- Introduction
- Acknowledgements
- 1: Getting Ready
- 2: The Costs of Space
- 3: Understanding Credit
- 4: Professional Services
- 5: Finding Space
- 6: Residential Leases
- 7: Commercial and Industrial Leases
- 8: Buying Real Estate
- 9: Types of Mortgages
- 10: The Mortgage Application
- 11: Ownership Models
- 12: Purchasing Alternatives
- 13: Chicago Zoning Ordinance
- 14: Chicago Building Code
- 15: Chicago's Neighborhoods
- 16: Property Taxes
- 17: When You Find a Property
- 18: Inspections
- 19: After Moving In
- 20: Insurance
- 21: Utilities
- 22: Rehabbing Your Space
- 23: Safe and Healthy Spaces
- 24: Green Practice
- 25: When Disputes Arise
- 26: Space Emergencies
- 27: Facility Development Planning
- Bibliography
18: Inspections
Before signing on the dotted line, conduct a building inspection in order to assess the physical condition of the property, and to identify deficiencies and repairs. In most cases, your lender will require an appraisal of the property. While the appraisal might tell the lender if the property is worth the mortgage, an inspection ensures that the property is worth your investment by giving you an idea of the property's condition.
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 of 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.
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:
The inspector will provide a written inspection report addressing all systems and components of the property, usually within two business days of completing the inspection. Any aspect of the property not inspected should be itemized and noted in the report , along with an explanation. The report should detail the condition of each aspect of the property and its mechanical systems (i.e. the electrical, heating, plumbing, the septic system, etc.); clearly describe the problem; and, if known, explain why the problem occurred. The best reports will tell you how to correct the problem, as well as estimate 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/her findings.
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 of 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.
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:
- It reveals to you the condition of the space and any potential problems.
- This in turn gives you an idea of the additional monies you might need to bring the space up to standards.
- Problems discovered during the inspection could be used to negotiate a lower price.
The inspector will provide a written inspection report addressing all systems and components of the property, usually within two business days of completing the inspection. Any aspect of the property not inspected should be itemized and noted in the report , along with an explanation. The report should detail the condition of each aspect of the property and its mechanical systems (i.e. the electrical, heating, plumbing, the septic system, etc.); clearly describe the problem; and, if known, explain why the problem occurred. The best reports will tell you how to correct the problem, as well as estimate 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/her findings.
Thomas Corbett, Tomacor, Inc., contributed to the content of this chapter.