109 24th 2007 Inspection Report With Comments

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    PROPERTY INSPECTION REPORT

    COTTON & CO. * 1-888-274-2161

    Cotton and Co. LP2226 Bauer Drive

    Houston, TX 77080281-831-0063

    Inspected By: Jim LaRue TREC# 8663 Inspection Date: 4/11/2007

    Client Lisa Burton

    Home

    109 24th streetHouston, tx

    Real Estate Agent Ree Emberg

    The inspection of the property listed above must be performed in compliance with the rules of the Texas Real Estate Commission(TREC).The inspection is of conditions which are present and visible at the time of the inspection, and all of the equipment is operated in normalmodes. The inspector must indicate which items are in need of repair or are not functioning and will report on all applicable itemsrequired by TREC rules. This report is intended to provide you with information concerning the condition of the property at the time of inspection. Please read the report carefully. If any item is unclear, you should request the inspector to provide clarification. It isrecommended that you obtain as much history as is available concerning this property. This historical information may include relocationcompanies, municipal inspection departments, lenders, insurers, and appraisers. You should attempt to determine whether repairs,renovation, remodeling, additions or other such activities have taken place at this property. Property conditions change with time and use.Since this report is provided for the specific benefit of the client(s), secondary readers of this information should hire a licensed inspector

    to perform an inspection to meet their specific needs and to obtain current information concerning this property.

    ADDITIONAL INFORMATION PROVIDED BY INSPECTOR:

    No Termite

    Promulgated by the Texas Real Estate Commission(TREC) P.O. Box 12188, Austin, TX 78711-2188, 1-800-250-8732 or (512)459-6544 (http:\\www.trec.state.tx.us). REI 7A-0

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    Report Identification 109 24th street Report# 041107-02

    Additional pages may be attached to this report. Read them very carefully. This report may not be completewithout the attachments. If an item is present in this property but is not inspected, the "NI" column will bechecked and an explanation is necessary. Comments may be provided by the inspector whether or not an item isdeemed in need of repair.

    I=Inspected NI=Not

    Inspected

    NP=Not

    Present

    R=Not Functioning or in Need of

    Repair

    CR=Corrected on

    Reinspection

    I. STRUCTURAL SYSTEMS / OtherA. GRADING and DRAINAGE

    FOUNDATION: CONCRETE PIERS METHOD USED TO OBSERVE CRAWLSPACE: COULD NOTACCESS, OBSTRUCTED ROOF COVERING: COMPOSITION ROOF STRUCTURE: STICK-BUILT, 2X4 RAFTERS, 2 X 6 RAFTERS ROOF-TYPE: GABLE, HIP VENTILATION: GABLE VENTS, PASSIVE VIEWED ROOF COVERING FROM: GROUND, Ground via highstrength field glasses. INSULATION: BLOWN, FIBERGLASS R- VALUE: BELOW R-19 WALL STRUCTURE: WOOD, 2 X 4 WOOD, 2 X 6 WOOD, PLATFORMFRAME SIDING STYLE: SHIPLAP SIDING MATERIAL: CEMENT-FIBER FLOOR STRUCTURE: WOOD JOISTS, Hardwood Flooring, CERAMICTILE EXTERIOR ENTRY DOORS: WOOD, Glass and Wood WINDOW TYPES: AGED, SINGLE-HUNG, SINGLE PANE, Wood frameWINDOW MANUFACTURER: UNKNOWN

    NUMBER OF WOODSTOVES: NONE CHIMNEY: N/A APPURTENANCE: AGED FENCING: 6" PICKET, WOOD FENCING Comments: Functioning as intended.

    B. FOUNDATIONS (If all crawlspace areas are not inspected, provide anexplanation. An opinion on performance is necessary)Comments: The foundation appears to be functioning as intended, nosignificant differential settling indicated. However due to limited access to theunder pinning of the residence no further evaluation could be made.

    C. ROOF COVERING (If the roof is inaccessible, report the method used toinspect)Comments: Roof is overlay on cedar shake shingles. Functional -adequatelyflashed and caulked, drip edge in place and chimney flashing secure.(Picture1)

    I NI NP R CR Inspection Items

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    C. Picture 1

    D. ROOF STRUCTURE AND ATTIC (If the attic is inaccessible, report themethod used to inspect)

    Comments:

    Pull Down Stairs is uninsulated..Repair as necessary.. (Picture 1)Gable vent area should have screening installed to help prevent un-wanted pests. Repair as necessary.. (Picture 2)Garage roof has a noticeable deflection and is in need of additionalsupport. Repair as necessary..

