MJS INSPECTIONS, INC. P.O. Box 1011 Plainfield, IL 60544-1011 Phone: (847) 417-3227 Fax: (815) 327-3482 www.mjsinspections.com December 2, 2014 Holly Powers 1903 N. Stanton Court Arlington Heights, IL 60004-3180 Re: 5324 W. School Street Chicago, IL Dear Ms. Powers: At your request, an inspection of the above property was performed on December 1, 2014. Enclosed with this letter are the architectural documents necessary for you to proceed with your 203(k) financing. The complete package of original documents has also been sent to your mortgage company so that they can continue processing your loan application. You will note that there are spaces on the documents that require your signature and the signature of your contractor. In order for the above contract to be approved, the following information is required: Contractor s license Contractor s proof of insurance Your attention is directed to your copy of the Consultant Agreement. It more specifically explains the scope of the inspection and the limit of our liability in performing this inspection. The Standards of Practice and Code of Ethics of the National Association of Home Inspectors (NAHI ) prohibits us from making any repairs or referring any contractors. We are not associated with any other party to the transaction of this property. The information provided in this report is solely for your use. We will not release a copy of this report without your written consent. Thank you for selecting our company. We appreciate the opportunity to be of service. Should you have any questions about the general condition of the house in the future, we would be happy to answer these. There is no fee for this telephone consulting. Our fees are based on a single visit to the property. If additional visits or services (such as changes to the work write-up) are required for any reason, additional fees may be assessed. Sincerely, Michael J. Savage, CRI HUD-Certified FHA 203(k) Consultant/Plan Reviewer/Inspector Member, FHA Fee Panel Licensed/Certified Termite Inspector Member, National Association Of Home Inspectors Certified Real Estate Inspector Licensed Roofing Contractor
MJS Inspections, Inc. "Your Friend In The Business" INVOICE P.O. Box 1011 DATE: 12/1/14 Plainfield, IL 60544-1011 INVOICE # 24473 Phone (847) 417-3227 Fax (815) 327-3482 www.mjsinspections.com CLIENT FOR SERVICE AT Holly Powers Holly Powers 1903 N. Stanton Court 5324 W. School Street Arlington Heights, IL 60004-3180 Chicago, IL 60641-4120 DESCRIPTION QUAN. RATE AMOUNT Pre-Purchase Home Inspection 1 $325.00 325.00 WDI (Termite) Inspection ~ No Charge 1 $0.00 Radon Screening 1 $170.00 170.00 203k Consulting 1 $550.00 550.00 Discount 1 -$250.00 (250.00) Check #743651 12/1/14 1 -$795.00 (795.00) BALANCE DUE $ - Please make all checks payable to MJS Inspections, Inc. There is a $25.00 charge for all checks returned for any reason. Any unpaid balances are charged at the rate of 1.5% per month after 30 days of the date of the inspection Any and all collection costs shall be the responsibility of the Client. THANK YOU FOR YOUR BUSINESS!
