HEDDERMAN ENGINEERING, INC.

www.heddermanengineering.com Office 281-355-9911, Fax 281-355-9903 office@heddermanengineering.com

June 9, 2010

TO: Mr. Travis Bonner

REF: CONDITION OF PROPERTY SURVEY

Dear Mr. Bonner:

At your request, a visual survey of the house located at 701 Reinicke, Houston, Texas,
was made by Mr. Tim Hedderman.

Transmitted herewith is the inspection report stating our professional opinions on

whether the items of construction included in the survey are performing their intended
function, or are in need of repair.

Thank you for asking HEDDERMAN ENGINEERING, INC. to perform this important
inspection work for you. If you have any questions after reviewing this report, please
feel free to call me at my office.

Sincerely,

HEDDERMAN ENGINEERING, INC.

Tim Hedderman, President
 701 Reinicke

INTRODUCTION
PURPOSE

The purpose of the inspection was to view the components of the house included in the
inspection, and give our opinions on whether or not these specific items were
functioning at the time of the inspection, or were in need of repair. Although this report
may include observations of some building code violations, total compliance with
structural, mechanical, plumbing, electrical codes, specifications, and/or legal
requirements is specifically excluded. We do not perform “code” inspections, and since
building codes change every few years, our inspections are not done with the intention
of bringing every item in the house into compliance with current code requirements.
Rather, the standard of our inspections is a performance standard to determine if the
items inspected are functioning at the time of the inspection, or are in need of repair.
This is particularly applicable to Home Warranty policies, where the standards of the
Home Warranty service company are often different that our stated performance
standard for judging whether a piece of equipment is functional or in need of repair. It
you intend to rely on a Home Warranty policy, then it is recommended that you contact

2
the appropriate service companies for a more in-depth analysis of what may be required
to meet their standards should a claim be made against the policy.

This report is provided solely for the use of the person to whom this report is addressed,
and is in no way intended or authorized to be used by a third party, who may have
different requirements, and to whom we have not contracted with to perform the
inspection. If a third party chooses to use this inspection report, they do so without
HEDDERMAN ENGINEERING, INC. permission or authorization, and they do so at
their own risk.

It is our purpose to provide information on the condition of the house on the day of the
inspection, and not to provide discussions or recommendations concerning the future
maintenance of any part of the house, or to verify the adequacy and/or design of any
component of the house. It is pointed out that other engineers/inspectors may have
contrasting opinions to those given in this report.

As a courtesy, we may provide some "ballpark" repair estimates for items that should be
repaired. These estimates are only approximate and, therefore, should in no way be
relied upon as a bid for the actual performance of the work. Also, since we are not a
party to the contract governing the sale of this house, these "ballpark" estimates should
not be relied upon as the only source of cost information for repairs. The scope and
cost of the actual repairs can vary significantly from the estimates, and it is your
responsibility to see that the scope of work needed and actual cost of repairs is
confirmed by one or more qualified service companies before your option period
ends or before closing on the house. This report may also contain items listed as
"Information" which are listed as a courtesy to help you become more aware of the
condition of the house.

In the performance of this inspection, HEDDERMAN ENGINEERING, INC. has acted as

an engineering consultant subject to the standards of the State Board of Registration for
Professional Engineers. We are not affiliated with the Texas Real Estate Commission,
and are not subject to, or limited by, their standards of practice for their licensed
inspectors.

SCOPE

The scope of the inspection included limited, visual observations at the interior and
exterior of the structure, the attic as viewed only from the areas determined by the
inspector to be safely accessible, and the roof as viewed from the ground. Only those
items readily visible and accessible at the time of the inspection were viewed and are
included in this report. Any items causing visual obstruction, including, but not limited
to, furniture, furnishings, floor or wall coverings, foliage, soil, appliances, insulation, etc.,
were not moved. Only those electrical outlets that were readily accessible were
operationally checked.

3
The basis of our opinions will be the apparent performance of that portion of the house
readily visible at the time of the inspection. Disassembly or removal of any portion of
the structure, mechanical equipment, plumbing equipment, or electrical equipment is
beyond the scope of this inspection.

There is no warranty or guarantee, either expressed or implied, regarding the

habitability, future performance, life, insurability, merchantability, workmanship, and/or
need for repair of any item inspected.

The components of the house included in scope of the inspection, if present and
applicable, include:

Structural: Foundation, primary load-carrying framing members, roof surface, water

penetration, and miscellaneous items related to the house.

Mechanical: Air conditioning and heating systems, water heater, built-in

kitchen appliances, and garage door opener.

Plumbing: Water and gas supply lines, sinks, toilets, tubs, showers, drain lines,
and vents.

Electrical: Service entrance conductors, electric meter, distribution panel, visible

wiring, light fixtures, switches, and receptacle outlets.

Sprinkler: Control panel, solenoid valves, backflow prevention device(s), piping,

and sprayer heads.

Pool: The pool components included the basin, the deck, pumps, filters,
piping, heater, and electrical.

Security: If the house is equipped with an alarm system, the alarm system may
be checked by a representative from Broadview Home Security. It is
pointed out for your information that Broadview typically pays inspection
companies a small processing fee for promotional purposes.
Broadview will typically contact you at a later date at the phone
numbers you have provided, with information about their services.

Items specifically excluded from our inspection include:

All pests, wood destroying insects, conducive conditions, ants, or rodents.
All items related to major geological conditions such as faults or subsidence.
All underground piping, including water, sewer, and gas piping.
Water softening and water treatment systems.
Pressure testing of gas system.
All low voltage data systems such as telephone, cable TV or data lines.
All fire detection, carbon monoxide, smoke alarms and/or security alarm systems.
All environmental hazards, or any toxic/hazardous materials including, but not

4
 limited to, radon gas, lead, formaldehyde, electromagnetic, any and all items
related to asbestos.
Any electrical load analysis on the electrical system to determine adequacy of the
service or any branch circuit.
If you desire information or inspections concerning the items listed above, or any other
items, then it is recommended that you contact the appropriate service companies.

