Please consider the following items when purchasing a home. Underground Oil Tanks: In the City of Portland and beyond, Oil Tanks have served as heating source for homes for many years. While Gas forced air furnaces have become the recommended product of new home builders and the widespread application of many homeowners, Oil as a Heat source is still used throughout the Northwest. The reason I have taken the time to mention Oil Tanks is because of the presence of hazardous materials sometimes leaked by the tanks. In some cases the levels of contamination require decommissioning of the Oil Tank. The process of inspecting the soil for contamination and reporting the results is, in part, governed by the Oregon Department of Environmental Quality who has created measures by which soil contamination must be dealt with. In Order to learn more about the implications of soil contamination caused by underground oil tanks please visit the Department of Environmental Quality website at: http://www.deq.state.or.us According to the Oregon Department of Environmental Quality (DEQ), there are over 200,000 residential underground heating oil storage tanks in the State of Oregon. The Oregon DEQ also estimates that there are over 50,000 underground heating oil tanks still in use and over 150,000 that have been abandoned. Many of these abandoned tanks still contain fuel, and therefore pose potential environmental problems to the soil and water tables. Statistically over 50% of underground heating oil tanks have leaked some product into the soil. Please Take the time to read the DEQ’s - What You Should Know About Buying or Selling a Home with a Heating Oil Tank.
http://www.deq.state.or.us Sellers have a duty to disclose known environmental hazards. Buyers on the other hand should conduct their own investigation or hire a professional to inspect the property for such hazards. The rules and regulations about oil tanks and other hazardous materials such as Asbestos are complicated. Being aware of the implications of these products and materials is extremely important.
Sewer Lines: Residential sewer lines in Portland, among a number of other cities around the country, have grown old underground or become compromised due to inferior product materials. Just as one would hire a home inspector, a buyer should also hire a sewer inspector to conduct a sewer inspection on any home built prior to 1970. In recent years sewer line repairs have become a far more widespread practice during home purchases in Portland. The cost of a standard sewer scope is approximately $100.00-$150.00 and to most buyers this cost is worth knowing the condition of the sewer line.
Lead Based Paint: Lead-based Paint was commonly used in houses prior to 1978.
Peeling, chipping or cracking lead-based paint is a hazard and needs immediate attention. Windowsills, doors, stairs, porches and railings are critical areas to address when thinking about the impacts on children. The Environmental Protection Agency has published information brochures for the benefit of buyers of houses built before 1978. You should ask for a copy of the brochure if you are not supplied with one by a Realtor. Department of Health & Human Services: http://www.fda.gov
Asbestos: Asbestos was a common fiber material used in a number of different building materials prior to 1980. It can be found in siding, floor coverings, popcorn-type ceilings and insulation around pipes and heat shields. As with lead-based paint, not disturbing asbestos is the best course of action. Asbestos becomes an airborne fiber which when inhaled caused respiratory issues down the line. For more information about Asbestos please look to the Department of Health and Human Services. Department of Health & Human Services: http://www.fda.gov
Siding: Many homes in the Pacific NW have been sided with what is referred to as "manmade" or "composite siding". Many of these products have not been able to hold up in the Pacific NW due to the weather and moisture conditions. At the forefront of Siding Problems in the Pacific NW is a product called "Louisiana Pacific" or "LP" Siding. There was a class action suit filed against the Louisiana Pacific siding, covering individuals who installed the product prior to January 1, 1996. Louisiana Pacific sold two basic types of LP, Inner Seal, siding, "Lap" or horizontal siding and LP Panel Siding. Many people refer to the paneled siding as T1-11, however T-111 is a true plywood siding and it is made quite differently from the LP (Inner Seal) Siding. Most siding companies pull off the entire LP lap product and install new hardi-plank, vinyl or cedar. However, some siding companies re-side over the LP panel siding instead of pulling the panel material off. This process can have cost benefits; but, prior to siding over the panels you should look to see how much damage there is to the panels. Omni-Board
Omni Board is another product that people in the Pacific NW are having problems with. The Omni-Board product is very similar to the Louisiana Pacific product in that it is a type of "chip board" product. It is important to note that there is not a class action suit on the Omni-Board product. As it turns out, the company is handling the claims under their warranty program. You may call the Omni-Board claim line at 1-800-323-4591. It should only take you from 3 months to 6 months for Omni-board to settle your claim. Apparently, dealing with Omni-Board is much easier than with Louisiana Pacific at this time. Masonite
Masonite Hard Board - (Masonite) - did have a class action suit filed. The hard board siding was not used a great deal in the Pacific Northwest but you do find it from time to time. Most of the Masonite hard board siding came in panel form. On expensive homes you might find the Masonite "clad board". This is where Masonite covered the hard board siding with a "stucco" appearing material. This material was used on houses where people wanted to have a "Tudor" looking home.
