Escrow (Part 2) FAQs

Escrow FAQs

Edited and Reprinted from Fidelity National Title Insurance

What is an escrow?

An escrow is created when money and/or documents are deposited by two or more parties with a third neutral party, which are to be delivered upon the completion of certain conditions. The third neutral party is known as the escrow agent or escrow holder.

The authority given to an escrow holder is strictly limited by instructions provided by the parties involved. Consequently, an escrow holder acts on mutual instructions deposited into escrow and DOES NOT represent any party. The escrow officer is authorized by instructions to allocate the funds for items during the escrow period, such as real estate commissions, title insurance, liens, recording fees, and other closing costs. Instructions also specify the method of collecting funds, proration issues, time limitations and all the terms of the transaction. The escrow process protects all parties involved by retaining money and documents until the mutual instructions are met.

The statutory definition of escrow is found in Section 17003 of the California Financial Code and reads as follows: "Escrow" means any transaction wherein on person, for the purpose of effecting the sale, transfer, encumbering, or leasing of real or personal property to another person, delivers any written instrument, money, evidence of title to real or personal property, or other thing of value to a third person to be held by such third person until the happening of a specified event of the performance of a prescribed condition, when it is then to be delivered by such third person to a grantee, grantor, promisee, promisor, obligee, obligor, bailee, bailor, or any agent or employee of any of the latter.

How do I open an escrow?

Opening an Escrow - A Checklist for Success
The company at which your escrow is opened can be negotiated in your purchase agreement. As soon as you execute the purchase agreement, the buyer's or their agent will place the buyer's initial deposit into an escrow account at Fidelity National Title. The following checklist covers some of the information needed to open escrow.

- 1. A copy of the Seller's existing title policy, if possible. If the policy is not available, provide the Escrow Officer with the following: a. Legal description and/or address of the property b. Assessor's Parcel Number (APN) c. Name of party in ownership d. Name of existing lienholders and type of loan

- 2. Direct which liens are to remain and which are to be paid in full. Provide the name, address and loan number(s) of existing lienholders. Request a 30-day notice letter if an FHA loan is being paid off.

- 3. Full names, addresses (including zip codes) and phone numbers of parties involved. This includes buyers, sellers, real estate agents and any new lenders with the name of the loan officer.

- 4. Vesting - How buyers desire to take title. Include the correct spelling of each buyer's name.

- 5. Consider the issue of required owner occupancy for residential property.

- 6. What will the amount of the Buyer's deposit be? Direct whether funds are to be deposited into escrow or held in the broker's trust account.

- 7. Include information on the amounts of commission and breakdown of payments.

- 8. Inform the Escrow Officer of the type of property (Single Family, land with mobile home, etc.)

- 9. If a termite report is required, provide information as to who is paying the fee. If corrective work is required, promptly order and deposit into escrow.

- 10. If there are rents to prorate, leases to assign and/or a Bill of Sale to be drawn, secure and deposit into escrow a rental schedule showing amounts of rents, date rents are paid and the amount of security/cleaning deposits to be credited to buyer. An inventory of personal property for the Bill of Sale and copies of all leases to be assigned should also be provided to escrow.

- 11. Inform the Escrow Officer of all items to be prorated and the proration date.

- 12. If there is a Homeowner's Association, provide us with the name and address of the management company.

- 13. Provide us with the hazard insurance agent's name and phone number. Promptly order and deposit into escrow.

- 14. If a loan is remaining that has an existing trust fund for taxes and insurance, direct how said account is to be handled.

- 15. Submit all terms of notes and security documents to be typed by escrow officer.

- 16. Direct who is to receive copies of the preliminary title report and the number of copies to be sent. Provide information as to whether copies of the tract restrictions or CC&R's are required.

- 17. Discuss all closing costs and who will be responsible for each.

- 18. Communicate all contingencies and conditions required prior to closing.

- 19. If the Seller is a non-resident of California, contact your escrow office immediately as additional disclosures may be required.

- 20. If Seller or Buyer is a corporation, submit the Articles of Incorporation, bylaws, and a corporate resolution authorizing the sale or purchase of the subject property.

- 21. If the Seller or Buyer is a partnership, submit a copy of the partnership agreement and a copy of the recorded statement/certificate of partnership.

- 22. If the Seller or Buyer is a trust entity, submit a copy of the trust agreement and a signed verification of trustee.

If a power of attorney is to be used, provide escrow and the lender with the power of attorney form for review and approval.


What is title insurance? What Does The Title Company Do?

Preliminary Title Report (PTR): The Title Company issues a Preliminary Title Report (PTR). The PTR is a report showing the condition of the title before a sale or loan transaction. After the completion of the transaction the title policy is issued.

Title Insurance Policy: Title insurance is insurance against loss resulting from defects of title to a specifically described parcel of real property. Defects may run to the fee (chain of title) or to encumbrances on the property.

Drafts a Deed of Trust: The Deed of Trust is drafted by the title company along with any other necessary documents. A Deed of Trust is a document filed with the county showing a property is transferred to trustee by the borrower (trustor) in favor of the lender (beneficiary) and reconveyed upon payment in full.

Pay Off Existing Loans: The title company pays off the existing loans when so ordered.

Taxes and Insurance: The title company prorates the taxes and insurance upon instructions
from the buyer and the seller.

Computes Interest On Loans: The Title Company computes the loan interest.

Acquires Hazard Insurance: The Title company secures or verifies hazard insurance.

Signing of Documents: Escrow and title will assists the buyer and seller when signing documents.

Recording Documents: The title company records the appropriate documents with the county office, giving public notice.

Disbursements: The title company disburses the documents and money to each party involved.


What do I need to do before closing escrow?

Close of Escrow (COE)
Below is a list of items that you will need before your appointment to sign the escrow papers:

- 1. Identification: There are several acceptable forms of identification, which may be used during the escrow process. These include: A current driver's license, passport, State of California Department of Motor Vehicles ID Card or Military ID.One of these forms of identification must be presented at the signing of escrow in order for the signature to be notarized.

- 2. At The Signing: Sellers will also be asked how proceeds are to be disbursed. On rare occasions, funds are insufficient to close escrow and you, as the seller must deposit money into the escrow. Should this situation occur, you will need to obtain a cashier's check or certified check issued by a California financial institution made payable to Fidelity National Title in the amount indicated to you by your escrow officer. A personal check may delay the closing since Fidelity National Title is required by law to have "good funds" (check clearance) before disbursing funds from escrow. Similarly, an out-of-state check could cause a delay in closing, due to delays in clearing the check.

- 3. Closing the Escrow: Closing escrow is a legal transfer of title to the property from the seller to the buyer and is the culmination of the transaction.Once all the conditions of the escrow have been satisfied, the escrow officer advises you of the date the escrow will close and takes care of technical and financial details. Usually the Grant Deed and Deed of Trust are recorded within one working day of the escrow's receipt of loan funds.

This completes the transaction and signifies the "close of escrow". Once all of the terms and conditions of escrow of both buyer and seller have been fulfilled, and all closing conditions satisfied, the escrow officer will return the instructions and documents to the lender for a final review. Following the review, which usually occurs in a day or two, the lender is ready to fund the loan and advises the officer, so that the necessary work can be completed to record the documents and "close" the escrow.

After the Close of Escrow: After the loan has been finalized, the documents signed and recorded, and the financial settlement completed, there are still several steps, which must be accomplished to complete the transaction. Your existing loan is being paid in full from the escrow. Your lender is required by law to issue a full reconveyance (release) of their loan. As soon as the deed of reconveyance removing the previous Deed of Trust is received, it should be recorded and the original returned to you. This may take several weeks.

Who Is Expected To Pay Which Closing Costs? (Typical Allocation in Most Counties)

The SELLER Can Generally Be Expected To Pay For:
Title insurance premium covering loan policy (Buyer)
Escrow Fees (1/2)
Real Estate Commission
Document preparation fee for deed
Document recording charges that effect the seller
County Transfer Tax ($1.10 per $1,000 of sales price) This varies with county & city
Any loan fees required by buyer's lender (as per contract)
Notary fees - Sellers Documents
Any city transfer/conveyance tax
Special delivery/courier fees
Payoff of all loans in sellers name
Interest accrued to old lender, Statement fees, Reconveyance fees and any prepayment penalties
Homeowners' association transfer fee and prorata dues (Negotiable)
Bonds or assessments according to contract
Termite inspection according to contract
Termite work or repairs according to the contract
Home warranty according to the contract
All delinquent taxes
Any judgment, tax liens, etc against the seller
Recording charges to clear all documents of record against seller

The BUYER Can Generally Be Expected To Pay For:
Title insurance premium covering loan policy (ALTA)
Escrow Fees (1/2)
Notary Fees - Buyers Documents
Document preparation fees - Buyer documents
Termite Inspection according to contract
Inspection fees (roofing, geological, property, etc.)
Special delivery / courier fees
All new loan charges (except those requires by lender for seller to pay) (as per contract)
Interest on new loan from date of funding to 30 days prior to first payment
Home warranty according to the contract
Fire insurance premium for first year
City transfer/conveyance tax according to the contract
Preliminary change of ownership fee
Assumption / change of records fees for takeover of existing loan
Beneficiary statement fee for assumption of existing loan
Other prorations if applicable

The above items are negotiable between the buyer and seller, as agreed upon in your individual sales contract. This is for informational purposes only and reflects typical charges.


