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The Texas Inspection Market is Getting Even Bigger!

Under the recently enacted Texas House Bill 1038, as of September 1, 2008, the Texas Residential Construction Commission (TRCC) requires that all new residential construction in Texas that is in an unincorporated area OR new residential construction that is in an incorporated areas but is not getting a municipal building inspection be inspected by a new category of inspector under the TRCC: the "fee inspector".  The fee inspector is defined to include TREC (Texas Real Estate Commission) Professional Licensed Home Inspectors.  While TREC licensed professional home inspectors must register with the TRCC before conducting these fee inspections, registering with the TRCC is a relatively simple process.  (See below for various links to the Texas law and registration application.)

While there are many TREC licensed professional home inspectors out there, this is a very large expansion of the market that home inspectors are now allowed to serve.  Many home inspectors are being asked by contractors to start conducting these "County Fee Inspections" now.  Nevertheless, many TREC licensed professional home inspectors are nervous about conducting code inspections for which they have never been trained.  If you would like to get code training to open up this new market for yourself, we have the Code Training/New Construction Training program for you (see below).  Our training covers the 2000, 2003, and 2006 International Residential Code (IRC) - take your pick - promulgated by the International Code Council (ICC), which the State and municipalities require the inspections to be conducted under.

Special Offer*****Purchase the $499 Code/New Construction Training Package by December 31, 2008 and receive the $195 New Construction Forms CD for no extra charge*******

Code Training/New Construction Training Packages

A.  The $499 Code/New Construction Inspection Training Package Includes:

1. 11-Volume DVD Series

These DVD's address close to 2,000 new construction and code related issues with real life scenes from New Construction Sites across the nation.  Circles and Arrows are used so you can see the precise item being discussed. 

Topics include:

• General Types of Construction      
• Footings and Foundations
• Building Interior
• Building Exterior
• Electrical Interior
• Electrical Exterior
• Supply Plumbing
• Drainage Plumbing
• General HVAC
• Air Conditioning
• Unit Related HVAC

2. Manual for the New Construction Training Series:  450 pages

Chapters: Code-Related Items, Business and Legal Issues, Wood Frame Construction.
The manual gives detailed explanations of items inspected by a New Construction Inspector, marketing and legal issues, and the reasoning behind wood framing and structural issues--almost 400 illustrations. 

3.  Diploma Exams that accompany the DVDs and manual.

Complete these exams and earn diplomas as documentation that you have obtained training.

B.  The $249 Supplemental "Live" Classroom New Construction/Code Inspection Course on DVD Includes:

1.  A 3-DVD Set                                

            

For those who would like to attend classroom training, but just can't make it, we have put sections of the classroom on DVD.  With this package it is as though you are in class.

- Take virtually the same tours of homes at various stages of construction as provided to the students in our classroom.

-Listen to our instructor provide detailed explanations of the defects that were found in a home at the "4-way" or "rough" stage of construction.

-Listen to the classroom presentation that concentrates primarily on the business aspects of new construction inspections. Also, listen in on the question and answer sessions on this topic between students like you and an experienced home inspector/trainer.

-e-mail in your own questions to our instructor as you go through the DVDs.

2.  Various Hands-On Exercises

C.  The Code/New Construction Inspection Forms on CD for only $145 if purchased with the $499 Code/New Construction Inspection Training Package ($195 if purchased alone) - see special offer above for discounts

These forms cover approximately 1200 defects that could be found on new construction. The forms reference  ICC®, IRC®, CABO, NFPA, Uniform Plumbing Code®, Uniform Mechanical Code®, and National Electric Code®.

Click here for more information on the New Construction Forms on CD.
 

WEB Links For Getting Registered With TRCC to do "County Fee Inspections"

TRCC County Fee Inspector Information web page:  http://www.texasrcc.org/Inspector/CountyInspections.asp

TRCC application web page to register online (be sure to select Texas Professional Home Inspector in the drop down box before clicking on continue): http://cis.trcc.state.tx/ci_register_information_1.aspx

TRCC phone number: 1 877 651-8722

References: Chapter 446 of Title 16 of the Texas Statutes/Laws

E&O insurer who covers code-related inspections that we could find is at:

www.orep.org/home-inspectors-e&o.htm

If you decide to go even further than Texas law requires and obtain your IRC certification by passing the tests, this New Construction package will help you prepare for the test.   We also have some free exam prep materials we can forward to you to help you even better prepare for the IRC certification tests.  Give us a call!

