Grant programs backlog slows tank removal process

By James M. ONeil THE RECORD

But when workers began digging to remove the 550 gallon tank, complications began to pile up. The soil had the distinct odor of oil that had seeped from holes in the tank.

Cleaning up Zigmans side yard became a boondoggle.  Workers dug down 17 feet, removed 250 tons of contaminated soil, carted away dirt from a neighbors yard and tore away and rebuilt a foundation wall of Zigmans house.  The work cost more than $300,000, Zigman said.  Zigmans Insurance will covered the bulk of cleanup cost, but he is on the hook for nearly 20 percent, about $60,000.

He thought the states underground storage tank grant program would cover it, but the program ran dry in May.  Its like being plucked off the street and stuck into a Kafka novel, said Zigman, 66.

He is not alone. The program has a backlog of more than 1,700 applications, some $52 million worth of storage tank removal and cleanup projects.  It will take a few years to get through the backlog, said Frank Pinto, assistant director for contracting and financial services with the state Department of Environmental Protection. The DEP runs the program with the state Economic Development Authority.

Many homeowners who already applied are waiting for their money. Others who might have proceeded with tank removals have held off.  Meanwhile, testing underground storage tanks and removing them has become the real estate Industry standard when a home is for sale.  Most lenders and buyers now require testing or ask the sellers to remove the tank, said Pinto. That has increased the programs popularity.  In addition, many homeowner insurance policies stopped providing standard coverage of tank removals and cleanup six years ago.

Since the state grant program began under former Gov. Christie Whitman in 1997, it has paid for more than 15,000 tank removals, said the EPAs Erin Gold.

The program provides grants and loans to those who qualify based on income and other factors. The find has been financed through a state constitutional amendment, which dedicates a portion of the state corporate business tax to the DEP for both the fund and for cleanup of hazardous sites or Brownfields?

But over the years, far more money came in than the $11 million to $14 million disbursed for tank removal projects each year.  By 2006, there was a $90 million dollars plus, so the Legislature decided, with voter approval, to divert the corporate business tax money to the Brownfields program. Lawmakers also started to divert money to cover other expenses, including DEP administration.

At the same time, lawmakers expanded the tank grant program eligibility to cover tanks that were not leaking. Since 2006, more than 10,000 non leaking tanks have been removed through the pro-grain. The program in some cases also covers installation of new above ground tanks.  It became a very popular program, and in effect was a victim of its own success, Pinto said. The fund was given $14 million In July, but that will not be enough: In 2008 and 2009, the fund paid out $20 million each year. Payouts in 2010 exceeded $40 million.  James M ONeal

This guy is an ingrate.  The taxpayers paid for most of his problem.  What ever happened to personal responsibility? 

Posted August 8, 2011- Classes by Robert A. Fico @ Westfield Adult School

"Getting the Most from Your Home Inspection" 10/17/2011

Are you planning to buy a home and want to make sure your inspection is thorough?  Have you ever wondered what the home inspector is thinking while they inspect the house you are considering to purchase or are selling? Come to this class and meet a Licensed Professional Home Inspector who will provide you with information about home inspections that you may not know. The instructor will give students a tour of a home and teach them what a comprehensive inspection should cover, including structural, mechanical, termite and wood destroying insects, radon screening, lead paint inspections, buried underground oil tanks, and the like.  This class is perfect for homeowners when selling and for new homebuyers making the largest purchase of their life.

"Home Maintenance 101"   10/24/2011

 Homeowners should maintain their property to avoid problems and protect their investment.  Learn what to do to maintain your furnace, boiler, air conditioner, water heater, gutters, chimney and other home components and learn when to call in the experts.  Understand what typical life expectancies are for roofs, HVAC systems, water heaters and the like, and what to look for to identify small problems before these become large and costly ones.  This is a "do it yourself" home maintenance class. There will be plenty of time for questions and discussion.

March 23, 2011

The Trouble with Home Inspectors/Radon Testers

By Robert A. Fico- ACE Home Inspection- NJ licensed home inspector #16, ASHI certified.  908-232-8909  www.acehomeinspection.com

The state of NJ Department of Environmental Protection recently sent a letter (letter dated March 4, 2011) to all NJ certified radon measurement professionals to address items of non-compliance with the regulations for Certification of Radon Testers and Mitigators at NJAC 7:28-27. 

