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Cover Page Forman Inspection Services Property Condition Assessment Report 80206 Inspection prepared for: John Smith Real Estate Agent: Support - Home Inspector Pro Date of Inspection: 7/26/2013 Time: 09:00 Age of Home: 1961 Size: 13,000 sq. ft. Weather: Cloudy/Warm Inspector: Chuck Forman License #NACHI 10011304 CMI, NACBI 011711-7CO Level 1 IR Certification #8465, IAC2-01-8615 Phone: 720-641-9518 Email: chuck@formaninspectionservices.com www.formaninspectionservices.com This report is copyrighted by Forman Inspection Services, LLC and is for the exclusive use of the client named herein and its agent. Any unauthorized use, or distribution, of this report by any other parties without the express written consent of Forman Inspection Services, LLC and their client is expressly prohibited. Forman Inspection Services, LLC assumes no responsibility to, or liability from, any third parties in connection with the inspection or report.

Scope of the Property Condition Report "PCA" As indicated in the pre-inspection agreement-proposal, you agreed to allow Forman Inspection Services, LLC to randomly select systems, features and components of the property site. Only the items in this report were inspected, and their relative condition noted. We are not responsible, at anytime, for any item not inspected. The property condition assessment, or PCA, conforms to ASTM standards. These standards have clearly defined limitations with which you should be aware. However, the assessment is essentially visual and non-destructive and relies on random sampling techniques, as opposed to comprehensive analysis, and is not technically exhaustive. The PCA is intended to identify defects or deficiencies, and alert you to the need for further evaluation by specialists, and to recommend necessary improvements that could affect your evaluation of the property. Nevertheless, the following specialized assessments are beyond the scope of our service, but can be undertaken for a revised fee. Termite &Pest Assessment: Termite and pest assessments are usually mandated by lending institutions, and are generally the sellers' responsibility. Within the scope of a PCA inspection, we do not report on the visible or evident damage from wood destroying organisms and insects(wdi), i.e. termites, "carpenter" ants and bees and "boring" beetles, UNLESS specifically agreed upon. The PCA inspection does not determine WDO/WDI activity and does not constitute a warranty. We offer no service plan or treatment(s) to avoid any appearance or potential conflict of interest. We do offer as additional or ancillary service, a WDI inspection and report and if ordered, is available under separate inspection report. If you do not want us to conduct a WDI inspection, we specially disclaim all wood destroying organism, and insect infestation inspection, activity and all related damage at anytime. Note; due to the nature of WDI/WDO, any evidence of infestation, whether active or not, there could be hidden damages. Code Compliance Assessment: Commercial buildings commonly meet the code requirements for the year in which they were constructed, but may not have been retrofitted to meet current codes. Therefore, you may wish to have a specialist conduct a comprehensive assessment to determine compliance with current codes. Environmental Assessment: There are different types or levels of environmental inspections. Phase One Site Inspections are the commonest, and are typically mandated by banks and other lending institutions. However, such inspections rarely cover the testing of indoor air quality, which can be adversely affected by multiple contaminates that have been described by the Environmental Protection Agency. Asbestos: The inspection does not include the verification/presence of asbestos. We are not specialists and, regardless of the condition of any real or suspected asbestos-containing material [ACM], asbestos content can only be confirmed by laboratory analysis. In many products, asbestos is not likely to be released into the air without alteration, modification, drilling, sanding, sawing, scraping, removal of the suspected installation. Encapsulation and/or removal are the typical solutions. We are not licensed asbestos abatement contractors and cannot give the advice that they are qualified to present. We recommend consulting with a licensed asbestos abatement contractor for additional information or services. More information is available at the United States Government Environmental Protection Agency's website. Oil Tanks: The inspection does not include the detection, existence and evaluation of any underground or above ground storage tanks, and related equipment. Consult with the seller, local service contractors, utility companies and jurisdiction including the building department for more information. If there are any reservations about the presence of underground tanks, soil contamination, and related financial liability, we strongly recommend engaging with a professional contractor. Mold: Although we specifically disclaim the inspection of and for all biological pollutants. Generally, cleaning the area with the appropriate materials, removal of the affected materials and eliminating the source of moisture may help to resolve the condition. We may note that some substances appear to be a mold/fungus type substance, but are not qualified to expertly discuss the topic in its entirety. According to the Environmental Protection Agency, common biological pollutants are animal dander (minute scales from hair, feathers or skin), dust mites, cockroach parts, fungi (mold), infectious agents (bacteria or viruses) and pollen which we disclaim. Biological pollutants can travel through the air and are often invisible, are or were living organisms. They promote poor indoor air quality, and may be a major cause of lost days from work/school, and of a doctor/hospital visits. In some cases, damage to building materials has been sustained, resulting in significant repair costs. Mold, and its related topics/issues, there are no acceptable/unacceptable levels of biological pollutants set by the Center for Disease Control, the EPA or any other accepted source. We believe that testing for biological pollutants, and interpretation the results, should be the responsibility of the experts in the field, such as immunologist and toxicologists. We do not conduct testing for indoor air quality, biological pollutants, nor do we perform mitigation/remediation. We are not required to determine the presence of any potentially hazardous plants, animals or diseases or the presence of any suspected hazardous substances or adverse conditions such as mold, fungus, toxins, carcinogens, noise, and contaminants in soil, water, and air and specifically disclaim them. The EPA states "there is no simple and cheap way to sample the air in your building to determine the level of all biological pollutants. Experts suggest that sampling for biological pollutants is not a useful problem solving tool. Lead Paint: As of December 6, 1996, all property sellers and landlords will be required to tell prospective buyers and tenants about possible leadbased paint in any dwelling built before 1978. The federal requirement, which started applying to multiple unit dwellings Sept. 6, is part of the Residential Lead-Based Paint Hazard Reduction Act. Some paints and other materials contained lead prior to 1978 and under certain circumstances Page 1 of 32