    D. Picture 1

    I NI NP R CR Inspection Items

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    D. Picture 2

    E. WALLS (interior and Exterior)Comments:

    Exterior siding has several areas that have small openings that need to be sealed. Repair as necessary..(Picture 1)Garage exterior siding is wood and starting to show evidence of minor cubical rot in some areas. Repair as necessary..Evidence of prior termites noted in the rear wall of the garage. Irecommend that if this house is under contract that it be transferred as

    part of the sale and that the property be inspected on a quarterly basis.

    E. Picture 1

    F. DOORS (Interior and Exterior)Comments:

    All entry doors at to home are keyed from both sides. No fast exit is possible.. Repair as necessary..(Picture 1)Closet door in the master bedroom is in need of adjustment at thestriker and latch. Door will not lock. Repair as necessary..(Picture 2)

    I NI NP R CR Inspection Items

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    F. Picture 1 F. Picture 2

    G. CEILING and FLOORS

    Comments: Functioning as intended.

    H. WINDOWSComments:

    Window sill in the bathroom next to the shower/tub area has moisturedamage due to it close proximity to this area. Recommend that thisarea be cleaned and repainted. Repair as necessary..(Picture 1)

    H. Picture 1

    I NI NP R CR Inspection Items

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    I. OTHER Comments: Tree limbs that are in contact with roof or hanging near roof should be trimmed. Repair as necessary..

    J. CABINETRY:Comments: Some cabinet doors need magnets or hardware to stay shut. Somecabinets are showing advanced age, have loosening joints, and loosehardware.

    I NI NP R CR Inspection Items

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    Report Identification 109 24th street Report# 041107-02

    I=Inspected NI=NotInspectedNP=NotPresent

    R=Not Functioning or in Need of Repair

    CR=Corrected onReinspection

    II. ELECTRICAL SYSTEMS

    A. SERVICE ENTRANCE AND PANELSELECTRICAL CONDUCTORS: ABOVE GROUND PANEL CAPACITY: 125 AMP PANEL TYPE: CIRCUIT BREAKERS BRANCH WIRE 15 and 20 AMP: COPPER ELEC. PANEL MANUFACTURER: FEDERAL PACIFIC Comments:

    You have a Federal Pacific panel which is legal, but there is a possibility that the circuit breakers may not trip when shorted possibly causing an electrical hazard. Opinions by licensedelectricians on this panel varies between safe and unsafe. I

    recommend you consult a licensed electrician for an opinion andcorrect if necessary. Repair as necessary..

    B. BRANCH CIRCUITS-CONNECTED DEVICES AND FIXTURES(Report as in need of repair the lack of ground fault circuit protectionwhere required.)Comments:

    Ceiling fan has no separate control from lighting at wall in mostlocations. Repair as necessary..(Picture 1)Light fixtures are missing covers in closets. Repair as necessary..(Picture 2)

    Attic wires have open splices and junction box is missing a cover plate. Repair as necessary..(Picture 3-4)

    B. Picture 1

    I NI NP R CR Inspection Items

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    B. Picture 2

    B. Picture 3

    B. Picture 4

    I NI NP R CR Inspection Items

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    Report Identification 109 24th street Report# 041107-02

    I=Inspected NI=NotInspectedNP=NotPresent

    R=Not Functioning or in Need of Repair

    CR=Corrected onReinspection

    III. HEATING, VENTILATION, AND AIR CONDITIONING

    SYSTEMSA. HEATING EQUIPMENT

    HEAT TYPE: FORCED AIR ENERGY SOURCE: GAS NUMBER OF HEAT SYSTEMS (excluding wood): ONE HEAT SYSTEM BRAND: Ducane COOLING EQUIPMENT TYPE: AIR CONDITIONER UNIT COOLING EQUIPMENT ENERGY SOURCE: ELECTRICITY NUMBER OF A/C UNITS: ONE CENTRAL AIR MANUFACTURER: YORK DUCTWORK: N/A FILTER TYPE: DISPOSABLE

    Comments:Functioning as intended.

