Winter2016forwebsite by Jeannie Flynn

NAHI.ORG

Winter 2015, 2016

INSPECTING METAL ROOFS PAGE 6 DON’T PUT YOUR CLIENTS AT SAFETY RISK PAGE 11

LEGAL:

STATUTES OF LIMITATION & THE DISCOVERY RULE: WHEN DOES A PLAINTIFF’S TIME RUN OUT? PAGE 19

PLUS - NAHI ANNUAL

CONFERENCE HIGHLIGHTS PAGE 34

SPONSOR OF THE NAHI TRAINING INSTITUTE

TRAINING INSTITUTE

Contents

Winter 2015 - 2016

NAHI® is a non-profit association dedicated to promoting and developing the home inspection industry. NAHI®’s objectives are to further the professionalism of the home inspection industry by promulgating standards of practice to provide a consistent method of performance of home inspections; to promote educational opportunities to benefit its members, the home inspection industry, and consumers of home inspection services; to inform the public of the importance of a reputable home inspection as an integral part of the residential real estate transaction; and to protect consumers from fraudulent, misleading, or deceptive practices. The NAHI® Forum is available free of charge to members of the National Association of Home Inspectors and those interested in the promotion and development of the home inspection industry. Statements of fact and opinion in this publication are the responsibility of the authors alone and do not imply an opinion on the part of the members, directors or staff of NAHI®. Material may not be reproduced without written permission. Cover photo credit: Depositphotos/©photography33

2016 NAHI BOARD OF DIRECTORS President | Troy M. Bloxom, CRI Home Inspection Plus, LLC 17640 Lacey Drive | Eagle River, AK 99577 P: (907) 694-7587 homeinsp@mtaonline.net Vice President | Sean McKenzie, CRI Burlington Home Inspection Service 137 Mansfield Ave. | Burlington, VT 05401 P: (802) 238-6558 sean@burlingtonhomeinspection.net Secretary/Treasurer | Charles Kleindienst, CRI Open Sky Inspections 10800 Canaan Valley Ct. | Glen Allen, VA 23060 P: (804) 399-2329 openskyinspections@verizon.net Past President | Forrest A. Lines, CRI, NIT NAHI Training Institute 4426 5th St West, Bradenton, FL 34207 P: (614) 569-1640 forrest@nahi.org Director | Curtis S. Niles, CRI, NIT Armored Home Inspections, LLC 1451 N. Hanover St | Pottstown, PA 19464 P: (610) 352-2212 nilesent@msn.com Director | Charles Allen, CRI National Property Inspections 713 Augusta Drive | North Aurora, IL 60542 P: (630) 879-5715 callen2777@sbcglobal.net Director | Steven Burnett, CRI Journey Property Inspections, LLC 403 Burt St. | Tecumseh, MI 49286 P: (517) 920-2888 journeyinspection@gmail.com Director | Michael Holmes CRI Holmes Inspections, LLC 5891 Picarn Rd. | Jackson, MI 49201 P: (517) 740-7035 holmesinspectionsllc@comcast.net Director | Peter Rossetti, CRI Pete’s Friendly Home Inspection, LLC 1227 N Peachtree Pkwy | Peachtree City, GA 30269 P: (678) 329-7198 pete@friendlyinspector.com

Executive Director | Claude McGavic (800) 448-3942 | claude@nahi.org

4426 5th Street West | Bradenton, Florida 34207 (800) 448-3942 | Fax: (941) 896-3187 info@nahi.org www.nahi.org

Winter, 2015-2016 - The NAHI® Forum 3

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Photo credit: depositphotos/©jtiloligo

commEntary From the NAHI

President’s DesK .

By Troy Bloxom, CRI Home Inspection Plus, LLC

What a year it has been !! My wish for all of you is that it was your most exciting and profitable year ever, full of challenges and growth. Reflecting on your 2015 business is vital for continued growth and prosperity, as it is so very easy to fall into a rut and become complacent in how and what we do. Look back into the business, the financials, your business operation, and the way you treat your clients/ customers. Growth and success is a process which takes determination and perseverance. It means accepting new technologies and methods while holding on to time-tested and proven ethical and moral standards. Key is remembering that we are a “service” industry, protecting buyers and sellers of a home from hidden dangers and pitfalls. NAHI continues to grow and prosper. The industry is growing by leaps and bounds, and the competition is forever increasing. Our new NAHI training institute is a beacon of light with a training director who is not only knowledgeable, but brings a practical aspect into the training for

the new recruits. I have had the opportunity to work with several graduates, and they by far, have a better grasp on the inspection process than others that have completed other training courses. Whether it’s a NAHI board member, the executive director, or a NAHI staff member, remember we are all here to serve our members. Here’s to your continued success!!

By Claude McGavic, CRI, National Association of Home Inspectors, Inc. During the winter, we can expect some ‘downtime’. Don’t waste it. One of the things you can do is prepare a marketing plan for the spring and summer. Many inspectors say, “I don’t need to market. I have all the business I want”. To me, that’s like saying, “I don’t need any more money. I have all the money I want”. And even if you are satisfied with your current income, when you retire, your income will stop unless you are either building up a business you can sell, or you are saving to carry you through retirement. NAHI can help you get started with a marketing plan which includes a retirement strategy. Think about hiring an inspector. If you don’t start hiring inspectors, you will never have a company you can sell when you decide to retire. Remember when you worked for someone else? When you stopped working for them, your income stopped. The same thing will happen again unless you are building a business that will outlast you. One way to begin to build a business is to mentor new inspectors. Mentoring new inspectors helps you find out, 1) If they are going to be a strong competitor, and 2) If they might fit in with your company expansion plans. The idea of training a competitor is a myth. If they are going to make it as a competitor, they are going to make it with or without your help. But if they are good and you hire them before they become a competitor, or even if you help them get started as a competitor, it can work to your advantage in more ways than to your disadvantage. NAHI has a National Inspector Training program (NIT) which teaches you how to mentor a new inspector (and get paid for it). Use your downtime to train. One way to keep your edge and make good use of your downtime is to work on your continuing education. You need 16 hours a year to maintain your membership and if you are in a license state, you may need even more. In short, don’t hibernate. Use the winter months to build a business and to get ready to take the fight to your competitors when spring comes.