this can present a health hazard. Radon: The inspection does not include testing for radon gas, unless specified in the pre-inspection agreement. Radon is an odorless, colorless, tasteless gas that is part of a decay process starting with uranium. Radon gas may enter the residence through cracks, gaps and penetrations at the basement floor, and through the soil or concrete floors of crawlspace areas. Radon gases going through their half-life process may cause lung damage and concerns. Americans with Disabilities Act Assessment: The Americans with Disabilities Act, or ADA, was passed in 1999 to set federal building accessibility standards for the accommodation of disabled persons. There are three levels of assessment that are available: the first level is the least expensive, and is comprised of a purely visual survey of accessibility; the second level is similar to the first but more specific and includes generalized measurements; the third level entails a complete assessment for ADA compliance. Please be aware that state and local municipalities may have incorporated all or part of these standards into their by-laws, and may have even stipulated more stringent ones. Fire Suppression, Smoke and Carbon Monoxide Detector Assessment: Depending on the use, or intended use of a building, insurance companies will commonly require an evaluation of fire suppression systems and their components, and particularly as it relates to the safety of the public. The inspection of fire alarm systems, particularly as it relates to the safety of the public. The inspection of fire alarm systems, emergency signs, and lighting are beyond the scope of the inspection. You should review the seller, and installer or service provider, if available. Local jurisdictions may impose fines for false alarms, and you should contact local authorities for further clarification. The inspection does not include any smoke/flame detection, carbon monoxide detection, heat sensors and related equipment. Review with the local fire official for details and requirements. Tele-communications Assessment: Telecommunications and data systems are constantly evolving and require an evaluation by specialists. Elevator Assessment: Whereas we attempt to provide relevant information regarding the age, type, and capacity of elevators, we recommend that they be evaluated by the current service contractor, who is likely to have the most recent and comprehensive knowledge of their condition and maintenance. Legal Advice: Our inspection and related recommendations/suggestions are not legal advice. We provide information related to the inspection to help you formulate an evaluation and opinion of the subject premises. The inspection reports provided herein should be reviewed by your legal counsel prior to closing. By accepting inspection reports, you agree to the terms of the pre-inspection agreement which you have previously reviewed and signed. Photographs and Diagrams: We may provide photographs and diagrams which may illustrate specific and/or general conditions at the time of the inspection but should not be relied upon as an engineer nor a comprehensive/complete illustration of the depicted component/system/feature/conditions, and related comment(s). For example, a shower may have loose tiles at the tub spout and rear wall, but we may use only one photo. A diagram may show features not present on the appliance in question. In addition, local jurisdictions maybe more strict than national standards, and therefore a diagram/photo would not be an accurate representation of the defect and/or repair. Warranty Exclusion: The inspection is not a warranty/guarantee, expressly nor implied of any system, feature, components, whether inspected or not. Discussion with the seller about the history of the buildings and any plans which maybe enforce is recommended. Call Before You Dig: The inspection does not include any subterranean feature, and therefore before anyone disturbs the exterior site and grounds, you need to be sure it's safe. Protect yourself, any workers or contractors and your property - call before you dig to find out where underground utility lines are buried. Page 2 of 32

