PROPERTY INSPECTION REPORT

1st Inspect 276 Black Oak Cir Coppell, TX 75019 214-718-6824 972-691-3691 Fax PROPERTY INSPECTION REPORT Prepared For: A Great Client (Name of Client) Concerning: 555 Some St, Frisco, TX, 75035 (Address or Other Identification of Inspected Property) By: Rodney Livermore TREC #7996 06/03/06 (Name and License Number of Inspector) (Date) (Name, License Number and Signature of Sponsoring Inspector, if required) The inspection of the property listed above must be performed in compliance with the rules of the Texas Real Estate Commission (TREC). The inspection is of conditions which are present and visible at the time of the inspection, and all of the equipment is operated in normal modes. The inspector must indicate which items are in need of repair or are not functioning and will report on all applicable items required by TREC rules. This report is intended to provide you with information concerning the condition of the property at the time of inspection. Please read the report carefully. If any item is unclear, you should request the inspector to provide clarification. It is recommended that you obtain as much history as is available concerning this property. This historical information may include copies of any seller's disclosures, previous inspection or engineering reports, reports performed for or by relocation companies, municipal inspection departments, lenders, insurers, and appraisers. You should attempt to determine whether repairs, renovation, remodeling, additions or other such activities have taken place at this property. Property conditions change with time and use. Since this report is provided for the specific benefit of the client(s), secondary readers of this information should hire a licensed inspector to perform an inspection to meet their specific needs and to obtain current information concerning this property. ADDITIONAL INFORMATION PROVIDED BY INSPECTOR This report is only good the day and time of the inspection and does not warranty any item inspected nor guarantee operational condition after the inspection. This report should not be considered a complete list of all defects with the property. And, is limited to items that are Readily Accessible and noted by the inspector at the time of the report. The utility company may pressure test the gas line prior to turning on the service. Pressure testing the line is beyond the scope of this inspection and may find gas like leaks not noted at the time of inspection. I recommend contacting the local gas company regarding start up procedure prior to closing on the property and having the line pressure checked by them if available. All repairs recommended in this report should be performed by a qualified specialist. For the purpose of this report the house faces North Inspection Environment: _Vacant Weather: _Sunny Temp: _92 O Access: _Buyers Agent Promulgated by the Texas Real Estate Commission(TREC) P.O. Box 12188, Austin, TX 78711-2188, 1-800-250-8732 or (512) 459-6544 (http:\\www.trec.state.tx.us). REI 7A-0 Page 1 of 17

Additional pages may be attached to this report. Read them very carefully. This report may not be complete without the attachments. If an item is present in the property but is not inspected, the "NI" column will be checked and an explanation is necessary. Comments may be provided by the inspector whether or not an item is deemed in need of repair. I=Inspected NI=Not Inspected NP=Not Present R=Not Functioning or In Need of Repair I. STRUCTURAL SYSTEMS A. Foundations (If all crawl space areas are not inspected, provide an explanation.) Type of foundation: Post Tension Cable Method of inspection: Visual inspection of exterior Comments (An opinion on performance is mandatory.): The foundation is not performing as intended. See additional comments below. Post tension cable ends were observed on the exterior of the foundation. This should be repaired to prevent corrosion. It appears as though the foundations brick ledge was not built wide enough, this flaw was concealed by a mortar patch. The patching material was not appropriate material and has cracked away from the foundation wall exposing the post tension cable ends. Repairs should be undertaken to correct this flaw. Recommend removal of mortar patch and repair with appropriate material. The Addition of gutters on the house where missing is required for this type of slab. All engineers designing post tension foundations in the North Texas area are required by the presence of expansive clay soil to make a statement similar to the following: Gutters and downspouts should be installed to prevent injection of moisture into the soil from roof storm water. Extensions should be installed on downspouts to divert run-off four to five feet from the foundation. Minor cracks at the corners of the slab have no bearing on the structural integrity of the foundation. No repair is needed other than cosmetic. Protect concrete from abuse by chemical agents such as pet urine, fertilizers, radiator overflow, repeated hosing. All of these items can cause spalling (chipping of the surface) of concrete. All concrete slabs in your home (including the building envelope and patios) may be designed with post tension cable devices to add strength. This means that the cables are installed using very high tension and could snap with great force if damaged. Do not drill or cut your slab in any way since this could result in severe damage to your slab and to you! Landscaping should be trimmed to prevent contact with house siding or roof. Excessive landscaping can prevent proper drying. Minor crack in wall below window. Post tension cable end exposed This confidential report is prepared exclusively for A Great Client Page 2 of 17