Winter, 2015-2016 - The NAHI® Forum 5

Inspecting Metal Roofs With the increase in popularity of metal roofs, inspectors need to know what to look for during a home inspection. Itâ&#x20AC;&#x2122;s one thing to determine that the home has a metal roof. But knowing what to look for and describing any areas of concern is what you are being paid to do. And knowing what to look for is easier when you know what causes problems to arise in the first place. A roof is one of the first completely finished parts of a house and most of the evidence of installation procedures used is not observable. Defects are covered, and it may take years before a problem manifests itself, but knowing what the most common deficiencies are can help the home inspector know what to look for when inspecting a metal roof.

6 The NAHIÂŽ Forum - Winter, 2015-2016

There are basically three types of metal roofs: metal panels, metal shingles/tiles, and standing seam systems. Metal panel roofs may have exposed fasteners (screws) which have to be replaced from time to time. The screws should be set on elastomeric washers to form a water proof seal. Metal shingles/tiles are stamped to look like ordinary roof shingles or roof tile. They are light weight and subject to blow off and walk damage (Do not walk on these materials). Metal shingles/tiles are installed with hidden clips. Standing seam systems feature long narrow panels utilizing hidden clips and interlocking standing seams which snap together. Because there are no exposed fasteners with standing seam systems, there is less maintenance. According to Denis Leonard of Business Excellence Consulting LLC (www.calidadpr.com), the six most common metal roof deficiencies are: (1) Fastener back out, (2) Panel damage, (3)

Leaks, (4) Seam defects, (5) Damaged, missing, or unapproved fasteners, and (6) Corrosion. Let’s look at each separately.

Fastener Back Out: Roof fasteners back out because of thermodynamics associated with rapid heating and cooling of the roof surface and the accompanying expansion and contraction of the panels. As the panels expand, they lift. Each time they lift, the pressure on the screw causes it to turn (unscrew) ever so slightly. Eventually, the movement of the screw causes the screw hole to open a pathway for water, resulting in a roof leak. Also, the elastomeric washers deteriorate or are also lifted by the action of the moving screws and no longer provide a good seal. If fasteners are backing out or if washers are cracked, roof maintenance is needed to prevent roof leaks.

Panel Damage: Thin gauge steel is susceptible to hail damage, falling tree limbs, golf ball dents, and other similar events. But while conventional roofing shingles can be damaged to the point of leaking, conventional metal roofs generally do not puncture as a result of these kinds of incidents. When panel damage is present it is generally found at panel edges where wind or foot traffic have caused the panels to bend and separate. These kinds of defects (as well as punctures) generally require professional repair.

Leaks: Like any other roof leak, metal roof leaks are going to show up in the attic, interior, or at the soffits. If the underside of the roof has condensation or ice, the problem is generally lack of attic insulation and/or ventilation, and not a roof leak. Generally speaking, caulking should not be seen. If a lot of caulking is present, it may be an indication of a known defect and unprofessional repairs and should be investigated by a professional roofing contractor. In short, any of the defects listed in this article can result in a roof leak.

Seam Defects: Seam defects are generally caused by latent installation defects, wind damage, or by someone walking on a standing seam or on metal shingles or tiles. This kind of damage can be recognized by both bent or dented panel seams. While metal roofs on commercial buildings may have enough tensile strength to be part of the structural membrane for the building (and thick enough to allow for foot traffic) residential metal shingle/tiles are generally light gauge steel and are much more susceptible to seam defects. Bent and

dented panels can allow leaks and both leave the roof more vulnerable to extensive wind damage. Panels, tiles, or standing seams which have been bent need to be checked by a roofing contractor.

Missing, Damaged, Improperly Installed, or Unapproved Fasteners: Missing screws create leak paths. Panel system panels generally overlap and can be secured only at the top and bottom. Other panel systems are installed with exposed screws. All missing screws create leak paths and should be replaced. Bent screws or broken screws will not create a tight seal and also create leak paths. Screws not installed perpendicular to the substrate will not form a tight seal at the sealing washer and screws torqued too tightly will split the washer and create a leak path. Finally, screws which will rust should never be used on a metal roof and screws should not be installed without approved sealing washers. When an inspector encounters a roof with exposed fasteners, extra time should be taken to look at as many fasteners as possible for defects or back-outs. If any of these signs are present, maintenance should be recommended.

Corrosion: Metal roofs are generally manufactured to be corrosion resistant but may not perform well in some environments such as near coast lines with salty air, or near mills which produce corrosive air particulates. Ponding water is a leading cause of metal roof corrosion. And while metal roofing is not recommended for flat roofs, ponding can occur on large commercial building roofs where snow or other loads have created places where ponding can be present. When metal roof surfaces are properly primed, an elastomeric sealer can be applied to extend the life expectancy considerably. If extended age or corrosion is present, the inspector should recommend further evaluation by a qualified roofing contractor.

Inspection Safety Some residential panels are installed directly on plywood sheathing and are not likely to be damaged by foot traffic, but walking on older metal roofs may leave unsightly marks on heavily oxidized panels and the owner may request that those responsible clean the entire surface. From a safety standpoint, traction on a metal roof may be greatly reduced. Roof accidents are a leading cause of serious of home inspector injuries. Don’t be a hero when inspecting a metal roof.

Winter, 2015-2016 - The NAHI® Forum 7

8 The NAHI速 Forum - Winter, 2015-2016

Yes, as long as you make sure you have a secure connection. Before you enter personal informationespecially a credit card number on a website, check for a secure sockets layer (SSL) connection. If the website address in the browser address bar starts with https://, it’s secure.The S indicates the SSL is active.

Q: Software updates change everything; do I have to make them? Yes. Experts are constantly finding holes in software that hackers can exploit to snag your data or even take over your computer. Companies use updates to plug the holes.

Q: What does it mean when something is “in the cloud”?

The “cloud” is the Internet. To say something is “in the cloud” just means the data is stored remotely, not on your device.

Photo credit: depositphotos/techie-kid©lenmdp

Light it up!

Credit: Troy Bloxom, Eagle River AK

Q: Is online shopping or stock trading safe?

Credit: Doug Gialluca, Canton, OH

TECHIE Q&A

Disposable wiring!

