destroying Organisms There is no evidence of termite infestation or wood rot problems in any of the three structures. Summary Overall the property appears to be professionally constructed, in good condition and well maintained during the past 2 ½ years. The only significant concern we can identify is the following: This property was started several years ago under a building permit that has likely expired. Several significant changes have occurred in the building codes since the original permit was initiated. The requirement for AFCI electrical circuits is one of the new requirements that were not required when this project was started. The Building Department has the authority to request that all work now meet the latest code requirements. There may be substantial costs associated with making any changes to the structure or systems to accommodate these new requirements. The architect, builder, buyer and Building Official having jurisdiction over this property should discuss these issues and agree on what work will be required to obtain a Certificate of Occupancy. The purpose of this Property Condition Assessment was to identify general items of concern to the client. Information gathered during this limited visual inspection and presented in this report may not address every problem that may exist with the property. CPM Real Estate Inspections, Inc. makes no warranty that all problems have been addressed. If there are any questions concerning this report please contact Craig Milliken, at (561) 866 9956 in Boca Raton, Florida. Thank you for choosing CPM Real Estate Inspections. Craig Milliken, PE CPM Real Estate Inspections, Inc. 5

Photo # 1 Overall the roofs appear to be in a water tight condition. There may be some warranty left on the roofing work. Photo # 2 There are a number of cracked tiles throughout the roofs needing repair. Lightening or foot traffic is usually the cause of cracked tiles. Photo # 3 One of several small plants that have taken root in the roofing tiles. 6

Photo # 4 Small water pond on NW corner of the flat section of the roof over the main house. This is a critical area because of the penetration for the fireplace chimney. This could be a potential problem if not reworked to get adequate slope away from the chimney. Photo # 5 Construction debris left on the roof need to be cleared. Photo # 6 Missing section of roof leader needs to be replaced. 7

Photo # 7 Staining on walls from roof run-off not being managed by the gutter system. This staining will be a chronic problem if not corrected. Photo # 8 The attic areas are insulated with a foam application to the interior side of the roof sheathing. Photo # 9 A few exterior doors have not yet been installed but most are complete. All openings were found to have been water tight for the last 2 ½ years. 8

Photo # 10 The stone facing has not yet been installed on the guest/boat house. The dock is only temporary construction and will need to be removed. It is not safe to walk on it. Photo # 11 Many architectural reliefs have cracks in them. There appears to be a paint primer over these materials. It may take some caulking and additional primer to hide these cracks. This copper roof leader is connected to a drain pipe that carries water away from the structure. Photo # 12 Most of the interior walls, floors, ceilings and millwork have been substantially completed. 9

Photo # 13 Millwork and a railing for the 2 nd floor of the library need to be completed. Photo # 14 There were no indications of settling cracks, displacement or water stains in any of the ceilings, walls or floors. Everything appears to be structurally sound. Photo # 15 All three structures are cooled by chilled water from this chiller behind the carriage house. 10

Photo # 16 Fan coil units utilize the chilled water to cool the air. All of the units appear to be in new condition and clear of mold and dirt. They were only briefly operated during the past 2 ½ years. Photo # 17 This is the typical new like condition of the coils inside the fan coil units throughout the three structures. Photo # 18 The electrical system appears to be professionally installed and in good condition. 11

Photo # 19 The home has an emergency generator. This may not be sized to handle all loads. Check with the builder on which systems will be supported during loss of power. Photo # 20 The electrical work stopped during the final stages. It is uncertain what remaining scope of work needs to be done. Photo # 21 The elevator and equipment appears to have been nearly completed. 12

Photo # 22 There is a well on site for potable water. This filtration system is behind the carriage house. It will need regular professional maintenance. Photo # 23 The plumbing fixtures have not yet been completed. Photo # 24 Hot water heaters are installed in all three buildings. 13