NOTE, IMPORTANT INFORMATION ABOUT YOUR FOUNDATION. The foundation needs to be watered 3 to 4 times per week in the summer time, and 1 to 2 times per week during a dry winter. Do this with either a sprinkler system or with a soaker hose places 6 to 12 inches away from foundation. FAILURE TO FOLLOW A REGULAR WATERING PROGRAM WILL RESULT IN FOUNDATION PROBLEMS OR FAILURE. B. Grading & Drainage The grading should be improved at the front of the house to promote the flow of storm water away from the house. This can usually be accomplished by the addition of topsoil. The ground should slope away from the house at a rate of one inch per foot for at least the first ten feet. Ideally, at least eight (8) inches of clearance should be maintained between soil level and the top of the foundation walls. C. Roof Covering (If the roof is inaccessible, report the method used to inspect.) Type of roof covering: Asphalt composition shingle Method of inspection: Walked on roof Minor repairs to the roofing at the rear slope are recommended. Damaged or missing roofing material should be repaired. All roof penetrations should be examined and sealed as necessary. Note the standards for roofing installation on the left. Photo on right shows: 1. Starter strip not installed 2. Weatherproof membrane not installed over metal drip edge. (Falls short of metal drip edge or installed under it. Nail heads visible on vent flashing should This confidential report is prepared exclusively for A Great Client Page 3 of 17

be sealed to prevent rust. Shingles were installed with staples and some are backing out causing shingles to lift. During reroofing suggest requesting hand nailing with appropriate fasteners. D. Roof Structure & Attic (If the attic is inaccessible, report the method used to inspect.) Method of inspection: Entered attic and performed a visual inspection Approximate depth of insulation: 8-10 inches The level of ventilation should be improved. It is generally recommended that one (1) square foot of free vent area be provided for every one hundred and fifty (150) square feet of ceiling area. Proper ventilation will help to keep the house cooler during warm weather and extend the life of roofing materials. In colder climates, it will help reduce the potential for ice dams on the roof and condensation within the attic. Attic temperature was approx 125 O. Ideally, the attic access hatch should be better insulated. Exhaust vent pipes should be insulated and vented to the building exterior. E. Walls (Interior & Exterior) Typical minor cracking was observed on the exterior walls of the house at the front and rear of the house. This implies that some structural movement of the building has occurred, as is typical of most houses. Typical drywall flaws were observed in the master bedroom. This condition is mainly cosmetic in nature and should be patched. This confidential report is prepared exclusively for A Great Client Page 4 of 17

Water damage was noted in the master bathroom. Repairs undertaken to prevent further damage to the structure. (Around tub and shower) Water staining was noted in the dining room. The cause for the staining should be determined and repairs undertaken, if necessary, to prevent structural damage. (Front corner sheetrock unable to determine cause) Water damage was noted in the dining room. Repairs undertaken to prevent further damage to the structure. (Front corner trim work unable to determine cause) Water damage was noted at the rear entrance. Repairs should be undertaken to prevent further damage to the structure. (Repair wood door framing and paint) Siding trim needs minor repair at the rear of the house. Above the back door. Siding damaged needs minor repair at the rear of the house. F. Ceilings & Floors Damage to the interior finish on ceiling was observed middle secondary bedroom and should be repaired. (Around smoke detector) Typical drywall flaws were observed in the living room entry on ceiling next to column. This condition is mainly cosmetic in nature and should be patched. (Area appears to have been patched previously) The tile floor in the front entrance is cracked and should be repaired. (Caused by minor cracks in slab.) This implies that some structural movement of the building has occurred, as is typical of most houses. Stains were noted on the carpet in many locations. This confidential report is prepared exclusively for A Great Client Page 5 of 17