Also excluded from the scope of the inspection are any and all items related to mold
and/or all microbial substances. Due to the current limitations of coverage on most
homes by the insurance industry in Texas, where damages due to mold and/or other
microbial substances may not be covered, we routinely recommend that you have a
mold inspection by a qualified professional before you close on the house.

Built-in appliances and mechanical equipment were operated in at least one, but not all,
of their operating modes, where possible. If you desire for every operating mode of
each piece of equipment to be operationally checked, then it is recommended that you
contact a service company. Equipment and materials that are not visible, including
structural components, underground plumbing and gas lines, and all other items not
normally available for ready viewing, are excluded from the scope of this inspection. If
you desire an inspection on the underground plumbing pipes or a hydrostatic test to
determine if the plumbing pipes are leaking under the house, then it is recommended
that you contact a plumber. No electrical circuit or load analysis was performed on the
electrical system.

We make no representation regarding the condition of this house other than as

contained in this written report. Any verbal discussions concerning this house that were
made at the time of the inspection, and not contained in this written report, are not to be
relied upon.

Although the structural portion of this inspection was made by an engineer, it cannot be
considered to be a formal engineering study since no calculations, structural analysis, or
physical material testing were performed. If engineering drawings/specifications have
been made available during this inspection and if they have been viewed, it is pointed
out that all such viewing is strictly cursory, and in no way should our cursory
examination be construed as providing engineering judgments concerning the adequacy
or acceptability of the drawings/specifications.

It is pointed out that it is possible for latent defects to exist in the structure and its
related equipment, underground piping, and systems that are not visible at the time of
the inspection, and may not be able to be viewed during a limited visual inspection.
This is particularly applicable in items relating to water, such as roof leak, water
penetration conditions, etc., where the condition may exist, but not be visible at the time
of the inspection (e.g. where it has not rained for a period of time, allowing materials
time to dry out). HEDDERMAN ENGINEERING, INC. does not claim or warrant that the
observations listed in this report represent every condition that may exist. In using the

5
information supplied by this inspection, one must recognize the limitations of a limited,
visual inspection, and accept the inherent risk involved.

It is recommended that you obtain as much history as is available concerning this

house. This historical information may include copies of any seller's disclosures,
previous inspection or engineering reports, building drawings and/or specifications,
bids to perform repair work on the house, knowledge of any drainage problems,
receipts from repair work that has been performed, reports performed for or by
relocation companies, municipal inspection departments, lenders, insurers, and
appraisers. You should attempt to determine whether repairs, renovation, remodeling,
additions or other such activities have taken place at this house.

DESCRIPTION OF HOUSE

The house was a two bedroom, 1-1/2 bath, two story wood frame dwelling with brick
veneer and EIFS (synthetic stucco) siding, a composition shingle roof, and was
supported on a monolithic slab on grade concrete foundation. The house had a two car
detached garage connected to the house by a deck with a garage apartment above.
The house was vacant at the time of the inspection, and the house, according to HAR,
was built in 1995.

FOR THE PURPOSES OF THIS INSPECTION, NORTH WILL BE ASSUMED TO BE

FROM THE LEFT SIDE OF THE HOUSE TOWARDS THE RIGHT SIDE.

STRUCTURAL

FOUNDATION
Description

The foundation was a concrete slab on grade, and appeared to be reinforced with steel
reinforcing rods (rebar).

EVIDENCES OF DIFFERENTIAL MOVEMENT

Levelness

Normally horizontal surfaces, such as floors, door tops, counters, window sills, etc.,
were observed to be acceptably level throughout the house. The floors were checked
with an electronic level, and the difference in elevation between the high point and low

6
point was 0.7 inch on the first floor and 1.0 inch on the second floor, and 0.7 inch at the
garage apartment. The floor were generally sloping from the left rear corner of the
house towards the right front corner.

See our field sketch showing the elevation readings at the end of this report. Note that
the “R” on the sketch is our randomly chosen starting reference point, where the
elevation is 0, and all other elevation readings are taken relative to the reference point,
and are measured in inches to the nearest 1/10 inch.

Note also that elevation readings taken at the garage area are relatively large numbers
relative to the reference point due to the step down into the garage area.

We typically point out that foundations are rarely constructed perfectly level, so most
properties have some unlevelness (typically ¾ to 1-1/2 inches) built into the foundation
as part of original construction. We have no knowledge as to how much unlevelness
was built into this house foundation during original construction.

Veneer Cracks

Cracks in the exterior veneer were minimal in number and degree.

Sheetrock Cracks

Sheetrock cracks were minimal in number and degree.

Concrete Cracks

The foundation concrete was observed to be cracked at the garage floor, and the
downstairs concrete floor.

Conclusions

Most of the structures previously inspected by this firm have experienced some degree
of differential foundation movement, and this structure was no exception. After careful
examination, it is our opinion that no evidence exists to indicate excessive or unusual
foundation settlement. The overall degree of the foundation movement for this structure
is within an acceptable amount for a house of this age and type construction. The
foundation is, at this time, performing its function, and is not in need of releveling. It is
pointed out for your information that, due to the nature of the soils in this area, it is
reasonable to expect that some movement of the foundation will happen in the future.

Perimeter Grading/Drainage

This inspection does not include determining if the property is in the 100 year flood
plain. For further information regarding elevation of this lot check with your survey
and/or an appraiser.

7
Low areas were observed in the back yard where it appears that water pools after it
rains. It is recommended that an underground drainage system be installed to remove
the standing water in the yard. Contact a company specializing in this type of work for a
cost estimate.
Obtain Cost Estimate

STRUCTURAL FRAMING
Description

The house was observed to be a two story wood frame structure that includes standard
major framing components, including wall studs, ceiling joists, floor joists, and roof
rafters with purlins and strut supports.

