GARR HOME INSPECTIONS, LLC

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1 GARR HOME INSPECTIONS, LLC GARR HOME INSPECTION SAMPLE LOUISVILLE, KENTUCKY Prepared for: GARR HOME INSPECTION SAMPLE REPORT Prepared by: Hearthside Court Louisville, KY 40245

2 Page 1 of 36 Table of Contents Definitions 2 General Information 2 Lots and Grounds 9 Exterior Surface and Components 10 Outbuilding 11 Roof 11 Garage/Carport 14 Attic 14 Structure 15 Crawl Space 17 Electrical 18 Air Conditioning 20 Heating System 20 Plumbing 22 Fireplace/Wood Stove 23 Kitchen 24 Bathroom 25 Bedroom 26 Living Space 27 Laundry Room/Area 28 Summary 29

3 Page 2 of 36 Definitions NOTE: All definitions listed below refer to the property or item listed as inspected on this report at the time of inspection A Acceptable Functional with no obvious signs of defect. NP Not Present Item not present or not found. NI Not Inspected Item was unable to be inspected for safety reasons or due to lack of power, inaccessible, or disconnected at time of inspection. M Marginal Item is not fully functional and requires repair or servicing. D Defective Item needs immediate repair or replacement. It is unable to perform its intended function. General Information NOTE TO BUYER: A (BLUE) note signifies a note that the inspector is providing to the buyer as general information. All "BLUE" notes must be read by the buyer to allow them to have additional knowledge that the inspector intends for the buyer to understand. The Pre-Inspection Agreement must be read and is identified in "BLUE" directly below this note. Acceptance of this inspection report and subsequent payment assures that the buyer and inspection representative agree to all terms in the Pre-Inspection Agreement. A (GREEN) note signifies a "MARGINAL" finding that is normal due to the age of the property but is not operating as new. An item identified as "MARGINAL" is not considered to be in new or even like new condition nor operating to new condition standards. A (RED) note signifies a defect was found or a correction is required. All "MARGINAL" and "DEFECTS" are summarized at the end of the report. NOTE TO BUYER: PRE-INSPECTION AGREEMENT For and in consideration of the terms of this Agreement for Home Inspection Services the Inspector and Client agree as follows: 1."Home Inspection" means a visual analysis for the purpose of providing a professional opinion by a licensed home inspector, of the condition of a residential dwelling and the dwelling's attached garages and carports, any reasonable accessible installed components, and the operation of the dwelling's systems, including any controls normally operated by the owner of the dwelling, for systems and components in the standards of practice established by the board. Home inspection shall not include a code compliance inspection, or an inspection required under the National Manufactured Housing Construction and Safety Standards Act of 1974, 42 USC& 5401 et seq.,...or KRS regarding manufactured homes." KRS 198B.700(5). 2."Home Inspector" means an individual who performs a "Home Inspection" for compensation. 3.The INSPECTOR agrees to perform a visual inspection of the subject property and to provide the CLIENT with a written report identifying visually observable major deficiencies of the inspected systems and components that exist at the time of inspection. The report will not be a verbal report. The report will only be a written report. The written report will include the following systems only:

4 Page 3 of 36 General Information (Continued) a)structural CONDITION b)general INTEROIR INCLUDING CEILING, WALLS, WINDOWS, DOORS c)general EXTERIOR INCLUDING ROOF, GUTTER, CHIMNEY, DRAINAGE & GRADING d)attic & BASEMENT/CRAWL SPACE e)insulation AND VENTILATION f)plumbing & WATER HEATER g)heating & CENTRAL AIR CONDITIONING h) ELECTRICAL i)kitchen & APPLIANCES 4.Systems and items which are EXCLUDED from this inspection include, but are not limited to the following: recreational playground facilities, geological and soil conditions, sprinkler systems (fire and lawn), solar systems, water wells below ground septic or drainage systems, pools, spas, saunas, steam rooms, water softeners, solar heating systems, forced air furnace heat exchangers, hard wired smoke detectors, wiring not part of primary electrical distribution systems (including but not limited to: intercoms, cable TV, security systems, audio and computer systems) appliances including portable air conditioning units, odors or noise, any gas leaks, gas appliances, any items considered to be cosmetic. Any comments regarding excluded systems and items are for information only and are not part of the inspection. The presence or absence of pests other than visible wood destroying insects is excluded from this inspection, except where noted for informational purposes. The CLIENT is urged to contact a reputable and licensed specialist if identification and extermination of excluded pest is desired. 5.The inspection and report will be performed according to the standards of The American Society of Home Inspectors (ASHI), and the terms in this agreement shall have the same meaning given them in the ASHI standards. A copy of the ASHI standards will be provided at the client's request. The inspection and report are performed and prepared for the sole, confidential, and exclusive use and possession of the CLIENT. The INSPECTOR accepts no responsibility for use or misinterpretation by third parties. 6.The INSPECTOR is not required to move personal property, debris, furniture, equipment, carpeting, or like materials which may impede or limit visibility. Concealed or latent defects are excluded from the inspection. Equipment and systems will not be dismantled. The inspection is not intended to be technically exhaustive, nor is it a compliance inspection for any governmental codes or regulations. 7.The inspection and report do not address, and are not intended to address, the possible presence of, or danger from asbestos, radon gas, lead paint, urea formaldehyde, soil contamination, absence, presence, or condition of buried oil storage tanks, pesticides, mold and mildew, toxic or flammable chemicals, water or airborne related illness or disease, and all other similar or potentially hazardous substances and conditions. The CLIENT is urged to contact a competent specialist if information, identification or testing of the above is desired. However, a Carbon Monoxide test on the heat system and the hot water heater will be included as part of the inspection and