The carpet in the dining room appears to emit an odor. Cleaning and deodorizing may be desirable. Framing around attic hatch is damaged. Paint on the ceiling above master bedroom shower is pealing off due to excessive moisture (stream) from shower. Recommend repainting with paint rated for wet environment and using vent fan during bathing activities. Ceiling in pantry has been cut into. Repair is recommended for fireblocking and rodent/insect infestation. Holes appear to have been cut to run electrical wiring. During this process the installer drilled into the engineered trusses between the floors. Trusses are not to be modified in the field unless reviewed and approved by an engineer. G. Doors (Interior & Exterior) The overhead garage door requires adjustment for easy and safe operation. H. Windows The damaged screen(s) were found on the window(s in various locations) should be repaired or replaced. It may be desirable to replace window screens in various locations where missing. The owner should be consulted regarding any screens that may be in storage. If window(s) have lost their seal. This has resulted in condensation developing between the panes of glass and can cause the glass to loose it s insulating properties. The glass should be repaired or replaced. Windows are noted with Red Dots. Room: none noted at time of inspection. NOTE: Double-paned windows reduce street noise and improve efficiency of heating/cooling systems. The space between the panes is factory sealed. If a seal is broken, air from the environment may enter the formerly sealed space. This condition may cause condensation or fogging in the window, depending on the climatic conditions. We cannot assure the seal on each and every window, but we will note in the report the presence of visible condensation at the time of inspection. Unless otherwise noted in the report, no condensation or fogging was present when inspected. If condensation is noted in a thermopane, it will reduce visibility and the insulating capability of the window. To restore visibility and regain the insulating capability, replacement of this window is required. This confidential report is prepared exclusively for A Great Client Page 6 of 17

I. Fireplace/Chimney J. Porches, Decks and Carports (Attached) Wood rot at the porch at the rear door of the house should be repaired. The deck at the rear of the house should be painted or stained to improve durability. As there is a danger of falling, a railing should be provided for the deck at the rear of the house. For improved safety, it is recommended that railings be provided for the stairs on the decking. The deck at the rear of the house is dilapidated. It should be replaced. The deck at the rear of the house has been built at grade level. Repairs should be undertaken as this configuration is prone to rot and insect activity. II. ELECTRICAL SYSTEMS A. Service Entrance and Panels 150-amp service panel Suggest Replacing all bedroom circuits breakers with Arc Fault breakers. This confidential report is prepared exclusively for A Great Client Page 7 of 17

B. Branch Circuits - Connected Devices and Fixtures (Report as in need of repair the lack of ground fault circuit protection where required.): Type of branch circuit wiring: Copper The installation of an Arc fault circuit interrupter (AFCI) in the all bedrooms is recommended. An Arc fault circuit interrupter (AFCI) offers protection from fire. The AFCI is an arc fault circuit interrupter. AFCIs are newly developed electrical devices designed to protect against fires caused by arcing faults in the home electrical wiring. Missing outlet cover plates in many locations should be replaced. Exposed incandescent lighting: Unprotected Incandescent lighting not up to standards in closets. In downstairs study, recommend replacement with florescent bulb or replacing globe. A ground fault circuit interrupter (GFCI) outlet on the deck at the rear of the house did not respond correctly to testing during the inspection. This receptacle should be replaced. Outside electric receptacle by the back door needs repair. (Cover broken Should be weather proof/resistant) Light fixture outside the back door is loose and should be repaired. The light in the kitchen is inoperative. If the bulbs are not blown, the circuit should be investigated. (Protective cover is broken) & (One of the florescent light sets did not fully light up) The light in study is inoperative. If the bulbs are not blown, the circuit should be investigated. (Bulbs missing) The light in the rear bedroom is inoperative. If the bulbs are not blown, the circuit should be investigated. (Bulbs missing) A smoke detector in the middle bedroom is inoperative. This item should be repaired as it poses a potential safety hazard. A smoke detector in the rear bedroom is inoperative. This item should be repaired as it poses a potential safety hazard. (Missing) The damaged light fixture around the deck at the rear of the house should be repaired or replaced. Wiring within 6ft of attic access panel should be protected from damage. Damaged wiring on the deck at the rear of the house should be replaced or appropriately repaired. The installation of the distribution wiring around the deck at the rear of the house is non-standard. It is suspected that installation was performed by an amateur, rather than a licensed electrician. Junction box should not be within 4ft of pool. Lighting less than 5ft of pool must be GFCI protected. This confidential report is prepared exclusively for A Great Client Page 8 of 17