Observations

No deficiencies were observed in the primary load carrying members of the structural
framing that were accessible in the house and viewed at the time of the inspection,
including the roof framing, load bearing walls, ceilings, and floors. No significant
deflections were observed in the roof framing as we were able to look up the plane of
the roof from the different sides of the house. No unusual sloping of the upstairs floor
framing was noted, beyond the normal amount of framing deflections for an upstairs
floor.

Damage was observed on sheetrock at the ceiling of the downstairs kitchen/dining room
area where the exterior paper of the sheetrock had small holes in it and dirt was visible
at the holes. This damage continued up the wall to the second floor, where dirt was
observed at the master bathroom ceiling above the shower stall. This is an evidence of
infestation and/or damage by wood destroying insects behind the sheetrock. If the
structural framing members are damaged, they will not be visible without removal of the
sheetrock. Therefore, it is recommended that the damaged sheetrock be removed

8
along with all other necessary materials in order to view the structural framing members
in that area for damage. Have a contractor provide a cost estimate for any repairs that
are necessary.
Obtain Cost Estimate

9
The supporting beam for the balcony was observed to have severe wood rot to the trim,
and it appears that the beam has deflected where it attaches to the garage. Further
investigation is needed to be determine the extent of any damage to the beam, and to
provide a cost estimate for all needed repairs.
Obtain Cost Estimate

Conclusions

The primary load carrying members of the structural framing that were viewed in the
house were performing their intended function at the time of the inspection, and were
not in need of repair. Further investigation is needed to determine the extent of any
damage from wood destroying insects, and it is recommended that a contractor be
contacted to remove sheetrock from the walls and/or ceilings to determine the extent of
any damaged. Also, further investigation is needed to determine the extent of the
damage to the beam shown above.
Obtain Cost Estimate

ROOF
Life expectancy

The roof surface was constructed of composition shingles. The life expectancy of a
composition shingle roof has been observed to vary from 10 to 20 years, with most
requiring replacement at about 15-18 years. We estimate that the age of the roof is
approximately 15 years.

Observations

After observing the interior of the structure, evidences of roof leaks were not visible.
The absence of evidences of roof leaks does not guarantee that roof leaks were not
present; rather, that no evidences of leaking were visible at the time of the inspection.

10
ROOF LEAKS

After observing the interior of the structure, evidences of roof leaks were visible, where
the ceiling sheetrock was water stained. It is recommended that a roofing contractor be
contacted to find the source of the leaks, and to make any needed repairs.
Locations included:
Obtain Cost Estimate

WEAR AND DETERIORATION - COMPOSITION

The composition roof surface was showing evidences of deterioration, including

shingles that were brittle, discolored, starting to crack, and starting to lose their
aggregate.

LIMITED VIEWING

* Due to the steep pitch on the roof, the roof was not viewed from its surface, but was
viewed from the ground.

Conclusions

The roof is in generally serviceable condition at this time with some repairs needed for
the above item(s). Have a roofing contractor provide a cost estimate to make all
necessary repairs to bring the roof into a completely serviceable condition.

ROOF LIMITED LIFE

After observing the condition of the roof surface, it is my opinion that the roof surface is
in serviceable condition at this time, and has some life remaining. However, it can be
anticipated that replacement of the roof surface will become needed within the next few
years.

11
WATER PENETRATION
Evidences of extensive water penetration to the interior of the structure were observed
throughout the house. Further investigation by a stucco expert and/or a service
company is recommended to determine the extent of any damage inside the walls of the
house, and to provide a cost estimate for all needed repairs.
Obtain Cost Estimate

12
13
14
15
16
17
18
A vulnerability of water penetration was observed at most of the penetrations/openings
through the exterior building envelope, and it is recommended that all penetrations and
openings be sealed against water penetration. Below is a representative sample of
locations and/or photographs showing some, but not necessarily all, locations where
there is a vulnerability to water penetration. Have a contractor provide a cost estimate
to seal the vulnerable areas against water penetrations.

19
FIREPLACE/CHIMNEY
Description

PREFABRICATED METAL – VENTED THROUGH ROOF

The fireplace was a prefabricated metal fireplace with a metal flue pipe that extended

20
through the roof. The firebox was equipped with a gas log lighter, with a manually
operated gas valve, which was functional at the time of the inspection.

No items requiring repair were observed at the time of the inspection to the operation of
the living room fireplace. The smoke chamber and flue pipe did not have excessive
built-up soot, the damper was operational, the gas log lighter was checked and was
functional, and the firebox was properly sealed. While the draw of the chimney was not
able to be checked, no evidences of poor draw were visible, such as soot on the front of
the fireplace.

21
Fireplace at master bedroom

CHIMNEY FLUE

The chimney flue pipes were not accessible in the attic, and were not able to be viewed.

22
MISCELLANEOUS ITEMS

Attic

LADDER

The access ladder into the attic appeared to be the original installation ladder, and,
therefore, does not meet current code requirements for ladders into attics.
Consideration should be given to replacing the ladder with a ladder that meets current
code requirements.

INSULATION DESCRIPTION

The insulation in the attic was fiberglass blown in and fiberglass batts.