5 Page 4 of 36 General Information (Continued) additional testing may be performed if specifically ordered and paid for by the CLIENT. 8.The Inspector is not required to: offer or perform any act or service contrary to law; offer warranties or guarantees of any kind; offer or perform engineering, architectural, plumbing, or any other job function requiring an occupational license; perform additional inspections beyond those within the scope of the comprehensive inspection; calculate the strength, adequacy, or efficiency of any system or component; enter any area or perform any procedure which may damage the Property or components or be dangerous to the inspector or other persons; operate any system or components which is shut down or otherwise inoperable; operate any system or component which does not respond to normal operating controls; disturb insulation, move personal items, furniture, wall coverings, carpets and area rugs, equipment, plant life, soil, snow, ice, or debris which obstructs access or visibility, predict future conditions, including but not limited to failure of components; project operating costs of components; evaluate acoustical characteristics of any system or component, operate any built-in appliance. Outdoor temperature may prevent the inspection and operation of the heating/cooling systems and may not disclose defects evident only during operation. 9.NEITHER THE INSPECTION NOR THE INSPECTION REPORT IS A WARRANTY, EXPRESSED OR IMPLIED, REGARDING THE ADEQUACY, PERFORMANCE, OR CONDITION OF ANY INSPECTED STRUCTURE, SYSTEM OR ITEM. CLIENT ACKNOWLEDGES THAT CONDITION IN INSPECTED STRUCTURE, SYSTEM OR ITEM, IS SUBJECT TO CHANGE AFTER REPORT IS ISSUED. THE INSPECTION AND REPORT ARE NOT INTENDED TO REFLECT THE VALUE OF THE PREMISES, OR TO MAKE ANY REPRESENTATION AS TO THE ADVISABILITY OR INADVISABILITY OF PURCHASE OR SUITABILITY OF USE. THE INSPECTION AND REPORT ARE ONLY INTENDED TO EXPRESS THE OPINION OF THE INSPECTOR BASED ON A VISIBLE INSPECTION OF ACCESSIBLE PORTIONS OF STRUCTURE, SYSTEMS AND ITEMS OF EXISTING CONDITIONS, AT THE TIME OF INSPECTION. 10.This is not a code inspection, compliance or non-compliance with applicable regulatory requirements. The Inspector is not required to report on: Life expectancy of any component or system; the methods, materials or costs of repairs; the suitability of the property for any use; compliance or non-compliance with applicable regulatory requirements; the market value or its marketability of the property; the advisability or inadvisability of purchasing the property; any component or system which was not observed; the presence or absence of pests, such as wood damaging organisms, rodents or insects; mold, mildew; cosmetic conditions, underground items, or items not permanently installed; any item, component/system/appliance that may have been recalled by the manufacturer for any reason Notice of home inspector's right to cure before commencement of litigation. Kentucky law requires that you give notice to the Home Inspector and the Home Inspector has the right to cure problems before any action can be taken. The statute also requires that the Home Inspector include the following notice as part of the Pre-Inspection Agreement. The notice required by this section is as follows:

6 Page 5 of 36 General Information (Continued) "CHAPTER 411 OF THE KENTUCKY REVISED STATUTES CONTAINS IMPORTANT REQUIREMENTS YOU MUST FOLLOW BEFORE YOU MAY FILE A LAWSUIT FOR DEFECTIVE CONSTRUCTION AGAINST THE HOME INSPECTOR OF YOUR RESIDENCE. YOU MUST DELIVER TO YOUR HOME INSPECTOR A WRITTEN NOTICE OF ANY CONDITIONS YOU ALLEGE THAT YOUR HOME INSPECTOR FAILED TO INCLUDE IN THE HOME INSPECTION REPORT AND PROVIDE YOUR HOME INSPECTOR THE OPPORTUNITY TO MAKE AN OFFER TO REPAIR OR PAY FOR THE DEFECTS. YOU ARE NOT OBLIGATED TO ACCEPT ANY OFFER MADE BY THE HOME INSPECTOR. THERE ARE STRICT DEADLINES AND PROCEDURES UNDER STATE LAW, AND FAILURE TO FOLLOW THEM MAY AFFECT YOUR ABILITY TO FILE A LAWSUIT." 12.The Client agrees to binding arbitration in accordance with the terms and conditions of this Agreement. Any complaints concerning this inspection, compliance with the Standards of Practice, or breach of this Agreement must be presented to the Inspector. The Client agrees to abide by KRS and KRS that specifically provides that a written agreement to submit any controversy to arbitration is "valid, enforceable and irrevocable". 13.The parties agree that the maximum liability for the Inspector arising from the failure to perform any of the obligations stated in this agreement is limited to an amount NOT TO EXCEED THE FEE PAID FOR THE INSPECTION. 14.In the event the CLIENT files suit against the INSPECTOR and/or its representative, the CLIENT agrees to pay for all of the INSPECTORS legal fees, costs of expert witnesses, court costs, costs of depositions and all other such expenses incurred by the INSPECTOR if the CLIENT fails to prevail in the lawsuit. 15.This report is prepared exclusively for the CLIENT(s) named and is not transferable to anyone in any form. CLIENT(s) gives the permission for the INSPECTOR to discuss the report findings with the real estate agents, specialists or repair persons for the sake of clarification. 16.The inspection report is not intended for use by anyone other than the Client. No third party shall have the right arising from this contract or the Inspection Report. In consideration of the furnishings of the Inspection Report to parties requested by the Client, the Client agrees to indemnify and hold harmless the Inspector for all costs, expenses, legal fees, awards, settlements, and judgments in any legal proceeding brought by any third party who claims the he/she relied on representations made in such Inspection Report and was damaged thereby. Client's request that Home Inspector release copies of the Inspection Report shall be at Client's risk with respect to the contents of this paragraph. 17.The Inspection Report shall be the final exclusive findings of the Home Inspection Company. Client understands and agrees that they will not rely on any oral statements made by the Home Inspector prior to the issuance of the written report. Client further understands and agrees that the Home Inspection Company reserves the right to modify