NOW I’VE SEEN EVERYTHING! Winter, 2015-2016 - The NAHI® Forum 9

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A Trusted Insurance Advisor 10 The NAHI® Forum - Winter, 2015-2016

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Don’t Put Your Clients At Safety Risk Home inspectors are not required to determine if safety devices such as smoke detectors and AFCI detectors are working properly. But because we know and understand the importance of these kinds of devices, we have a responsibility to let our clients know if the devices are not even installed and if they are installed, that they have to be serviced or replaced from time to time. The two most critical safety devices in a home are likely to be smoke detectors and carbon monoxide (CO) detectors. Some manufacturers make a combination device which will detect both smoke and CO. However, it turns out that there are two different kinds of smoke; that which is produced by a smoldering fire and produces large smoke particles, and that which is the result of a flame and produces small particles. A reliable smoke detector which can sense both kinds of smoke as well as CO is not yet commercially available. Ionization smoke alarms are good for detecting flaming fires but not smoldering fires. So you don’t want to recommend these for kitchens or other places where cooking smoke or steam might be present and cause aggravating false alarms. Ionization smoke alarms are preferable near sleeping areas where flames could prevent an escape. Photoelectric smoke alarms are designed to detect smoldering fires and are less likely to sound a false alarm in a kitchen or a shower area of the

house. But they may not effectively detect a flaming fire in another part of the house such as a bedroom or hall. Installing dual sensor (Ionization/Photoelectric) smoke detectors in living areas, the basement, the garage, and attic, and interconnecting them so that when one goes off, they all go off, and installing interconnected photoelectric smoke detectors in the kitchen, laundry, and bathrooms will likely result in the best coverage. Finally, smoke rises. Smoke detectors are most effective when installed near a high place in a room but not in a corner or in a draft. Because of the popularity of bedroom ceiling fans (which create drafts) smoke detectors are often installed above the outside of the bedroom door where ceiling fan drafts are not a problem. But what about carbon monoxide poisoning? Let’s begin by telling what it is. Carbon monoxide (CO) is a colorless, odorless, poisonous gas. It cannot be seen and it has no smell. It has been described as an invisible silent killer. If there is too much CO in the air, it displaces oxygen and when a person cannot get oxygen, the person dies. As many as 20,000 Americans have to go to the hospital each year as a result of carbon monoxide poisoning and more than 400 die.

Winter, 2015-2016 - The NAHI® Forum 11

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12 The NAHI® Forum - Winter, 2015-2016

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so gets them out of the way). They should, however be installed near each sleeping room, on each level or floor of the house including the basement, and near (but not in) the garage. And like smoke detectors, they should be interconnected so that when one goes off, all will go off.

Carbon monoxide is produced when fuel burning equipment such as furnaces, gasoline engines, home generators, gas water heaters, fireplaces, charcoal grills, and other similar devices cannot get enough oxygen to produce carbon dioxide (CO2) and is trapped in a confined space like a house. The most common sources of carbon monoxide in a home are leaking or back-drafting furnaces and water heaters, poorly vented wood stoves and fireplaces, gas stoves, and unvented gas room heaters. It is not surprising that accidents increase during cold weather or during power failures when individuals attempt to cook or stay warm by bringing generators or charcoal grills into the home, or by trying to heat the home with a gas stove.

Finally, none of the devices in the home will work as intended if they are not properly maintained according to manufacturers’ instructions or are not replaced in a timely manner. Do your clients a favor. Tell them to check their safety devices on a regular basis. Product Picture: Nest Protect is an industrial-grade smoke and carbon monoxide detector. It sends alerts to your phone in case you’re not home, and speaks up to tell you what’s wrong and where is the problem. A green glow when you turn off the lights means no low-battery chirps at 2 am. Available at home improvement stores.

Carbon monoxide particles are approximately the same weight as the air all around us so carbon monoxide detectors don’t have to be installed near a high point in a room (but doing

Stucco

Brick or brick veneer

Fiber cement siding (such as Hardiplank or Hardiboard)

Wood or wood products Stone, rock or other stone materials

Total

Pacific

W. North Central

Mountain

E. North Central

E. South Central

M. Atlantic

Vinyl siding (including vinyl-covered aluminum

S. Atlantic

New England

According to data from the Census Bureau’s Survey of Construction (SOC) and NAHB analysis, vinyl was the most common exterior wall material used in home started in 2014 (29 percent), followed by stucco and brick or brick veneer (23 percent each), and fiber cement siding (such as Hardiplank or Hardiboard (18 percent).

W. South Central

Vinyl is the Most Widely Used Exterior for New Homes

Concrete block (not including stucco) Other Units

18,766

1 32,598 63,871

41,906

182,319 37,486

126,285 72,695 70,378 646,304

NAHB Tabulation of 2014 SOC Data - SOC DATA: 2014 New Single Family Homes Started

Winter, 2015-2016 - The NAHI® Forum 13

nd a t s e i stl 5 Co ffordable A Most g Markets in Hous

#5 Most Affordable Alma, Michigan. Average listing price: $90,523

#5 Most Expensive Los Gatos, California. Average listing price: $1,569,615 #4 Most Expensive Cupertino, California. Average listing price: $1,659,297 #3 Most Expensive Saratoga, California. Average listing price: $1,979,218 #2 Most Expensive Palo Alto, California. Average listing price: $2,066,600 #1 Most Expensive Newport Beach, California. Average listing price: $2,291,764

#4 Most Affordable Detroit, Michigan. Average listing price: $81,616 #3 Most Affordable Wilkes-Barre, Pennsylvania. Average listing price: $79,480 #2 Most Affordable Riverdale, Georgia. Average listing price: $79,223 #1 Most Affordable Cleveland, Ohio. Average listing price: $74,502

According to the latest annual Coldwell Banker Home Listing Report, half of the 100 most expensive housing markets in the U.S. are in California, while cities in the Midwest dominate the report’s most affordable rankings. Here are the five most expensive and most affordable housing markets in the U.S. Photo credit: depositphotos/©wikki33

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14 The NAHI® Forum - Winter, 2015-2016

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Winter, 2015-2016 - The NAHI® Forum 15

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S E P T E M B E R 16, 2015 - D E C E M B E R 15, 2015