INSULATION REPAIRS

The insulation was in contact with the recessed lights, which can be a fire hazard and
shorten the life of the light bulbs. It is recommended that the insulation be pulled back
to provide a three inch air space.
Estimated cost: $75

Doors

The exterior doors at the master bedroom to the balcony were missing the flush bolts,
and the door could not be securely locked.
Obtain Cost Estimate

23
EIFS (Exterior Insulation Finish System) Stucco

The stucco siding was observed to be synthetic siding or EIFS (Exterior Insulating
Finish System), rather than traditional concrete stucco. The exterior panels deflected
readily under finger pressure, indicating styrofoam under the thin exterior stucco
coating. Historically, EIFS siding has had extensive problems with water penetration,
causing wood rot, mold and other bio-organisms, and other water related problems.
The siding typically performs well on flat surfaces, but the thin stucco coating cracks
readily at the 90 degree angles in the siding, such as at windows and door trim, and at
decorative details. The cracking can be caused by foundation movement, thermal
expansion and contraction from heating and cooling of the house during the day, or
other factors.

The EIFS stucco was showing evidences of extensive water penetration, and further
investigation is recommended by a stucco specialist and/or a contractor to determine
the extent of any damage to the structure. It is pointed out that sheetrock will typically
need to be removed from the walls in the affected areas in order to view the interior of
the wall cavity, and see the insulation, wall framing members, and structural sheathing
behind the EIFS.
Obtain Cost Estimate

Wood Rot

Wood rot was observed at several locations around the house. It is pointed out that
additional damage could be present under the rotted materials, that will not be visible
until the outer rotted materials are removed. Have a service company determine the
entire scope of wood rot throughout the house, and provide a cost estimate to replace
all rotted wood.
Obtain Cost Estimate

24
Miscellaneous Interiors

The carpet has been removed from the upstairs area.

Obtain Cost Estimate

25
 MECHANICAL
APPLIANCES
A continuity check was made of the exterior metal casings of the built-in kitchen
appliances, and it showed that the metal casings were bonded for the built-in kitchen
countertop appliances.

Dishwasher

No items requiring repair were visible at the time of the inspection for the operation of
the dishwasher. The dishwasher drain line was connected to an anti-siphon device at
the kitchen sink, which was functional at the time of the inspection.

Disposal

The disposal was functional at the time of the inspection. However, the interior of the
disposal was rusted, and it is our opinion that it has only a limited amount of life
remaining.

Vent Fan - Downdraft

One of the fins was missing were the vent exits the house and needs to be repaired.

Electric Range

No items requiring repair were visible for the operation of the electric cooktop. All of the
elements and controls were operating properly at the time of the inspection.

No repair was needed to the calibration of the oven thermostat. The thermostat was set
at 350 degrees, and the oven heated to within the allowable 25 degrees. The oven
was checked with an oven thermometer, and found to heat to 345 degrees.

Refrigerator/Freezer

No items requiring repair were visible at the time of the inspection for the
refrigerator/freezer in the kitchen. It is pointed out that our inspection of the refrigerator
is only cursory to see if the refrigerator compartment is cooling, and the freezer
compartment is freezing. The refrigerator was cooling to 36 degrees and the freezer to
3 degrees at the time of the inspection, according to our infrared thermometer.

Garage Door Openers

The garage door opener did not stop the descent of the door when the door was
subjected to a reasonable resisting pressure. This could cause possible personal injury
or damage to house, and the opener is in need of adjustment. It is pointed out that the

26
unit was equipped with the infra-red sensing safety device, and the device was
operational at the time of the inspection.
Estimated cost: $25

Utility Room

The utility room contained a washing machine and dryer. Neither the washing machine
or dryer were operationally checked at the time of the inspection, and no water was run
down the drain line for the washing machine.

The 240-volt outlet for an electric dryer was the newer style 4-prong outlet, rather than
the old style 3-prong outlet. If your electric dryer has a 3-prong plug, then it will not be
compatible, and will need to be changed to a 4-prong plug.

The utility room contained both the 240-volt electric outlet for an electric dryer, and also
a gas supply line for a gas dryer.

PLUMBING
A plumbing system typically consists of three major components, including the potable
water supply piping; the waste or drain piping; and the plumbing fixtures. The
distribution piping brings the water from the public water main or a private well to the
individual fixtures throughout the house. The water distribution system is under
pressure, usually from 20 psi to 80 psi. The waste or drain piping carries the waste
water and products underground to the sewer system or septic tank, and the waste
piping is not under pressure, but operates by gravity flow. We typically run water down
the drains from the sinks, tubs, showers, and toilets, but this cannot simulate the waste
flows characteristic of full occupancy. There may be partial blockage of the underground
waste lines from debris, broken pipes, or tree roots that cannot be detected by a visual
inspection. If you desire a more in-depth inspection, it is recommended that you contact
a qualified plumber.

Water Service

The shut-off valve for the main inlet water line was located at the exterior of the house

27
at the front of the house.

Sinks & Lavatories

The linkage was disconnected on the drain stopper(s), and the stopper was non-
functional.
Locations included: the apartment bathroom
Estimated cost: $50

The faucet assembly was loose on the sink(s), and needs to be repaired.
Locations included: the kitchen sink
Estimated cost: $50

Toilets

The ballcock valve(s) was leaking inside the toilet tank and is in need of replacement
Locations included: the hall bathroom and apartment bathroom
Estimated cost: $100

The lid was broken/missing on the toilet, and needs to be replaced.

Locations included: the hall bathroom
Estimated cost: $50

Tubs/Showers

No items requiring repair were observed in the operation of the whirlpool tub. The
recirculation pump, aerators, and Ground Fault Circuit Interrupt device were functioning
properly.
Locations included: the master bathroom

The shower head(s) was leaking and needs to be repaired.

Locations included: the hall bathroom
Estimated cost: $25

28
The shower head was missing, and needs to be replaced.
Locations included: the apartment bathroom
Estimated cost: $25

The water shut off valves at the tub at the hall bathroom does not stop when turned to
the "off" position, but the valve rotates 360 degrees. The damaged faucet needs to be
repaired.
Estimated cost: $150

Miscellaneous Interior Plumbing

Water stains were observed on the ceiling of the garage. This is located under the
apartment bathroom, indicating a current or previous plumbing leak at the bathroom.
Have a plumber find the source of the leak, and make any necessary repairs.
Obtain Cost Estimate

Miscellaneous Exterior Plumbing

The handle for the hose bibb was leaking at the front of the house.
Estimated cost: $5

Sprinkler System

The automatic sprinkler system was manufactured by Rain Bird, and contained
three zones. The control panel was located inside the garage.