7 Page 6 of 36 General Information (Continued) the Inspection Report for a period prior to the final issuance to the Client. Revisions may be completed to the Home Inspection Report by the Home Inspector if the report is submitted to the Client within 48 hours of the original Home Inspection Report submission to the Client. 18.Radon is a naturally occurring, colorless, tasteless and odorless radioactive gas produced by the normal decay of uranium and radium in the soil. As a result, virtually all houses have some level of radon. The adverse health effects associated with radon are caused by radioactive particles being trapped in the lungs when you breathe. The only way to know if your home has a radon problem is to have it tested. The Inspector only provides radon testing services when requested by the Client or Client representative. The Client agrees to hold harmless the Inspector in the event subsequent matters arise by reason of the presence of radon gas. 19.Often, after an inspection, repairs are made to some conditions shown in the written report. On request, the Home Inspector will complete a re-inspection for agreed upon fees. If a re-inspection is conducted, the inspection will be a visual, non-invasive, inspection of the repair and the Home Inspector is not responsible for providing any expressed or implied warranties, whether to the serviceability of the repairs, or the quality of the materials or labor used to repair or replace those items requiring re-inspection. 20.Payment is due upon completion of the on-site inspection. 21.This agreement represents the entire agreement between the INSPECTOR and the CLIENT. No change or modification shall be enforceable against either party unless such change or modification is in writing and signed by all parties. This agreement shall be binding and enforceable by the parties, and their heirs, executors, administrators, successors, and assigns. Reading and acknowledging this form either verbally, in writing, or on-line is legally binding. 22.Client understands and agrees that if they are not present at the time of the inspection and did not sign the Pre-Inspection Agreement you, by accepting, paying for, and/or using the Inspection Report you acknowledge and agree to be bound by the terms and conditions of the Pre-Inspection Agreement and further agree that the Pre-Inspection Agreement shall form a part of the Inspection Report. By signing below, you represent that you have the full right, power, and authority to bind you and all others who are part of the Client to the terms of this Agreement. You certify that you have read and understand all items in this Agreement. By my signature below or the acceptance of this report, I acknowledge that I have read this agreement and limitations and the attached report, and that I understand the terms and conditions and I agree to be bound by these. GARR HOME INSPECTIONS LLC

8 Page 7 of 36 General Information (Continued) INSPECTORS KENTUCKY LICENSE NO.: MARK GARR HI-2029 INSPECTORS KENTUCKY LICENSE NO.: TOM WAGNER HI-2502 INSPECTION ADDRESS: CITY: STATE: ZIP CODE: INSPECTION NO.: INSPECTION FEE: ITS' INSPECTOR: DATE: CLIENT OR REPRESENTATIVE SIGNATURE: DATE: PRINT CLIENT Property Information Property Address GARR HOME INSPECTION SAMPLE ADDRESS City LOUISVILLE State KENTUCKY Zip Contact Name N/A Contact Phone N/A Fax N/A Client Information Contact N/A

9 Page 8 of 36 General Information (Continued) Client Name GARR HOME INSPECTION SAMPLE REPORT Client Address N/A City LOUISVILLE State KENTUCKY Zip N/A Client Phone N/A Fax N/A Client NO. 1: N/A Client NO. 2: N/A Inspection Company Inspector Name MARK GARR Kentucky Home Inspectors License No. HI-2029 Company Name Company Address Hearthside Court City Louisville State KY Zip (502) N/A Phone Fax mgarr60@bellsouth.net File Number XX-XXXX Miles One Way: XX.X MILES Home Inspection Received: $XXX.XX Conditions Wood Destroying Insect Inspection Requested: Yes Others Present BUYER'S AGENT AND BUYER Property Occupied VACANT Estimated Age 22 YEARS Entrance Faces N/A Inspection Date 4/1/2011 Start Time 9:00 AM End Time 12:30 PM Electric On Yes No Not Applicable Gas/Oil On Yes No Not Applicable Water On Yes No Not Applicable Temperature 60 DEGREES F Weather CLEAR & SUNNY Soil Conditions DRY Space Below Grade CRAWL SPACE Building Type SINGLE FAMILY Garage ATTACHED Sewage Disposal CITY How Verified MULTIPLE LISTING SERVICE Water Source CITY How Verified MULTIPLE LISTING SERVICE

10 Page 9 of 36 Lots and Grounds A NP NI M D Driveway: CONCRETE Walks: CONCRETE SIDEWALK SETTLED (TRIP HAZARD) - The sidewalk has settled in multiple locations that are considered TRIP HAZARDS. Recommend correction by a qualified contractor to reduce the potential for future injury from trips and falls. 3. FRONT PORCH 4. PORCH FRONT: CONCRETE 5. Front Steps/Stoops: CONCRETE 6. SIDE PORCH 7. PORCH SIDE: NONE 8. Side Steps/Stoops: NONE 9. REAR PORCH PORCH REAR: NONE Rear Steps/Stoops: NONE Balcony: NONE Grading: MINOR SLOPE Swale: ADEQUATE SLOPE AND DEPTH FOR DRAINAGE Vegetation: ASSORTMENT Window Wells: N/A Retaining Walls: N/A Basement Stairwell: N/A Basement Stairwell Drain: N/A Exterior Surface Drain: N/A Fences: NONE Lawn Sprinklers: NONE

11 Page 10 of 36 Exterior Surface and Components A NP NI M D UNKNOWN Exterior Surface 1. Type: BRICK WITH ALUMINUM TRIM 2. TRIM: ALUMINUM 3. FASCIA: ALUMINUM 4. SOFFITS: VINYL 5. FRONT DOOR INFORMATION 6. FRONT DOOR BELL: HARD WIRED 7. Front Entry Door: METAL ENTRY DOOR 8. Front Storm Door: 9. SIDE DOOR INFORMATION 10. SIDE DOOR BELL: NONE 11. Side Entry Door: NONE 12. Side Storm Door: NONE 13. REAR DOOR INFORMATION 14. REAR DOOR BELL: HARD WIRED 15. Rear Entry Door: METAL ENTRY DOOR 16. Rear Storm Door: NONE 17. REAR LOWER PATIO DOORS 18. REAR LOWER PATIO DOOR BELL: NONE 19. Rear Lower Patio Entry Door: METAL ENTRY DOOR 20. Rear Lower Patio Storm Door: NONE 21. EXTERIOR WINDOWS 22. Exterior WINDOWS: VINYL DOUBLE HUNG 23. STORM WINDOWS: NONE 24. WINDOW SCREENS: NONE 25. BASEMENT WINDOWS: NONE 26. EXTERIOR ELECTRICITY 27. Exterior LIGHTING: SURFACE MOUNT 28. Exterior ELECTRICAL OUTLETS: 110 VAC GFCI 29. EXTERIOR VENTS & DRAIN LINES 30. RADON VENT (EXTERIOR): NOT PRESENT 31. BATHROOM VENT (EXTERIOR): NOT PRESENT 32. FIREPLACE VENT (EXTERIOR): NOT PRESENT 33. FURNACE VENT (EXTERIOR): NOT PRESENT 34. SUMP PUMP VENT (EXTERIOR): NOT PRESENT 35. EXTERIOR HOSE BIBS & GAS METER 36. Hose Bibs: ROTARY WATER PRESSURE NOTE - Normal water pressure is between 40 and 80 PSI for exterior hose bibs. The existing pressure was (80) PSI and is considered to be acceptable. No action required Gas Meter: EXTERIOR SIDE OF HOUSE Main Gas Valve: LOCATED AT GAS METER

