FHA 'inspection Requirements' Vs State Law

[CANative]

I understand where you're coming from CAN (I'm pretty sure anyway!) But as you even point out, it seems we need to add EVEN MORE CYA to our reports than we already do! A.K.A. even more time to our reports (granted we can clone/canned statement that into a report, but still)

 

[CANative]

I was just kidding of course. There are dozens of these types of threads popping up all over the internet.

 

[bnmappraisal]

no offense taken

 

[bnmappraisal]

now to find a paper bag!

 

[Fargo1]

Guess I need to look into the home inspection laws in my state as well. I'm really not sure what to do with FHA now.

I don't think we can test all these things as thoroughly as FHA requires and then say its just a 'visual observation". A visual observation is walking through the property and making a note of what you see with just your eyes. Once we start turning things on and testing functionality of mechanical systems and appliances, we have gone beyond a 'visual observation'. Just because the FHA only wants to pay for a 'visual observation' does not make it so. If we tested these things and then sign a certification saying they worked, they better work long after the borrower has taken possession. Otherwise, we could find ourselves in trouble.

 

[form1025]

I fear these updated protocols may be in violation of the Illinois Home Inspector Licence act.

http://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=022504410K1-10

I've been working on the following verbiage to ensure I am communication that I am not functioning as a home inspector:


The appraiser is not a Licensed Illinois Home Inspector and only make observations as to evidence of deterioration per the Illinois Home Inspection Act.

"Home inspection" means the examination and evaluation of the exterior and interior components of residential real property, which includes the inspection of any 2 or more of the following components of residential real property in connection with or to facilitate the sale, lease, or other conveyance of, or the proposed sale, lease or other conveyance of, residential real property:
(1) heating, ventilation, and air conditioning system;
(2) plumbing system;
(3) electrical system;
(4) structural composition;
(5) foundation;
(6) roof;
(7) masonry structure; or
(8) any other residential real property component as established by rule.

It is illegal for a person, including an entity, to act, engage, develop, practice or advertise as a home inspector without a proper home inspector license issued under the Illinois Home Inspector License Act. A person who violates this is guilty of a Class A misdemeanor.

If I am reading the law correctly, it states that if I certify 2 or more of any of the above, which FHA requires appraiser's to do, I am acting as a Home Inspector, and since I am not properly Licensed, am in violation.

Am I too paranoid? Can Illinois Appraisers comply with the updated requirements without being in violation of the Act?

Thoughts?

Illinois already has a statement that must and should be inserted into every appraisal. ICAP disseminated this info a few weeks ago.
Per Brian Weaver

The comments by the licensed real estate appraiser contained within this appraisal report on the condition of the property does not address standards of practice as de-fined in the Home Inspector License Act [225 ILCS 441] and 68 Ill. Adm. Code 1410 and are not to be considered a home Inspection or home inspection report.

 

[CANative]

Guess I need to look into the home inspection laws in my state as well. I'm really not sure what to do with FHA now.

I don't think we can test all these things as thoroughly as FHA requires and then say its just a 'visual observation". A visual observation is walking through the property and making a note of what you see with just your eyes. Once we start turning things on and testing functionality of mechanical systems and appliances, we have gone beyond a 'visual observation'. Just because the FHA only wants to pay for a 'visual observation' does not make it so. If we tested these things and then sign a certification saying they worked, they better work long after the borrower has taken possession. Otherwise, we could find ourselves in trouble.

You're not really doing FHA are you?

 

[Fargo1]

You're not really doing FHA are you?

I do, but my inspections are well beyond (what I consider) a 'visual inspection'. I do charge for my extra time and liablity. I will increase fees again if I continue to do FHA work. I see more liability in the additional requirements. When I put my name on the report to certify something, I make sure what I am certifying is accurate.

 

[CANative]

Very good!

 

[bnmappraisal]

I thought you have to be minimum Cert Res to do FHA now. Am I wrong?