    B. COOLING EQUIPMENT

    Comments: Ambient air test was performed by using thermometers on air handler of Air conditioner to determine if the difference in temperatures of the supply and return air are between 14 degrees and 22 degrees whichindicates unit is cooling as intended. The supply air temperature on your system read 44 degrees, and the return air temperature was 62 degrees. Thisindicates range in temperature drop is normal.

    C. DUCTS AND VENTSComments:

    Vent is loose at the ceiling in the dining room. Repair as necessary..(Picture 1)Plenum has some areas that tape has started to loosen and air is

    blowing into the attic. I recommend that this area be resealed withA/C aluminum tape as needed. (Picture 2)

    I NI NP R CR Inspection Items

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    C. Picture 1

    C. Picture 2

    I NI NP R CR Inspection Items

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    Report Identification 109 24th street Report# 041107-02

    I=Inspected NI=NotInspectedNP=NotPresent

    R=Not Functioning or in Need of Repair

    CR=Corrected onReinspection

    IV. PLUMBING SYSTEM

    A. WATER SUPPLY SYSTEM AND FIXTURESWATER SOURCE: PUBLIC PLUMBING SUPPLY: GALVANIZED (OLD) DISTRIBUTION: GALVANIZED PLUMBING WASTE: CAST IRON (OLD) WASHER DRAIN SIZE: 2" DIAMETER WATER HEATER POWER SOURCE: GAS (QUICK RECOVERY) MANUFACTURER: RHEEM CAPACITY: 40 Gallon Comments:

    Pull stop for hall sink is not engaging the stopper. Repair as

    necessary..(Picture 1)Exposed water piping in master closet. (Picture 2)Plumbing fixtures need to be sealed at escussions and walls. Repair as necessary..(Picture 3)

    A. Picture 1

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    A. Picture 2

    A. Picture 3

    B. DRAINS, WASTES, VENTSComments: Note: In addition, even though a test of lavatories, tubs, andtoilets did not reveal any slow drains, this does not preclude the potentialfor blockages in the main routing to the sewer. Examination of this pipingis beyond the scope of a typical property inspection.

    C. WATER HEATER EQUIPMENT (Report as in need of repair those

    conditions specifically listed as recognized hazards by TREC Rules)Comments:

    Missing bonding wire at unit between gas pipe and water pipe.Repair as needed..Water heater does not have foam insulation on supply/dischargeleads. Recommend repair as necessary. (Picture 1)

    I NI NP R CR Inspection Items

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    C. Picture 1

    D. Gas LinesComments:

    Un-capped gas valve in the living room area. Repair as necessary..(Picture 1)

    D. Picture 1

    I NI NP R CR Inspection Items

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    Report Identification 109 24th street Report# 041107-02

    Prepared Using HomeGauge http://www.homegauge.com SHGI (c) 2000-2004 : Licensed To Cotton and Co. LP

    I=Inspected NI=NotInspectedNP=NotPresent

    R=Not Functioning or in Need of Repair

    CR=Corrected onReinspection

    V. APPLIANCES

    A. DISHWASHER DISHWASHER: KENMORE DISPOSER: IN SINK ERATOR EXHAUST/RANGE: VENTED, NUTONE RANGE/OVEN: GAS OVEN, GAS COOKTOP, TAPPAN BUILT-IN MICROWAVE: NONE TRASH COMPACTORS: NONE EXHAUST FAN TYPES: NONE DRYER POWER SOURCE: 22O ELECTRIC DRYER VENT: UNKNOWN REFRIGERATOR: KENMORE INSTANT HOT WATER DISPENSER: None DRYER: KENMORE WASHING MACHINE: KENMORE Comments: Functioning as intended.

    B. FOOD WASTE DISPOSER Comments: Functioning as intended.

    C. RANGE HOODComments: Functioning as intended.

    D. RANGES/OVENS/COOKTOPSComments: Functioning as intended.

    E. MICROWAVE COOKING EQUIPMENTComments: Functioning as intended.

    F. BATHROOM EXHAUST FANS AND/OR HEATERSComments: Functioning as intended.

    G. DOOR BELL AND CHIMESComments: Functioning as intended.

    H. CLOTHES DRYER Comments: Functioning as intended.

    I. WASHING MACHINEComments: Functioning as intended.

    I NI NP R CR Inspection Items

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    Homes more than 5 years old may have areas that are not current in code requirements. This is not a new homeand this home cannot be expected to meet current code standards. While this inspection makes every effort to