Important Consumer Information Regarding the Scope and Limitations Of the Inspection Please read this entire page as it is part of this report. This report is not a guarantee or warranty as to the absence of wood destroying insects nor is it a structural integrity report. The inspector s training and experience do not qualify the inspector in damage evaluation or any other building construction technology and/or repair. 1. About the Inspection: A visual inspection was conducted in the readily accessible areas of the structure(s) indicated (see Page 1) including attics and crawlspaces which permitted entry during the inspection. The inspection included probing and/or sounding of unobstructed and accessible areas to determine the presence or absence of visual evidence of wood destroying insects. The WDI inspection firm is not responsible to repair any damage or treat any infestation at the structure(s) inspected, except as may be provided by separate contract. Also, wood destroying insect infestation and/or damage may exist in concealed or inaccessible areas. The inspection firm cannot guarantee that any wood destroying insect infestation and/or damage disclosed by this inspection represents all of the wood destroying insect infestation and/or damage which may exist as of the date of the inspection. For purposes of this inspection, wood destroying insects include: termites, carpenter ants, carpenter bees, and reinfesting wood boring beetles. This inspection does not include mold, mildew or noninsect wood destroying organisms. This report shall be considered invalid for purposes of securing a mortgage and/or settlement of property transfer if not used within ninety (90) days from the date of inspection. This shall not be construed as a 90-day warranty. There is no warranty, express or implied, related to this report unless disclosed as required by state regulations or a written warranty or service agreement is attached. 2. Treatment Recommendation Guidelines Regarding Subterranean Termites: FHA and VA require treatment when any active infestation of subterranean termites is found. If signs of subterranean termites but no activity are found in a structure that shows no evidence of having been treated for subterranean termites in the past, then a treatment should be recommended. A treatment may also be recommended for a previously treated structure showing evidence of subterranean termites but no activity if there is no documentation of a liquid treatment by a licensed pest control company within the previous five years unless the structure is presently under warranty or covered by a service agreement with a licensed pest control company. 3. Obstructions and Inaccessible Areas: No inspection was made in areas which required the breaking apart or into, dismantling, removal of any object, including but not limited to: moldings, floor coverings, wall coverings, siding, fixed ceilings, insulation, furniture, appliances, and/or personal possessions; nor were areas inspected which were obstructed or inaccessible for physical access on the date of inspection. Your inspector may write out inaccessible areas or use the key in Section IV. Crawl spaces, attics, and/or other areas may be deemed inaccessible if the opening to the area is not large enough to provide physical access for the inspector or if a ladder was required for access. Crawl spaces (or portions thereof) may also be deemed inaccessible if there is less than 24 inches of clearance from the bottom of the floor joists to the surface below. If any area which has been reported as inaccessible is made accessible, the inspection company may be contacted for another inspection. An additional fee may apply. 4. Consumer Maintenance Advisory Regarding Integrated Pest Management for Prevention of Wood Destroying Insects. Any structure can be attacked by wood destroying insects. Homeowners should be aware of and try to eliminate conditions which promote insect infestation in and around their structure(s). Factors which may lead to wood destroying insect infestation include: earth to wood contact, foam insulation at foundation in contact with soil, faulty grade, improper drainage, firewood against structure(s), insufficient ventilation, moisture, wood debris in crawlspace, wood mulch or ground cover in contact with the structure, tree branches touching structure(s), landscape timbers and wood decay. Should these or other conditions exist, corrective measures should be taken in order to reduce the chances of infestation of wood destroying insects and the need for treatment. 