Heads were spraying the house, and need to be adjusted on zones 1 and 3.
Estimated cost: $50

One of the heads was broken on zone 1.

Estimated cost: $50

No backflow prevention device has been installed on the water supply line to the
sprinkler system. The device can prevent contamination of the potable water supply by

29
a backflow of contaminated water from the sprinkler system into the water supply.
Obtain Cost Estimate

MISCELLANEOUS

Gas System

The gas meter, with the main shut off valve for the gas to the house, was located at the
south side of the house.

An unused gas valve was observed in the utility room that was not capped. This needs
to be properly capped to prevent gas leaks.
Estimated cost: $25

30
Manufacturer Size Date Piping Type Location
State 50 Gallon -Gas 1998 Copper Attic
State 19.9 Gallon-Electric 2008 Copper Garage

The water heaters were functional at the time of the inspection. However, due to the
age and/or condition of the 1998 unit, it is the opinion of the inspector that it has only a
limited amount of life remaining. Normal life expectancy of a water heater in the
Houston area is approximately 7 to 10 years.

Temperature/Pressure Relief Valves

The temperature/pressure relief valves were not operationally checked at the time of the
inspection. Valves typically do not reseat properly when they are operated, which causes
the valves to leak. It is best to replace a temperature/pressure relief valve every two
years to prevent it from getting clogged with mineral deposits.

31
The drain line for the temperature/pressure relief valve was leaking at the rear of the
garage.
Estimated cost: $100

Water Heater Vent Pipe

The vent pipe was not secured with a strap to the roof framing.
Estimated cost: $50

Water Heater Plumbing

The piping at the top of the water heater was severely corroded at the fittings, and is in
need of repair.
Estimated cost: $75

32
Electric Wiring

No electrical disconnect panel was installed at the water heater to shut the power at the
water heater.
Estimated cost: $150

The bushing was missing on the conduit.

The air conditioning for the house was provided by two forced air split systems, with a
total cooling tonnage of 5-1/2 tons. The equipment for the individual zones was as
follows:

Zone Condensing Unit Date Evap. Coil Date

House 3-1/2 ton Trane 1995 4-ton 2003
Apartment 2-ton Rheem 2000

Cooling Performance

No items requiring repair were visible at the time of the inspection for the cooling
performance of the apartment system. The air conditioning equipment was observed to

33
be cooling 23 degrees across the evaporator coil at the time of the inspection.

The house system had a less than normal temperature differential

across the evaporator coils (only 13 degrees). Have a service company find the source
of the problem, and provide a cost estimate to make any necessary repairs.
Obtain Cost Estimate

Condensing Unit

The condensing units were functional at the time of the inspection. However, due to the
age and/or condition of the equipment, it is our opinion that the units have only a limited
amount of life remaining. It is pointed out for your information that recent changes in the
law require for all manufacturers of air conditioning systems to produce equipment with
a minimum SEER rating of 13.

The support pad for the condensing unit was missing, and allows the bottom of the
condensing unit housing to touch the soil or be covered by water. This condition can
rust out the housing.
Estimated cost: $150

Evaporator Coil

The overflow pan under the house evaporator coil had rust in the pan, apparently from
water overflowing the condensate drain line into the overflow pan. No water was in the
pan at the time of the inspection, but, since we only ran the unit for a few minutes, it is
recommended that the drain line be checked by an air conditioning service company.
(see photo below)

34
HEATING
The heating for the house was provided by two furnaces located in the attics. The
equipment for the individual zones was as follows:

Zone Manufacturer Size Date Location

House Ruud 75.000-BTU 1995 Attic
Apartment Not Visible Electric Not Vis. Apartment Attic

The house furnace was operationally checked at the time of the inspection, and no
repairs were indicated to the operation of the furnace.

Due to the air conditioning system not being in the apartment, the temperature inside
the apartment was approximately 90 degrees. The thermostat for the furnace could not
be turned that high, so the furnace could not be operationally checked. Have all
components of the furnace checked by a service company when the air conditioning
has been repaired. The service company should provide a written
report on the condition of the equipment.

Furnace Burner Compartments

The furnace is constructed such that the unit must be dismantled in order to view the
entire heat exchanger. The unit was not dismantled, and the heat exchanger was not
able to be viewed for evidences of a crack. If further investigations are desired, then it
is recommended that a service company be contacted to dismantle the unit.

35
ELECTRICAL SERVICE
Type: Overhead Voltage: 120/240 Phase: Singe Phase Amps: 200-Amps
Meter: Side of the house

BREAKER PANELS
Manufacturer: General Electric panel and subpanels
Rated Capacity: 200 Amps
Main Breaker: 200-Amps
Location: Side of the house

WIRING
Service Entrance Conductors: 2/0 Copper
Branch Circuit Wiring: Copper
Type of Wiring: Romex
Type of System: 3-wire grounded system

Breaker Panel Box (Panelboard)

It is a general recommendation that all circuit breakers be tripped off and on at least
once a year to ensure that they are still physically able to trip off. Occasionally, the
points on a breaker will fuse to the main bus in the panel, preventing the breaker from
tripping off, even if there is an overload on the circuit. If this condition occurs, it can be
a fire hazard.