Rainproof cover needed Light out Closet in study Light fixture in study Light in kitchen out, cover broken. GFCI defective by pool, close to fence under steps. Electric connection loose on water heater This confidential report is prepared exclusively for A Great Client Page 9 of 17

Wiring unprotected at attic hatch opening. III. HEATING, VENTILATION AND AIR CONDITIONING SYSTEMS A. Heating Equipment Type And Energy Source: Type of heating system: Heat Pump Energy source: Electricity As with many homes that are electrically heated, there is evidence of condensation and ventilation difficulties. This condition should be monitored and/or repaired. If this proves to be a problem, steps should be taken to better control humidity and improve air change within the house. This could be as simple as installing exhaust fans. A more sophisticated measure would be to install a heat recovery ventilator. The missing air filter should be replaced. The heating system requires servicing. Unit needs cleaning and routine maintenance. Filter missing. Rusted nail head. Humidity concern. B. Cooling Equipment Type And Energy Source: Type of cooling system: Heat Pump Energy source: Electricity Do not operate A/C below 60 0 F outside ambient temperature. Temperature drop across coils: 15 O The missing air filter should be replaced. 20x20x1 In order to reduce the potential for water damage, it is recommended that an auxiliary drain pan be installed below the indoor component of the air conditioning system. This confidential report is prepared exclusively for A Great Client Page 10 of 17

The air conditioning system unit drain line blocked requires servicing. Water is draining out thru the secondary drain line presently. C. Ducts and Vents Duct cleaning is recommended in many locations. Loose fitting joints and/or openings in the ductwork should be improved in many locations. Balancing of the ductwork is recommended in many locations to improve the distribution. IV. PLUMBING SYSTEM A. Water Supply System and Fixtures The faucet in the kitchen is inoperative and should be repaired. (Missing) Counters in kitchen around sink need caulking improved. The toilet is loose in the master bathroom and should be re-secured. Cracked, deteriorated and/or missing shower stall grout and caulk should be replaced in the master bathroom. The faucet in the second floor bathtub is inoperative and should be repaired. The toilet seat and lid in the second floor bathroom is missing and should, ideally, be replaced. The air gap between the water level and float in the second floor bathroom is too small (a minimum of a one inch air gap is required). This item should be repaired. (See diagram) The toilet in the second floor bathroom runs on after flushing. Improvement to the tank mechanism is likely to be needed. Shut off valve for the downstairs toilet is faulty does not entirely turn off the water flow. The toilet in the down stairs bathroom runs on after flushing. Improvement to the tank mechanism is likely to be needed. (Shut off valve is broken and needs This confidential report is prepared exclusively for A Great Client Page 11 of 17