New members ALASKA Bret McDonald, Kenai Colin Bloxom, Eagle River ALABAMA Marc Jones, Anniston CALIFORNIA Patrick Lecouturier, S. Rafael Richard Grunder, Ojai Martin Martinez, Solvang COLORADO Michael Cortez, Aurora William Witwer, Parker CONNECTICUT Jessie Hardy, Hartford FLORIDA Frank Ellis, Naples Eric Pentzer, Panama City Steven Giannetta, St Augustine Alexander McKenzie, Bartow GEORGIA Rick Auffenberg, Marietta IDAHO Roy Breshears, Blackfoot Emilio Bengoa, Boise Paul Smith, Sandpoint INDIANA John Renz, Fort Wayne Douglas Sidwell, Cedar Lake Lyle Napesis, Terre Haute KENTUCKY Terrell Ginn, Florence

MARYLAND Harry Brown, Swanton

Edward Glenn, Philadelphia Sheldon Garcia, Mahanoy City Owen Wilcoxson, Erie Kain Miglicio, Erie

MAINE David Burke, Standish MICHIGAN Ron Zuccaro, Shelby Township Michael Burt, Waterford MINNESOTA Brady Swanson, Eveleth Karen Sessler, Rochester David Shipler, Austin MISSOURI Charles Cook, Sedalia MONTANA Brett James, Helena

SOUTH CAROLINA Douglas Moorer, Summerville TEXAS Brandon Jones, Fort Worth Robert Tye, Richardson Ellis McKinzie, Temple VIRGINIA Earnest Baker, Richmond Stephen Kinney, Hayes WASHINGTON Mitchell Livingston, Seattle Casey Sobjack, Custer

NEW JERSEY Michael McLoughlin, Phillipsburg New Affiliates George Priovolos, OHIO US Health Advisors Gregg Divelbiss, Dublin Sarasota, FL 34233 Joe Timmer, Cincinnati 941-779-3085 Robert Ackerman, Chardon David Hannan, Pickerington Walter Perry Brandon Walters, Mentor Examination Board of Professional Home Inspectors/NHIE Elizabeth Mika, Columbus Concord, NH 03301 Bryan Charles, Columbus 847-298-7750 Herbert Collum Jr., Chauncey Michael Brandt, Mansfield Alexander Fleming, Columbia Stat. David Millard, Louisville PENNSYLVANIA Stephen Preston, Brockway Keith Zimmerman, Pittsburgh Daniel McAdams, New Derry

Membership Upgrades ASSOCIATE to REGULAR Tim Benton, Huntsville, AL REGULAR TO CRI M. Scott Shaw, Titusville, PA

Winter, 2015-2016 - The NAHI速 Forum 17

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18 The NAHI® Forum - Winter, 2015-2016

STATUTES OF LIMITATION & THE DISCOVERY RULE: WHEN DOES A PLAINTIFF’S TIME RUN OUT? Photo credit: depositphotos/©ikopylove

By: Joseph W. Denneler, Esquire jdenneler@srstlaw.com

For reasons unknown, I have been retained for a few cases recently where one of the issues is the timing of the filing of the lawsuit by the plaintiff against the home inspector. This topic also routinely comes up during the educational seminars I provide to home inspectors. Fortunately or unfortunately, depending on which side of the litigation you are on, the exact time period after which a plaintiff runs out of time to file a lawsuit in a home inspection case is up for grabs in most states. If there is one sentence I hate to utter to a client, it is “It depends.” It’s the legal equivalent of a physician telling a patient that they may have a life threatening illness, or they may just have gas. While one should rightfully assume that the goal in any litigation is to promote fairness and reliability, the truth is the law provides nothing of the sort on this issue. Generally, the period of time within which a plaintiff may file a lawsuit against a defendant in a civil matter is controlled by statute. These are generically known as statutes of limitation. They are enacted by elected legislators in each state and, as often happens in the law, they can vary wildly from state to state and among several causes of action. Most lawsuits against inspectors involve claims that the inspector was negligent, or that the inspector breached the promises of the inspection contract, or both. Negligence

claims are tort claims. Tort claims usually have a one or two year limitations period. Breaches of contract usually fall within a period of four to six years. Accordingly, causes of action arising from the same inspection can have a limitations period of up to six years where an inspection contract is used (or required to be used in your state) depending on the cause of action alleged by the plaintiff. Your state may have different requirements and you should refer to those for your practice. Many states that have some form of home inspector regulations have a specific limitations period attributable to lawsuits against inspectors. They can be markedly different even in neighboring states. For example, in Pennsylvania the Home Inspection Law provides that “an action to recover damages arising from a home inspection report must be commenced within one year after the date the report is delivered.” In New Jersey, the Home Inspection Professional Licensing Act provides that “an action for an error or omission in the performance of a home inspection contract with respect to a home inspector…shall be commenced within four years of the date of the home inspection.” Imagine for a moment the significant changes that can happen to a building over time. I think most inspectors would agree that after one year the changes can be so dramatic so as to allow adverse conditions not detectable at an inspection to manifest, thereby Winter, 2015-2016 - The NAHI® Forum 19

changing the conditions that may be visible a year later. Now imagine what can happen after four years. This also factors into the costs for E&O insurance from state to state. If a carrier is exposed to claims for four years that leaves a large window of opportunity for past inspections to come back and cause problems for the inspector and his or her insurance carrier. It makes the cases more difficult to defend due to the changes to the building over time. After one year, if you are busy enough, I would not expect you could recall the specifics of a particular inspection. It is nearly impossible to expect a fair recollection of an inspection from four years ago. If you’re one of the rare inspectors who still avoids taking photographs, it is even less likely you can recall the specifics of a prior inspection after a period of years. In addition to tort and contract claims, most states have some form of consumer protection statute which can be asserted against an inspector for alleged misrepresentations of one’s skill, services, qualifications, or in some states for misrepresentations about the condition of the building. These statutes generally have a specific statute of limitations exclusive to those statutory claims. This, again, can be used as a way for a plaintiff who failed to file within the other applicable time periods, as these statutes sometimes have up to a six year statute of limitations. While I’ve had success arguing against such mistaken recitations of the law, those decisions are made by judges based on the facts of a particular case and there is no guarantee that a judge in one county of a particular state will

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decide that issue the same as the judge in an adjacent county. Confused? Good. So am I. If you’ve attended my seminars, you know that I put a premium on eliminating ambiguity when writing inspection reports or communicating with a client. Unfortunately my profession has not adopted that simple concept. In fact, the judiciary has found a way to make it even more confusing by adopting the so-called discovery rule in many states. The discovery rule is a judicially created rule of law whereby a court can reconstruct an existing statute of limitations so that the period does not begin to run until a plaintiff knows, or should know, that he or she has suffered an injury due to the action or inaction of another. The best way to explain it is using the example of a medical malpractice case where a surgeon leaves a sponge in the patient after completing the surgery. The negligent act is committed at the time of the surgery. However, the patient may not discover the negligence until such time as that sponge begins to cause identifiable medical problems. Assuming the discovery rule is applicable in that state, a court would reconstruct the usual statute of limitations for medical negligence to begin to run on the day the patient knew or should have known that the surgeon left the sponge in the patient. This started

