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Requiring carbon monoxide detectors?

Discussion in 'General Appraisal Discussion' started by Lloyd Bonafide, Jun 23, 2011.

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  1. Lloyd Bonafide

    Lloyd Bonafide Senior Member

    0
    Jan 15, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    We have a new state law in CA going into effect July 1 that requires carbon monoxide detectors in all single-family homes that have an attached garage, a fireplace, or a fossil-burning heater.

    For those in states that already have similar laws, how are you handling this for FHA and for conventional reports?

    I have a mortgage banking client that is going to require them. For purchases it should not be a big issue, but they are even talking about refinances. (???)
     
  2. incognito

    incognito Senior Member

    0
    Jul 14, 2005
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    How often must it be stated, "FHA does not require code compliance..."
     
  3. Lloyd Bonafide

    Lloyd Bonafide Senior Member

    0
    Jan 15, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Right; but this is one smaller regional lender that is going to require it for everything, (even a conventional refi.)
     
  4. NORTON

    NORTON Senior Member

    2
    Oct 10, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    although FHA doesn't require code....I rarely see a lender that doesn't once the report states the subject property doesn't possess the required amount of smoke detectors according to California Fire Code. I assume they will follow suit regarding the carbon monoxide detectors.

    according to this website: How Is The Law Enforced: People requesting homeowner loans will have to show that they have installed carbon monoxide detectors in their homes


    I read elsewhere that it will be written into every sales contract in the state...maybe something else we get to verify!


    http://www.hueandcry.com/blog/tag/california-carbon-monoxide-law/
     
    Last edited: Jun 24, 2011
  5. Riick

    Riick Elite Member

    43
    Aug 14, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Delaware
    So if detector(s) aren't there when you appraise, do you think the BUYERS won't notice they still aren't there when they inspect prior to closing?
    It's only your problem if your customer wants you to verify presence of CO detectors.
    .
     
  6. NORTON

    NORTON Senior Member

    2
    Oct 10, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    well I tell them and let them decide if there is a problem, vs it being my problem if an issue is later brought up...if they say they don't care, then they also don't care If I inform them....either way, the ball gets placed in their court.
     
  7. normando

    normando Senior Member

    10
    May 2, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    If you mention about carbon monoxide compliance, are you opening yourself up for other lawsuits? Why stop at carbon monoxide? Why didn't you look at other code noncompliance in the house?
     
  8. rbrienza

    rbrienza Member

    4
    Sep 16, 2007
    Professional Status:
    Certified General Appraiser
    State:
    Colorado
    In Colorado we have had that law for at least a year. It is a disclosure form that the real estate brokers do for home sales. Why not take a picture (and put it in the report) of it disclose that as of the effective date it appeared to contain CO2 detectors. and move on.
     
  9. Riick

    Riick Elite Member

    43
    Aug 14, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Delaware
    Bravo..
    Years back I decided to follow same logic; I'd get creamed if I called for health/safety repairs on the low-income non-FHA loans I was doing for the CRA section of a bank's portfolio.
    But, if I took a photo, pointed-out the problem, and said `The Lender may wish to have this health/safety hazard repaired.'
    << shrug >> Worked for me.

    /
     
  10. Elliott

    Elliott Elite Member

    87
    Apr 23, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Oregon
    I think it falls under health and safety. Smoke detectors are a FHA requirement
    and if the law requires CO detectors, its not a stretch. I don't want to be on
    a witness stand explaining why I didn't require a CO detector for an FHA.
     
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