What about property taxes?

Experience had shown that many tax delinquencies occur during the first year of property ownership. As a new property owner, you should be aware of the manner in which real property taxes are currently billed and paid.

It is your responsibility to obtain and pay the real property tax bill. Failure to receive a tax bill does not relieve the imposition of penalties after the delinquencies date. The Tax Collector has no discretion regarding penalties.

County taxes are levied on both real and personal property and become a lien, annually, on the first day in January preceding the fiscal year for which such taxes are levied. The Fiscal year begins on July 1 and ends on June 30 of the following calendar year.

Property taxes are due and payable in two installments, although the property owner may pay both installments prior to December 10 without penalty.

- The first installment is due November 1 and delinquent at 5:00 pm and December 10.
- The second installment is due February 1 and delinquent at 5:00 pm on April 10.
- If the 10th Day of December or April falls on Saturday, Sunday or Holiday, the time of delinquency is 5:00 pm n the next regular business day.

Penalties of 10% immediately begin accruing if payment is not made when due.

If your deed records after January 1st, the tax bill may be mailed to the prior owner. It is your responsibility to contact the Tax Collector's office if you fail to receive the tax bill in November of each year. If you have made alternate arrangements for the taxes to be paid on your behalf by a lender or agent, you may want to confirm that they are in receipt of the current tax bill to avoid penalties.

In addition, the within described property may be subject to supplemental real property taxes due to the change of ownership taking place through this escrow. Any supplemental real property taxes arising as a result of the transfer of the property to you shall be your sole responsibility. The due dates and delinquency dates may differ.

You are encouraged to contact the Tax Collector if you have any questions or if you wish to confirm your correct address on record to avoid penalties



1Listing is a California fixed fee listing service for California sellers. Visit us at www.1Listing.com or call (707) 693-0100.

Escrow FAQs

Escrow FAQs

Edited and reprinted from Woodbridge Escrow

Escrow...what is it?
Very simply defined, an escrow is a deposit of funds, a deed or other instrument by one party for the delivery to another party upon completion of a particular condition or event. The California Escrow Law-Section 17003 of the Financial Code-provides the legal definition.

Whether you are the buyer, seller, lender or borrower, you want the assurance that no funds or property will change hands until ALL of the instructions in the transaction have been followed. The escrow holder has the obligation to safeguard the funds and/or documents while they are in the possession of the escrow holder, and to disburse funds and/or convey title only when all provisions of the escrow have been complied with.

The principals to the escrow - buyer, seller, lender, borrower - cause escrow instructions, in writing, to be created, signed and delivered to the escrow officer. If a broker is involved, the broker will normally provide the escrow officer with the information necessary for the preparation of your escrow instructions and documents.

The escrow officer will process the escrow, in accordance with the escrow instructions, and when all conditions required in the escrow can be met or achieved, the escrow will be "closed". Each escrow, although following a similar pattern, will be different in some respects, as it deals with YOUR property and the transaction at hand.

The duties of an escrow holder include: following the instruction given by the principals and parties to the transaction in a timely manner, handling the funds and/or documents in accordance with instructions; paying all bills as authorized; responding to authorized requests from the principals; closing the escrow only when all terms and conditions have been met; and disbursing the funds in accordance with instructions and providing an accounting for same - the Closing and Settlement Statement.

Who Chooses the Escrow?
The selection of the escrow holder is normally done by agreement between the principals. If a real estate broker is involved in the transaction, the broker may recommend an escrow holder. However, it is the right of the principals to use an escrow holder who is competent and who is experienced in handling the type of escrow at hand. There are laws that prohibit the payment of referral fees; this affords the consumer the best possible escrow services without any compromise caused by a person receiving a referral fee.

What Do I Have To Do While In Escrow?
The key to any transaction as important as your sale, purchase or loan, is to READ and understand your escrow instructions. If you do not understand them, you should ask your escrow officer to explain the instructions. Then sign and return immediately to your escrow officer.

Your escrow officer is not an attorney and cannot practice law; you should consult your lawyer for legal advice. Do not expect your escrow officer to advise you as to whether or not you have a "good deal" or are doing things the right way. The escrow officer is there to follow the instructions given by the principals in the escrow.

In order to expedite the closing of the escrow, you should check with your escrow officer as to what specific items you could do to assist. Ask the question - "What can I do to expedite the closing of this escrow?

Respond quickly to correspondence. This will assist in the timely closing of the transaction.

If you are required to deliver funds into the escrow, make sure that you provide "good" funds in the form required by the escrow officer. Company procedures differ in this regard, and there are ways that you can help at the time of closing; check with your escrow officer. Do not give the escrow officer a personal check and expect the escrow to close immediately; the escrow can only close on cleared funds, and the processing of a personal check can take days, possibly even a week or more.

When the escrow officer closes the escrow, some of you may want the closing papers, checks, title policies, statement, etc. made available immediately. There are many aspects to the closing of the escrow, and some of these cannot be processed on the day of the closing; they may take several days. If you have a special need, you should communicate that need to the escrow officer early in the processing of the escrow.

Escrow And Your New Loan
If you are obtaining a new loan, your escrow officer will be in touch with the lender who will need copies of the escrow instructions, the preliminary title report and any other documents escrow could supply. In the processing and the closing of the escrow, the escrow holder is obligated to comply with the lender’s instructions.

It has become a practice of lenders to forward their loan documents to escrow for signing. You should be aware that these papers are lender’s documents and CANNOT be explained or interpreted by the escrow officer. You have the option of requesting a representative from the lender’s office to be present for explanation, or arrange to meet with your lender to sign the documents in their office.

What is a closing statement?
A closing statement is an accounting, in writing, prepared at the close of escrow which sets forth the charges and credits of your account. The items shown on the statement will reflect the purchase price, the funds deposited or credited to your account, payoffs on existing encumbrances and/or liens, the costs for all services and a determination of the funds you are entitled to at the close of the escrow.
When going through your closing papers, examine all of them; there may be a refund check in there. Cash the check immediately. Be sure to have the check properly endorsed. All payees must endorse the check. This will eliminate the check being returned unpaid due to irregular or missing endorsements.

Your Closing Statement And All Other Escrow Papers Should Be Kept Virtually Forever For Income Tax Purposes. Your accountant will need the information about the sale or purchase of the property. IRS and other agencies may require you to prove your costs and/or profit on the sale of any property. The closing statement will assist in this task.

Do not rely on your escrow holder retaining the escrow file so that you can"...always call and get copies of the Closing Statement", most escrow holders will be destroying the files after the statutory retention period, usually 3 years. Maintaining and storing the closed escrow files is a costly endeavor to the escrow holder. Therefore, a nominal fee may be charged by your escrow holder for the retrieval of a file from storage, photocopying the requested documents and returning the file to storage.

What Fees And Costs Will Be Charged?
Escrow fees are not regulated by the State. Escrow holders, like any other business, will charge fees that are commensurate with the costs of producing the service, the liability undertaken, and the overhead expenses which include a profit factor. Therefore, the fees will vary between companies and from county to county. Normally, the escrow holder will follow its minimum fee schedule, which will provide for extra charges based upon the differing elements of your escrow. On occasions, an additional fee will be charged for unusual expenditure of time on a given transaction.

The escrow holder has no control over the costs of other services that are obtained, such as the title insurance policy, the lender’s charges, insurance, recording charges, etc. Your escrow officer, upon request, can provide you with an estimate of the escrow fees and costs as well as fees charged by others, provided such information is available.

What About Escrow Cancellation?
No escrow is opened with the intention that it will cancel, but there are occasions when a contingency cannot be met or when the parties disagree during the pendency of the escrow. Some escrow holders provide for such an event by incorporating an instruction in the typed or printed General Provisions.

Ordinarily, an escrow holder will take the position that no funds on deposit can be refunded until the escrow holder is in receipt of mutual cancellation instructions signed by the principals. The escrow holder cannot normally make a determination as to who is the "rightful" party in a dispute on a cancellation and therefore will not return the funds or documents until the principals agree; the escrow holder is not a judge.

A cancellation fee is typically charged, as this is a charge for professional services rendered and quite often for several "out of pocket" expenses that have been incurred on the client’s behalf. These fees can vary from company to company depending upon their policies.

Sometimes, when a dispute exists, the escrow holder may be forced to allow a court to decide which party is entitled to what documents or funds; this is called an Interpleader Action. Fortunately most disputes are resolved before the Interpleader is filed, as the costs for such legal actions are extreme. Those costs, incidentally, are normally paid out of the funds on deposit in the escrow.