    point out safety issues, it does not inspect for code. It is common that homes of any age will have had repairs performed and some repairs may not be in a workmanlike manner. Some areas may appear less than standard.This inspection looks for items that are not functioning as intended. It does not grade the repair. It is sometimescommon to see old plumbing or mixed materials. Sometimes water signs in crawlspaces or basements could beyears old from a problem that no longer exists. Or, it may still need further attention and repair. Determining thiscan be difficult in a lived in home. Sometimes homes have signs of damage to wood from wood eating insects.Having this is typical and fairly common. If the home inspection reveals signs of damage you should have a pestcontrol company inspect further for activity and possible hidden damage. The home inspection does not look for

    possible manufacturer re-calls on components that could be in this home. Always consider hiring the appropriateexpert for any repairs or further inspection.

    Date: 4/11/2007 Time: 12:48 PM Report ID: 041107-02

    Property:109 24th streetHouston, tx

    Customer:Lisa Burton

    Real Estate Professional:Ree Emberg

    Client Is Present:Yes

    Age Of Home:Over 25 Years

    Radon Test: No

    Water Test: No

    Weather:Clear

    Temperature:Over 60

    Rain in last 3 days: No

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    General Summary

    Cotton and Co. LP

    2226 Bauer DriveHouston, TX 77080

    281-831-0063

    Customer Lisa Burton

    Property Address 109 24th street

    Houston, tx

    STRUCTURAL SYSTEMS / Other

    C. ROOF COVERING (If the roof is inaccessible, report the method used to inspect) Inspected

    Roof is overlay on cedar shake shingles. Functional -adequately flashed and caulked, drip edge in placeand chimney flashing secure.(Picture 1)D. ROOF STRUCTURE AND ATTIC (If the attic is inaccessible, report the method used to inspect) Inspected, Not Functioning or in Need of Repair

    Pull Down Stairs is uninsulated..Repair as necessary.. (Picture 1)Gable vent area should have screening installed to help prevent un-wanted pests. Repair asnecessary.. (Picture 2)Garage roof has a noticeable deflection and is in need of additional support. Repair as necessary..

    E. WALLS (interior and Exterior) Inspected, Not Functioning or in Need of Repair

    Exterior siding has several areas that have small openings that need to be sealed. Repair asnecessary..(Picture 1)

    Garage exterior siding is wood and starting to show evidence of minor cubical rot in some areas.Repair as necessary..Evidence of prior termites noted in the rear wall of the garage. I recommend that if this house isunder contract that it be transferred as part of the sale and that the property be inspected on aquarterly basis.

    F. DOORS (Interior and Exterior) Inspected, Not Functioning or in Need of Repair

    All entry doors at to home are keyed from both sides. No fast exit is possible.. Repair as necessary..(Picture 1)Closet door in the master bedroom is in need of adjustment at the striker and latch. Door will not

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    lock. Repair as necessary..(Picture 2)H. WINDOWS

    Inspected, Not Functioning or in Need of Repair

    Window sill in the bathroom next to the shower/tub area has moisture damage due to it close

    proximity to this area. Recommend that this area be cleaned and repainted. Repair as necessary..(Picture 1)

    ELECTRICAL SYSTEMS

    A. SERVICE ENTRANCE AND PANELS Inspected, Not Functioning or in Need of Repair

    You have a Federal Pacific panel which is legal, but there is a possibility that the circuit breakersmay not trip when shorted possibly causing an electrical hazard. Opinions by licensed electricianson this panel varies between safe and unsafe. I recommend you consult a licensed electrician for anopinion and correct if necessary. Repair as necessary..

    B. BRANCH CIRCUITS-CONNECTED DEVICES AND FIXTURES (Report as in need of repair thelack of ground fault circuit protection where required.)

    Inspected, Not Functioning or in Need of Repair

    Ceiling fan has no separate control from lighting at wall in most locations. Repair as necessary..(Picture 1)Light fixtures are missing covers in closets. Repair as necessary..(Picture 2)Attic wires have open splices and junction box is missing a cover plate. Repair as necessary..(Picture 3-4)

    HEATING, VENTILATION, AND AIR CONDITIONING SYSTEMS

    C. DUCTS AND VENTS Inspected, Not Functioning or in Need of Repair

    Vent is loose at the ceiling in the dining room. Repair as necessary..(Picture 1)

    Plenum has some areas that tape has started to loosen and air is blowing into the attic. I recommendthat this area be resealed with A/C aluminum tape as needed. (Picture 2)