36
The main panel on the south side of the house was loose on the wall and needs to be
secured.

The breaker panel(s) did not contain any Arc Fault Circuit Interrupters (AFCI’s). AFCI’s
devices are intended to protect against fires caused by electrical arcing in the wiring, by
shutting off the power to the circuit when an electrical arc is detected in the circuit.
Homes built prior to 2002 were not required by the National Electrical Code (NEC) to be
protected by AFCI’s. Between 2002 and 2008, the National Electrical Code required the
electrical circuits in bedrooms to be protected by an AFCI. Since September 1, 2008,
the State of Texas has adopted the 2008 National Electrical Code, and the circuits in
the locations listed in the NEC reference below are now required to be protected.
Since this house was built prior to 2002, the breaker panel is not required by the NEC to
be equipped with AFCI’s. However, you may want to consult with an electrician and

37
consider having AFCI’s installed for safety purposes.

NEC 2008 210.12 Arc-Fault Circuit-Interrupter Protection.

(A) Definition: Arc-Fault Circuit Interrupter (AFCI). A device intended to provide protection from the effects
of arc faults by recognizing characteristics unique to arcing and by functioning to de-energize the
circuit when an arc fault is detected.
(B) Dwelling Units. All 120-volt, single phase, 15- and 20-ampere branch circuits supplying outlets
installed in dwelling unit family rooms, dining rooms, living rooms, parlors, libraries, dens, bedrooms,
sunrooms, recreation rooms, closets, hallways, or similar rooms or areas shall be protected by a
listed arc-fault circuit interrupter, combination-type, installed to provide protection of the branch circuit.

ARTICLE 100 Definitions

Outlet. A point on the wiring system at which current is taken to supply utilization equipment.

The legends in the breaker panels were not labeled to identify each circuit in the panels.
It is recommended that an electrician be contacted to specifically identify each circuit.
Obtain Cost Estimate

The circuit breakers for the condensing unit were rated higher (30-amperes) than the
maximum size allowed by the manufacturer of the condensing unit (25-amperes). The
breakers should be replaced by the size listed on the manufacturers nameplate located
on the condensing unit.
Estimated cost: $100

One breaker was observed in the pool subpanel with more than one wire attached.
Each wire should be on its own breaker.
Estimated cost: $75

Wall Switches

The cover plate was missing on the switch(s).

Locations included: the master bedroom
Estimated cost: $10

A switch(es) that is nonfunctional and needs to be replaced.

Locations included: the living room
Obtain Cost Estimate

38
Wall Outlets

Some outlets were protected by ground fault circuit interrupt (GFCI) devices, and the
devices were operating properly at the time of the inspection.
Locations included: the garage, kitchen sink, hall bathroom and half bathroom

Outlet(s) were not protected by a ground fault circuit interrupt (GFCI) device.
Locations included: exterior and apartment bathroom
Estimated cost: $50 each

A three prong outlet(s) that was not grounded properly and needs to be repaired. It is
recommended that an electrician be contacted, and the necessary repairs made to the
outlet(s).
Locations included: kitchen and the half bathroom
Obtain Cost Estimate

The cover plate was missing/damaged on an outlet(s).

Locations included: the living, the upstairs east bedroom, master bedroom, apartment,
and apartment bathroom
Estimated cost: $20

Light Fixtures

A light fixture(s) was observed that was non-functional when the switch was turned on.
The problem may be a burned out bulb, a defective light fixture, or defective switch.
Locations included: the exterior and the apartment
Estimated cost: $10

A light fixture(s) was missing.

Locations included: the front entry, and dining room
Estimated cost: $100

39
Visible Wiring

Wires were spliced and were not in a junction box, and repair is needed.
Locations included: the garage
Estimated cost: $75

Wires that were not properly encased in a conduit or were only partially encased in a
conduit were observed.
Locations included: south of the garage
Estimated cost: $75

Additional Comments

The doorbell front was broken and needs to be repaired.

Estimated cost: $25

The telephone box was hanging by its wires and needs to be secured at the south side
of the house.

SWIMMING POOL
The swimming pool was an in-ground gunite pool covered by a plaster finish.
The pool equipment was located at the rear of the garage.

40
Pool Filter

The pool filter was a cartridge filter that was functional at the time of the inspection, and
showed an operating pressure of 16 psi. This is within a normal range of operation, and
no repairs are recommended.

Pumps/Motors

The exterior metal casings on the pump motors were bonded to a grounding wire(s),
which ran underground. We could not determine where the wire(s) was terminated.

Timers

Both of the timers were functional.

Heater

The furnace did not come on at the time of the inspection when we turned the switch on.
It is recommended that all the foliage above the furnace and laying on the furnace be
cut away, as it is a fire hazard. Have a service company find the source of the problem,

41
and make any necessary repairs.
Obtain Cost Estimate

The gas line for the pool heater did not have a shut-off valve located within six feet of
the heater.
Estimated cost: $300

Piping Above Ground

A leak was observed in the piping at the chlorinator and also

Estimated cost: $200

Backflush Valves

The backflush valve was not operated at the time of the inspection. We not operate the
valve due to the possibility of damaging the valve during changing the position of the
valve.

Pool Surface

The surface of the pool was beginning to spall, and the plaster finish has only a limited
amount of remaining life. It can be anticipated that the pool will need to be replastered
in the next few years.

The surface of the pool was covered with algae, and needs to be cleaned.
Estimated cost: $150.

Pool Light

The pool light was non-functional at the time of the inspection. When the light is
repaired, the service company should verify that it is protected by the Ground Fault
Circuit Interrupt device.

42
Estimated cost: $150

Polaris Pool Sweep

The Polaris pool sweep was functional at the time of the inspection.

Fence/Gate

The gate to the back yard was not equipped with a self closing, self latching
mechanism.
Estimated cost: $100

Water Feature

The water feature was functional at the time of the inspection.

Pool Fill Line

The pool fill line was functional at the time of the inspection, and was equipped with a
backflow preventer device.