What About Title Insurance?
Title insurance is usually obtained when real property is purchased. The policy of title insurance insures the owner and/or the lender of ownership of the property. There are various coverages afforded, but a basic policy insures that the buyer is the owner and that any lender shown on the policy is an "insured" lender. Many different types of extended coverages are available’ for example, an ALTA policy is quite often required by institutional lenders to afford them additional protection under the title insurance policy. The title policy is written after an extensive examination of the public records is made and the recording of the required documents as called for in the escrow.

The title insurance policy fee is a one-time fee, paid at the close of escrow. The determination of who pays for the policy is not uniform from county to county in California. In some counties, the buyer will pay while in others the seller will pay. In other counties the seller will pay for the owner’s policy and in almost every case, the question of who pays closing costs is a matter of agreement between the parties. Usually this agreement is based on the customary practice in your county or area. In the case of some FHA or VA transactions, the escrow officer must follow the guidelines as required by the lender and/or government.

What About Property Taxes?
The terms of your transaction and the resultant escrow instructions determine how the property taxes will be handled. If there is no mention of the proration of taxes, your escrow officer will not deal with any credits or charges for prorated taxes. However, if your escrow calls for a proration of taxes, there will be an item in your closing statement that will reflect either a credit or charge to your account. If the taxes are not paid (even though there has been a credit or charge against your account), the buyer is obligated to obtain a tax bill and pay the taxes. If the buyer does not have a tax bill with which to pay the taxes, you can request a bill from the Tax Collector; send a photocopy of the deed.

Supplemental Property Taxes is another concern of the buyer. Upon transfer of real property, a supplemental tax bill is generated. This is accomplished in cooperation with the County Assessor and the County Tax Collector.

Shortly after the close of an escrow involving the conveyance of real property, the County Assessor will request information about the property from the buyer. This information assists the Assessor in determining the value of the property for taxation purposes. Some of the information may have previously been supplied by the escrow holder at the time of the closing of the escrow, via a Preliminary Change of Ownership form that should accompany each deed when it is recorded.

Problems With Escrow: Which Government Agency Should Be Contacted
If you have been unable to resolve problems with your escrow company, there are five different regulatory agencies governing the escrow operations in California; Superintendent of Banks; Department of Corporations; Department of Insurance; the Department of Real Estate; and Department of Savings and Loan.

The government agency you contact depends on how the escrow company is licensed:
(1 ) An escrow officer employed by a bank, whose supervising agency is the Department of Banking.
( 2 ) An escrow officer employed by an independent escrow company, whose supervising agency is the Department of Corporations.
( 3) An escrow officer employed by a title company or title insurance company, whose supervising agency is the Department of Insurance.
(4 ) An escrow officer employed by a real estate broker, whose supervising agency is the Department of Real Estate.
( 5) An escrow officer employed by a Savings Bank or Savings and Loan Association, whose supervising agency is the Department of Savings and Loan.


1Listing is a California fixed fee listing service for California sellers. Visit us at www.1Listing.com or call (707) 693-0100.

Home Inspection (Part 3) FAQs

Home Inspection (Part 3) FAQs

Edited and reprinted from the California Real Estate Inspection Association (CREIA)

CREIA's Mission Statement
To represent the Real Estate Inspection Industry
To recognize and promote Real Estate Inspection as a unique, professional discipline
To provide leadership through education and by maintaining ethical and technical standards
To enhance consumer protection and promote public awareness of the Association

What Is An Inspection?
An inspection is a visual examination of the structure and systems of a building. If you are thinking of buying a home, condominium, mobile home, or commercial building, you should have it thoroughly inspected before the final purchase by an experienced and impartial professional inspector.

What Does An Inspection Include?
A complete inspection includes a visual examination of the building from top to bottom. The inspector evaluates and reports the condition of the structure, roof, foundation, drainage, plumbing, heating system, central air-conditioning system, visible insulation, walls, windows, and doors. Only those items that are visible and accessible by normal means are included in the report.

When Do I Request An Inspector?
The best time to consult the inspector is right after you’ve made an offer on your new building. The real estate contract usually allows for a grace period to inspect the building. Ask your professional agent to include this inspection clause in the contract, making your purchase obligation contingent upon the findings of a professional inspection.

Can A Building “Fail” The Inspection?
No. A professional inspection is simply an examination into the current condition of your prospective real estate purchase. It is not an appraisal or a Municipal Code inspection. An inspector, therefore, will not pass or fail a building, but will simply describe its condition and indicate which items will be in need of minor or major repairs or replacement.

What If The Report Reveals Problems?
If the inspector finds problems in a building, it does not necessarily mean you shouldn’t buy it, only that you will know in advance what type of repairs to anticipate. A seller may be willing to make repairs because of significant problems discovered by the inspector. If your budget is tight, or if you do not wish to become involved in future repair work, you may decide that this is not the property for you. The choice is yours.

If The Report Is Favorable, Did I Really Need An Inspection?
Yes. Now you can complete your purchase with peace of mind about the condition of the property and its equipment and systems. You may have learned a few things about your property from the inspection report, and will want to keep that information for your future reference. Above all, you can rest assured that you are making a well-informed purchase decision and that you will be able to enjoy or occupy your new home or building the way you want.

Why Do I Need An Inspection?
The purchase of a home or commercial building is one of the largest single investments you will ever make. You should know exactly what to expect --- both indoors and out -- in terms of needed and future repairs and maintenance. A fresh coat of paint could be hiding serious structural problems. Stains on the ceiling may indicate a chronic roof leakage problem or may be simply the result of a single incident. The inspector interprets these and other clues, then presents a professional opinion as to the condition of the property so you can avoid unpleasant surprises afterward. Of course, an inspection will also point out the positive aspects of a building, as well as the type of maintenance needed to keep it in good shape. After the inspection, you will have a much clearer understanding of the property you are about to purchase, and be able to make your decision confidently.
As a seller, if you have owned your building for a period of time, an inspection can identify potential problems in the sale of your building and can recommend preventive measures which might avoid future expensive repairs.

Can I Inspect The Building Myself?
Even the most experienced building or home owner lacks the knowledge and expertise of a professional inspector who has inspected hundreds, and perhaps thousands of homes and buildings in their career. An inspector is equally familiar with the critical elements of construction and with the proper installation, maintenance and inter-relationships of these elements. Above all, most buyers find it difficult to remain completely objective and unemotional about the building they really want, and this may lead to a poor assessment.

What Will The Inspection Cost?
The inspection fee for a typical single-family house or commercial building varies geographically, as does the cost of housing, similarly, within a geographic area the inspection fees charged by different inspection services may vary depending upon the size of the building, particular features of the building, age, type of structure, etc. However, the cost should not be a factor in the decision whether or not to have a physical inspection. You might save many times the cost of the inspection if you are able to have the seller perform repairs based on significant problems revealed by the inspector. Consult your professional agent for guidance.

Should I Attend The Inspection?
It is not necessary for you to be present for the inspection, but it is a good idea. By following the inspector through the inspection, observing and asking questions, you will learn about the new building and get some tips on general maintenance. Information that will be of great help to you after you’ve moved in.

How Do I Find A “Qualified” Inspector?
To find a CREIA Inspector in your area call the toll free referral service at 800-388-8443. Personal contacts, either from prior inspections or from a friend, relative, or business acquaintance who has had a recent inspection is an excellent method. Another alternative is to ask your real estate agent/broker who he or she would recommend. Most inspection services promote their business with brochures through the real estate offices. Many claim that their reports meet or follow CREIA Standards of Practice. Do not be fooled; look for the CREIA emblem on these brochures. Only inspectors who meet CREIA’s rigorous professional and educational requirements may qualify as members.

What Is CREIA?
The California Real Estate Inspection Association, (CREIA), was established in 1976 in California as a non-profit voluntary professional association. CREIA has grown to over 500 members and candidates today. CREIA’s Standards of Practice and professional Code of Ethics provides the consumer with the assurance of quality and professionalism. Members of CREIA are either owners or employees of professional building inspection companies. Today CREIA has members throughout the state and is recognized in California as the leading authority in the building inspection industry.

CREIA has established a high Standards of Practice for the inspection profession that is used throughout the state to ensure the buyer who retains a CREIA member of a complete and detailed inspection and report.
All members must abide by these standards and code of ethics. CREIA offers its members and candidates continuing education in the latest building technology, training, and materials to ensure the most professional inspection for the consumer. CREIA acts as a public information service to real estate buyers and provides technical support and training to realty agents, state agencies and other related professions.
Many CREIA members have engineering, architectural, or technical backgrounds. most members have had experience in various construction fields and are or have been building contractors. Visit the CREIA website to find a CREIA Inspector in your area.

What Is A Master CREIA Inspector (MCI)?
The MASTER CREIA INSPECTOR (MCI) designation is the highest rating that can be obtained through CREIA. This designation is only given to those inspectors that have obtained many hours of additional training and have been tested for knowledge above the already high standards set for the members of CREIA. Each report prepared by a MCI will bear the MCI seal representing the best quality inspection for your investment.