Winter, 2015-2016 - The NAHI® Forum 21

as an attempt by the judiciary to level the playing field for plaintiffs whose cases expired by operation of law before they could possibly know they were injured and had a possible cause of action against their surgeon. It has since been expanded in most states to apply to all but a few statutes of limitation encompassing simple negligence to breaches of contract and violation of consumer protection laws. Take the Pennsylvania statute which provides that “an action to recover damages arising from a home inspection report must be commenced within one year after the date the report is delivered.” I’m not sure the Pennsylvania Legislature could not have been clearer in the language selected to enact this legislation. The Legislature clearly meant that all legal actions for a home inspection must be filed within a year of the plaintiff receiving the report. However, some Pennsylvania judges have applied the discovery rule to this statute, changing it to mean the lawsuit must be filed within one year of the plaintiff realizing that he or she may have a cause of action arising from the inspection. I’ve had a Pennsylvania judge tell me in response to a motion to dismiss a case filed after the one year period that if the Legislature had meant that it was a firm one year it would have added language to provide that it was one year regardless of when the alleged malfeasance was discovered. Sometimes you simply cannot win, regardless of right and wrong. The only way to circumvent the effect of time on a claim is to thoroughly document the inspection in words and pictures. Armed with those tools a good lawyer can recreate the inspection so that you and the judge or jury deciding your case can assess the conditions you saw versus those that manifested months or years later. A good defense is a defense you enact even when the offense does not yet exist. It’s the basis for everything I teach at my educational seminars, and how I counsel my inspector clients to stay out of court. The unfortunate truth is that there are laws and there are interpretations of those laws, and sometime the interpretations lose sight of the legislative intent. Changing statutes is an arduous task that can take years and thousands of dollars to effectuate. Even with modifications, all statutes are always subject to judicial interpretation. In other words, it depends.

22 The NAHI® Forum - Winter, 2015-2016

Build Your Own Business (BYOB)

Q&A

With Lamar Wheeler, Owner of Pillar To Post Home Inspectors of San Antonio 1. How long have you been with Pillar To Post? I have been open for almost a year. I first opened the doors to my San Antonio location in April of 2015. I left my career of 15 years with Iron Mountain Records Management to take control of my destiny and start a business that would allow me to be closer to my family.

2. What advice would you have for any wouldbe home inspector considering getting into franchising? Be patient. Be disciplined. You are the only one that makes your day. There is no one else out there that is driving you but you. Success does not happen overnight--you have to work on it. Be sure the business is a good fit for you. As a disabled veteran of 20 years looking to leave my business to my daughter and son-inlaw, I knew Pillar To Post was the right fit for me because of how much they work with veterans. If you find a good fit and follow the company’s guidelines, it will work.

3. What about home inspections most appeals to you? I love helping people find their dream home. It is satisfying to me to be able to teach them about their home and the things they need to do to take care of it. Pillar To Post has three different inspection packages to offer to clients, offering more than just a basic inspection. I am able to provide home owners a host of options through my home inspections instead of handcuffing them to only one option; the precise level of inspection is up to them. Also, homes are selling again, making the home inspection industry primed for expansion. I am busy!

4. Where do you want to take your business from here? When I first opened my Pillar To Post Home Inspectors, I did so with the plan to grow it and pass it along to my daughter and sonin-law. In the next five years my hope is that the business will grow to a level where it can sustain all of us in the future. Ideally I will be able to add two or three more employees as well. At this point, I am seeing no problem making that result happen.

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Winter, 2015-2016 - The NAHI® Forum 23

NAHI CORE VALUE CUSTOMER

SERVICE “I just wanted to take this opportunity to thank you for such personal attention. NAHI customer service was helpful and courteous in helping me resolve my member profile issues. I don’t often find people who are as polite, prompt, and professional and I just wanted you to know how much I appreciate the assistance.”

Gerardo “Jerry” Duarte NAHI member K&M Home Inspection Anaheim, CA

3 Home Inspection Deal-Breakers

Home inspectors are hired to perform an objective evaluation of a home’s condition, but at times, their discoveries can prompt the buyer to terminate a sale contract. By Dylan Chalk, Owner of Seattlebased Orca Inspection Services LLC

1.Cover-ups. The house may look great, but a deeper inspection may reveal short-cuts on repairs or renovations made by a prior home owner. These commonly occur in homes that were purchased to be flipped. “I sometimes find flips in need of structural repairs or discover chronic moisture problems that were covered up in an effort to sell the house,” Chalk writes. “On the outside, everything looks new and shiny, but there may actually be deep dysfunction lurking in the bones of the house.” He also finds problems with vacation homes that have been remodeled multiple times over the years. “There can be a hodgepodge of foundations, additions, and rooflines that make them fundamentally different than they appear,” Chalk notes. “These are not ‘bad houses,’ but they are often quirky and may present risks that buyers weren’t anticipating. Photo credit: depositphotos/©caraman

24 The NAHI® Forum - Winter, 2015-2016

One tip that often gives these homes away is a quirky roofline that shows obvious additions.” 2. More repairs than anticipated. This is a common scenario with younger homes, Chalk says. The clients may say, “It’s only 20 years old!” But while most 20-yearold houses are in good shape, they often require expensive replacements for systems that last only 15 to 20 years. Systems that usually need to be replaced after 20 years are a deck, furnace, roof, and appliances. Carpets, the home’s siding, and even hardwood finishes may need special attention at that point, too. The maintenance list may come as a surprise to some buyers.

3. The home has bad bones. Buyers go into fixer-uppers knowing they intend to do a host of repairs, such as the furnace, kitchen, bathrooms, flooring, paint, and appliances. But buyers may not have taken into account the foundation, frame, roofline, floorplan, and drainage. A home inspection that turns up structural problems or drainage issues will add a significant amount to the buyer’s budget — even pushing them out of their price range. Source: “The 3 Most Common Reasons a Home Inspection Kills a Deal,” Redfin Blog (Oct. 2, 2015) Reprinted from REALTOR Magazine Online (http://realtormag.realtor.org), October 2015, with permission of the NATIONAL ASSOCIATION OF REALTORS. Copyright 2015. All rights reserved.