    PLUMBING SYSTEM

    A. WATER SUPPLY SYSTEM AND FIXTURES

    Inspected, Not Functioning or in Need of Repair

    Pull stop for hall sink is not engaging the stopper. Repair as necessary..(Picture 1)Exposed water piping in master closet. (Picture 2)Plumbing fixtures need to be sealed at escussions and walls. Repair as necessary..(Picture 3)

    C. WATER HEATER EQUIPMENT (Report as in need of repair those conditions specifically listed asrecognized hazards by TREC Rules)

    Inspected, Not Functioning or in Need of Repair

    Missing bonding wire at unit between gas pipe and water pipe. Repair as needed..Water heater does not have foam insulation on supply/discharge leads. Recommend repair asnecessary. (Picture 1)

    D. Gas Lines Inspected, Not Functioning or in Need of Repair Un-capped gas valve in the living room area. Repair as necessary..(Picture 1)

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    Prepared Using HomeGauge http://www.homegauge.com SHGI (c) 2000-2004 : Licensed To Cotton and Co. LP

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    Cotton and Co. LP

    Jim LaRue TREC# 86632226 Bauer Drive

    Houston, TX 77080281-831-0063

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    Fees:

    Payment Method: Check Payment Status: Paid At Time Of InspectionNote:

    INVOICE

    Cotton and Co. LP2226 Bauer DriveHouston, TX 77080281-831-0063By: Jim LaRue TREC# 8663

    Activity Date: 4/11/2007Report ID: 041107-02

    Customer Info: Location:

    Lisa Burton

    Customer's Representative:Ree Emberg

    109 24th streetHouston, tx

    Service Price Amount Sub-Totalup to 1800 Sq. Ft. 215.00 1 215.00

    Pier& Beam 85.00 1 85.00Rewards Discount - A Courtesy from your RealtyPrtofessional -25.00 1 -25.00

    Tax $ 0.00Total Price $ 275.00

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    INSPECTION AGREEMENT

    AGREEMENT

    The parties agree to the following: in consideration for the fee received,Cotton & Company is providing (at the request of the client) a real estate inspector to perform an inspection on the property

    located as herein described. The cursory limited visual inspection pertains solely to items listed on the inspection report that are readily accessible at thetime of inspection. The inspection to be done under this agreement is only an attempt to identify items in need of immediaterepair or specific recognized hazards as defined by T.R.E.C. The presence of Client(s) has been requested and encouragedduring the inspection and shall be at Client(s) own risk. This inspection is supplemental to any real estate transfer or seller'sDisclosure Statement and shall not be used as a substitute for such disclosure statement(s).

    The Client(s) agree that the Texas Real Estate Commission (including any reporting departures made by Cotton & Company)defines the scope of the inspection to be provided. A copy of the Standards has been made available to you in our supplemental

    package and on the T.R.E.C. website at www.trec.state.tx.us. These are the agreed Standards of Practice for the performance of this inspection.

    The cursory limited inspection is intended to reduce risk but will not eliminate risk, therefore the inspection to be done will not

    identify all repairs needed or potential hazards whether in accessible or inaccessible areas. When inspection of any system or component is limited or designated as not inspected due to inaccessibility or for any other reason, the client(s) must understandthat conditions affecting the structure, systems, or components may be present and go unreported. All findings should beconsidered partial or incomplete until further evaluated by a qualified repair person prior to closing.

    Since this inspection is based upon visual observations made on one day, during a limited time period, Cotton & Companycannot be responsible for any condition affecting any system or component that is intermittent in function and may not bedetectable during the inspection. No warranties or guarantees are expressed or implied.

    The inspector will not light pilot lights, activate the main water supply, gas or electric systems, energize electrical circuitswhich are off or otherwise operate any component other than user controls. The written inspection report provided by Cotton &Company will contain the opinions of the inspector. These opinions would not be applicable to future changing conditions.Although code compliance and engineering evaluation are specifically excluded from the inspection, some codes may be usedas a reference and bias for the opinion of the inspector. The inspection services provided are further defined and limited by thereport and any attached addenda.

    General Statements and Agreements that apply to Home Inspections

    What we do:

    1. The inspection report provided by Cotton & Co will contain the good faith opinions of the inspector regarding the observableneed of any repairs, replacements, or further evaluation by specialists of the items inspected. The report will not include andshould not be interpreted to indicate any opinion regarding compliance with codes, ordinances, statues, or restrictions; nor theinsurability, efficiency, durability, life expectancy and future performance of any particular item inspected.