What Is A CREIA New Construction Specialist (CNCS)?
A professional new construction inspection specialist is only looking out for your best interest. Many homebuyers are now taking advantage of CREIA inspectors who specialize in new construction stage inspections. CREIA has established a specialty classification for professional inspectors who have received additional education and testing related to new construction inspections. These Inspectors are identified as CREIA New Construction Specialist (CNCS)

Your New House Needs a Professional Inspection
The California Real Estate Inspection Association (CREIA) encourages homebuyers entering into a contract for the building of their new house —whether it is custom or tract built — to retain the services of a professional home inspector during the construction of their new home. Homebuyers building their new dream house have many important decisions and considerations. They need to know that someone is looking out for them with independent, unbiased professional eyes.

What Is A New Home Construction Inspection?
A new home construction inspection (or “in-progress” inspection) is an independent, third party inspection to ensure that the work completed is in compliance with plans, specifications, and the construction schedule. Once a home is built, many conditions that could have been observed during construction are now covered and are no longer visible for inspection. Often a poorly installed/constructed condition that could have been visually reviewed during a construction progress inspection becomes covered or concealed later in the building process cause a potential financial burden for the property owner for future corrective action. For these reasons, it is important that a home be inspected during construction by the buyer’s representative whenever possible so that any reportable defects can be corrected before completion and transfer of title.

It is not good business to forego a home inspection on a newly constructed house, regardless of how conscientious and reputable your home builder. No home, regardless of how well it is constructed, is totally free of defects. The construction of a house involves thousands of details, performed at the hands of scores of individuals. No general contractor can possibly oversee every one of these elements, and the very nature of human fallibility dictates that some mistakes and oversights will occur, even when the most talented and best-intentioned tradespeople are involved. It is also an unfortunate aspect of modern times that some builders/developers do not stand behind their workmanship and may not return to fix or replace defective components installed after the sale is complete.

Often the builder/developer will state the home has been built to “code” and that it was inspected at different stages and signed off by the local jurisdiction. However, building codes are frequently “minimum in nature” — that is, the primary intent of building regulations (codes) is to provide reasonable controls for the construction, use and occupancy of buildings. The builder is responsible to meet minimal standards at best — you may want higher standards applied to your dream house. Also, it is an unfortunate fact of the hectic pace of construction, that local building department inspectors are often overbooked with inspections, which results in their spending a minimal amount of time at the construction job site and important details may be overlooked. Finally, jurisdictional inspectors are not concerned with workmanship as long as all the systems and components in a new home meet minimum code requirements.

A professional in-progress inspection is a great value to a new construction homebuyer because the home inspector will spendwhatever time it takes to evaluate every readily accessible parts of the home they can safely reach and then prepare an inspection report containing their findings. This, in turn, will provide a “fix-it” list that can be brought to the attention of the builder/developer. Additionally the homebuyer has peace of mind in knowing they took the extra step in protecting their investment by helping ensure they are made aware of any overlooked defects.

A new construction progress inspection by a qualified professional allows the inspector to become the “eyes of the homebuyer” through a series of inspections that occur during different stages of the construction of their new home. Typically, these inspections are performed at the following stages:
- Foundation form work before concrete placement
- After installation of support posts, beams and floor joists
- After installation of all rough framing, rough electrical wiring, heating/cooling duct work and the building's sanitary pipe drainage and potable water supply systems
- Exterior siding(s) including roof coverings
- Final "walk-through" inspection checking all visually accessible systems and components such as: heating/cooling, electrical and plumbing systems including safety items such as; smoke detectors, stairs, handrails and guard railings, compliance with emergency-egress requirements, and proper installation of safety/tempered glazing within hazardous areas.

It is important to let your builder know up front that you intend to have the work inspected by an independent third party construction expert. This will help set a tone with the builder and let them know that you expect things to be done properly. Ideally, you will want to start communication with your inspector as soon as you sign a contract with your builder. It is recommended that have a professional inspection of the foundation prior to the pour. A follow up inspection should be conducted after the foundation has set up.

Other Inspection Related Services
In addition to performing building inspections, many CREIA inspectors help with analysis and solutions to specific problems, such as foundations, energy conservation, and roofing problems. CREIA inspectors are also frequently called upon to review restoration and home improvement plans as well as maintenance specifications, contracts and progress inspections for new construction to help ensure proper completion of contracted work. If you find that you are involved in a dispute regarding construction work performed on your building, a CREIA member can provide expert advice. Also, many CREIA members inspect commercial and investment properties, multiple unit dwellings, condominiums, townhomes, mobile homes and perform reserve studies as well.

Easing The Transaction For A Home Seller
Home sellers are being urged to utilize home inspections prior to listing their homes. Professional inspections can discover unknown conditions allowing sellers an opportunity to perform desired repairs before placing the property on the market. A professional “listing inspection” is just good business, it may facilitate a smoother transaction by putting potential buyers at ease, reducing negotiating points, and bypassing annoying delays.

Home Seller Disclosure Obligations
California case law states that it is the duty of a seller to disclose relevant facts concerning the property for sale through a TDS form. (Transfer Document Statement) This basically means a seller of one to four residential units has a legal obligation to disclose all of the conditions of the property know to them to perspective buyers, which is often accomplished through use of a “Transfer Disclosure Statement.” While the listing inspection report cannot be used as a substitute for that disclosure, it does allow the seller to provide prospective buyers with additional information, based on an unbiased, third party, professional inspection.

Do I Have to Repair Everything Wrong With The House?
A listing inspection report is not intended to be a “do” or repair list for the home. Sellers are not obligated to repair conditions noted in the report, nor are they required to produce a flawless house. With a pre-listing home inspection, potential repair items already known by both parties are subject to any negotiations. A home seller can make repairs as a matter of choice, not obligation; to foster good will or to facilitate the sale. Sellers maintain the legal right to refuse repair demands, except where requirements are set forth by state law, local ordinance, or the real estate purchase contract.

What Is An Listing Inspection?
An inspection consists of a non-invasive physical examination of a home’s systems, structures and components intended to identify material defects that exist at the time of inspection. The heating and cooling equipment is activated along with operating plumbing fixtures, testing accessible electrical outlets and fixtures, and operating a representative sampling of doors and windows. Visual inspection of the roof, walls and drainage adjacent to the home are included. Because of the wide range of construction practices and the “normal” wear and tear placed on the components of home, a professional home inspection can help provide a wealth of information to a home seller anxious to convey the condition of their home to perspective buyers.
Do I Really Need A Listing Home Inspection?
As a seller, if you have owned your property for a period of time, an inspection can help identify potential problems and recommend preventive measures, which might avoid future expensive repairs. There is no such thing as a home that is too new or too well built to benefit from a professional inspection. Anyone advising against an inspection is doing a disservice to the homebuyer. Many problems frequently encountered after the buyer moves in, are a routine discovery for a qualified home inspection.

Is There Anything I Can Do Better To Maintain My Home?
Inspection reports often identify the same neglected maintenance items. Performing some basic maintenance can help keep your home in better condition, thus reduce the chance of those conditions showing up on the inspection report. To present a better maintained home to perspective buyers follow these tips from the California Real Estate Inspection Association. Most of these items can be accomplished with little or no cost, while the benefits of selling a well maintained home can be worth the effort.
- Clean both rain gutters and any roof debris and trim back excessive foliage from the exterior siding.
- Divert all water away from the house (for example, rain-gutter downspouts, sump pump discharge locations, and clean out garage and basement interiors.
- Clean or replace all furnace filters.
- Remove grade or mulch from contact with siding (preferable 6-8 inches of clearance).
- Paint all weathered exterior wood and caulk around trim, chimneys, windows, doors, and all exterior wall penetrations.
- Make sure all windows and doors are in proper operating condition; replace cracked windowpanes.
- Replace burned out light bulbs.
- Make sure all of the plumbing fixtures are in spotless condition (toilets, tubs, showers, sinks) and in proper working order (repair leaks).
- Provide clear access to both attic and foundation crawl spaces, heating/cooling systems, water heater/s, electrical main and distribution panels and remove the car/s from the garage.

And finally, if the house is vacant make sure that all utilities are turned on. Should the water, gas or electric be off at the time of inspection the inspector will not turn them on. Therefore, the inspection process will be incomplete, which may possibly affect the time frame in removing sales contract contingencies.

Locating A Qualified Inspector
It is imperative that the seller secures the services of a qualified home inspector. Make sure to hire an inspector who is both trained and experienced in home inspection, maintains proper insurance, and is a member of a professional association such as the California Real Estate Inspection Association (CREIA). You can visit the CREIA website to find a CREIA Inspector in your area.

Please exercise extreme care and cautious consideration before hiring just anyone. Select your home inspector with the following criteria in mind:

Professional Affiliation:
In California, there are standards for home inspectors that have been enacted by the California Real Estate Inspection Association (CREIA) and recognized in California statutes. Membership in this professional association requires obtaining initial training, passing a rigorous membership exam, and mandatory adherence to professional standards of practice and participation in ongoing education (a minimum of 30 hours per year). When you choose a home inspector, you should specify membership in CREIA.