12 Page 11 of 36 Outbuilding A NP NI M D REAR YARD Outbuilding 1. Exterior Surface: WOOD 2. Roof: Asphalt shingle 3. Roof Structure: 4. Ceiling: 5. Walls: WOOD 6. Floor: WOOD 7. Foundation: 8. Doors: WOOD 9. Windows: 10. Electrical: 11. Plumbing: 12. HVAC Source: 13. Gutters: 14. Downspouts: 15. Leader/Extension: Roof A NP NI M D 1. General Roof Information: General Information Not Related To The Roof Inspected But Regarding All Roofs: There are not warranties as to whether the roof has leaked, leaks now, or will leak in the future. Remaining roof life conclusions are estimates only and not a warranty. We recommend that a qualified roofing contractor be consulted to determine any repair costs, estimates or repairs. It is virtually impossible to detect a leak except as it is occurring or by completing specific water tests, which is beyond the scope of this service. Even water stains on ceilings or on the framing within attics will not confirm an active leak. Only a qualified roofer can provide guarantees that a roof will not leak. This inspection service does not provide such guarantees. We will examine every roof, evaluate it, and even attempt to approximate its age, but we cannot predict life expectancy nor guarantee that it will not leak. The sellers of a home will generally have the most comprehensive information available therefore, we recommend that you ask the sellers about the roof and that you either include comprehensive roof coverage in your home insurance policy. You may even decide to obtain roof certification from an established local roofing company. Main Roof Surface 2. Method of Inspection: ON ROOF 3. Photos of Roof Pitch: GOOD PHOTOS OF ROOF

13 Page 12 of 36 Roof (Continued) 4. Material: ASPHALT SHINGLE DEFECTIVE ROOF NOTE - The roof is considered to be at 90% of its life span. The roof shows signs of normal deterioration for the age of the roof and the quality of the shingle. 1. The shingles have lost much of the sediment utilized for roof protection. 2. Some shingles are damaged or torn. 3. There were nail pops present on the roof under the asphalt shingles. The nails were pushing through the asphalt shingle. Recommend re-securing the nails and applying roofing tar or sealant on the top of the nail heads to reduce the potential for future nail pops. Recommend evaluation by a qualified roofing contractor. 5. Note To Buyer: Normal Life Of Asphalt Shingle Roof Is 15 To 20 Years. Metal Roof 20 To 35 Years. Clay Tile 30 To 75 Years. Wood Shingle Or Shake 15 to 20 Years. 6. Type: GABLE 7. Approximate Age: 20 YEARS 8. Flashing: ALUMINUM 9. Valleys: ASPHALT SHINGLES 10. Skylights: NONE

14 Page 13 of 36 Roof (Continued) 11. Plumbing Vents: PVC RUBBER BOOT AT PLUMBING VENT DEFECTIVE The rubber boot at the plumbing vent was cracking and it is considered defective. Recommend boot replacement to reduce the potential for future leaking into the attic area. Recommend replacement by a qualified contractor Roof Vents: ROOF & SOFFIT VENTS Furnace Vent: METAL Electrical Mast: MAST WITH TIE BACK & DRIP LOOP Gutters: ALUMINUM FULL OF WATER - The gutter was not draining as required and it was full of water. Recommend correction to allow for proper water distribution through the gutters and reduce the potential for future damage from the gutter pulling away from the structure. 16. Downspouts: ALUMINUM 17. Leader/Extension: ALUMINUM CENTER Chimney 18. Chimney: BRICK CHIMNEY CAP REQUIRED - The chimney stack did not have a chimney cap installed. A chimney cap is recommended to reduce the potential for future moisture intrusion. Moss growth was present in the chimney stack due to the present exposure. Recommend evaluation and correction by a qualified contractor. 19. Flue/Flue Cap: CLAY WITH MORTAR CAP

15 Page 14 of 36 Roof (Continued) 20. Chimney Flashing: METAL Garage/Carport A NP NI M D REAR ENTRY Garage 1. Type of Structure: DETACHED GARAGE Car Spaces: 2 CAR 2. Garage Doors: ALUMINUM 3. Door Operation: 1 MECHANIZED 4. Door Opener No. 1: LIFT MASTER 5. Door Opener No. 2: N/A 6. Roof Material: ASPHALT SHINGLE SAME AS HOUSE - REFERENCE THE ROOF SECTION OF THIS REPORT Exterior Surface: BLOCK WITH WOOD TRIM Roof Structure: 2 X 6 RAFTER Service Doors: METAL Ceiling: PAINT Walls: BLOCK Floor/Foundation: POURED CONCRETE SLAB Hose Bibs: NONE Electrical: 110VAC & 110VAC GFCI Heating: NONE Windows: METAL SLIDING Gutters: Aluminum FULL OF WATER - The gutter was not draining as required and it was full of water. Recommend correction to allow for proper water distribution through the gutters and reduce the potential for future damage from the gutter pulling away from the structure Downspouts: Aluminum Leader/Extensions: Aluminum Attic A NP NI M D 1. General Attic Information: General Information Not Related To The Attic Inspected But Regarding All Attics: Roof drainage problems and leaking cannot be adequately determined in dry weather. ATTACHED GARAGE Attic 2. Method of Inspection: IN THE ATTIC 3. Roof Framing: 2 X 6 RAFTER 4. Sheathing: OSB STRANDED BOARD