Report Summary Report Summary 8.4.1 Site Page 6 Item: 1 Topo Issues Recommend minor grade adjustments on the north side of the structure especially below the rear window of the basement apartment unit. Page 6 Item: 2 Drainage Issues The roof down spout on the north side of the structure should have an extension attached to it to aid in directing rain water away from the structure and to prevent erosion of the ground behind the building. Page 8 Item: 5 Flatwork Issues Rust noted in some areas of the steel hand rail systems. There is a section of the steel railing/decking system for the concrete stairs leading down to the basement area that was showing signs of significant rusting/deterioration at the time of the inspection. Several areas of the concrete walkways systems appeared to have significant grade drops. At the time of the inspection there were no indications of settling noted in these areas and when discussing it with the seller he indicated that they have been this way since he purchased the building. Our main concern in these areas was the possibility of a slip fall hazard should the areas become icy. Recommend monitoring these areas during cold weather months. 8.4.2 Structural Page 12 Item: 1 8.4.3 Roofing Structural Frame & Bld Envelope Issues Minor cracking/settling noted in the brick wall located at the corner of the entrance stairs to the property. Recommend repairs. Page 3 of 32

Page 13 Item: 1 Roofing Issues At the time of the inspection there were multiple blisters or air pockets noted on the top of the roofing system. These pockets are generally caused by off gassing coming from other roofing material below the surface of the existing roof. Although no leaks were noted from within the upper level apartments at the time of the inspection we cannot determine the integrity of the roofing system as the ceiling of the upper level apartments are constructed of concrete twin tees. We highly recommend obtaining proposals to determine the cost of replacing the entire roofing system prior to taking possession of the property. Ponding noted in multiple areas at the time of the inspection. This is evident of roof grade issues. At the time of the inspection there were multiple areas spongy decking noted under foot. This could be an indication of deteriorated decking material below the roof covering. Due to the amount of ponding that was noted on the roof top at the time of the inspection the roof was scanned with a moisture meter specifically designed for built up roofing systems. At the time of the inspection several areas were determined to have moisture below the roofing system. The gutter system on the south side of the north wing of the structure was showing signs of improper grade. Recommend repairs. Cracked chimney caps and missing rain caps/spark arrestors noted at the time of the inspection. Recommend repairs. Gutter systems require removal of debris in some areas. 8.4.5 Heating Page 20 Item: 1 Heating Issues The boiler is an older unit and although it appeared functional at the time of the inspection we recommend budgeting for a replacement in the near future. 8.4.7 Electrical Page 4 of 32

