LESSON 8: INSPECTING VACANT PROPERTIES Flashcards
VACANT PROPERTIES:
Depending on the source or purpose, the word “vacant” could have several definitions. Some of them are:
Abandoned
Unoccupied
Vacant Possession
Under Renovation
How vacancy is determined;
Some industries like the insurance industry will make the determination that a property is vacant or occupied depending on if it has a couch, a bed, cooking utensils, etc., still in the property.
For the Mortgage Field Services industry however, our definition for the use of the term “vacant” has a different meaning. For our purposes, a home is vacant if no one lives there. There is often confusion about whether to call it occupied or vacant based on the contents of the property.
For our purposes the definition of a vacant property can be summed up with this statement:
People occupy properties, not their things.
Household items:
A household full of furniture does not mean the property is occupied if no one is living there. An example would be if the homeowner passed away. The house is full of furniture. We would call that vacant because no one is living there.
Snowbird:
On the other hand, you may be inspecting a property that is seasonally occupied. An example of that would be a Snowbird property in which the owners live part of the year up north and when the snow hits during the winter they’ll move down to their second property where it’s warmer. Many times the only way to make the determination if a property is vacant or occupied is to ask the neighbors.
Duplexes:
We are not provided with selectable choices for Abandoned, Unoccupied, etc. For us, it is either occupied or vacant. Sometimes you will see the term “Partial Vacant”. This does not mean that some of their stuff is still there or that they are in the process of moving out. Partial Vacant refers to multi-family units like a duplex. If one side of the duplex is vacant and the other side is occupied, then this means that we would select “Partial Vacant” for the occupancy.
Complete walk around:
Vacant properties require us to do a complete walk around the premises of the property, looking for damages and security of the property. We are required to take photos of the rear, sides, detached garages, sheds that are on foundations, and outbuildings. Outbuildings include barns, workshops, mother-in-law quarters, etc. We also check the security of these structures and report our findings on the inspection form as well as taking photos of padlocks in place.
If unable to enter a locked building:
If you cannot enter the backyard of a property because of a locked gate, take a photo of the locked gate.
PHOTO REQUIREMENTS
The core photos are always required:
Front + Front Left + Front Right
Address Verification
Street Sign
Street Scene / Neighborhood View
In addition to the 4 core photos, you will need to take photos of:
Left Side of House Right Side of House Rear Of House Roof (if weathered, damaged, or tarped) Detached Garage A/C Unit [Always] Supporting (Through the Window shots to prove vacant) Volt Stick (Non-Contact type) Electric Meter (if digital) Water Spigot (showing the water running or off) Gas Meter valve (if on-site) All Damages FTV/Vacancy Posting (Client Based) Vacancy Certification Form Outbuildings Swimming Pools and Gates to Swimming Pools Violation Notices From the City
Swimming pools:
All vacant properties with swimming pools require photos of the pool as well as all gates leading to the pool. Photos are required of gates that are locked or unlocked to help show critical liability hazards if unlocked.
You will need a close-up photo of all violation postings from the city that indicate the grass needs cut or debris removal, etc. Include the date, phone numbers, and point of contact on your report.
First time vacancy:
The first time any property is found vacant, we have to prove it is vacant by taking photos through the window, and by confirming the property is vacant by talking to a neighbor. We enter the neighbor’s address for verification. This general rule also applies in reverse, if a property had previously been reported vacant, we have to find out who is now living there.
First time vacant forms:
- ALL vacant properties require a First Time Vacant (FTV) / Vacancy posting or sticker attached to the front door or window and requires a photo of it. Which FTV/Vacancy posting to be posted to the property is determined by the client or the mortgage company providing us with the work order.
- If the property has been reported vacant previously but the FTV/Vacancy form is missing, we must post another one and take a photo of it.
- If the FTV/Vacancy posting is the wrong one, the inspector must remove the wrong one and replace it with the correct one according to their instructions.
IMPORTANT:
Every vacant property MUST have an FTV/Vacancy form posted. Failure to do so will result in a Follow-Up which will require you to go back to the property and post one.
Always maintain an adequate supply of FTV/Vacancy postings for each client you service. These FTV/Vacancy postings can be found under the Resources tab on InspectorADE. Download the most commonly used FTV/Vacancy forms.
*The best practice is to print off several copies of each FTV/Vacancy Postings and take them with you out in the field. Manila folders labeled with the FTV/Vacancy type will save you a lot of time and trouble.
Posting a First Time Vacancy Form:
When posting an FTV/Vacancy sheet, it is imperative that you do not tape the posting to painted surfaces that might damage the door once the tape is removed. Windows are the best place to tape the FTV/Vacancy forms.