5. Neither the inspecting company nor the inspector has had, presently has, or contemplates having any interest in the property inspected. Our "Wash-Out" Policy: Our wash-out policy for termite inspections (only) allows lenders, realtors, and attorneys to order termite inspections in advance without concern for the cost. The ORIGINAL termite inspection report must be returned to our office in order for the invoice to be "washed out". Reports returned more than 90 days from the date of the inspection WILL NOT be accepted under the "wash-out" policy. Buyer agrees that any claim, for negligence be made in writing to the Inspector within ten (10) business days of discovery. Buyer further agrees to allow Inspector the opportunity to re-inspect claimed discrepancy before Buyer or Buyer's agents repairs, replaces, or modifies claimed discrepancy. Buyer understands and agrees that failure to notify Inspector as stated above shall constitute a waiver of any and all claims against Inspector. Any legal action must be brought within six months of the date of the inspection. Failure to bring any action within six months of the date of the inspection is a full and complete waiver of any rights, actions or causes of actions that may have arisen therefrom. Any dispute, controversy, interpretation or claim including claims for, but not limited to, breach of contract, any form of negligence, fraud, or misrepresentation arising out of, from or related to, this contract or arising out of, from or related to the inspection or inspection report shall be submitted to final and binding arbitration under the Rules and Procedures of the Expedited Arbitration of Home Inspection Disputes of "Construction Arbitration Services, Inc." Form NPMA-33 (9/01/04) 2004 National Pest Management Association. All Rights Reserved. No reproduction of this form is permitted without the express permission of NPMA. Form NPCA-1 is obsolete after 12/31/04. Page 2 of 2
The Powers Residence 5324 W. School Street Chicago, IL 60641-4120 living room closet closet dining room bedroom closet DN UP hall bath pantry bedroom kitchen
RADON SCREENING REPORT MJS Inspections, Inc. P.O. Box 1011 Plainfield, IL 60544-1011 Phone: (847) 417-3227 Fax: (815) 327-3482 www.mjsinspections.com Client(s): Test Site: Holly Powers 5324 W. School Street Chicago, IL 60641-4120 Client: Property: Holly Powers 5324 W. School Street Chicago, IL 60641-4120 Report Date: Report Number: 12/10/2014 24473 Dear Holly Powers: MJS Inspections, Inc., is pleased to report the results of the radon screening measurement recently taken at the address shown above. Because the unique nature of real estate transactions involves multiple parties and financial interests, there are special testing protocols. This test was conducted with a continuous radon monitor and was set to be performed in accordance with the "Closed Building Conditions" established by the U.S. Environmental Protection Agency (EPA) and the Illinois Emergency Management Agency's Division of Nuclear Safety (DNS) guidelines. Provided that the "Closed Building Conditions" were properly maintained and the monitor was not enclosed or tampered with in any way, the results reported on the attached page will accurately reflect the radon levels present in the building during the test period. Since it is not possible for us to provide "around the clock" supervision of the test site, tampering can (and at times does) occur, rendering the test results invalid. Our radon monitors are equipped with anti-tampering features and we will discuss the situation in the Comments section of the Radon Test Report page if if appears likely that tampering has occurred. In accordance with DNS regulations, screening measurements are made on each different type of foundation of the home. For example: A bi-level home with a basement, a crawl space and a slab-on-grade room requires three monitors. If any of the monitors in a home average at or above the action level of 4.0 pci/l, action is required to reduce radon levels. I sincerely appreciate this opportunity to be of service. If you have any further questions concerning this test or its results, please fee free to call me at any time. Michael J. Savage MJS Inspections, Inc. In Illinois, all radon measurement and mitigation personnel must be licensed. The Illinois Emergency Management Agency's (IEMA) Division of Nuclear Safety (DNS) program oversees all licensees. Illinois Emergency Management Agency - Division of Nuclear Safety Radon Program 1035 Outer Park Drive Springfield, IL 62704 (217) 782-1325 http://www.state.il.us/idns Test Results Page 1 of 3
Client: Property: Holly Powers 5324 W. School Street Chicago, IL 60641-4120 Report Date: Report Number: 12/10/2014 24473 Set-Up By: Michael J. Savage RNI2007214 Pick-Up By: Michael J. Savage RNI2007214 Monitor Number Placement of Testing Device Set-Up Date: Pick-Up Date: Monitor Results 47006184 "Unfinished" Basement 4.3 47006186 "Unfinished" Basement 4.5 12/1/2014 Set-Up Time: 3:40 PM 12/9/2014 Pick-Up Time: 2:56 PM DNS Average (In Pci/L) Duplicate Monitor DNS Average (In Pci/L) 4.4 The average of the test results of all radon monitors are BELOW the DNS Action Guideline of 4.0. The average of the test results of two or more radon monitors are AT OR ABOVE the DNS Action Guideline of 4.0 pci/l. We recommend consultation with a remediation specialist. The results of the radon screening are in question. We cannot be certain that DNS/EPA Closed Building Conditions were maintained during the screening. See the Comments section for more information. The test was set to be conducted during DNS/EPA Defined Closed House Conditions. Due to open building conditions at the beginning of the testing period, the survey was extended and the first 12 hours of data were manually removed, per DNS protocol. Site Plan Comments Page 2 of 3