If you have Masonite Hard Board siding you may call their claim line at 1-800-330-2722. Georgia Pacific
Georgia Pacific Corporation recently settled a class action suit regarding their Jarratt Lap Siding and Catawba Siding. Catawba was used a great deal in the Pacific NW when Louisiana Pacific started having problems with their siding. You may call the Georgia Pacific corporation claims line at 1 (888) 882-5246. For additional information regarding the issues particular siding products have faced please visit pnwhousing.com. Their site has comprehensive information on these subjects and they have people on staff who are trained on the particulars.
Whether it is siding, the roof or dry-rot pay special attention to whom you contract to inspect your home, what products it is made with and what is brought to your attention in the inspection reports. The list can be long or short, either way be prepared and have your real estate agent support you when you choose your inspector and especially if you choose to negotiate repairs. Stucco
Another siding material to be aware of is EIFS Stucco. The product is one which has required replacement on a number of homes in Portland Metropolitan Area due to it’s susceptibility to water penetration. EIFS (Exterior Insulation and Finish Systems)
These multilayered systems typically consist of a polystyrene-based insulation board, a cement-like base coat reinforced by glass fiber mesh, and an attractive, acrylic-based finish coat.
In late 1995, widespread water intrusion problems were discovered in homes with EIFS throughout the southeast and today in areas of Portland, like Forest Heights, EIFS is being replaced on homes often. Be sure when deciding to buy a home with stucco siding to determine whether it is EIFS. Conduct an inspection to determine if the EIFS stucco is deficient and be aware of all the implications that follow the sale of a home with EIFS.
Title Report and Commitment The title report, or commitment to insure, produced by a title insurance company contains important information that must be reviewed by the buyer. In particular, the report will list certain “exceptions” to the policy the company will issue. Buyers should request copies of any documents mentioned in the report that are not understood or raise concerns about the state of the title. General information about title issues can be found at: http://www.titlelawannotated.com. Questions about the title report and associated documents can be directed to the title or escrow officer issuing the report or to the buyer’s attorney or surveyor. Review of title reports for legal deficiencies involves the practice of law.
Homeowners’ Insurance The insurance claims history for a home may affect the cost of homeowners’ insurance, or even its insurability. Most insurance companies use a database service called the Comprehensive Loss Underwriting Exchange (CLUE) to track claims made. Depending on the content of the CLUE report, and the insurance company’s policy, home insurance may prove more difficult to get than expected. The buyer’s claims history and credit report may also be used to determine insurability. Insurers have used CLUE reports and other information, coupled with termination provisions in the policy, to cancel coverage after closing. IT IS CRITICAL THAT BUYERS ARRANGE FOR HOMEOWNERS’ INSURANCE EARLY IN THE PROCESS OF PURCHASING PROPERTY RATHERTHAN WAITING UNTIL CLOSING TO GET INSURANCE. If difficulty is experienced in obtaining the insurance, the buyer can ask the seller to furnish them with a copy of the CLUE report on the property. Homeowners can obtain a copy of the report for their property online at: http://www.choicetrust.com. Buyers may want to talk to the licensee they are working with about whether obtaining suitable homeowners’ insurance should be made a contingency of the sale. More information on homeowners insurance in Oregon can be found at: http://www.insuranceoregon.org/ .
Homeowners’ Association Documents, Covenants, Conditions and Restrictions Covenants, conditions and restrictions, called “CC&Rs,” are formally recorded private limitations on the right to use real property. Often, but not always, CC&Rs are enforced by a homeowners’ association. Review of the CC&Rs istypically part of a real estate sale. Although real estate licensees are familiar with common CC&R provisions, determining the legal effect of specific provisions is considered the practice of law in Oregon and, therefore, beyond the expertise of a real estate licensee. If the subdivision in which the property is located is governed by a homeowners’ association, the CC&Rs may be very restrictive. Homeowners’ associations are often governed by their own articles of incorporation, bylaws, rules and regulations. Homeowners’ association rules and regulations.
For more information on disclosures go to: Oregon Property Buyer's Advisory |