Photo credit: depositphotos/©eteimaging

Common Money Mistakes and How to Avoid Them Everybody makes mistakes with their money. The important thing is to keep them to a minimum. And one of the best ways to accomplish that is to learn from the mistakes of others. Here is our list of the top mistakes people make with their money, and what you can do to avoid these mistakes in the first place. 1. Buying items you don’t need...and paying extra for them in interest. Every time you have an urge to do a little “impulse buying” and you use your credit card but you don’t pay in full by the due date, you could be paying interest on that purchase for months or years to come. Spending money for something you really don’t need can be a big waste of your money. But you can make the matter worse, a lot worse, by putting the purchase on a credit card and paying monthly interest charges. Research major purchases and comparison shop before you buy. Ask yourself if you really need the item. Even better, wait a day or two, or just a few hours, to think things over rather than making a quick and costly decision you may come to regret. There are good reasons to pay for major purchases with a credit card, such as extra protections if you have problems with the items. But if you charge a purchase with a credit card instead of paying by cash, check or debit card (which automatically deducts the money from your bank account), be smart about how you repay. For example, take advantage of offers of “zero-percent interest” on credit card purchases for a certain number of months (but understand when and how interest charges could begin). And, pay the entire balance on your credit card or as much as you can to avoid or minimize interest charges, which can add up significantly. If you pay only the minimum amount due on your credit card, you may end up paying more in

interest charges than what the item cost you to begin with. Example: If you pay only the minimum payment due on a $1,000 computer, let’s say it’s about $20 a month, your total cost at an Annual Percentage Rate of more than 18 percent can be close to $3,000, and it will take you nearly 19 years to pay it off. 2. Getting too deeply in debt. Being able to borrow allows us to buy clothes or computers, take a vacation or purchase a home or a car. But taking on too much debt can be a problem, and each year millions of adults of all ages find themselves struggling to pay their loans, credit cards and other bills. 3. Learn to be a good money manager. Also recognize the warning signs of a serious debt problem. These may include borrowing money to make payments on loans you already have, deliberately paying bills late, and putting off doctor visits or other important activities because you think you don’t have enough money. Winter, 2015-2016 - The NAHI® Forum 25

If you believe you’re experiencing debt overload, take corrective measures. For example, try to pay off your highest interest rate loans (usually your credit cards) as soon as possible, even if you have higher balances on other loans. For new purchases, instead of using your credit card, try paying with cash, a check or a debit card. There are also reliable credit counselors you can turn to for help at little or no cost. Unfortunately, you also need to be aware that there are scams masquerading as ‘credit repair clinics’ and other companies, such as ‘debt consolidators’, that may charge big fees for unfulfilled promises or services you can perform on your own. 4. Paying bills late or otherwise tarnishing your reputation. Companies called credit bureaus prepare credit reports for use by lenders, employers, insurance companies, landlords and others who need to know someone’s financial reliability, based largely on each person’s track record paying bills and debts. Credit bureaus, lenders and other companies also produce “credit scores” that attempt to summarize and evaluate a person’s credit record using a point system. While one or two late payments on your loans or other regular commitments (such as rent or phone bills) over a long period may not seriously damage your credit record, making a habit of it will count against you. Over time you could be charged a higher interest rate on your credit card or a loan that you really want and need. You could be turned down for a job or an apartment. It could cost you extra when you apply for auto insurance. Your credit record will also be damaged by a bankruptcy filing or a court order to pay money as a result of a lawsuit. So, pay your monthly bills on time. Also, periodically review your credit reports from to make sure their information accurately reflects the accounts you have. 5. Having too many credit cards. Two to four cards (including any from department stores, oil companies and other retailers) is the right number for most adults. Why not more cards? The more credit cards you carry, the more inclined

26 The NAHI® Forum - Winter, 2015-2016

you may be to use them for costly impulse buying. In addition, each card you own — even the ones you don’t use — represents money that you could borrow up to the card’s spending limit. If you apply for new credit you will be seen as someone who, in theory, could get much deeper in debt and you may only qualify for a smaller or costlier loan. Also be aware that card companies aggressively market their products on college campuses, at concerts, ball games or other events often attended by young adults. Their offers may seem tempting and even harmless — perhaps a free T-shirt or Frisbee, or 10 percent off your first purchase if you just fill out an application for a new card — but you’ve got to consider the possible consequences we’ve just described. Don’t sign up for a credit card just to get a great-looking T-shirt. You may be better off buying that shirt at the store for $14.95 and saving yourself the potential costs and troubles from that extra card. 6. Not watching your expenses. It’s very easy to overspend in some areas and take away from other priorities, including your long-term savings. Our suggestion is to try any system — ranging from a computer-based budget program to hand-written notes — that will help you keep track of your spending each month and enable you to set and stick to limits you consider appropriate. A budget doesn’t have to be complicated, intimidating or painful — just something that works for you in getting a handle on your spending. 7. Not saving for your future. We know it can be tough to scrape together enough money to pay for a place to live, a car and other expenses each month. But experts say it’s also important for young people to save money for their long-term goals, too, including perhaps buying a home, owning a business or saving for your retirement (even though it may be 40 or 50 years away). Start by “paying yourself first”. That means even before you pay your bills each month you should put money into savings for your future. Often the simplest way is to arrange with your bank or employer to automatically

ADVERTISEMENT transfer a certain amount each month to a savings account or to purchase a Savings Bond or an investment, such as a mutual fund that buys stocks and bonds. Even if you start with just $25 or $50 a month you’ll be significantly closer to your goal. The important thing is to start saving as early as you can — even saving for your retirement when that seems light-years away — so you can benefit from the effect of compound interest. Compound interest refers to when an investment earns interest, and later that combined amount earns more interest, and on and on until a much larger sum of money is the result after many years. Banking institutions pay interest on savings accounts that they offer. However, bank deposits aren’t the only way to make your money grow. Investments, which include stocks, bonds and mutual funds, can be attractive alternatives to bank deposits because they often provide a higher rate of return over long periods, but remember that there is the potential for a temporary or permanent loss in value.

