New Report Changes Effective February 1st, 2009

This is the New TREC Report with changed standards of practice verbiage, report additions and revisions highlighted in Yellow - View Report

The revised TREC Consumer Notice Concerning Hazards & Deficiencies – View Notice

The following is an article posted by TREPEIA regarding the report changes

The next inspection report you see may look somewhat different from inspection forms you've viewed in the past. Last October, the Texas Real Estate Commission adopted a revised required inspection report form for one- to four-family residential property as well as a revised consumer notice about hazards. The commission also approved revised standards of practice for inspectors.

These revisions, recommended by TREC's Inspector Committee after three years of development, become mandatory on February 1, 2009. The Inspector Committee created these revised rules and forms to give consumers more information about property conditions and inspection limitations.

Just because something is deficient does not mean it isn't functioning. The first time you review a new inspection report with a client, you will notice that the fourth column on the standard report form is no longer marked R for "Not Functioning or In Need of Repair." Instead, it is marked D for "Deficiency."

This change was made because not all issues that should be reported to buyers require repairs. Many safety concerns call for an upgrade or safety modification rather than an actual repair.

The introductory text of the report form has been expanded to two pages to provide more information about the inspection process. The introduction also explains the deficiency checkbox.

Check it out. Want to see the revised inspection report? You can download a copy from the Forms, Laws, and Contracts section of TREC's Web site, www.trec.state.tx.us

The standards of practice have been rearranged to match the order of the major systems on the report form. The standards require inspectors to report certain items for informational purposes only and other items only if they are found to be deficient.

Some of the items inspectors will be required to report regardless of whether they are deficient include the type of foundation, roof covering, branch circuit conductors, and heating and cooling systems; the energy source of the heating system, cooling system, and water heater; evidence of previous repairs to roofing materials; evidence of water penetration; static water pressure; and the location of the water meter and main water supply valve.

Inspectors will also be required to report, by marking the D box on the form, deficiencies they observe. The Inspector Committee sought to make the new standards of practice more complete by including a wider range of deficiencies to give buyers a greater understanding of the property condition. For example, where possible, inspectors will be required to inspect roof-covering fasteners and report missing, inappropriate, or inappropriately installed fasteners as deficient.

When it is not possible to observe the roof covering fasteners (for instance, because lifting shingles may cause damage to the roof covering), inspectors must tell the client at the "earliest practical time" (essentially, as soon as possible) that the item was not inspected and must note in the written report the reason the item was not inspected.

The current list of unsafe conditions, including excessive baluster spacing and the absence of safety glass at hazardous locations, was expanded to include the absence of properly functioning arc fault circuit interrupter (AFCI) devices at required locations (family/living rooms, dining rooms, libraries, dens, bedrooms, sunrooms, recreation rooms, closets, hallways, or similar rooms or areas). Unlike ground fault circuit interrupter (GFCI) devices, which have long been required by building codes to protect occupants from risk of shock, AFCIs have been introduced more recently to protect property from the risk of fire caused by sparks.

These safety issues were included in the standards because the Inspector Committee believes that certain safety mechanisms are so important that every client should be notified when a house lacks them. The Texas Real Estate Consumer Notice Concerning Hazards and Deficiencies form (TREC form OP-I) addresses the safety component of the inspection. The commission approved this form for voluntary use by salespeople, brokers, and inspectors.

Learn more. For more information about the inspector rules and forms, visit www.trec.state.tx.us/inspector.

Why did "Not Functioning or In Need of Repair" change to "Deficiency"? Many problems that should be reported call for an upgrade or safety modification rather than a repair. For instance, the original electrical outlet in the kitchen of a house built in 1980 may be working properly but it is recommended that old outlets be upgraded to GFCI outlets. The term deficiency better describes the broad category of issues for which repair, replacement, or an upgrade is recommended.

The D box on the inspection report form should be used just like the R box has been used in the past. The ultimate decision what to do with the reported information will be made by the person for whom the report is prepared-usually the buyer. That person may choose to make recommended repairs or safety upgrades, or he may simply decide to live with a reported deficiency.

Are the revised standards of practice and inspection form required for all inspections? No. Inspectors are required to follow the standards and use the standard report form for virtually all inspections performed for buyers or sellers of one- to four-family residential properties, but not for inspections of other kinds of properties or inspections performed for purposes other than an anticipated sale or purchase. The standards of practice are required for quality control inspections performed for builders, but the inspector may use a different form for these inspections if the required disclosure is attached.

What if an inspector gives my client an inspection report on the old form after February 1, 2009? You should inform the inspector that there is a new form and new standards. Ask the inspector to provide a new Property Inspection Report (TREC form 7A-1) in accordance with the new standards. If the inspector asks for more information about this change, you can direct him to the TREC Web site.