16 Page 15 of 36 Attic (Continued) Ventilation: ROOF & SOFFIT VENTS Insulation: TREATED BLOWN-IN FIBERGLASS (R3.0) INSUFFICIENT INSULATION was not sufficient in the Recommend installation of insulation by a qualified The insulation attic area. additional contractor. Insulation Depth: 2" PLUS Insulation R-Factor: APPROXIMATELY R7 Vapor Barrier: Attic Fan: House Fan: Moisture Penetration: NO MOISTURE NOTED DURING THE INSPECTION Bathroom Fan Venting: ELECTRIC CEILING FAN VENT HOSE INSTALLATION DEFECTIVE (SINGLE VENT) - The bathroom vent is venting directly into the attic. This may cause frost and moisture damage depending on the existing season. Recommend evaluation and correction by a qualified contractor to allow for the vent to be routed to the exterior of the home. 14. Structure A NP NI M D 1. General Foundation Information: General Information Not Related To The Foundation Inspected But Regarding All Foundations: Our inspection of slabs conforms to industry standards. We examine the visible portion of the walls on the exterior of the structure for any evidence of significant cracks or structural deformation. However, we do not move furniture or lift carpeting and padding to look for cracks and we do not utilize any specialized tooling or measuring devices to establish relative elevations or determine any degree of differential settling. Many slabs are built or move out of level but the average person would not realize this until there is a difference of more than 1 inch in 20 feet, which most authorities describe as being tolerable. Many slabs are found to contain cracks when the carpet and padding are removed, but there is no absolute standard for evaluating them. Those that are less than 1/4" and which exhibit no significant vertical or horizontal displacement are not regarded as being structurally threatening. They typically result from common shrinkage, but can also be caused by a deficient mixture of concrete, deterioration over time, seismic activity, adverse soil conditions, and poor drainage. If they are not sealed they

17 Page 16 of 36 Structure (Continued) may allow moisture intrusion. We may not recommend that you consult with a structural engineer or a foundation contractor, but this should not deter you from seeking the opinion of such an expert. 2. Structure Type: WOOD FRAME 3. Differential Movement: NO MOVEMENT OR DISPLACEMENT NOTED DURING THE INSPECTION 4. Beams: WOOD 5. Foundation: BLOCK 6. Bearing Walls: FRAME 7. Joists/Trusses: 2 X Piers/Posts: BLOCK PIERS & STEEL POSTS PIN POSTS UTILIZED - It was noted that PIN POSTS were utilized to secure the main beam in the basement. These pin posts were set in the concrete but it should be noted that pin posts are considered a temporary posts in structural installations. Solid metal posts are desired for this installation. 9. Subfloor: PLYWOOD

18 Page 17 of 36 Crawl Space A NP NI M D REAR YARD Crawl Space 1. Method of Inspection: IN THE CRAWL SPACE 2. Access: WOOD ACCESS DOOR 3. Moisture Penetration: PRESENT IN MULTIPLE LOCATIONS WATER POOLING PRESENT - Pooling water was present in the crawl space on the LEFT side of the house due to poor grading at the exterior of the house. Recommend water removal and grading correction to correct this issue. 4. Moisture Location: NONE NOTED DURING THE INSPECTION 5. Ventilation: CRAWL SPACE VENTS 6. Insulation: FIBERGLASS BATTING (R3.0) INSULATION NOT SECURED (MOISTURE PRESENT) - There were multiple locations where the crawl space insulation was not properly secured and the insulation was laying on the ground. All wet insulation should be replaced. Recommend correction by a qualified contractor Insulation R-Factor: APPROXIMATELY R12 Beams & Wood Structure: WOOD Walls: BLOCK Moisture & Vapor Barrier: NONE NOTED DURING THE INSPECTION Sump Pump: NONE Electrical: NONE HVAC Source: NONE

19 Page 18 of 36 Electrical A NP NI M D 1. General Electrical Information: General Information Not Related To The Electrical System Inspected But Regarding All Electrical Systems: By today's standards, service capacity should be at least 100 amps. If the client has an excessive number of appliances, service capacity of 100 amps may not be adequate. Individual circuits might not be adequate depending on the number of appliances being utilized on the circuit. Additionally, some insurance companies decline to provide homeowner's insurance if service capacity is not known or is less than 100 amps Service Amps: 200 AMPS Volts: VAC 5. Service: ALUMINUM VAC Branch Circuits: COPPER VAC Circuits: COPPER & ALUMINUM 8. Aluminum Wiring: 9. Conductor Type: N/A 10. Ground: PLUMBING GROUND EXTERIOR INSTALLATION Electric Panel 13. Manufacturer: FEDERAL PACIFIC 1. SEVERE CORROSION PRESENT - There was SEVERE CORROSION present at the exterior electrical panel. Recommend evaluation by a licensed electrical contractor. 2. ************FEDERAL PACIFIC ELECTRICAL PANEL************** Federal Pacific Electrical Panel Circuit Breakers have a history of not tripping when circuit overloading conditions exists. Federal Pacific Electric "STAB-LOC" service panels and breakers are a latent hazard and can fail to trip in response to over current, leading to electrical fires. The breakers may also fail to shut-off internally even if the toggle is switched to the "OFF" position. Some double-pole (240-Volt) FPE circuit breakers and single-pole FPE Stab-Loc circuit breakers simply do not work safely. There are other panel defects independent of the circuit breaker problems, panel and panel-bus fires and arcing failures of the equipment. The failure rates for these circuit breakers were and still are significant. In some cases failure to trip occurs 60% of the time which can be a serious fire and electrical shock hazard. Failures are documented in the CPSC Study and by independent research. Recommend review and evaluation by a licensed electrician to determine if this particular panel and breakers require replacement.

20 Page 19 of 36 Electrical (Continued) Manufacturer: (continued) 14. Electrical Panel Cover: GOOD CONDITION 15. Maximum Capacity: 125 AMP 16. Main Breaker Size: NOT PRESENT 17. Breakers: STAB-LOC FEDERAL PACIFIC STAB-LOC BREAKERS - "See Note Above For Federal Pacific Panels and Stab-Loc Circuit Breakers". 18. Fuses: NONE 19. AFCI: NONE 20. GFCI: NONE 21. Is the panel bonded? Yes No