Page 22 Item: 1 Electrical Issues Panels located in the main boiler room and in each individual apartment are Magnetrip panels with Zinsco breakers. Zinsco breakers are no longer in production and have been attributed to multiple failures, shock hazards and building fires. Due to increased energy demands of todays electrical equipment these panels have been known to overheat and melt. We highly recommend that all Zinsco panel systems be upgraded to a newer more secure system. One or more outlets were noted throughout the property that showed NO GROUND at the time of the inspection. Recommend all outlets be grounded to prevent a potential shock hazard. Unit 100: Dead electrical outlet noted in living room area. Recommend repairs by a licensed electrician. No GFCI protection noted in kitchen area. Unit 101: No GFCI protection noted in kitchen area. Recommend repairs by a licensed electrician. Unit 103: No GFCI protection noted in kitchen. Recommend repairs by a licensed electrician. Unit 104: One of the kitchen outlets not GFCI protected. Recommend repair by a licensed electrician. Unit 105: Loose GFCI outlet noted in bath area. Recommend repair by a licensed electrician. Unit 106: No GFCI protection in kitchen area. Recommend repair by a licensed electrician. Unit 202: One of the living room outlets showing NO GROUND. Recommend repair by a licensed electrician. Unit 305: GFCI failed test at bathroom vanity. Recommend repair by a licensed electrician. Unit 306: Outlet at kitchen bar top showing NO GROUND. Recommend repair by a licensed electrician. None of the exterior electrical outlets were GFCI protected at the time of the inspection. This is common for buildings of this age but it is also a significant safety hazard. We recommend that all exterior outlets or any outlet that is located in a wet area be GFCI protected. 8.4.9 Life Safety/Fire Page 29 Item: 1 Life Safety/Fire Issues No Carbon Monoxide detectors noted within the structure at the time of the inspection. Recommend installing one in each of the individual apartment units as well as in areas such as the exercise room and laundry room area. 8.4.10 Interior Page 30 Item: 1 Interior Issues Unit 101: Caulk/Grout repair needed around tub/shower fixtures. Unit 103: Bathroom area needs caulk repair. Unit 104: Past water damage noted below kitchen sink but no leaks present at time of inspection. Unit: 204: Bath/tub area requires caulk/grout repair. Unit 301: Tub area requires caulk/grout repair. Unit 303: Bath tub area requires caulk/grout repair. Unit 304: Sub standard plumbing noted below kitchen sink. Page 5 of 32

1. Topo Issues 8.4.1 Site Description: The topography of the property is mostly flat within the court yard area of the structure with a gentle slope noted on the outer areas of the structure. The majority of the grade around the structure appeared to be in good condition at the time of the inspection. Recommend minor grade adjustments on the north side of the structure especially below the rear window of the basement apartment unit. Recommend minor grade adjustments on the north side of the structure especially below the rear window of the basement apartment unit. 2. Drainage Issues Recommend minor grade adjustments on the north side of the structure especially below the rear window of the basement apartment unit. Materials: Storm water drainage is controlled, and directed, by grade. The roof down spout on the north side of the structure should have an extension attached to it to aid in directing rain water away from the structure and to prevent erosion of the ground behind the building. Page 6 of 32

The roof down spout on the north side of the structure should have an extension attached to it to aid in directing rain water away from the structure and to prevent erosion of the ground behind the building. 3. Ingress-Egress Issues The roof down spout on the north side of the structure should have an extension attached to it to aid in directing rain water away from the structure and to prevent erosion of the ground behind the building. Materials: The main means of ingress/egress to the property is via Josephine street side gate. There is a secondary means of ingress/egress via the alley way located on the east side of the structure. No significant findings. 4. Paving,Curbing, Parking Issues Materials: Surface Parking: Concrete parking areas Number of parking spaces: 4 reserved spots on the west side of the structure and 8 reserved spots on the east side of the structure as well as on street parking in areas. Cracking noted in the concrete parking areas. Recommend monitoring. Cracking noted in the concrete parking areas. Recommend monitoring. Cracking noted in the concrete parking areas. Recommend monitoring. Page 7 of 32

