Inspections

Before you sign on the dotted line and make that property yours, make sure you have a building inspection.  In most cases your lender will require an appraisal of the property.  While the appraisal may tell the lender if the property is worth the investment of a mortgage by the lender, an inspection ensures that the property is worth your investment by giving you an idea of the condition of the property.  

An inspection is an objective visual examination of the physical structure and mechanical systems of a property, from the foundation to the roof and all the components in between.

Building inspections should be conducted by a state licensed Property and Building Inspector.  While other professionals – architects, structural engineers, municipal inspectors and general contractors - can assess property, their results are not considered an official property inspection.  

In Illinois inspectors are regulated by the Illinois Department of Financial and Professional Regulations’ Division of Professional Regulation (DFPR) through the Property Inspectors License Act and Administrative Rule.  

For more information about hiring and working with inspectors review Inspectors in Chapter 4: Professional Services. You can also contact the DFPR at 217.785.0800 or click here to learn to learn more about state licensing requirements.

Usually you hire an inspector for a property you are seriously thinking of purchasing.  In addition, you should also get an inspection on properties with long term and expensive leases, which stipulate your responsibility for maintenance and upkeep or repairs.  

An inspection is important for three primary reasons:

1. It reveals to you the condition of the space and any potential problems.
2. This in turn gives you an idea of the additional monies you may need in order to bring the space up to standards.
3. Problems discovered during the inspection could be used to negotiate a lower price.

A standard inspection assesses the physical condition of the property and should identify significant deficiencies and any needed repairs.  

Inspectors will look for water damage, drainage and grading problems with the landscape, cracks in the ceiling and walls.  Ask your inspector what specialized and optional tests they offer in addition to the standard inspection such as radon, lead, carbon monoxide or termite wood destroying organisms (WDO) inspections.  The inspector is not required to complete a WDO exam, but should tell you if one is warranted.  

The inspector will give you a complete written report usually within two business days of completing the inspection.  This report is known as an inspection report and should indicate that all systems and components of the property were inspected.  Any aspect of the property not inspected should be itemized and noted in the report with an explanation.  The report should describe in clear detail the condition of each aspect of the property and its mechanical systems (i.e. the electrical, heating, plumbing, the septic system, etc.).  

In addition, the report should contain a clear description of the problem and, if known, an explanation of why the problem occurred.  The best reports will tell you what needs to be done to correct the problem, as well as provide an estimate of the cost to repair.

At the conclusion of the inspection, the inspector should sit down with you for at least an hour to discuss his or her findings about the property.

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