replacement) The air gap between the water level and float in the down stairs bathroom is too small (a minimum of a one inch air gap is required). Shut off valve does not fully turn off. Why Water Heaters Can Be Very Dangerous o Water can scald on contact at temperatures as low as 110 F o Water changing state from liquid to steam expands over 1,600 times o Water at sea level atmospheric pressure boils at 212 F o Temperature relief valves are set at a maximum of 210 F o Pressure relief valves are set at a maximum of 150psi o Under pressure, the boiling temperature of water goes up o At 150psi, water boils at 358 F The thermostat in a water heater shuts off gas/electric when the temperature needs have been satisfied. If the thermostat fails, the water heater could have a continuous rise in temperature and pressure (from expansion of the water). The temperature and pressure would continue to rise until the pressure exceeds the pressure capacity of the tank (300psi). In the instant the tank bursts, the superheated water boils and expands with explosive force. The superheated water turning to steam turns the water heater into an unguided missile. To prevent these catastrophic failures, water heaters are required to be protected for both excess temperature and pressure. Usually, the means of protection is a combination temperature and pressure (T&P) relief valve. This confidential report is prepared exclusively for A Great Client Page 12 of 17

B. Drains, Wastes, Vents C. Water Heating Equipment (Report as in need of repair those conditions specifically listed as recognized hazards by TREC rules.) Energy Source: Energy source: Electricity Undersized unit for size of house. Suggest upgrading to a larger unit or adding a second unit. Temperature set too high to make up for smaller size. (Risk of scalding) The supply piping shows evidence of corrosion where it meets the water heater. This is a common condition and should be repaired. The TPR piping shows evidence of corrosion where it meets the water heater. This is a common condition and should be repaired. D. Hydro-Therapy Equipment V. APPLIANCES A Dishwasher Air gap not attached properly, suggest repair before operating unit to prevent water damage. This confidential report is prepared exclusively for A Great Client Page 13 of 17

B. Food Waste Disposer The splashguard for the food waste disposer is damaged and in need of repair. (Rubber guard damaged suggest replacing.) C. Range Hood Filters need cleaning. The range hood requires cleaning. The range hood fan should be repaired so as to discharge to the building exterior. The range hood light is inoperative and should be repaired. (Lighting not working, possibly the bulb needs replacing.) D. Ranges/Ovens/Cooktops The oven has been lacking maintenance somewhat. (Needs cleaning) This confidential report is prepared exclusively for A Great Client Page 14 of 17

E. Microwave Cooking Equipment Glass carousel missing. Contact manufacture for replacement parts. F. Trash Compactor G. Bathroom Exhaust Fans and/or Heaters The bathroom exhaust fan should be repaired so as to discharge to the building exterior. H. Whole House Vacuum Systems I. Garage Door Operators When installed the manual locking mechanism should be disabled to prevent inadvertent damage. J. Door Bell and Chimes K. Dryer Vents The clothes dryer exhaust vent pipe was found to be in poor condition and should be repaired. Lint buildup and bird nest create a blockage creating a latent fire hazard. This confidential report is prepared exclusively for A Great Client Page 15 of 17

VI. OPTIONAL SYSTEMS A. Lawn Sprinklers Coverage: Front yard Back Yard Side yard(s) Other Zones used: Valve Box Location: Note: sprinkler controls are operated in manual mode only. B. Swimming Pools and Equipment Equipment damaged unable to test. Suggest replacing vinyl liner before filling. Pump and motor may need replacement. Skimmers need repair. Gates to pool area should be self closing. Doors and screens with direct pool access require alarm audible for 30 seconds throughout house. Alarm control min 54in high, automatically resetting. C. Outbuildings D. Outdoor Cooking Equipment E. Gas Lines No connected. Location of service presents a hazard when backing out of driveway. (appears to be damaged presently) Type of supply line:n/a Location of main Valve: Alley This confidential report is prepared exclusively for A Great Client Page 16 of 17

F. Water Wells (A coliform analysis is recommended.) G. Septic Systems H. Security Systems Not operational. Suggest contacting a professional service provider for recommendations. I. Fire Protection Equipment Recommend replacement of batteries upon closing. This confidential report is prepared exclusively for A Great Client Page 17 of 17