5. Flatwork Issues Cracking noted in the concrete parking areas. Recommend monitoring. Materials: There area sidewalks running along the entrance side of all buildings as well as a main courtyard located in the middle of the structures. Minor spalling noted on some of the sidewalk systems. Recommend monitoring for future repairs. Several of the concrete stairs were cracking. Although they appeared to be sound at the time of the inspection we recommend monitoring for future repairs. Rust noted in some areas of the steel hand rail systems. There is a section of the steel railing/decking system for the concrete stairs leading down to the basement area that was showing signs of significant rusting/deterioration at the time of the inspection. Several areas of the concrete walkways systems appeared to have significant grade drops. At the time of the inspection there were no indications of settling noted in these areas and when discussing it with the seller he indicated that they have been this way since he purchased the building. Our main concern in these areas was the possibility of a slip fall hazard should the areas become icy. Recommend monitoring these areas during cold weather months. Rust noted in some areas of the steel hand rail systems. Several of the concrete stairs were cracking. Although they appeared to be sound at the time of the inspection we recommend monitoring for future repairs. Page 8 of 32

Minor spalling noted on some of the sidewalk systems. Recommend monitoring for future repairs. Minor spalling noted on some of the sidewalk systems. Recommend monitoring for future repairs. Rust noted in some areas of the steel hand rail systems. 6. Landscaping/Appurtenances Issues There is a section of the steel railing/decking system for the concrete stairs leading down to the basement area that was showing signs of significant rusting/deterioration at the time of the inspection. Materials: The property appears to have been professionally landscaped. The main courtyard has a water feature. The landscaping appears to be well maintained. The water feature was well maintained and functional at the time of the inspection. Page 9 of 32

The water feature was well maintained and functional at the time of the inspection. 7. Recreational Facility Issues The water feature was well maintained and functional at the time of the inspection. Materials: The property contains a workout/gym area located in the basement of the structure as well as a dedicated bike parking/rack area located within the courtyard area of the complex. No significant findings at the time of the inspection. 8. Utilities Issues No significant findings at the time of the inspection. Materials: Gas utilities enter the structure from the north side of the building. Electrical utilities enter the structure through the east side of the building. Potable water utilities enter the structure through the west side and basement area of the building. There are no special utility systems on the property. At the time of the inspection the main gas shut off valve appeared to be functional. Page 10 of 32

At the time of the inspection the main gas shut off valve appeared to be functional. Page 11 of 32

8.4.2 Structural 1. Structural Frame & Bld Envelope Issues Materials: The building is a concrete block and brick structure with concrete twin tees for ceilings/floors. The building(s) are supported by a combination of concrete foundation walls in the area that has a basement and then slab on grade foundation supporting the remainder of the structure. The window systems are vinyl windows with double pane insulated glass. No significant findings noted throughout the majority of the structure at the time of the inspection. The majority of the exterior of the structure appeared to be in good condition at the time of the inspection with no significant findings noted in the exterior siding or building structure. Minor cracking/settling noted in the brick wall located at the corner of the entrance stairs to the property. Minor cracking/settling noted in the brick wall located at the corner of the entrance stairs to the property. Minor cracking/settling noted in the brick wall located at the corner of the entrance stairs to the property. Minor cracking/settling noted in the brick wall located at the corner of the entrance stairs to the property. Page 12 of 32

1. Roofing Issues 8.4.3 Roofing Materials: Roof appears to be a rolled torch down material with an aluminum silver coating applied on top of it. The main support structure is twin concrete tees. At the time of the inspection there were multiple blisters or air pockets noted on the top of the roofing system. These pockets are generally caused by off gassing coming from other roofing material below the surface of the existing roof. Although no leaks were noted from within the upper level apartments at the time of the inspection we cannot determine the integrity of the roofing system as the ceiling of the upper level apartments are constructed of concrete twin tees. We highly recommend obtaining proposals to determine the cost of replacing the entire roofing system prior to taking possession of the property. Ponding noted in multiple areas at the time of the inspection. This is evident of roof grade issues. At the time of the inspection there were multiple areas spongy decking noted under foot. This could be an indication of deteriorated decking material below the roof covering. Recommend repairs. Due to the amount of ponding that was noted on the roof top at the time of the inspection the roof was scanned with a moisture meter specifically designed for built up roofing systems. At the time of the inspection several areas were determined to have moisture below the roofing system. The gutter system on the south side of the north wing of the structure was showing signs of improper grade. Cracked chimney caps and missing rain caps/spark arrestors noted at the time of the inspection. Gutter systems require removal of debris in some areas. At the time of the inspection there were multiple areas spongy decking noted under foot. This could be an indication of deteriorated decking material below the roof covering. Recommend repairs. Due to the amount of ponding that was noted on the roof top at the time of the inspection the roof was scanned with a moisture meter specifically designed for built up roofing systems. At the time of the inspection several areas were determined to have moisture below the roofing system. Page 13 of 32