Inspection Experience.
Of paramount importance is an inspector's actual level of direct experience in the practice of home inspection. A general contractor's license can be an important credential, but when it comes to home inspection, a license to build indicates very little as it relates to competence as a property inspector. The experience that matters most is specific home inspection training and experience, not building experience.

Avoid Price Shopping.
Home inspection fees vary widely. A home is the most expensive commodity you are likely to purchase and or sell in a lifetime. One defect missed by your inspector could cost 100 times what you save with a bargain inspection. The best method of price shopping is to shop for quality. Considering the high cost of real estate today, an inspection fee is a small price to pay. It can save thousands of dollars and years of regret.


1Listing is a California fixed fee listing service for California sellers. Visit us at www.1Listing.com or call (707) 693-0100.

Termite Inspection (Part 4) FAQs

Termite Inspection (Part 4) FAQs

Reprinted from the California Structural Pest Control Board

UNDER WHAT CONDITIONS IS A PEST CONTROL INSPECTION REPORT REQUIRED?

Although the State of California regulates structural pest control firms, it does not require an inspection report prior to the sale of property. However, financial intuitions usually require the report to ensure that the building is structurally sound. This requirement protects their investments and provides the home buyer with an inexpensive safeguard against the cost of pest control repair and treatment. Although some homes are sold "as-is," a home buyer is advised to arrange for a pest control inspection anyway. The cost of an inspection is usually no more than $100.00 dollars, while the cost of repairing undetected pest damage may run in the thousands-of-dollars.

WHAT ARE THE RIGHTS OF THE BUYER WITH REGARD TO PEST INSPECTION REPORTS AND PEST CONTROL TREATMENT?

When a pest control company is hired, it is accountable to both the buyer and seller, regardless of who pays for the inspection. It is required to furnish the person who orders the inspection with a copy of the report within (5) five days. Under [section 1099 of the Civil Code], the seller must deliver a copy of the report to the buyer. If there is any question about the report, the buyer should contact the company which performed the work and, if necessary, arrange for another inspection.

WHAT INFORMATION MUST BE INCLUDED ON THE INSPECTION REPORT?

The Structural Pest Control Board requires that all pest control companies in the State use a standardized inspection report form. The inspection report identifies wood-destroying organisms or conditions likely to cause pest infection or infestation, and the area where the problem exists.

Recommendations are also made for corrective treatment. Normally, only the main structure of the property is inspected, but an inspection may be made of other wooden structures detached from the house at the owner's request.

A diagram on the inspection report will detail every part of the house checked for signs of infestation. The report must also state areas which have been inspected and areas considered to be inaccessible. It is important to insure exactly which areas were inspected and to make sure the inspector understands what structures you want inspected.

If you did not order the report, be sure to check if the report is a limited or complete report before accepting it. For Real Estate transfers, a complete structural pest inspection report is preferable.

Conditions considered likely to lead to pest infestations are also indicated on the inspection report. These include conditions caused by excessive moisture, earth-wood, contacts, and faulty grade levels about the foundation.

Pest control inspections are limited to those items subject to wood-destroying organisms. Inspectors operating in a strict capacity, do not include information about the condition of air conditioning, plumbing or electrical systems in their reports. But most inspectors will alert the consumer to obviously dangerous conditions which they discover during the inspection.

WHAT AREAS ARE CONSIDERED TO BE INACCESSIBLE ON THE INSPECTION REPORT?

Those areas which cannot be inspected without opening the structure or removing the objects blocking the opening are considered inaccessible. Attics without adequate crawl space, slab foundations without openings to bathroom plumbing, floors covered in carpeting, wall interiors and locked storage areas are the most common inaccessible areas.

The pest control inspector must list all inaccessible areas and the specific reasons why they are not inspected. Careful attention should be paid to these areas as there may be structural pest problems, which cannot be detected without further inspection. The report will recommend whether or not further inspection is appropriate.

DO ALL RECOMMENDATIONS LISTED ON AN INSPECTION REPORT HAVE TO BE COMPLETED PRIOR TO THE SALE OF THE HOME?

Many financial intuitions require that both the inspection and repair work be completed prior to the closing of escrow. If it is not required, the buyer should be aware of work, which has been done and work, which has yet to be completed before purchasing the home. Pest control companies are required to complete a Notice of Work Completed and Not Completed when any work is done on a structure.

IF TWO INSPECTION REPORTS ARE FILED ON THE SAME STRUCTURE WITHIN A REASONABLY CLOSE PERIOD, SHOULD THEY BE NEARLY IDENTICAL?

There are (3) three parts of an inspection report - findings. recommendations and estimates - and each may differ from company to company.

• Findings should be similar, no matter which company performs the inspection, though minor differences are not uncommon. Any major differences, like failing to spot active infestations, should be reported to both companies. If their explanations are not satisfactory, the Structural Pest Control Board should be contacted for assistance.
• Recommendations made by pest control companies can differ considerably since there are numerous ways to repair pest damage or correct conditions. The disparity may be due to differences in the inspector's professional judgment or material availability.
• Estimates to correct the problems and/or conditions identified by the inspection report may vary widely. The Structural Pest Control Board does not regulate or control prices in any way.

HOW LONG IS AN INSPECTION REPORT CONSIDERED VALID, AND ARE COMPANIES REQUIRED TO CERTIFY THEIR INSPECTION WORK?

Under the Structural Pest Control Act, all licensees are responsible for any inspection for two years from the date of such work. However, they are not responsible for conditions, which develop after the inspection. For that reason, it is advisable for the buyer to obtain an inspection report as close as possible to the close of escrow. If the seller orders the report, it is advisable to obtain it when the house is listed so that repairs may be completed before the start of escrow.

Pest control companies are required to certify their inspection work, if requested by the homeowner. They will certify one of the following:

1. The inspection disclosed no evidence of active infestation or infection by pests;
2. The inspection disclosed active infestation and that the repairs have been completed; or
3. The property is free of pest infestation, except for areas indicated on the report.

Every completion report that provides for certification should be compared with a copy of the inspection report to determine if there are any conditions, which have not been corrected.

HOW CAN A CONSUMER TELL IF A HOUSE HAS BEEN INSPECTED BEFORE OR IF ANY WORK HAS BEEN COMPLETED?

Effective October 1, 1979, every time a pest control company makes an inspection for wood-destroying pests or organisms, it must post a tag at the entrance of the attic or sub areas or in the garage. the tag contains the firm's name and the date of the inspection. A similar tag must be posted next to the inspection tag when the company completes a Notice of Work Completed or Not Completed indicating any work completed with respect to wood-destroying pests or organisms. In addition to the firm's name and the date of the completion, this tag must indicate any chemical used.

The pest control company must also note on an inspection report the location of the inspection tag as well as the presence of any other inspection tag or fumigation tag that is less than two years old.

Also, anyone who wishes to determine if there are additional inspection reports or completion notices on file or wants copies of known reports may contact the Structural Pest Control Board's Sacramento office where copies may be obtained for a $2.00 dollar search fee.

WHAT CRITERIA SHOULD A CONSUMER USE IN SELECTING THE SERVICES OF A PARTICULAR PEST CONTROL COMPANY?

The approach should be similar to buying other goods. Consult the yellow pages, shop around, compare prices and services, and get more than one estimate for an inspection. Ask friends or neighbors who have recently used structural pest control services for references.

Realtors may also recommend companies, but you are not required to accept their recommendations, and may want to select your own company. After selecting a company, you can write or telephone the Structural Pest Control Board to verify the company's license status and complaint history for the previous two years.

WHAT RECOURSE DOES A CONSUMER HAVE IF DISSATISFIED WITH THE SERVICES OF THE PEST CONTROL COMPANY?

After reading the information in this brochure, contact the company with whom you are dissatisfied and explain your problem.

If the company does not resolve the problem to your satisfaction, you can contact the Structural Pest Control Board for additional information or assistance by telephoning: Southern California: (213) 620-2428; Northern California: (916) 920-6323. Or you may send for a complaint questionnaire by writing: Structural Pest Control Complaints Structural Pest Control Board 1430 Howe Avenue Sacramento, CA, 95825

The Structural Pest Control Board will first try to mediate you complaint. If this does not result in a satisfactory solution and further investigation is warranted, the complaint may be referred to the Department of Consumer Affairs Division of investigation. However, even if an investigation results in a license suspension or revocation, the Board cannot guarantee that you will receive any restitution. You may still have to file a civil action lawsuit to get your money back.

Complements of the Structural Pest Control Board.

1Listing is a California fixed fee listing service for California sellers. Visit us at www.1Listing.com or call (707) 693-0100.

Termite Inspection (Part 3) FAQs

Termite Inspection FAQs

Edited and Reprinted from MasterCareWeb

Why do I need a termite inspection?
Before any property is sold, bought or refinanced a termite inspection is required by most banks and lending institutions. Its purpose is to ensure that there are no active termite infestations in the property.

What does the inspector for in a inspection?
Evidence that would be typical of a termite infestation: Damaged wood, termite droppings, termite kick-out holes, termite wings are just a few indications that you have termites. An inspector also looks for any other type of wood destroying organism such as dry rot and fungus.