21 Page 20 of 36 Air Conditioning A NP NI M D HALLWAY CLOSET AC System 3. A/C System Operation: FUNCTIONAL DURING THE HOME INSPECTION 4. Condensate Removal: PLASTIC TUBING 5. Exterior Unit: PAD MOUNTED 6. Note To Buyer: Normal Life of AC Compressor is 8 to 15 Years 7. Manufacturer: ARCO-AIRE 8. Model Number: Serial Number: Area Served: WHOLE BUILDING Approximate Age: 8 YEARS 10. Fuel Type: 220 VAC Temperature Differential: N/A 11. Type: CENTRAL AIR CONDITIONNG Capacity: 3.0 TON 12. Visible Coil: COPPER CORE WITH ALUMINUM FINS 13. Refrigerant Lines: SERVICEABLE CONDITION 14. Electrical Disconnect: DISCONNECT AT EXTERIOR UNIT 15. Exposed Ductwork: METAL DUCTWORK 16. Note To Buyer: Normal Life of Disposable Air Filter is 60 to 90 Days. 5 to 10 Years for Electronic Air Filter. 17. Thermostats: PROGRAMMABLE 18. Blower Fan/Filters: DIRECT DRIVE WITH DISPOSABLE FILTER Heating System A NP NI M D 1. General Heating Information: General Information Not Related To The Furnace/HVAC Inspected But Regarding All Furnace/HVAC Systems: We do make the attempt to determine the adequacy of the HVAC System. Generally 1 ton is needed for every 600 square feet of living space. Two story structures require 10% more heating capacity. A licensed HVAC contractor is recommended to determine system adequacy. Hot air furnace heat exchangers cannot be fully assessed within the scope of a standard inspection. Complete heat exchanger evaluation requires the use of specialized equipment common only to licensed HVAC contractors. Independent evaluation by a specialist is advised, particularly if the unit is older and/or exhibits wear HALLWAY CLOSET Heating System

22 Page 21 of 36 Heating System (Continued) 4. Heating System Operation: AT THE END OF ITS LIFE EXPECTANCY FURNACE UNIT NEARING THE END OF ITS USEFUL LIFE - The internal FURNACE UNIT was nearing the end of its useful life due to the age of the unit (23 years old). Recommend evaluation by a licensed HVAC contractor. 5. Note To Buyer: Normal Life of Electric Furnace is 15 to 20 Year. Gas Forced Air Furnace is 15 to 20 Years. 6. Manufacturer: FEDDERS 7. Model Number: Serial Number: Type: FORCED AIR Capacity: 66,000 BTUH INPUT 9. Area Served: WHOLE BUILDING Approximate Age: 8 YEARS 10. Fuel Type: NATURAL GAS 11. Heat Exchanger: 4 Burner Normal Life of Oil or MAJOR DEBRIS PRESENT IN HEAT EXCHANGER The furnace heat exchanger was extremely dirty with rust during the inspection. Cracks are often hidden inside the unit but there were no external signs of damage other than the rust. To determine the condition of heat exchangers, major disassembly is required. Recommend cleaning and evaluation by a licensed HVAC contractor. 12. Unable to Inspect: N/A

23 Page 22 of 36 Heating System (Continued) Blower Fan/Filter: DIRECT DRIVE WITH DISPOSABLE FILTER Electrical Disconnect: ON/OFF SWITCH Distribution: METAL DUCT ASBESTOS TAPE - There was evidence of asbestos tape present on the existing ductwork in the basement ceiling. It is NOT RECOMMENDED that the buyer remove this item as it may cause additional heath issues related to the removal process. Only a professional should accomplish this task. The removal process may be costly if accomplished correctly by a trained professional. Recommend covering the existing asbestos tape with a HVAC metallic ductwork tape to keep the asbestos from blowing in the basement. 16. Flue Pipe: METAL 17. Thermostats: PROGRAMMABLE 18. Suspected Asbestos: Yes 19. Humidifier: N/A Plumbing A NP NI M D 1. General Plumbing Information: General Information Not Related To The Plumbing System Inspected But Regarding All Plumbing Systems: We attempt to evaluate drain pipes by flushing every drain that has an active fixture while observing the drains for leaks and blockages. A video scan of the system is the only positive way to determine conclusive faults. Blockages will occur, usually relative in severity to the age of the system and will range from minor ones in the branch lines or at traps below the sinks, tubs, and showers, to major blockages in the main lines. The minor blockages are easily cleared by chemical means or by removing and cleaning the traps. However, if tree roots grow into the main drain that connects the house to the public sewer, repairs could become expensive including replacing the entire main line. For these reasons, we recommend that you ask the seller's if they have ever experienced any drainage problems, or you may wish to have the main waste line video scanned before closing. Failing this, you should obtain an insurance policy that covers blockages and damage to the main line Service Line: COPPER 5. Main Water Shutoff: ADJACENT TO WATER HEATER

24 Page 23 of 36 Plumbing (Continued) 6. Water Lines: COPPER 7. Note To Buyer: Normal Life of Copper Water Pipes is 60+ Years. 20 to 30 Years. PVC Pipes Normal Life of a Lifetime. 8. Drain Pipes: PVC 9. Service Caps: ACCESSIBLE 10. Vent Pipes: METAL 11. Gas Service Lines: CAST IRON Galvanized Water Pipes ST FLOOR HALLWAY CLOSET Water Heater 14. Water Heater Operation: FUNCTIONAL AT THE TIME OF THE INSPECTION 15. Manufacturer: BRADFORD WHITE 16. Model Number: Serial Number: Type: NATURAL GAS Capacity: 40 GALLON 18. Approximate Age: 8 YEARS Area Served: WHOLE BUILDING 19. Note To Buyer: Normal Life of Hot Water Tank is 8 to 12 Years. Electric will normally last longer than Gas or Oil Fired Heaters. 20. Flue Pipe: METAL 21. TPRV and Drain Tube: PVC Fireplace/Wood Stove A NP NI M D ST FLOOR FAMILY ROOM Fireplace 3. Freestanding Stove: 4. Fireplace Construction: PREFAB 5. Type: GAS LOG 6. Fireplace Insert: STANDARD - NO FAN 7. Smoke Chamber: METAL 8. Flue: METAL 9. Damper: NONE 10. Hearth: FLUSH MOUNTED