CLOSE

All cost estimates for repairs are provided only as a courtesy. They are only
approximate and, therefore, should not in any way be relied upon as a bid for the actual
performance of the work. The estimated scope and cost of each repair can vary
significantly, and it is your responsibility to see that our estimated repair costs are
confirmed by one or more qualified service companies before closing on the house.

43
Should you choose to not secure firm bids from service companies, then you use our
"ballpark" estimates at your own risk.

Opinions and comments stated in this report are based on the apparent performance of
the items included within the scope of the inspection, at the time of the inspection.
Performance standards are based on the knowledge gained through the experience and
professional studies of the inspector. There is no warranty or guarantee, either
expressed or implied, regarding the habitability, future performance, life,
merchantability, and/or need for repair of any item inspected. It is recommended that a
Home Warranty Policy be provided to protect the appliances and mechanical equipment
against unforeseen breakdowns during the first year. Check with your agent for details.

At your service,

Tim Hedderman
Registered Professional Engineer #51501
Texas Firm Number: 7942

The seal appearing on this document was authorized by Tim Hedderman, P.E. 51501. Alteration of a
sealed document without proper notification to the responsible engineer is a violation under the Texas
Engineering Practice Act.

44
45
46
 HEDDERMAN ENGINEERING, INC.
www.heddermanengineering.com Office 281-355-9911, Fax 281-355-9903 office@heddermanengineering.com

RECEIPT

June 9, 2010

TO: Mr. Travis Bonner

REF: Inspection of the house at 701 Reinicke, Houston, Texas.

Total cost of inspection: $675.00

Total Paid: $675.00

Total Due: -0-

47
For your records, following is the Service Agreement that you
electronically executed for this inspection.

HEDDERMAN ENGINEERING, INC.

Office: 281-355-9911 Fax: 281-355-9903
office@heddermanengineering.com www.heddermanengineering.com

Real Estate Inspection Service Agreement

NOTICE: THIS AGREEMENT IS INTENDED TO BE A LEGALLY BINDING CONTRACT - PLEASE
READ IT CAREFULLY
DATE OF INSPECTION: 6/9/2010

CLIENT NAME: Travis Bonner

PROPERTY ADDRESS: 701 Reinicke

COST OF INSPECTION: $675.00

Purpose of inspection

The purpose of the inspection is to view selected components and/or systems, and to inform you, our client, of our observations and
opinions from a NON-INVASIVE VISUAL SURVEY on whether or not those selected components and/or systems are functioning on
the day of the inspection, or are in need of repair. Although this report may include observations of some building code violations,
total compliance with structural, mechanical, plumbing, electrical codes, specifications, and/or legal requirements is specifically
excluded. Since building codes change every few years, our inspections are not done with the intention of bringing every item in the
house into compliance with current code requirements. Rather, the standard of our inspections is a performance standard to
determine if the items inspected are functioning at the time of the inspection, or are in need of repair. It is pointed out that other
engineers/inspectors may have contrasting opinions to those given in this report. It is not our purpose to verify the adequacy and/or
design of any component of the house.

It is not within the purpose and/or scope of this report to determine the insurability, habitability, merchantability, future performance,
suitability of use, economic life span, deferred maintenance issues , and/or issues unnamed in this report. This report is not an
insurance policy, neither is it an expressed nor implied warranty and /or guarantee as to future life and/or continued performance of
the items inspected. Our inspection and report are intended to express the inspector's perceived impression of the apparent
performance of the inspected components and systems viewed on the date of the inspection. Our intent is to reduce your risk
associated with this transaction, however we cannot eliminate all risk, nor assume your risk. Any items pointed out as in need of
repair or further investigation should be evaluated by a qualified repair specialist or service company PRIOR TO CLOSING ON THE
PROPERTY.

It is recommended that you obtain as much history as is available concerning this property. This historical information may include
copies of any seller's disclosures, previous inspection or engineering reports, building drawings and/or specifications, bids to
perform repair work on the property, receipts from repair work that has been performed, reports performed for or by relocation
companies, municipal inspection departments, lenders, insurers, and appraisers. You should attempt to determine whether repairs,
renovations, remodeling, additions or other such activities have taken place at this property.

Scope of inspection

The scope of the inspection includes limited, visual observations at the interior and exterior of the structure, the attic (if applicable)
as viewed only from the areas determined by the inspector to be safely accessible, the underside of the house (if applicable) as
viewed only from the crawlspace areas determined by the inspector to be safely accessible, and the roof as viewed from the ground
and/or only from the locations on the roof as determined by the inspector to be safely accessible. Only those items readily
accessible and visible at the time of the inspection will be viewed and included in this report. Any items causing visual obstruction,
including, but not limited to, furniture, furnishings, floor or wall coverings, foliage, soil, appliances, stored items, insulation, etc., will

48
not be moved. Only those electrical outlets that are readily accessible will be operationally checked. Disassembly or removal of any
portion of the structure, mechanical equipment, plumbing equipment, or electrical equipment is beyond the scope of this inspection.

The components of the property included, if applicable, in the scope of the inspection:

Structural: Foundation, primary load-carrying framing members, roof surface, water penetration, grading and drainage,
fireplace/chimney,
and miscellaneous items related to the house.

Mechanical: Air conditioning and heating systems, water heater, built-in appliances, and garage door opener.

Plumbing: Water and gas supply lines that are visible, sinks, toilets, tubs, showers, drain lines, and vents.

Electrical: Service entrance conductors, electric meter, distribution panel, visible wiring, light fixtures, switches, and
accessible receptacle outlets.

Lawn Sprinkler: Control panel, solenoid valves, backflow prevention device, visible piping, and sprayer heads.

Pool: Basin, deck, tile, pumps, filters, piping, heater, timer, and electrical.