What if no evidence of termites is found?
You will receive a written termite report stating that no visible evidences of infestation have been found in the accessible areas that were checked. Every home should be reinspected periodically, especially if neighboring homes show signs of termites.

Is an annual re-inspection contract advisable?
Yes. Every home should be inspected once a year. Generally, the cost of an annual service control program is reasonable compared to the damage termites can do to your home.

How many type of termites exist?
There are 2 common types of termites found in Southern California. homes. Drywood termites and Subterranean termites. Drywood termites like to eat “dry wood”. They are most commonly found above the soil in attics, garages and throughout the home. Subterranean termites are usually found underneath the house usually in the sub area, vent areas as well as throughout the house.

How do termites get into a house?
Sometimes they fly in from a neighboring home, from wood that is in contact with the soil around your home and from their yearly swarming season (Mar-May).

Are there other wood-destroying insects besides termites?
Yes. Besides the most common termites -- the Drywood and Subterranean -- there are wood-destroying beetles, carpenter ants and carpenter bees.

What if the inspection shows termites or other wood-destroying insects are present?
Then it will be necessary to treat the property to prevent any further damage. If left untreated the problem will continue and cause greater damage and expense.

When is a fumigation recommended?
Since Drywood termites live in the wood it is impossible to check every piece of wood in a house. If evidence of Drywood termites extend into inaccessible areas of the property, fumigation is the only recommended solution.

How long does a fumigation last?
Usually three days. The first day is used to cover the property with a tarp and to insert the Vikane gas. The 2nd day the pest control company will return to the property, remove the tarp and allow the Vikane gas to dissipate. On the 3rd day the pest control company will we return to the property and check to ensure, with special equipment, that the Vikane gas is completely removed from your home. It is at this point that the pest control company will give the house clearance and allow reentry.

Do I need to turn off the gas?
Yes. If your house requires fumigation you will need to contact your gas company as soon as your know the fumigation date. Note: the gas company may need advance notice to schedule a gas shut-off date.

What chemicals are typically used to control termites?
There are two traditional classes in use today -- organophosphates and synthetic pyrethroids. Both are effective and will protect your home when used properly. Your inspector should explain these differences to you. In addition, a new category of non-repellant termiticides has achieved a very high level of performance in eliminating termite infestation. Because of its non-repellant nature, termites move through the treated soil picking up an effective dose. Subsequent contact with the other termite colony members helps transfer the dose to other colony members and accelerate population reduction.

What is the best way to totally eliminate Drywood termites?
By fumigation. Unlike partial spot treatments, fumigation completely eliminates Drywood termites from your home.

How do subterranean termites get into a house?
Very easily. All they need is an opening 1/64 inches wide. They may enter directly from their colony in the soil to the wood of your house. They usually commute daily between the wood and their colony.

Is there any other method of treating drywood termites besides fumigation?
The most common method of treating Drywood termites aside from a fumigation is a localized treatment in areas of infestation. This method should be considered as a secondary method of control due to its inability to reach areas that are inaccessible to the inspector and the pest control technician.


1Listing is a California fixed fee listing service for California sellers. Visit us at www.1Listing.com or call (707) 693-0100.

Termite Inspection (Part 2) FAQs

Termite Inspection (Part 2) FAQs

Edited and reprinted from the Structural Pest Control Board

What should I do if I have termites in my home or if I think termites are damaging my home?
If your house has never been treated for termites by an exterminator, contact several local pest control companies and get estimates for their termite control services. These same companies can inspect your house to see exactly what types of pests are attacking your home. If you are not sure you have a termite infestation, an inspection will reveal if a visible termite infestation is/is not present. If you have termites swarming (flying around) in your house, the swarmers can be combated using a variety of over-the-counter pesticides designed for flying insects that are available to homeowners. Termites generally swarm once a year for a period or about twenty-four (24) hours. The swarmer is the reproductive form of the termite, and does not do damage to wood. It is helpful to save several of the swarmers in a plastic bag for the inspection by your local pest control operator before a termite treatment is performed.

What chemicals or techniques are commonly used for termite control, and how safe and effective are those chemicals?
Currently, several chemicals on the market are commonly used for termite control. Additionally, some companies use a technique called “ termite baiting”. The baiting technique involves the installation and monitoring of bait stations intended to attract termites. Once the termites have been detected in the stations, the bait is changed to use a bait that has been treated with a termiticide which, when carried to the colony or nest and fed to other members of the colony, will kill the individuals that receive the bait. Termiticides are registered with the Environmental Protection Agency (EPA). Termiticides are considered an acceptable means of termite control. A consumer should receive disclosure information, including a label of the termiticide that is being proposed for use and warranty information, from the pest control operator at the time of bid. A consumer trying to determine which company to employ should review the disclosure information. Termiticides alone will not guarantee elimination of a termite infestation. Inspection methods, procedures and application techniques all contribute to a successful treatment. If you have a health-related question concerning the termite measures to be used on your home, or that has already been applied to your home, you may obtain a copy of the chemical's package label from your pest control operator and take it to your family doctor for analysis.

What treatment methods are commonly used to combat termites?
Subterranean termites are treated using the methods and procedures listed on the product label. Drywood termites are commonly treated using fumigation, wood removal or borate products for spot applications. When fumigation is performed, a certified applicator for the pest company must be present at the time the gas is released into the house and when the house is released for occupancy following the fumigation and proper aeration. A technician licensed to do termite work with the advice of a certified applicator can perform a treatment for Subterranean termites without the Certified Applicator being present.
Where and how do termites live?
All termites subsist on cellulose, which termites get from wood. Termites are social insects with a highly organized caste system, much like ants or bees. Subterranean termites usually live outside the house in underground nests. Subterranean termites use moisture in the earth to survive. Since subterranean termites also need cellulose, they often tunnel into nearby homes to get it. Drywood termites, on the other hand, need no contact with the earth. Drywood termites live right inside the homes that they devour.

What is the difference between Subterranean and Drywood termites?
Subterranean termites usually return to the soil to live and reproduce, and are found throughout Texas. Drywood termites, found more commonly in coastal areas such as Houston and Corpus Christi, do not have soil contact but can live inside walls or other wooden building materials.

I had a pest control company treat my house for termites last year, but now I have termites again. What should I do?
Retreatment for subterranean termites can only be performed if there is clear evidence of reinfestation or disruption of the barrier due to construction, excavation or landscaping and/or evidence of the breakdown of the termiticide barrier in the soil. These vulnerable or reinfested areas may be retreated in accordance with application techniques described in each individual product’s labeling. The timing and type of these retreatments will vary, depending on facts such as termite pressure, soil types, soil conditions, and other factors, which may reduce the effectiveness of the barrier. Annual retreatment of the structure is prohibited unless there is clear evidence that reinfestation or barrier disruption has occurred.
Keep in mind that termite control is as much an art as it is a science. Many factors can affect the adequacy of a treatment, including the construction of the house, and re-treatments may be necessary. Termites can still be in the walls of the house six to eight weeks even after a proper termite treatment. If you have a re-infestation and are under contract with a company, contact the company so licensed individuals may identify and address the problem.

Is the pest control company required to give me termite treatment disclosure documents before performing a termite treatment on my house?
At the time a bid is submitted and prior to treating, the pest control company proposing the treatment is required to give the prospective customer termite treatment disclosure documents. The documents must include, but are not limited to, the following items: (1) A diagram of the structure or structures to be treated; (2) A label for any pesticide recommended or to be used, and the proposed concentration of the termiticide to be used; (3) The complete details of the warranty provided; (4) Definitions of the types of treatment; and (5) The signature of approval of the certified applicator or technician licensed in the termite category employed by the company making the proposal.
If the warranty does not include the entire structure treated, the areas included must be listed. The warranty information must also include the time period of the warranty, the renewal options and cost, the obligations of the pest control operator to retreat for termite infestations or repair termite damage caused by termite infestation during the warranty period, and conditions that could develop as a result of the owner's action or inaction that could void the warranty.

What should I expect from a wood destroying insect inspection?
The first thing you need to know is that any structure containing wood or cellulose material provides a natural food source for subterranean termites. Even structures that are mostly steel and concrete are vulnerable to termite attack. The following list will provide some general conditions conducive to termite infestation; (1) Earth-Wood contact; (2) Firewood stacked against foundation; (3) Wood debris in crawl space; (4) Wood mulch [within 3 ft. of foundation]; (5) Faulty grade; (6) Insufficient ventilation; or (7) Moisture.
A licensed person will conduct a careful inspection to determine the presence or absence of visible evidence of infestation from wood destroying insects. The inspection will be made in those areas which are readily accessible and where infestation is most likely to occur. No inspection is made in areas which require the breaking apart, or dismantling or removal of any objects. Therefore, it is not a warranty as to the absence of wood destroying insects. It is not a structural damage report. A wood destroying insect inspector is not ordinarily a construction or building trade expert, and therefore, is not expected to possess any special qualifications, which enable him to detect the extent of structural damage. Evidence of wood destroying insects is noted in the report.

