"Sign off"?

[hoosier inspector]

I recently performed an inspection, today the buyers agent phoned me all upset. The mortgage was a "rural development" loan and the loan official insisted everything on the inspection report be completed, even the general maintenance items. I thought she would try and get me to "tweak" the report, but instead wants me to sign off the items after the contractors finish the repairs?!?!? Wow I'm liable for the contractors' work? I told her I'd have to get back with her as this is not a normal part of my inspection. I have never talked with anyone from rural development (Dept. of Agriculture) so how could they accept my report as being up to their standards? What are their standards? What's going on?

[Marc]

Your confusion is understandable. Most USDA_RD inspections that I do, involve thoroughly confused buyers, lenders and agents.

Download Attachment: USDA_RD1924-0012.pdf

154.72 KB

Fill out the heading, 'For', 'Address', 'State' and 'County'. Skip down to the 'FINAL INSPECTION' section and where it says 'USDA Representative', put the date and sign your name. You're done.

As for how to do the inspection, look on the reverse side of the form for guidance on that. My way is to spend about 15 minutes confirming that construction is complete, all utilities are connected, and everything works. Any major issues, fail the inspection by not giving the form to the client. Collecting payment from the lender may be difficult if the inspection fails. Receipt of the form by the client means that the inspection has passed.

The USDA policy is that if the lender is convinced that you are qualified to do the inspection then the USDA is fine with you doing it also.

All of the above is for new construction only. If the dwelling has been inhabited before, the lender has misunderstood the USDA. What's needed is a home inspection. Contact the USDA office directly and have them explain the requirements to the lender and sell them a home inspection. Happens a lot.

Any other difficulties, contact the USDA.

Marc

[hoosier inspector]

All of the above is for new construction only. If the dwelling has been inhabited before, the lender has misunderstood the USDA. What's needed is a home inspection. Contact the USDA office directly and have them explain the requirements to the lender and sell them a home inspection. Happens a lot.

Any other difficulties, contact the USDA.

Marc

Thanks Marc,

This is an older home, and I thought it was a typical inspection.

Obviously everyone involved is confused,as you mentioned.

Thanks again,

Bob

[Jim Katen]

I haven't done one of these in over a decade. Back then, you did your regular home inspection, but you also filled out a USDA form that had a handful of questions that they were interested in. If the answers to those particular questions were not satisfactory, the home had to be updated to meet the USDA standard.

I have no idea whether or not this is still the case, but the form that I used to use is attached.

- Jim Katen, Oregon

Download Attachment: USDArev.doc

27.06 KB