Security: If the house is equipped with an alarm system, the alarm system can be checked by a representative from
Broadview Home
Security at your request. It is pointed out for your information that Broadview typically pays inspection companies
a small processing
fee for administrative/scheduling purposes. Broadview will typically contact you once at a later date at the phone
numbers you have
provided, with information about their services.

The following items, even if present in the subject property, are not inspected and do not constitute any part of the inspection
services to be performed hereunder unless a specific notation is made on this report stating its condition.

Alarm Systems, Clock Timers, Landscape Lighting, Sump Pumps, Wood Destroying Insects/Pests, Antennas, Environmental
Hazards, Laundry Equipment, Water Filters, Geological faults/subsidence, Automatic Oven Cleaners, Fire Sprinklers System,
Mold/Microbial, Water Wells, Mosquito Misting Systems, Buried/Concealed Plumbing, Fire/Smoke Alarm Systems, Septic Systems,
Indoor Air Quality Asbestos, Low Voltage and data Systems, Lights on Photo-cell/timers, Carbon Monoxide Alarms, and Water
Softeners/water treatments systems and all related piping.

Limitations of Inspection

A visual inspection method will generally produce a competent first impression assessment of the apparent past structural,
mechanical, plumbing, and electrical components, provided repairs have not been performed which would cover distress patterns
normally produced by problems. Because the inspection procedure is visual only, and is not intended to be diagnostic and/or
technically exhaustive, an inherent residual risk remains that undiscovered problems exist and/or future problems will develop.

This report is provided solely for the use of the person to whom this report is addressed, and is in no way intended or authorized to
be used by a third party, who may have different requirements, and to whom we have not contracted with to perform an inspection.
If a third party chooses to use this inspection report, they do so without HEDDERMAN ENGINEERING, INC. permission or
authorization, and they do so at their own risk.

Dispute Resolution

In the event of a complaint concerning the inspection services provided, Client must notify HEDDERMAN ENGINEERING, INC. in
writing of such complaint within ten (10) business days of the date of discovery and thereafter allow a prompt re-inspection of the
item relating to the claimed condition. Client further agrees that client and its agents, employees or independent contractors will
make no alterations, repairs or replacements to the claimed condition prior to a re-inspection by the inspector. Failure to comply
with this procedure shall constitute a complete bar and waiver of any and all claims client may have against inspector related to the
alleged act, omission or claimed condition.

Mediation:

In the event a dispute, controversy or claim arising out of or relating to this agreement, the inspection, or the report, and if the
dispute cannot be settled through direct discussions the Client and HEDDERMAN ENGINEERING, INC, the parties agree to
endeavor first to settle the dispute by mediation before resorting to arbitration. If the mediation does not result in a settlement of the
dispute, then any unresolved controversy shall be submitted to arbitration, as set forth below. The parties shall share equally the
costs of the mediator.

49
Arbitration:

Any and all disputes, not resolve by direct discussions or mediation, concerning the interpretation of this Agreement or arising from
the inspections and report shall be resolved by final, binding, non-appealable arbitration conducted in Harris County, Texas in
accordance with the rules of the American Arbitration Association, except that the parties shall mutually agree upon an Arbitrator
who is familiar with the real estate inspection industry and the TREC Standards of Practice. At the arbitration, the parties may
adjudicate all claims and issues, as provided for or limited herein, that could have been raised before a court of law, including but
not limited to, lawful attorneys’ fees and costs, where provided by statute. The decision of the Arbitrator shall be final and binding.
The parties shall share equally the costs of the arbitrator. Either party may demand arbitration by written notice to the other. Such
demand for arbitration must be made less that one year after the date of the inspection. This arbitration provision is intended to be a
substitute for a trial in a court of law, and the parties expressly waive their right to a trial by judge or jury in a court of law, except that
proceedings may be brought in a court of competent jurisdiction to enforce an arbitration award.

LIMITATION OF LIABILITY:

In any event the inspector fails to fulfill the obligations under this agreement, CLIENTS EXCLUSIVE REMEDY AT LAW OR IN
EQUITY AGAINST INSPECTOR IS LIMITED TO A MAXIMUM RECOVERY OF DAMAGES EQUAL TO THE INSPECTION FEE
PAID HEREIN. This limitation of liability applies to anyone, including client, who is damaged or has to pay expenses of any kind,
including attorney fees and costs. Client assumes the risk of losses greater than the refund of the fee paid herein. Client
acknowledges that this limitation of liability is reasonable in view of the relatively small fee that inspector charges for making the
inspections when compared with the potential of exposure that inspector might otherwise incur in the absence of such limitation of
liability, and that a much higher fee would be charged if the inspector were subject to greater liability.

Statute of Limitations

The parties agree that no claim, demand, or action, whether sounding in contract or in tort, may be brought to recover damages
against the inspector, or its officers, agents, or employees MORE THAN ONE YEAR AFTER THE DATE OF THE INSPECTION.
TIME IS EXPRESSLY OF THE ESSENCE HEREIN. Client understands that this time period may be shorter that otherwise
provided by law.

Acceptance of Report

By signing I confirm that I have read, understood, and agree to the above pre-inspection service agreement, and that I agree to be
bound by these terms and conditions. In the absence of Client to sign this service agreement prior to or at the time of the
inspection, then acceptance of the report and/or payment for the inspection shall constitute agreement with all of the terms of this
agreement. The report to be prepared by inspector shall be considered the final and exclusive findings of the inspector regarding
the inspection of the property. Client shall not rely on any oral statements made by the inspector prior to issuance of the printed
report.

NOTE: IF THE INSPECTION IS CANCELLED LESS THAN ONE FULL BUSINESS DAY BEFORE THE
SCHEDULED TIME, THE BUYER WILL BE CHARGED ½ OF THE ORIGINAL INSPECTION FEE.

I HAVE READ AND ACCEPT THIS AGREEMENT

50