Vacancy Certifications
[Required] are needed with every vacant property. Vacancy Certifications can be found in the InspectorADE website under the Resources tab.
The most common Follow-Up is for failure to upload a photo of the Vacancy Certification. This document is NEVER posted to the front door. This is simply a form that you fill out and take a photo of it. Some clients allow InspectorADE to use their finger form on the phone app. You simply sign it with your finger.
Why do we have to fill out vacancy certifications? (If you really want to know the reason behind it.)
Why Do We Have to Fill Out Vacancy Forms:
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When to NOT post a FTV (First Time Vacancy ) Posting:
If your work order has a work code of Bankruptcy, No-Contact, FIB or FINC, DO NOT PLACE an FTV/Vacancy posting on the property! Even if the property is vacant, we are not to step foot on the property, not even to post the FTV/Vacancy posting. In the case of a vacant No-Contact or Bankruptcy inspection, it means the photo requirement changes to just a few photos, front, address verification, street sign, and the street scene/neighborhood shot. Plus anything that you can take a photo of that will help the mortgage company see that it is vacant.
Do Not enter a vacant property UNLESS:
Under no circumstances are we authorized to enter a vacant property unless the work order tells you to. Many of your clients may require you to attempt an interior inspection on all vacant properties that are found to be vacant.
*If you discover a property is vacant, and find that it is unsecured, do your best to reach around the door and lock it if you can. If you find unsecured windows, take a photo of it and report the property to be unsecured (open). We do not enter the property to secure windows unless explicitly told to do so.
Utility Photos
One of the most important photos you take at a vacant property is the water spigot. If the water is turned off, take a photo of the spigot with your hand on the handle.
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If the water is still on, take a photo of it to prove the water is still on.
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It’s important to confirm whether a spigot is on or not:
*Sometimes when you turn the water spigot on, some remaining water from the lines will make it appear that the water is on. Just wait a few moments and if the water is really off, it will finish draining out. Then take your photo.
A vacant property was inspected and all the required photos were taken. Two months later the (unscrupulous) client called and said that they discovered that there was $18,000 worth of flood damages and that if the inspector had only done their job and reported that the water was on, they could have sent somebody by to have the water turned off at the service. The (unscrupulous) client changed the report answers which originally indicated that the water was on, to off. However, they could not deny that they received a photo of the water pouring out of the spigot. As a result, no claims were filed against the inspector. The proof was in the photo! You see, the client did not want to report to their client, the mortgage company, that they had screwed up. So they tried to cover it up and blame the inspector. This is what E&O insurance (Errors and Omissions) is for, to cover mistakes or omissions. More than likely the company that hires you will have E&O insurance and it will also cover you for all the inspections you conduct for them. Every claim made against an E&O has the potential to raise insurance rates, affecting overhead costs, reducing fees that can be paid. It is your job as the inspector to take photos of all utilities and provide proof as to their status, either on or off.
Gas Meter:
If the gas meter is shut off, the valve or handle will be turned perpendicular to the pipe indicating that the gas has been turned off. Some gas meters will have two holes that line up so that a padlock can keep the gas locked off. You need a photo of the position of the valve. You will NOT need a photo of the dials and the gas meter numbers.
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Propane Tanks help determine is a property is vacant or not:
In rural areas, the propane tank can be used to help determine if a property is vacant or not. If there is a propane tank, it’s likely that the hot water heater and the kitchen stove run off propane as well as for heating. Take a photo of the gauge. Watch out for wasp nests!
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https: //mortgagefieldservices.com/wp-content/uploads/2016/10/propane2.jpg
REMINDER:
If your work order has a work code of Bankruptcy, No-Contact, FIB or FINC, DO NOT STEP FOOT ON THE PROPERTY, NOT EVEN FOR PHOTOS. That means the photo requirement changes to the front, address verification, street sign, and the street scene or neighborhood shot.
On a vacant property, you should always take a photo of the digital electric meter.
Besides the most obvious photo of the porch light is on or the doorbell lit up, is the photo you take of the electric meter or a photo of your volt stick. Most areas now have the new digital electric power meters, sometimes referred to as “Smart Meters”.
What are smart meters:
OPEN or OPN means that the power is shut off to the property. If it starts with an “O” it’s OFF.
CLOSED or CLS means that the power to the property is ON!
Reading them can be tricky. The LCD screen will change every 5 to 10 seconds and depending on the brand, provide you with solid evidence that you can snap a photo of.
The most common type of digital electric meters will have words that actually tell you if the power to the property is either on or off. You just need to know what those words mean.
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https: //mortgagefieldservices.com/wp-content/uploads/2016/09/onOff_statusDisplay.jpg