TAREI Presentation by Stan Harbuck

Outline

I. New TRCC/County Fee Inspection Laws/Rules

II. Comparison of Liability for Home Inspections vs. County Fee inspections

III. Marketing County Fee Inspections

IV. Attic Ventilation

None of this  information is to be regarded as legal advice or opinion.  If you have any questions about legal issues, contact an attorney in your area.

I. New TRCC/County Fee Inspection Laws/Rules

Title 16. Texas Residential Construction Commission Act, Subtitle F Inspection of New Residential Construction, Chapter 446 covers ”unincorporated areas or other areas not subject to municipal inspections” found at:

http://tlo2.tlc.state.tx.us/statutes/docs/PR/content/htm/pr.016.00.000446.00.htm#446.002.00

Section 446.005 - “Elements of Inspection” to be inspected – see this section at Builders are only required to provide substantial compliance with the code Texas Property Code Section 430.001(c)(1) http://tlo2.tlc.state.tx.us/statutes/docs/PR/content/word/pr.016.00.000430.00.doc

Items/elements to ensure “substantial compliance” to the 1999 NEC and non-electric 2000 IRC provisions. If the municipality has approved a more recent edition, it applies (see the “Contracted Inspections Instructions” found at:

http://www.texasrcc.org/policy/resources/071108FinalInspectioninstructionsform.pdf

Minimum three inspections required on new construction – pre-pour, pre-cover, and final

Remodeling inspections required as well – possibly at least pre-cover and final at a minimum

Internet based reporting system

Definition of approved fee inspectors – licensed engineers, architects, professional home inspectors, and 3^rd party inspectors (special code related inspectors engaged in warranty/post-purchase disputes in new construction)

Can register as a County Fee Inspector for free at:

http://cics.trcc.state.tx.us/ci_register_notice1.aspx (be sure to use the drop down box selection of TX Real Estate Professional Inspector for your status when requested)

Inspection of homes for purposes of code is completed online through the procedures outlined in Texas Administrative Code, Title 10 Part 7 Texas Residential Construction Commission starting with Chapter 307 found at:

http://info.sos.state.tx.us/pls/pub/readtac$ext.ViewTAC?tac_view=4&ti=10&pt=7&ch=307&rl=Y

Internet reporting of satisfactory completion of each stage by the county fee inspectors-the web page to enter the information on the home being inspected for code, once you have registered with the TRCC, is at:

http://cics.trcc.state.tx.us/

The county seat decides which codes apply in a county?

TREC is licensing authority for professional home inspectors doing county fee inspections even though the rules come from the TRCC

TREC rule on use of official TREC inspection form – not required when conducting “construction inspections of new homes … or for inspections performed for … a person other than a prospective buyer or seller.” (see “Questions and Answers Regarding Use of the New Inspection Report Form 7A-0) found at http://www.trec.state.tx.us/formslawscontracts/forms/forms-propertyInspection.asp

By clicking on “Questions and Answers Regarding the Use of the 5 page Inspection Report Form”

II. Comparison of Liability for Home Inspections vs. County Fee inspections

Some ideas that might help avoid frivolous suits over County Fee inspections

Frivolous lawsuit is one that, if it went to frution, it would be very unlikely to be successful against the inspector

Inspector liability is what the “reasonable” inspector (“average”?) from your local area would have found

Contractor is generally considered responsible for his own and his subcontractors’ mistakes – e.g. code violations

The county fee inspector is sitting in a role similar to municipal inspectors who work for a public entity and owe no responsibility to the contractor or homebuyer and the fact that it is inspected by either the municipality or a county fee inspector, we can argue, shouldn’t change that

