Differences between a Home Inspection and Property Inspection – Lulich & Attorneys

Differences between a Home Inspection and Property Inspection – Lulich & Attorneys

A home inspection is a necessary part of buying a home. The home-buyer is the person who pays for the home inspection.

Lenders conduct a property inspection to determine the current condition of the home.  Defects can affect the value of the home. Defects can also indicate that the lender needs to take action to prevent further damage.

Large numbers of home sales continue. FloridaRealtors.org, confirms 28,071 homes sales for May 2018.

Key home inspection considerations

Buyers should get a home inspection before they sign the agreement of sale. It’s tempting to focus on the excitement of buying a new home. Many buyers immediately focus on finances. How can they afford the home?  The difference is this. If you conduct a home inspection before the agreement of sale is signed, then you can decline the sale without losing any money. If a home inspection is done after the agreement of sale, then the home-buyer relies on is bound by the terms of the contract. The buyer may be able to withdraw but lose their deposit. The responsibility for home repairs may fall on the buyer unless the contract says otherwise. With the help of an experienced Florida real estate lawyer, the home-buyer may be able to negotiate who is responsible for the repairs.

Home-buyers should also inspect the home before the settlement. Parts of the home can worsen between the purchase date and the settlement date.

What the home inspection consists of

The home inspector should inspect the condition of the following items:

  • The roof
  • The heating system
  • The air conditioner
  • The electrical units
  • The plumbing
  • The walls and sidings
  • The windows
  • A cellar or attic
  • Each room of the house
  • The floors
  • The driveway and sidewalks
  • The front and back yards
  • Any pools
  • The property foundation
  • The existence of termites are other insects

Inspections should also be conducted for the quality of the water and the existence of mold or radon. Further, inspections should examine if the home meets current building standards. The examination should additionally identify any problems and the likely expense to repair them.

Normally, the person or company that does the home inspection provides the potential home-buyer a written report. Home inspections normally run a few hundred dollars.

Factors when a lender conducts a property inspection

Mortgage companies generally reserve the right to conduct a property inspection if you are in default on your payments or they have reason to believe the property is in a state of disrepair. If the mortgage is being sold to another company, that new company may demand an inspection.

Property inspections are normally conducted for the following purposes. To:

  • See if the home is occupied
  • Determine if the home is being maintained
  • Determine if it needs protection from thieves or others
  • See if the property is protected against the elements
  • Examine if there is any likelihood of water damage

Property inspections generally don’t cost too much. The lender does add the expense of the property inspection to the borrower's bill.