Apparently, the NJ DEP has been made aware that there have been issues with the certified radon technicians, most of which are home inspectors.  Much of, if not most of the residential radon testing in NJ happens during a real estate transaction.  The better/ethical home inspectors have been battling with these issues for years, and continually explain to potential buyers whey the cheap home inspectors are so cheap and what the differences are.  This is because the services offered by are different, read on. 

1.              Confidentiality of Test Results

Issue: Some home inspectors and realtors are signing waivers that release test results to individuals other than the homeowner.

Requirement: When radon testing is being performed, only the homeowner, unless it is part of a real estate transaction, then the potential buyer, may receive the test results. No other person can receive a copy of the results. The results are confidential. The exception to this is if the homeowner signs a form that waives confidentiality of the test results. This waiver must be signed by the homeowner only. No other person may sign a waiver.

Translation: Home inspectors who are also certified radon technicians are breaching confidentiality requirement by sharing results with stakeholders such as real estate sales people and subsequent buyers when the first deal falls apart.  ACE has been asked to provide this information by real estate people for their new deals.  We say no to them and have been called arrogant and worse for doing the right thing.

2.              Who can Test?

Issue: Uncertified individuals are conducting all or part of the radon test during real estate transactions.

Requirement: A buyer must hire a certified radon measurement professional when testing a home that is under contract for purchase. The buyer does not yet own the house and is precluded from performing any portion of a test (e.g., picking up the canister and mailing it to the certified radon professional, etc.). The certified radon professional is responsible for the entire test. Similarly, the current homeowner may not perform any portion of the test that a buyer contracts since the buyer contracted for the test, not the homeowner. In addition, a real estate professional cannot perform any portion of any radon test. Any radon test that is performed as part of a real estate transaction where the above criteria are not met would be deemed invalid and would have to be repeated.

Translation: Home inspectors who are also certified radon technicians are allowing homeowners and real estate sales people to send the test canister back to lab to avoid having to go back to house, saving time and money for them, and short-changing the buyer.  The home Inspector / radon tester is in breach of duty to buyer as has  to insure the test is not tampered with, and closed house conditions are present at end of testing.  However, if the certified testing individual is not there at the end of the test this is impossible.  Results are not certifiable.  The buyer's interest is not served.  Many times when test a seller's house for a buyer for radon and the levels read high, they are shocked as it was low when their inspector tested when they bought and believe our results are wrong.  However, radon levels cannot have a false positive, only a false negative.  Closed house conditions apparently were not maintained during the test, or the owner put it in the garage until they sent it back to the lab or gave it to their sales person.    

3.            Equipment

Issue: Measurement technicians are using devices that have not been reported to their affiliated businesses.

Requirement: All radon measurement devices are required to be listed by the measurement business as part of the application process. The CRMs and electret readers in your possession must be reported to your affiliated measurement business prior to use. It is the responsibility of the measurement business to ensure that all of these device types listed with them are calibrated annually and that proficiency is passed annually.

Translation: Home inspectors who are also certified radon technicians are using their own devices and acting as their own lab/ as a radon business when they are not. 

               Issue: Monthly report data shows instances in which the same radon professional is listed as the sampler at two completely different locations at the same time and date.

               Requirement:   The certified person is responsible for the use of his/her certification number and must ensure that it is not used by another person on any chain of custody form. You must use the exact chain of custody firm provided by the affiliated measurement business and it must be tilled out in the field, completely and accurately, by the certified person. These forms cannot he pre-printed with times and dates.

Translation: Inspection companies with multiple inspectors are taking improper shortcuts to allow possibly uncertified individuals to retrieve testing canisters, saving time and money for the company and short-changing the buyer with uncertified/untrained individuals taking part in the testing process.  This is a breach of duty to the buyer.  Results are not certifiable.  A buyer pays for this with a cheap inspector/tester.

               Issue: Conditions are not maintained for some radon tests.