8. Paying too much in fees. Whenever possible, use your own financial institution’s automated teller machines or the ATMs owned by financial institutions that don’t charge fees to non-customers. You can pay $1 to $4 in fees if you get cash from an ATM that isn’t owned by your financial institution or isn’t part of an ATM “network” that your bank belongs to. Try not to “bounce” checks — that is, writing checks for more money than you have in your account, which can trigger fees from your financial institution (about $15 to $30 for each check) and from merchants. The best precaution is to keep your checkbook up to date and closely monitor your balance, which is easier to do with online and telephone banking. Remember to record your debit card transactions from ATMs and merchants so that you will be sure to have enough money in your account when those withdrawals are processed by you bank. Financial institutions also offer “overdraft protection” services that can help you avoid the embarrassment and inconvenience of having a check returned to a merchant. But be careful before signing up because these programs come with their own costs. Whenever possible,

Winter, 2015-2016 - The NAHI® Forum 27

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use your own financial institution’s automated teller machines or the ATMs owned by institutions that don’t charge fees to noncustomers.

Pay off your credit card balance each month, if possible, so you can avoid or minimize interest charges. Also send in your payment on time to avoid additional fees. If you don’t

expect to pay your credit card bill in full most months, consider using a card with a low interest rate and a generous “grace period” (the number of days before the card company starts charging you interest on new purchases).

9. Not taking responsibility for your finances. Do a little comparison shopping to find accounts that match your needs at the right cost. Be sure to review your bills and bank statements as soon as possible after they arrive or monitor your accounts periodically The National Fire Prevention online or by telephone. Association (NFPA) reports that one in five home fires and half of home fire Keep copies of any contracts or other deaths occur between 11 pm and 7 am, documents that describe your bank when most poeople are sleeping. accounts, so you can refer to them in a dispute. Also remember that the quickest way to fix a problem usually is to work directly with your bank or other service provider. Source: Home MarketWatch / Insider Secrets, Tips and Strategies for Everyone

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Winter, 2015-2016 - The NAHI® Forum 29

CAULK 101

Caulk is a flexible material used in residential construction and maintenance to seal air or moisture leaks through gaps, cracks, or joints between building components and materials. Your decision on where and how much caulk to use will depend on your views of energy conservation, residential ventilation preferences, and humidity control. If you prefer energy efficiency and highly conditioned purified air in your home, caulk will be your best friend. The main purpose of exterior caulking is to shed water on the outside and minimize or eliminate drafts on the inside. But if you are comfortable in a duck blind, spend your money on ammunition instead of caulk. Houses breathe. Interior and exterior temperature differentials, humidity differentials, air pressure

differentials and wind all contribute to air and moisture movement. Caulk is used to minimize or otherwise control that movement. Caulk comes in several flavors including: • Silicone • Polyurethane expandable foam • Water based foam • Butyl rubber • Latex • Oil or resin based • And various combinations of each of the above Each has slightly different sealing properties, advantages, and disadvantages. As home inspectors, it is not our job to recommend a specific solution to a specific circumstance but knowing the properties of various caulks can help us understand where the Photo credit: depositphotos/©photography33

30 The NAHI® Forum - Winter, 2015-2016

wrong caulk was applied, applied in an inappropriate manner, or where it is not performing its intended function. Let’s look at the properties of some of these caulks. • Silicone: Silicone is almost non-porous and does not shrink. It is so effective at sealing that NASA sealed portions of the moon walk suits with silicone. This non-porous quality makes it especially useful in keeping moisture out and is often used around a house in bathrooms, kitchens, or anywhere else where water needs to be controlled. Not only does it seal, it also has adhesive qualities for use in such applications as plumbing and at metal joints in rain gutters. It works well when dissimilar materials like wood and stone or metal and glass need to be sealed to each other. In its pure form, it will stick to painted surfaces but wet paint will not stick to it. However hybrid forms have been created which allow it to be painted. Silicone is especially useful where a great amount of flexibility is needed such as sealing the gap between the top of a swimming pool wall to the surrounding deck. As with all caulks, wide gaps need to first be filled with backer rod and then have caulk applied to both sides of the backer rod where it contacts the adjoining surfaces. • Polyurethane Expandable Foam: This is a product of choice especially outdoors where there are unusually large gaps to fill, but it can be used indoors for larger gaps such as those which might be found in flooring. It can be difficult to control during application and at worst, you may wear as much as you install. It bonds well to most surfaces and can be painted. On the downside, if it is not protected from UV light, it deteriorates rapidly. Polyurethane foam sealants shrink. They become brittle and deteriorate to powder and should not be used where movement is likely to occur.

• Water Based Foam: This product works well around window and door frames and at smaller cracks. It does not expand as much as polyurethane foam and is less likely than polyurethane foam to stress glass to the breaking point. It is not useful for larger cracks because the curing time of water based foam is longer and difficult achieve in a larger application. Like polyurethane foam, it should not be used in friction areas or in direct sunlight. • Butyl Rubber: Otherwise known as man-made rubber. It is especially useful around windows and flashings, it bonds well to dissimilar materials, is resilient, and after it cures, it can be painted. However, it does not bond well to painted surfaces. It is especially useful in sealing rain gutters, chimney flashing, and pavement cracks. It is difficult to apply and should not be used where a finished look is needed. It can also shrink up to 30%. • Latex: Latex is a good interior caulk for use around tubs, showers, tile, plaster, glass, and plastic and is even used to fill nail holes in walls. It is easy to work and can be cleaned up with water but will not bond to metal. When used out-doors, it needs to be painted. Because it is brittle when dry it can be sanded and painted but should not be used where movement is expected. • Acrylics: Like latex, acrylic caulks are water based, can be sanded and painted and are useful for touchup jobs. But because they become brittle, they should not be use where movement is likely.

Winter, 2015-2016 - The NAHI® Forum 31

HOME SAFETY TIPS from the

National Association of Home Inspectors, Inc.

Brought to you courtesy of your local NAHI ® Member ne of the easiest crimes to prevent - burglary is also one of the most common. Somewhere in the United States, there is a burglary committed every 15 seconds. A break-in, even when you’re not there, has a major impact on you and your family’s sense of safety and well-being. Try these simple yet effective antiburglary tips.