Ponding noted in multiple areas at the time of the inspection. This is evident of roof grade issues. Ponding noted in multiple areas at the time of the inspection. This is evident of roof grade issues. At the time of the inspection there were multiple areas spongy decking noted under foot. This could be an indication of deteriorated decking material below the roof covering. Recommend repairs. Ponding noted in multiple areas at the time of the inspection. This is evident of roof grade issues. Page 14 of 32

Ponding noted in multiple areas at the time of the inspection. This is evident of roof grade issues. Ponding noted in multiple areas at the time of the inspection. This is evident of roof grade issues. At the time of the inspection there were multiple blisters or air pockets noted on the top of the roofing system. These pockets are generally caused by off gassing coming from other roofing material below the surface of the existing roof. Although no leaks were noted from within the upper level apartments at the time of the inspection we cannot determine the integrity of the roofing system as the ceiling of the upper level apartments are constructed of concrete twin tees. We highly recommend obtaining proposals to determine the cost of replacing the entire roofing system prior to taking possession of the property. Cracked chimney caps and missing rain caps/spark arrestors noted at the time of the inspection. Page 15 of 32

Cracked chimney caps and missing rain caps/spark arrestors noted at the time of the inspection. Cracked chimney caps and missing rain caps/spark arrestors noted at the time of the inspection. Cracked chimney caps and missing rain caps/spark arrestors noted at the time of the inspection. Cracked chimney caps and missing rain caps/spark arrestors noted at the time of the inspection. Page 16 of 32

Due to the amount of ponding that was noted on the roof top at the time of the inspection the roof was scanned with a moisture meter specifically designed for built up roofing systems. At the time of the inspection several areas were determined to have moisture below the roofing system. Due to the amount of ponding that was noted on the roof top at the time of the inspection the roof was scanned with a moisture meter specifically designed for built up roofing systems. At the time of the inspection several areas were determined to have moisture below the roofing system. Gutter systems require removal of debris in some areas. Due to the amount of ponding that was noted on the roof top at the time of the inspection the roof was scanned with a moisture meter specifically designed for built up roofing systems. At the time of the inspection several areas were determined to have moisture below the roofing system. Page 17 of 32

Due to the amount of ponding that was noted on the roof top at the time of the inspection the roof was scanned with a moisture meter specifically designed for built up roofing systems. At the time of the inspection several areas were determined to have moisture below the roofing system. The gutter system on the south side of the north wing of the structure was showing signs of improper grade. The gutter system on the south side of the north wing of the structure was showing signs of improper grade. The gutter system on the south side of the north wing of the structure was showing signs of improper grade. Page 18 of 32

1. Plumbing Issues 8.4.4 Plumbing Materials: Water is supplied to the structure via a 1 1/2" copper line. The main shutoff valve is located in the basement of the structure in the boiler room. Disconnect valve was functional at the time of the inspection. Domestic hot water is supplied to the individual apartment units by a new Everhot side arm water heating system that is powered by the main boiler. The system also uses a 119 gallon Lochinvar storage tank M/N RJS-120 S/N FH12316238. The water feature in the main courtyard is kept clean by a sand filtration system located in the main boiler room. At the time of the inspection the system appeared to be in good working condition and was functioning properly. Domestic hot water is supplied to the individual apartment units by a new Everhot side arm water heating system that is powered by the main boiler. The system also uses a 119 gallon Lochinvar storage tank M/N RJS-120 S/N FH12316238. Disconnect valve was functional at the time of the inspection. Domestic hot water is supplied to the individual apartment units by a new Everhot side arm water heating system that is powered by the main boiler. The system also uses a 119 gallon Lochinvar storage tank M/N RJS-120 S/N FH12316238. Page 19 of 32