Requirement: Closed house conditions are when all exterior doors and windows on all floors of a house are closed, except for normal entry and exit. For a test that lasts less than four days, these conditions must exist for 12 hours before the start of the test and for the duration of the test. If a test lasts four days or longer, the 12-hour period is not a requirement, but is recommended for tests up to a week. Tests lasting longer than 90 days do not need to meet the closed house conditions requirement. It is a certified radon professional’s responsibility to properly discuss closed house conditions with the homeowner and to ensure that closed house conditions are maintained.

Translation: Home inspectors who are also certified radon technicians are not providing guidance to the homeowner to insure closed house conditions are present for the testing.  Many real estate persons believe that windows in the house can be left open, and only the basement windows need to be closed.  (After all, does not a buyer want a low test reading?) This invalid test produces non-certifiable test results.  Better home inspectors have been speaking with the real estate people about this for years, some of them get it, many don't, don't want to accept the rule, as don't believe it. No wonder, many real estate referred inspectors rarely discuss testing protocol as required.  The tester is breaching his /her duty to the buyer. 

Non-compliance with the regulations at N.J.A.C. 7:28-27 may result in enforcement and the possible assessment of a fine.

If you have any questions, please contact the radon office at (609) 984-5543.

Translation: Watch who refers your home inspector, watch for conflicts of interest.  Do your homework.  Caveat emptor!  

The As Is House

By Robert A. Fico- ACE Home Inspection- NJ licensed home inspector #16, ASHI certified.  908-232-8909  www.acehomeinspection.com

      Whether we are in a red-hot sellers market as in the recent past or the sales doldrums as now, houses are sold AS-IS.  What exactly does this mean to a buyer, seller and real estate sales people? 

      Is AS-IS just a seller purely not interested in good faith negotiating with a prospective buyer and trying to get the most for the house regardless of its shortcomings? 

      Is AS-IS an attempt to sell the house for market value even though it has serious defects? 

      Is AS-IS just the fact the seller has no knowledge of the house as they have not lived there in many years in the case of children of the seller, or because they inherited the house?

      The true cost of the house for a purchaser is what is paid to the seller plus the costs of repairing the defective systems and components.  It is obviously good to know this information up front, before closing. 

      Irresponsible lending practices of the past caused by the government inspired push has created the housing crisis we face today.  The American dream was to be enjoyed whether one could afford it or not.  Unfortunately duped, many of these people now have lost or will lose their house.  It is even more important today to know what is you are purchasing; basically knowing what AS-IS, IS.  Too many people fell into the trap in the past of not caring what the condition of the house was because it would be worth more next month or, If I do not buy this house, the next person in line will.  The pressure by the sales people did not help.  This feeding frenzy coupled with the poor business decision-making process created these big problems for the new homeowners.  They moved in to their new houses.  The dust settled and everyone taking the buyers money was gone.  In many cases, not only did the buyers pay too much for their house, they did not negotiate the defects found as a result of the home inspection, or could not negotiate the defects because of the market forces including the AS-IS provision, or they obtained a shoddy inspection from a stakeholders referral (a stakeholder is one who will profit from or has an interest in the sale) and had nothing to negiotiate.  Now, the undisclosed defects by any of these stakeholders- the sellers, home inspectors and real estate sales people, reared their ugly heads- leaking roofs that cost $10,000, bad boilers that need to be replaced for $8500, unsafe chimneys and electrical systems or extensive termite damage.  Buyers have in the past and are once again seeking rescission of the sales contract from the courts because they felt they had overpaid, or wanted a way out of their large monthly mortgage payment.  This has occurred to first time home buyers and seasoned move-up homeowners.

      Many people fail to understand what the term AS-IS means.  Some realty sales agents believe that once the AS-IS terminology is inserted into the listing, the seller and agents are relieved of the burden of disclosing defects.  However, this is not true.  Known defects, whether patent/obvious or latent must still be disclosed by the seller and the sales agents.  To understand the difference between these defects, a patent defect is a one that could be recognized upon reasonable careful inspection or through ordinary diligence.  A latent defect is a defect hidden from knowledge and sight; one that would not be discovered even by the exercise of ordinary and reasonable care.  A concealed defect is just that, one known to the seller, covered up and carefully hidden from view. 