Tip #1 - Instead of leaving your valuables such as your wallet on your night stand, store your valuables in a child’s sock drawer. Tip #2 - If your front entrance has a type of decorative glass, be sure your security keypad is NOT visible to the burglar who may peer into the window to notice an unarmed keypad. Tip #3 - Remember, a front door with a mail slot will weaken the integrity of a door making it easier to kick in. Tip #4 - Always leave your car keys on your night stand while you sleep, that will allow you to press the panic button to scare the burglar

intruders to gain window access. That includes a nearby wood pile. Tip #10 - If a hired worker asks to use the bathroom, be sure to make sure he doesn’t unlatch the window lock for future entry. Tip #11 - When making keys, be sure to use a reputable locksmith that is bonded and insured. Tip #12 - No security system in your home? At lease purchase a decal and keep it visible. Tip #13- Join a community watch program in your neighborhood. (Check out www.opid.org)

Tip #5 - Plant thorny-type shrubs, such are rose bushes or bougainvilleas close to your ground-floor windows. Tip #6 - While on vacation, ask you neighbor to remove any flyers stuck in your front door. Tip #7 - Going on a weekend getaway? Don’t pack the car the night before, but wait till morning. Tip #8 - Lower the volume on your phone ringer, so a burglar who is standing at your front door can’t hear it going to voice mail. Tip #9 - Don’t leave ladders around to encourage Photo: Depositphotos/©Mactrunk

32 The NAHI® Forum - Winter, 2015-2016

Download handouts for your customers offered in every bi-monthly member Inspector Field Notes.

• Oil or Resin Based: This class of caulks is most useful at the exterior of a home where it can be used to seal seams or joints. It is generally the least expensive of any of the kinds of caulk and because you generally get what you pay for, it does not last long. It does not adhere well to masonry and it has to be painted. • Combinations: Hybrids of these basic forms of caulk enhance some of the characteristics of the pure form of these products by making them more or less elastic or paintable. Generally speaking, if exterior caulk is cracking, shrinking, or turning to powder, it may be from UV damage, movement, or use of an inappropriate material. If interior caulks are shrinking, cracking, not bonding, or will not take paint, the old material should be removed, the remaining surfaces cleaned, and an appropriate caulk applied.

Did you know?

Six inches of flowing water can knock a person off their feet? Six inches of flowing water can drown a person?

FROM 2004-2013, FLOODING CLAIMED AN AVERAGE OF 75 LIVES PER YEAR IN THE U.S.

Winter, 2015-2016 - The NAHI® Forum 33

HIGHLIGHTS

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36 The NAHI® Forum - Winter, 2015-2016

InspectIT

Let’s talk panic. You know that sinking feeling when you reach for your wallet and it’s not there. Here are four simple things home inspectors can do to protect themselves from identity theft.

DUMP EVERYTHING

...you won’t need, such as extra credit cards, and especially your social security card. As difficult to believe, the leading global information services company, Experian says about a quarter of us carry that card around.

Phony “IRS” threatens fines TAX TIME is near, so be on alert for the IRS scam. The Federal Trade Commission reports that from 2013 to 2014, complaints about the “IRS Scam” increased twentyfold, with more than 54,000 Americans being targeted in 2014. Typically, the scammer calls posing as an “IRS agent” saying back taxes are owed. After threats of penalties and even jail time, the bogus agent turns helpful, providing a solution that involves sending cash in a quick and untraceable way.

Thwart ID Theft PUT THE 800

...numbers for all your credit cards in your phone. Don’t forget the international numbers.

PASSWORD PROTECT

...your smart phones and tablets. This is essential especially if you’ve downloaded banking apps. Make sure you “auto lock” within a minute of two. Make sure you enable the “find my device” or location tracking feature, in case of loss or theft.

TRY TO USE ATMs

HANG UP - And information you provide may mark you for more bogus calls. REPORT THE INCIDENT - Report it the U. S. Treasury inspector general for tax administration at 800-366-4484. If contacted by email, forward it to the IRS at phishing@irs.gov.

USED BOARDING PASSES. Never toss in the trash. Why? Because boarding passes contain more private data than you probably realize. Decoding your boarding pass is actually fairly easy.

Source: SafeBee.com Source: Money Magazine/Nov2015

...in bank branches rather than using small ATMs found in restaurants

Jury Duty Scam Leads to Identity Theft Don’t be caught off guard with this scam. The scammer claims to work for the local court and claims you failed to report for jury duty. He/she tells you that a warrant has been issued for your arrest. Becoming understandably upset about the impending warrant, you let down your guard and provide the personal information. In reality, court workers will never call you to ask for social security numbers, etc. In fact, most courts follow up via snail mail and rarely, if ever, call prospective jurors.

Chilling Identity Theft

If you receive such a call: ASSUME IT IS A SCAM - The IRS doens’t call people about back taxes; it will send you a notice by mail.

or smaller establishments. The banks’ machines will always be more secure.

FACTS

Identity theft is the fastest growing crime, according to the Federal Trade Commission. Experts estimate that about 10 million people become victims each year. That means every minute, 19 people become new victims of identity theft. In fact, according to the US Department of Justice, drug trafficking is now being replaced by identity theft as the number one crime.

Source: Money Magazine/Nov2015

Winter, 2015-2016 - The NAHI® Forum 37

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3-D Inspection Systems, Inc. | 15

chapter contacts ■ Arizona Daniel E. Haydon, CRI, Ph.D. DEC Inspection Services nahidan@msn.com (602) 308-8722

■ Colorado Charlie Van Fleet B Safe & Healthy Home Inspections Cvanfleet56@aol.com (720) 890-9663 ■ Illinois Ken Winter, CRI American Eagle Inspections aehi1199@gmail.com__ (847) 971-8720 ■ central Illinois Pete Edwards Accuspex Home Inspections accuspex@comcast.net (217) 520-2279

38 The NAHI® Forum - Winter, 2015-2016

■ Michigan Steven Burnett, CRI Journey Property Inspections, LLC journeyinspection@yahoo.com (517) 447-3071 ■ New York-Western Paul J. Nagalski, CRI Accurate Home Inspection Services accupaul@rochester.rr.com (716) 681-9739 ■ Ohio Daniel Shields, CRI Shields Home Inspections, LLC Email: shieldsinspect@aol.com Phone: (614) 801-9118 ■ Pennsylvania-SE William Squitieri A-Stat Inspection Services bills@astatinspection.com (215) 421-0560

Winter, 2015-2016 - The NAHI速 Forum 39