25 Page 24 of 36 Kitchen A NP NI M D 1ST FLOOR Kitchen 1. KITCHEN STOVETOP & OVEN 2. Note To Buyer: Normal Life of Range/Oven is 15 to 20 Years 3. Stove Top/Range: ADMIRAL 4. Model Number: N/A Serial Number: N/A 5. Upper Oven: N/A N/A 6. Model Number: Serial Number: N/A 7. Lower Oven: ADMIRAL 8. Model Number: N/A Serial Number: N/A 9. KITCHEN MICROWAVE OVEN 10. Microwave/Convection Oven: ADMIRAL N/A 11. Model Number: 12. KITCHEN STOVETOP VENTILATOR 13. Ventilator: INTEGRAL TO THE MICROWAVE 14. Model Number: N/A Serial Number: N/A 15. KITCHEN DISPOSAL 16. Note To Buyer: Normal Life of Disposal is 5 to 12 Years 17. Disposal: BADGER 18. Model Number: N/A Serial Number: N/A 19. KITCHEN DISHWASHER 20. Note To Buyer: Normal Life of Dishwasher is 5 to 12 Years 21. Dish Washer: AMANA 22. Model Number: N/A Serial Number: N/A 23. Air Gap Present? YES NO 24. KITCHEN TRASH COMPACTOR 25. Trash Compactor: N/A 26. Model Number: N/A Serial Number: N/A 27. KITCHEN REFRIGERATOR 28. Note To Buyer: Normal Life of Refrigerator is 15 to 20 Years 29. Refrigerator: MAYTAG 30. Model Number: N/A Serial Number: N/A 31. KITCHEN DETAILS 32. Faucets/Traps: FIXTURE WITH PVC TRAP 33. Sink/Basin: STAINLESS STEEL DOUBLE 34. Counter Tops: LAMINATE 35. Cabinets: WOOD 36. Pantry: MEDIUM 37. Ceiling: PAINT 38. Walls: PAINT 39. Floor: VINYL FLOOR COVERING 40. Electrical: 110 VAC 41. Doors: WOOD 42. Windows: VINYL DOUBLE HUNG 43. HVAC Source: AIR EXCHANGE VENTILATION

26 Page 25 of 36 Bathroom A NP NI M D ST FLOOR HALLWAY Bathroom 3. Closet: NONE 4. Ceiling: PAINT 5. Walls: PAINT 6. Floor: VINYL FLOOR COVERING 7. Doors: WOOD 8. Windows: VINYL DOUBLE HUNG 9. Electrical: 110 VAC GFCI 10. Counter/Cabinet: SOLID SURFACE COUNTER WITH WOOD CABINET 11. Sink/Basin: MOLDED SINGLE BOWL 12. Faucets/Traps: FIXTURE WITH PVC TRAP 13. Tub/Surround: PORCELAIN TUB WITH CERAMIC SURROUND 14. Shower/Surround: TUB & SHOWER COMBINATION 15. Spa Tub/Surround: NONE 16. Toilets: STANDARD 17. HVAC Source: AIR EXCHANGE VENTILATION 18. Ventilation: ELECTRIC VENTILATION FAN ST FLOOR MASTER Bathroom 21. Closet: WALK-IN 22. Ceiling: PAINT 23. Walls: PAINT 24. Floor: CERAMIC TILE 25. Doors: WOOD 26. Windows: NON OPENING 27. Electrical: 110 VAC GFCI 28. Counter/Cabinet: SOLID SURFACE COUNTER WITH WOOD CABINET 29. Sink/Basin: MOLDED DOUBLE BOWL 30. Faucets/Traps: FIXTURE WITH PVC TRAP 31. Tub/Surround: NONE 32. Shower/Surround: CERAMIC WITH CERAMIC SURROUND 33. SpaTub/Surround: FIBERGLASS TUB WITH SOLID SURFACE SURROUND 34. Toilets: GERBER 35. HVAC Source: AIR EXCHANGE VENTILATION 36. Ventilation: ELECTRIC VENTILATION FAN

27 Page 26 of 36 Bedroom A NP NI M D ST FLOOR MASTER BEDROOM Bedroom 3. Closet: WALK-IN 4. Ceiling: PAINT 5. Walls: PAINT 6. Floor: CARPET 7. Doors: WOOD 8. Windows: VINYL DOUBLE HUNG 9. Electrical: 110 VAC 10. HVAC Source: AIR EXCHANGE VENTILATION 11. Smoke Detector: Hard wired ST FLOOR RIGHT Bedroom 14. Closet: MEDIUM 15. Ceiling: PAINT 16. Walls: PAINT 17. Floor: CARPET 18. Doors: WOOD 19. Windows: VINYL DOUBLE HUNG 20. Electrical: 110 VAC 21. HVAC Source: AIR EXCHANGE VENTILATION 22. Smoke Detector: Hard wired ST FLOOR LEFT Bedroom 25. Closet: MEDIUM 26. Ceiling: PAINT 27. Walls: PAINT 28. Floor: CARPET 29. Doors: WOOD 30. Windows: VINYL DOUBLE HUNG 31. Electrical: 110 VAC 32. HVAC Source: AIR EXCHANGE VENTILATION 33. Smoke Detector: Hard wired

28 Page 27 of 36 Living Space ST FLOOR ENTRYWAY Living Space 3. Closet: SMALL 4. Ceiling: PAINT 5. Walls: PAINT 6. Floor: HARDWOOD 7. Doors: WOOD 8. Windows: 9. Electrical: 110 VAC 10. HVAC Source: AIR EXCHANGE VENTILATION ST FLOOR DINING ROOM Living Space 14. Closet: NONE 15. Ceiling: PAINT 16. Walls: PAINT 17. Floor: HARDWOOD 18. Doors: WOOD 19. Windows: VINYL DOUBLE HUNG 20. Electrical: 110 VAC 21. HVAC Source: AIR EXCHANGE VENTILATION 22. A NP NI M D ST FLOOR FAMILY ROOM Living Space 25. Closet: NONE 26. Ceiling: PAINT 27. Walls: PAINT 28. Floor: HARDWOOD 29. Doors: WOOD 30. Windows: VINYL DOUBLE HUNG 31. Electrical: 110 VAC 32. HVAC Source: AIR EXCHANGE VENTILATION 33. Smoke Detector: NONE ST FLOOR HALLWAY Living Space 36. Closet: 2 MEDIUM 37. Ceiling: PAINT 38. Walls: PAINT 39. Floor: HARDWOOD 40. Doors: WOOD 41. Windows: 42. Electrical: 110 VAC 43. HVAC Source: AIR EXCHANGE VENTILATION