      An AS-IS provision neither precludes legal responsibility on the part of the seller to disclose patent or latent defects nor provides protection from future litigation for nondisclosure.  Many courts hold that the average homebuyer is not familiar with construction system defects, or even how to recognize them should they exist.  These expressions, when in doubt, point it out certainly holds true for sellers and agents and buyer beware for purchasers.  Good practice for seIlers to err on the side of over-disclosure.  Disclosure alone relieves a seller from burden of repairs.  An AS-IS sale does not exempt the seller from the need to comply with laws such as requiring functional smoke and carbon monoxide detectors.

      Many buyers, upon knowing all the facts, do not back away from their decision to purchase.  It is the fear of the unknown, followed by eventual discovery, which sends people to court, dragging the seller, real estate sales people and the shoddy home inspector with them.  Peace of mind is very relevant for the sale and transfer of residential property.  It is the prime reason for hiring an independent, qualified home inspector in the sales process.  Full disclosure is best for the buyer and is the best preventive defense for the seller and sales people.  Until this is a common practice, and in its absence, the services of an independent, experienced home inspector is critical.  

June 29, 2010

"The trouble with a checklist report and an "on-site" computer generated report is- there is no thinking beyond the checklist and the software."  -ACE

January 11, 2010

Home warranties- Buyer beware

Home warranties are a popular sales tool in the real estate industry, touted by sales agents as a low-cost way to make a house stand out in a crowded and tough market.  A Gallup Poll commissioned by warranty companies found homes with warranties sell up to 27 days quicker and for up to 3 percent more than those without.  

However, this largely unregulated industry has numerous complaints of poor service, questionable practices and alleged fraud, according to consumers, attorneys and consumer advocates across the country.  Home-warranty companies were named the "most complained about" service in 2007, by Angie's List, a consumer website that provides its members with reviews of local contractors and service companies.

Consumer message boards and internet sites such as ripoffreport.com, and scam.com buzz with angry tales of warranty companies refusing to replace equipment and delaying or denying claims for repairs.

The language embodied in home-warranty contracts is often too broad and vague. Terms such as "normal wear and tear," for example, or "lack of adequate maintenance," are highly subjective and often a matter of opinion. 

Home warranties only cover items that malfunction as a result of normal wear and tear. Anything that's broken before the contract is purchased or fails due to "lack of adequate maintenance" is not covered. Also not covered are items that show signs of rust, corrosion or sediment build-up which could be merely a matter of normal wear and tear and fail because of causes which are coverable but are not as a result. 

Sadly in reality, most people don't know the first thing about routine maintenance when it comes to their home's mechanical systems and appliances.  This can be trouble for one who submits a claim. 

Prospective homebuyers should try to obtain any maintenance records for appliances from the sellers, especially if there is a home warranty offered by the seller or realtor, as you may need them in the future when filing a claim with the warranty company.

Do your research before purchasing a home warranty and be prepared in the event of any claims.  Know your rights.  Have your attorney review the warranty the seller or realtor is offering as an inducement to purchase to ascertain the value.

Warranties cost between $350 and $500.

Some companies are:

American Home Shield

Warranty Group

United Home Warranty- Formerly of Oakhurst, NJ- Out of Business

National Home Protection

January 1, 2010

Law of Business, by John Ruskin 1819-1900

Quote- There is hardly anything in the world that someone cannot make a little worse and sell a little cheaper, and the people who consider price alone are that persons lawful prey.

It is unwise to pay too much, but it is also unwise to pay too little.  When you pay too much, you lose a little money, that is all.  When you pay too little, you sometimes lose everything because the thing you bought is incapable of doing the thing you bought it to do. 

The common law of business balance prohibits paying a little and getting a lot.  It cannot be done. 

If you deal with the lowest bidder, it is well to add something for the risk you run.  And if you do that you will have enough to pay for something better.  End quote

September 18, 2009

August 26, 2009-

August 17, 2009-

Robert A. Fico of ACE Home Inspection, Inc., Westfield, NJ has been Honored by the American Society of Home Inspectors (ASHI) for Long-Time Service. 

ASHI, founded in 1976, is the oldest, largest and most respected international professional organization of independent home inspectors in North America.  Its Standards of Practice and strict Code of Ethics are benchmarks of professional performance in the field.