What steps can I take to choose a pest control service that will meet my home's needs?
Contact several companies in your area to get information on the types of services they offer and what they charge. You may find a great deal of variation on contract terms, prices, and treatment options. Review the contract terms carefully and ask about anything you do not understand. Note whether the company offers coverage for damages caused by termites, what the renewal options are, and what conditions could void the warranty. Companies are required to be licensed in order to provide commercial pest control services. Ask the company to provide verification of licensure. Ask the company to provide you information concerning termite experience and training the inspector and/or applicator have received. Each person may have different levels of experience. A new company may have personnel who have years of experience in the industry. An existing company may have a high turnover rate resulting in inexperienced personnel.

How destructive are termites?
Nationwide, termites cause over a billion dollars in damage annually—more than all tornadoes, hurricanes and windstorms combined. Because they nibble away slowly from the inside, damage can be very extensive before it’s noticed. It’s not unusual for a termite to feast on a building throughout a life span of 15 years—and the queen can live and produce eggs for up to 50 years. Undetected and untreated, termites can severely damage and, in time, destroy a home.

Don’t termites attack only old, run-down buildings?
Termites have been found in buildings as early as four days after construction. Every building fabricated wholly or partly of wood is susceptible. Chemical or mechanical barriers can be established in the construction stage, however, to prevent or discourage termite infestations in new homes.

Are there different kinds of termites?
Entomologists have identified over 2000 species, 55 of which exist in the United States. But there are only two kinds, basically, that homeowners have to worry about: subterranean termites and drywood termites.

What’s the difference?
They’re basically very similar. All termites subsist on cellulose, which they get from wood. And all termites are social insects with a highly organized caste system, much like ants. But subterranean termites, as the name indicates, usually live outside the house in underground nests. They use moisture in the earth to survive. Since they also need cellulose, they often tunnel into nearby homes to get it. Drywood termites, on the other hand, need no contact with the earth. They live right inside the homes that they devour.

Where are termites found in the U.S.?
Subterranean termites inhabit the entire 48 states and Hawaii, but are most common in the southern two-thirds of the U.S. Drywood termites are not as widespread as subterranean termites. They’re mainly a problem in the South.

How can I tell if I have a termite problem? And, if so, what kind?
Subterranean termites are often detected during swarming, usually in the spring, when some fly from their nests to start new colonies. Other signs are shelter tubes primarily composed of mud on the surface of walls, joists, piers, chimneys, plumbing and other fixtures. Weak or broken structural members, blistered wood and soil in cracks can also be evidence of subterranean termites. Drywood termites sometimes give themselves away by creating surface blisters on wood and leaving wings or piles of waste that look like sawdust on windowsills and floors.
If none of these signs is present, does that mean my home is free of termites?
Not necessarily. Termites work from the inside out and are very often hard to detect. Especially drywood termites that have no link to the outside and spend their entire lives indoors—in walls, in roofs, etc. The only way you can be sure you’re not sharing your home with termites is to have it inspected by a professional pest control operator.

What does such an inspection involve?
Because a pest control operator has a trained eye and knows what to look for, his examination will be brief but thorough. He’ll identify evidence of any previous treatments or infestations, any wood-destroying organisms present and the damage they’ve caused, and any structural conditions that may make your home especially vulnerable to attack.

What will an inspection cost?
The cost of an inspection varies. However, the fee is usually small - typically about $120. You should keep in mind that even if the results of an inspection are negative--if termites aren’t present--your money wasn’t wasted. You’ve purchased peace of mind.

Suppose my home has drywood termites. How can I get rid of them?
You have three options: spot treatment, fumigation or physical removal of infested wood. But a wood-penetrating gas fumigant is the best way to get them all.


1Listing is a California fixed fee listing service for California sellers. Visit us at www.1Listing.com or call (707) 693-0100.

Home Inspection (Part 2) FAQs

Home Inspection FAQs

Reprinted from US Inspect

What does the home inspection entail?
There are four basic steps to the home inspection. First, the inspector arrives at the property, makes general introductions and both explains what is going to take place and asks about any special questions or requests. Next, while the inspection agreement is being reviewed, the inspector will make a quick circuit of the property to size up the scope of the inspection. Then, there will be an in-depth walk-through inspection with the client. This involves inspecting all visible areas and reviewing all accessible items and areas, including the heating system, central air conditioning system, interior plumbing and electrical systems, the roof, attic space and all visible insulation, the walls, ceilings, floors, doors, windows, basement or crawlspace area, and the foundation and all visible structural components. Any questions or items of special interest regarding a particular system or structural component are usually addressed at this time. Finally, a check of the entire property is made to verify that the condition of the property is the same as when the inspection started. After this last circuit, the inspector will complete the hard copy of the inspection report. All deficiencies and maintenance recommendations will be noted and a recap of deficiencies will be entered onto the summary sheet for the client.

How long does the inspection take?
An average home inspection will take between 2 and 3 hours, depending on the size of the house. Larger and more complex houses will take longer for the inspector to completely and accurately evaluate. Another factor that may affect the inspection time is the condition of the components at the property. If the house and appliances have not been properly maintained, the inspector may need additional time to explain to the buyer what options they may have to either maintain or replace the items.
How does a home inspection differ from a code inspection?
A typical buyer’s inspection is an introduction to the house and is focused on informing and educating the client about the property. A code inspector, on the other hand, works for the local municipality and enforces the local and state codes with little or no concern for the buyer’s understanding of these codes. A code inspection does not communicate whether or not the house was well constructed.
The general home inspector is aware of the local codes, and the inspection and report will consider these codes. However, the scope of a general home inspection is targeted more at providing an informative, detailed and objective evaluation of the house so that the buyer understands the home that he/she is considering purchasing.

Why do I need a home inspection?
The purchase of a home is probably one of the single largest investments you will ever make. You should be as informed and educated as you possibly can when considering a home purchase. And a home inspection can provide that education. Also, the FHA and the VA, as well as many other mortgage lenders, recommend that a home inspection be performed.
A home inspection lets you know the condition of the property as well as identifies the need for any repairs before you buy, so that you can make an informed purchasing decision. A home inspection also informs the buyer of the positive aspects of the home, as well as any maintenance that may be recommended to keep the house in good shape and to keep all major systems operating smoothly. After the inspection, you will have a much better understanding of the property you intend to purchase.
A home inspection is also valuable for homeowners for identifying any potential problems that may need tending to, as well as for learning preventive maintenance measures to help avoid any costly future repairs. If you intend to put your house on the market, a home inspection could identify items that would be called out on a buyer’s inspection, which allows you to be proactive in making repairs, thereby putting you house in a more sellable position.

Why do I need a home inspection on a house that I am having built?
An inspection on a new home is important for the buyer to level the playing field. As in any job, there are shortcuts and tricks of the trade that someone who is unfamiliar with them can easily miss. A home inspector is better able to see nuances that may not be readily visible to an untrained eye. You also need an inspector to offset the builder’s or contractor's interest. There is actually quite a lot of information about a home that most people either take for granted or simply don’t know.
An inspection of the house before the drywall is installed, otherwise known as a “pre close-in inspection,” provides a level of quality assurance for the buyer that many builders don’t usually provide for their contractors. This inspection gives you a better chance of identifying and correcting potential problems when they are much easier and less expensive to fix, before they become physically or financially prohibitive, such as moving a wall so that kitchen cabinets don’t protrude into a doorway opening, or moving electrical receptacles so they are placed where you need them.

What is the cost of a home inspection?
The cost of a home inspection for a single family home varies due to the geographical location, as well as its size and age - typically it's about $400. The cost can also vary when additional inspection services are requested, such as septic, well, radon or pest inspections. However, you should not let cost be a factor in determining whether or not to have a home inspection performed or in choosing your home inspector. You should consider the money spent as an educational investment that will more than pay for itself. The most important consideration should be the qualifications, training and experience of the inspector, as well as any professional affiliations he or she may have.

Do I need to attend the inspection?
It is not necessary that you attend the inspection. However, it is strongly recommeded that you or a representative for you attends the inspection so that you are properly informed of the investment that you are considering making.
If you attend you will be able to follow the inspector around and visually learn about the condition of your house, how the various systems operate and how to properly maintain them. You will also have a better understanding of the contents of the report if you are able to see it from the home inspector's perspective and can ask him/her questions as they arise.

Is the inspector licensed or certified?
In California all inspections should be performed to the standards adopted by the California Real Estate Inspection Association. To become a member, your inspector must pass a written examination to prove their competency. American Institute of Inspectors (AII) and other professional training and certifying agencies train and certify their members through rigorous classroom and field testing. CREIA and AII inspectors must participate in continuing education courses to maintain their certifications and/or memberships. AII & CREIA inspectors adhere to a strict code of ethics and standards of practice. Inspectors should also be ASHI Members or Candidates.

Should I ask the Home Inspector if he/she carries Errors and Omissions Insurance?
It is recommended. Errors and Ommissions Insurance is intended to protect you in the event of negligence in the inspection.