Client: Property: Holly Powers 5324 W. School Street Chicago, IL 60641-4120 Report Date: Report Number: 12/10/2014 24473 Sump Pump: Floor/Wall Gap: Floor/Wall Cracks: Crawlspace: Mitigation System: The DNS recommends re-testing this building every two years. None Not Viewable Unsealed Airtight None Not Viewable Unsealed Sealed None Not Viewable Unsealed Sealed None Not Viewable Concrete Gravel/Dirt Airtight None Passive Active Company: * Please note that it is impossible to recognize some passive systems by visual inspection, since they are often built into the house during construction and may not be properly labeled. What Do My Results Mean? Since radon is radioactive, no amount of exposure can be called safe. The U.S. EPA has defined what they consider to be an acceptable level, and the DNS has adopted the same standard. Elevated radon levels can easily be reduced. A home with a properly functioning active mitigation system will have the lowest radon level possible in that home. It is important to note that the seller of any home known to have tested above the Action Level of 4.0 pci/l must disclose that information in a real estate transaction in Illinois. What Are The Effects of Radon Exposure? Long-term exposure is known to cause lung cancer in humans. Ten percent (10%) of all lung cancer deaths annully are attributed to radon exposure. Radon gas decays into radioactive particles that can get trapped in your lungs when you breathe. As they break down further, these particles release small bursts of energy. These can damage your lung tissue and lead to lung cancer over the course of your lifetime. There are no immediate symptoms associated with radon exposure, and not everyone exposed to elevated levels of radon will develop lung cancer. the amount of time between exposure and the onset of the disease may be many years. There is no evdence that children are more at risk from radon exposure, but minimizing lifetime exposure should start as early as possible. Radon Level pci/l 20 10 8 4 2 1.25 0.4 EPA Assessment of Risk from Radon in Homes Lifetime Risk of Lung Cancer Death (per person) from Radon Exposure in Homes Never Smokers Current Smokers Current Smokers 3.6 out of 100 26 out of 100 11 out of 100 1.8 out of 100 15 out of 100 5.6 out of 100 1.5 out of 100 12 out of 100 4.5 out of 100.73 out of 100 6.2 out of 100 2.3 out of 100.37 out of 100 3.2 out of 100 1.2 out of 100.23 out of 100 2.0 out of 100.73 out of 100.073 out of 100.64 out of 100.023 out of 100 Page 3 of 3
I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. This draw request is submitted for payment. All completed work has been done in a workmanlike manner. I hereby certify to the actual costs of rehabilitation shown above in column 3. I understand that I cannot obtain additional monies from the rehabilitation escrow account without the approval of the lender. I also understand that a 10% holdback will not be released until all work is complete and it is determined that no mechanic's and materialmen's liens have been placed on the property. After the final inspection, the monies in the escrow account will be distributed as required by the 203(k) program procedures. Borrower's Signature & Date: Owner-Occupant Investor/Builder This draw request is submitted for payment. All completed work has been done in a workmanlike manner. I understand that a 10% holdback will not be released until all work is completed and it is determined that no mechanic's and materialmen's liens have been placed on the property. General Contractor's Signature (if any) X Date I certify that I have carefully inspected this property on this date.the draw amounts are acceptable except as modified in column 4. I further certify that I ha not accepted any work that is not yet completed in a workmanlike manner and I recommend that the rehabilitation escrow funds be released for the completed work. Inspector's Signature I.D. Number X Date Approved for Release This Draw Totals to Date The Lender is hereby authorized to release the following funds from the escrow account: Total from Above $ Less 10% Holdback $ $ $ X TEMPLATE ONLY NO SIGNATURES THIS PAGE UNTIL DRAW INSPECTIONS OCCUR Payable to the Borrower: $ Payable to: Date Payable to the Fee Inspector: $ $ Net Amount Due Borrower $ $ Signature & Date: Lender-Authorized Agent DE Underwrite Lender Holding Rehabilitation Escrow Account: (name, address, & phone number) Originating Lender still Retains Funds Rehab Funds Transferred to X Rehabilitation Inspection Report I. Inspection of On-Site Repairs and/or Improvements Reveals: 1. Unable to make inspection. (explain below) 2. Correction essential as explained below: a. Will examine at next inspection. b. Do not conceal until reinspected. FHA Case Number: 3. No noncompliance observed. 4. Acceptable variations as described below. 5. On-site improvements acceptably completed. Draw Inspection Contingency Reserve Inspection Final Inspection Change Order Other (explain) Inspection Number: Certification: I certify that I have carefully inspected this property on this date. I have no personal interest, personal or prospective, in this property, applicant, or proceeds of the mortgage. To the best of my knowledge I have reported all noncompliance, work requiring correction, and unacceptable work. I also certify that this Draw Request is for completed work and I have not accepted any work that is not properly installed in a workmanlike manner. Signature & Date: Signature & Date Fee Inspector DE Staff Inspector Inspection Fee ID No. ref. Handbook 4240.4 form HUD-9746-A 8/95)