29 Page 28 of 36 Living Space (Continued) 44. Smoke Detector: Hard wired Laundry Room/Area A NP NI M D KITCHEN Laundry Room/Area 1. Closet: NONE 2. Ceiling: PAINT 3. Walls: PAINT 4. Floor: VINYL FLOOR COVERING 5. Doors: WOOD 6. Windows: 7. Electrical: 110 VAC 8. Dryer 220 VAC Connection: PRESENT 9. Smoke Detector: NONE 10. HVAC Source: AIR EXCHANGE VENTILATION 11. Laundry Tub: 12. Laundry Tub Drain: 13. Washer Hose Bib: ROTARY 14. Washer and Dryer Electrical: VAC 15. Dryer Vent: METAL FLEX EXTERIOR BAFFLE DOOR - The baffle door for the dryer vent would not CLOSE properly at the exterior of the house because it was full of lint. Recommend correction to reduce the potential for bug & rodent intrusions as well as fires Dryer Gas Line: N/A Washer Drain: WALL MOUNTED DRAIN Floor Drain: NOT PRESENT

30 Page 29 of 36 Defective Summary This summary is not the entire report. The complete report may include additional information of concern to the client. It is recommended that the client read the complete report. Lots and Grounds 1. Walks: CONCRETE SIDEWALK SETTLED (TRIP HAZARD) - The sidewalk has settled in multiple locations that are considered TRIP HAZARDS. Recommend correction by a qualified contractor to reduce the potential for future injury from trips and falls. Roof 2. Main Roof Surface Material: ASPHALT SHINGLE DEFECTIVE ROOF NOTE - The roof is considered to be at 90% of its life span. The roof shows signs of normal deterioration for the age of the roof and the quality of the shingle. 1. The shingles have lost much of the sediment utilized for roof protection. 2. Some shingles are damaged or torn. 3. There were nail pops present on the roof under the asphalt shingles. The nails were pushing through the asphalt shingle. Recommend re-securing the nails and applying roofing tar or sealant on the top of the nail heads to reduce the potential for future nail pops. Recommend evaluation by a qualified roofing contractor.

31 Page 30 of 36 Roof (Continued) Material: (continued) 3. Plumbing Vents: PVC RUBBER BOOT AT PLUMBING VENT DEFECTIVE - The rubber boot at the plumbing vent was cracking and it is considered defective. Recommend boot replacement to reduce the potential for future leaking into the attic area. Recommend replacement by a qualified contractor. 4. Gutters: ALUMINUM FULL OF WATER - The gutter was not draining as required and it was full of water. Recommend correction to allow for proper water distribution through the gutters and reduce the potential for future damage from the gutter pulling away from the structure. 5. CENTER Chimney Chimney: BRICK CHIMNEY CAP REQUIRED - The chimney stack did not have a chimney cap installed. A chimney cap is recommended to reduce the potential for future moisture intrusion. Moss growth was present in the chimney stack due to the present exposure. Recommend evaluation and correction by a qualified contractor.

32 Page 31 of 36 Roof (Continued) Chimney: (continued) Garage/Carport 6. REAR ENTRY Garage Roof Material: ASPHALT SHINGLE SAME AS HOUSE - REFERENCE THE ROOF SECTION OF THIS REPORT 7. REAR ENTRY Garage Gutters: Aluminum FULL OF WATER - The gutter was not draining as required and it was full of water. Recommend correction to allow for proper water distribution through the gutters and reduce the potential for future damage from the gutter pulling away from the structure. Attic 8. ATTACHED GARAGE Attic Insulation: TREATED BLOWN-IN FIBERGLASS (R3.0) INSUFFICIENT INSULATION - The insulation was not sufficient in the attic area. Recommend installation of additional insulation by a qualified contractor.

33 Page 32 of 36 Defective Summary (Continued) 9. ATTACHED GARAGE Attic Bathroom Fan Venting: ELECTRIC CEILING FAN VENT HOSE INSTALLATION DEFECTIVE (SINGLE VENT) - The bathroom vent is venting directly into the attic. This may cause frost and moisture damage depending on the existing season. Recommend evaluation and correction by a qualified contractor to allow for the vent to be routed to the exterior of the home. Structure 10. Piers/Posts: BLOCK PIERS & STEEL POSTS PIN POSTS UTILIZED - It was noted that PIN POSTS were utilized to secure the main beam in the basement. These pin posts were set in the concrete but it should be noted that pin posts are considered a temporary posts in structural installations. Solid metal posts are desired for this installation.

34 Page 33 of 36 Defective Summary (Continued) Crawl Space 11. REAR YARD Crawl Space Moisture Penetration: PRESENT IN MULTIPLE LOCATIONS WATER POOLING PRESENT - Pooling water was present in the crawl space on the LEFT side of the house due to poor grading at the exterior of the house. Recommend water removal and grading correction to correct this issue. 12. REAR YARD Crawl Space Insulation: FIBERGLASS BATTING (R3.0) INSULATION NOT SECURED (MOISTURE PRESENT) - There were multiple locations where the crawl space insulation was not properly secured and the insulation was laying on the ground. All wet insulation should be replaced. Recommend correction by a qualified contractor. Electrical 13. EXTERIOR INSTALLATION Electric Panel Manufacturer: FEDERAL PACIFIC 1. SEVERE CORROSION PRESENT - There was SEVERE CORROSION present at the exterior electrical panel. Recommend evaluation by a licensed electrical contractor. 2. ************FEDERAL PACIFIC ELECTRICAL PANEL************** Federal Pacific Electrical Panel Circuit Breakers have a history of not tripping when circuit overloading conditions exists. Federal Pacific Electric "STAB-LOC" service panels and breakers are a latent hazard and can fail to trip in response to over current, leading to electrical fires. The breakers may also fail to shut-off internally even if the toggle is switched to the "OFF" position. Some double-pole (240-Volt) FPE circuit breakers and single-pole FPE Stab-Loc circuit breakers simply do not work safely. There are other panel defects independent of the circuit breaker problems, panel and panel-bus fires and arcing failures of the equipment. The failure rates for these circuit breakers were and still are significant. In some cases failure to trip occurs 60% of the time which can be a serious fire and electrical shock hazard. Failures are documented in the CPSC Study and by independent research. Recommend review and evaluation by a licensed electrician to determine if this particular panel and breakers require replacement.

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