How hard is it to upgrade the electric service in my house?
Upgrading the electric service is an involved procedure that will include one or all of the following: replacement of the service entrance cable; upgrade and possible replacement of the main disconnect panel; installation of an additional branch circuit over current devices (commonly known as fuses and circuit breakers); and rewiring the branch circuit connections at the main disconnect panel. This is a question that you could ask an inspector and receive advice that may help you determine a reasonable plan of action. Anytime repairs are performed on or within the electrical system and its components, a licensed electrician should be contacted to make these repairs.

What is a double-tapped circuit?
Double-tapping, also known as “double-lugging,” is a condition where there is more than one wire conductor terminated in a service panel fuse or circuit breaker. Double-tapping is permissible only if the terminals are identified for that use. Most breakers and fuse connections are designed to hold and handle just a single incoming circuit, although there are some manufacturers, such as Square-D™, that market breakers designed to allow two wires to be securely attached. Any time repairs are performed on or within the electrical system and its components, a licensed electrician should be contacted to make these repairs.

What are the estimated life spans of all the systems in my house?
There is no accurate method to determine exactly how long a particular system or component is going to last. This is due to a number of reasons: the geographic area; the physical location of the units; and the climate and weather. This is similar to asking how long a car lasts. There are too many variables to determine the life span of items that need maintenance and have thousands of integral components.For example, with heating systems, many factors can directly affect the life span of the appliance. If the furnace is located in an unconditioned crawlspace or in the attic, the elevated humidity levels can rapidly cause heat exchangers to prematurely rust. In addition, when furnaces are used in the colder months, the differences between the low air temperature and the high temperature of the heat exchanger can cause expansion/contraction cracking that can lead to leaks in the heat exchanger.Roofs, on the other hand, can be affected by factors like the amount of direct sunlight, adequacy of attic ventilation, number of layers of roofing material, as well as the quality of the roofing material itself. Climate and weather can affect the life of the roof also. For instance, in the west and southwest parts of the U.S., asphalt composition shingles have a tendency to last no more than 10 to 15 years on average, whereas in the northeastern states and around the Great Lakes area, the same roofing material can last 18 to 22 years or longer.

System Component/ Estimated Design Life

Roofing
Asphalt Composition Shingle 18 - 22 Years
Asphalt Composition Rolled Roofing 10 - 15 Years
Built-Up Roofing 10 - 15 Years
Elastomeric / Rubber Roofing 10 - 15 Years
Wood Shakes / Shingles 15 - 25 Years
Clay / Terra Cotta Tiles 25 Plus Years
Concrete / Cement Tiles 25 Plus Years
Slate Roofing 50 Plus Years
Metal Roofing (flat, standing-seam, corrugated) Indefinite
Plastic / Fiberglass corrugated panels 10 Plus Years
Glass Panels (sun rooms, etc.) 15 Plus Years
Gutters and Downspouts 15 - 20 Years

Heating
Boiler (Steam / Hydronic) 25 - 40 Years
Forced Air Furnace - Gas / Oil 15 - 35 Years
Forced Air Furnace - Electric 15 - 25 Years
Electric Resistance, Baseboard 15 - 25 Years

Cooling
Heat Pump 10 - 15 Years
Central Split System 10 - 15 Years
A/C Compressor 10 - 15 Years
Window A/C Unit 10 - 15 Years
Evaporative (Swamp) Cooler 10 - 20 Years

Plumbing
Water Heater - Electric 12 - 18 Years
Water Heater - Gas / Oil 10 - 15 Years
Solid Waste Pump 5 - 10 Years
Sump Pump 5 - 8 Years
Submersible Well Pump 10 - 15 Years
Shallow or Deep well Jet Pump 10 - 15 Years

Kitchen Appliances
Dishwasher 5 - 10 Years
Garbage Disposal 5 - 10 Years
Cook Top - (Electric / Gas) 15 - 20 Years
Range / Oven 15 - 20 Years
Refrigerator 5 - 25 Years
Trash Compactor 5 - 10 Years
Ventilator / Draft Hood 8 - 12 Years
Washing Machine / Clothes Dryer 8 - 12 Years

Miscellaneous
Chemical Termite Treatment (subterranean) 5 Years
Fumigation for Drywood Termites 2 Years
Radon Mitigation System Life of the fan

What things should I take into consideration when planning to finish my basement?
If you are thinking of finishing your basement to provide additional living space, you need to take into account every major system that is going to be impacted or modified. These include the electrical system (Is the existing electrical service capable of handling the additional circuits that are going to be installed?); the plumbing (Do you plan on installing an additional bathroom or bar sink?); the heating and air conditioning (all finished/livable rooms need to have a permanent source of heat installed), as well as any possible concerns with water penetration or leakage into the basement.

Why is it important to enter a service agreement for my furnace?
Murphy’s Law says: “The heat is going to quit on the coldest day of winter, and the air conditioning is going to quit on the hottest day of summer.“
One of the greatest benefits of having a service agreement is that you are considered a paying customer. In the event that your heating or cooling quits when you need it most, the paying customer will usually get serviced before the occasional caller is even considered. Another benefit is that there is usually a service or maintenance plan that is included with the agreement. These plans regularly include things like annual maintenance cleaning, charging of the air conditioning system, cleaning of the blower, and filter replacement.

How often should I seal my blacktop driveway?
Ideally, an asphalt driveway should be coated twice a year; once in the spring and once in the fall. However, with the number of different products on the market for coating driveways, it is best to check with the manufacturer’s recommendations.

Can you tell me how to fix the foundation wall?
Before fixing a foundation wall, you should first determine the problem. There are many possible conditions, ranging from shrinkage or step cracking, which could be repaired by epoxy injections or re-pointing the mortar joints, to major differential settlement that would require costly and involved repairs. A home inspector can identify what the symptoms may indicate and where to start to remedy the problem. If it is something that is in need of a specialist, he/she will be in a better position to make this type of call. Regardless of the degree of the cracking or movement noted, if you are concerned about how to fix or repair the damage, a home inspector may be able to identify what the problem is and what repairs might be needed.

What is a failed insulated glass seal and why is it considered a defect?
An insulated glass seal is a window made up of two or more layers of glass held together in a track or frame. A gasketed channel separates the two pieces of glass, and the space between the panes is filled with a moisture-free, inert gas such as nitrogen. When a gasket fails, the inert gas between the panes escapes to the exterior of the window and regular, moisture-laden air is drawn into the space. This does not greatly affect the insulation value of the window but will affect the visibility through the glass. When this happens, the window will look dirty or foggy and you will not be able to clean it off. This is because the fogged or filmed surface will be between the two panes of glass and not on the outer surfaces. If there is a lot of moisture in the air you will also see condensation on the interior of the window.
There is no warning device on a window or door that will indicate when the seal will fail. Most window manufacturers have some kind of warranty that will cover possible seal failures, but the length of time the warranty covers varies. The longer the failed seal is present, coupled with major temperature differences between inside and outside environments, the more obvious the failure will become.

What are the problems with negative grading and how do I fix it?
Grading or slope of the land is important around the home because it will determine which direction surface water will flow. Negative grading is when that surface slopes towards the foundation wall. This can allow surface water to run directly against the wall and potentially seep into the basement or crawlspace. Regrading the area around the foundation walls repairs the majority of the basement water penetration problems. Many problems occur when people install flower gardens or put mulch up against a foundation wall. In order to properly fix a negative grading condition, the top, porous soil must be removed in the affected area and well-compacted, non-porous clay or similar soil must be added and re-graded. The newly added soil around the perimeter of the home should slope away (at a minimum rate of one inch for the first 6 feet) from the house to prevent rainwater from accumulating next to the foundation.

What are expansive soils? Can they really cause a great amount of damage in a short time?
Expansive or reactive clay soils are known to cause adverse effects on residential structures. Expansive soil expands and contracts, often times excessively, due to changes in the moisture content of the soil. These changes can cause structural problems through differential movement of the structure.

How Do I store items in my attic?
Before you store anything in your attic, you need to ensure that the attic framing is designed and capable of supporting the loads you intend to place there.
There are basically two methods of construction in the attics of single family dwellings--conventional or stick-framing, and engineered or truss-framing. Conventionally framed roofs consist of rafters or boards that make up the slope of the roof; ceiling joists that make up both the floor of the attic space and the ceiling framing for the floor below; and the ridge board, which provides both an anchoring point and additional support to the tops of the rafters. Conventional roof framing is usually made up of large stock dimensional lumber such as 2x8, 2x10, or 2x12 boards. Trusses are engineered products that are designed and built to combine the rafter, ceiling joist and ridge all into one component, and are usually built of 2x4 lumber secured together using perforated metal plates at all joints.
Unless they are specifically designed for carrying the additional load, trusses will not adequately support your stored items. You will experience cracking and damage to the finished ceiling in the floor below, as well as possible structural damage to the trusses themselves. Conventionally framed roofs may be more forgiving, however, a licensed contractor or structural engineer should be consulted before making any modifications to your attic framing.


1Listing is a California fixed fee listing service for California sellers. Visit us at www.1Listing.com or call (707) 693-0100.