Contributory negligence on contractors part – he is the person who actually builds the building and oversees its day to day and sometime hour to hour construction not just inspect it over a short 2 to 4 hour time frame twice especially when he has not only an ongoing but also the last clear chance to correct any defects that he is aware of.  Even if court rules that assesses liability in proportion to fault, you could argue that the contractor and its subcontractors were in the best position to do it right in the first place or correct it when they knew it did not follow code

While Texas only requires contractors to register, the TRCC now requires at least part of their annual required continuing education to be on the IRC and/or the NEC and so we can now claim that this required education made the contractor aware of code issues himself and so he is more responsible for code violations than the inspector was because he is supposed to have knowledge and certainly has a much greater opportunity in terms of time to identify and correct defects than the inspector does

Comparative negligence – if one party is at least partly responsible and especially potentially primarily responsible, the other responsible party is off the hook

Failure to discover danger – who is always in the best position to discover dangerous, etc. conditions in the home than the contractor and his subcontractors

Avoid doing the pre-pour inspections as a general rule – they have been suggested as requiring a review of the plans which can be interpreted to expand liability and “on sites having expansive clay, fill, and/or other adverse conditions, residential foundations

shall be designed by licensed engineers utilizing the provisions of the current “Recommended Practice for the

Design of Residential Foundations – Version 2”   Found at:

www.texasce.org/docs/DesignGuidelines.pdf

If you do decide to do pre-pour inspections, know your area and at least consider avoiding doing them in areas where you have seen evidence of the expansive clay soils

Have a contract with the contractor that you both sign

Exempt/disclaim liability to 3^rd parties, including buyers

Use a provision in the contract that automatically rescinds the contract prior to occupancy or closing of the home

Be sure you get paid upon completion of the inspection – the contractor can go inspector shopping and may decide to not pay you if they don’t like your inspection so that they can pay for a different inspector – cash the check very soon

Never allow payment by billing, etc. – you will end up in the collections business

Don’t call the inspection a code inspection, call it a Quality of Workmanship, Performance inspection, etc.

Builders are only required to provide substantial compliance with the code Texas Property Code Section 430.001(c)(1)

http://tlo2.tlc.state.tx.us/statutes/docs/PR/content/word/pr.016.00.000430.00.doc

 why should home inspectors be expected to inspect beyond substantial compliance

TREC licensed professional home inspectors regulated by the originating regulatory body – TREC, not TRCC (see Frequently Asked Questions pages under “FAQ’s - County Inspection Program” found at http://www.trcc.state.tx.us/policy/FAQs_2.asp#countyinspections )

Does E&O insurance discourage or encourage frivolous law suits?

www.orep.org/home-inspectors-e&o.htm

III. Marketing County Fee Inspections

Call any of the home builders in your area to see if they need someone to do the County Fee Inspections on the homes they are building.   Contacting the larger builders first may not hurt.  If you don't have the phone numbers of any local builders, check your local yellow pages under home construction of general contractors or go online and check for home builders in your area by visiting the www.whitepages.com web site and get their phone numbers from there.

IV. Attic Ventilation

Texas Home Inspection Standards

Roof, Roof Structure and Attic.  The Inspector shall:

…

(3) Report as in need of repair inadequate attic space ventilation

This may change soon:

 (g)Roof structure and attic.   The inspector shall: 

 (2) report as Deficient:

(A) attic space that does not appear to be

adequately ventilated;

IRC Standards

Attic

Attic Ventilation

         Not all attic or rafter spaces vented  {806.1}

         < 1/150th equivalent in venting compared with attic area OR {806.2; 806.2; 1505.3}

         < 1/300th if vapor barrier

         or 50%-80% of venting requirement is in upper portion and is > 3 ft. above eave height and soffit level vents {806.2*; 1505.3ex.1,2}

         < 1/8 in. or > 1/4 in. mesh screens over attic ventilation openings  {806.1*; 1503.3}

None of this presentation or the materials are to be interpreted or considered legal advice.  If you have a legal question, contact an attorney in the area you live.

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A Better School of Building Inspection, P.O. Box 1986, Salt Lake City, UT  84110.  All sales final.  Limitations may apply.  Licensed on a pay-per-person basis only.  Not for resale. 

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