    2. The purpose of our reports is to inform our clients whether or not the items inspected are functioning as intended, or is in needof repair or further evaluation.

    3. We perform our inspection/evaluations from physical observation only. In other words we can only inspect and report on thoseitems and defects that are observable by ordinary senses without dismantling portions of the property or appurtenances, orremoval of any items (such as clothing or furniture) to facilitate inspection.

    4. If you have any questions about our report, we will be happy to explain our observations.

    --------------------------------------------------------------------------------

    What we do not do:

    1. We do not make guarantees, nor offer warranties or representations, insure future performance or the condition of any item.

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    2. We will not make observations of any item that is not physically visible during the course of an inspection. For example, we donot move furniture, rugs, clothing, paintings or wall furnishing, appliances or other furnishings. We do not uncover buried pipes orelectrical distribution circuits. We cannot see or make observations regarding items covered by wall coverings, furniture, flooring,or enclosed wall spaces. Past repairs/remodeling may hide evidence of prior damages or defects.

    3. We do not inspect for compliance with building codes, soil analysis, adequacy of design, capacity, termite infestation includingbut not limited to potentially toxic strains of mold (including stachybotrys, aspergillus, and penicillium). We do not check forfunguses or spores, including but not limited to, any substance, vapor, or gas produced by or arising out of any funguses or sporesor any material, product, building component, building, or structure that contains, harbors, nurtures, or acts as a medium for anyfunguses or spores. Funguses include, but are not limited to, any reproductive body produced by or arising out of any funguses. Wealso do not check for HVAC efficiency and size, property value, flood plain location, pollution, environmental issues such as leadpaint , asbestos, etc., or habitability.

    4. Out inspectors are not allowed to change or alter these written provisions in any way.

    5. We do not hold ourselves out to be specialists or professional engineers for any particular items or systems. We are a generalquality assurance and real estate inspection firm. If we report any item as nonfunctional or in need of repair, you are urged toacquire a second opinion from a specialist for the item(s) cited. We do not perform repairs or provide binding estimates of costs torepair any item.

    Before completion of any contractual agreements on the property inspected, Client(s) agree to obtain second opinions or costestimates by appropriate specialist on items where performance may be reported as questionable, in need of repair or unsafe. Itis specifically understood and agreed that Cotton & Company are bound only by the terms and conditions of this agreement and

    have not relied on any other representations, oral or otherwise. Any conditions requiring repair, replacement, or servicingshould be by professionals in appropriate trades before closing. Client(s) give permission to Cotton & Company to discussreport findings with Realtors, owners, repair persons and other interested persons.

    The Client(s) agree to notify Cotton & Company in writing of any complaints or items in question within 14 days of discoveryand allow Cotton & Company access to the property to evaluate these items before corrective action is taken. Life threateningsituations should be addressed immediately. In other than life threatening situations, Client(s) failure to permit Cotton &Company to re-inspect the item at issue shall mean the client(s) has waived any claim against Cotton & Company for breach of this Agreement and/or any error or omissions claim that results.

    Dispute Resolution: Upon written request by either party that is submitted according to the applicable rules for arbitration, anyclaim, demand or cause of action, which arises out of or, is related to this Agreement, (collectively "Claims") shall be resolved

    by binding arbitration in the County of Harris, Texas, in accordance with (1) the Federal Arbitration Act; (ii) the Code of Procedure ("code") of the National Arbitration Forum ("administrator" or "NAF") and (iii) this Agreement, which shall control

    any consistency between it and the law and be in writing setting forth the finding of fact and law and the reasons supporting thedecision. Such decision shall be final and binding upon the parties, subject to the right of the appeal described below. Judgmentupon any arbitration award may be entered in any court having jurisdiction. The arbitrator has exclusive authority to resolveany dispute relating to the applicability or enforceability of the Agreement. Either party shall have the right to appeal to theappropriate court any errors of law including a limited number of depositions (including the production of documents) bymutual agreement or as permitted by the arbitrator.

    Certificate of Merit: The client shall make no claim of professional negligence unless the client has first provided me with awritten certification executed by an independent Texas Professional Engineer currently practicing in the area of houseinspections in the Greater Houston Area for home buyers. The certification shall: a)contain the name and license number of thecertifier; b)specify what research the certifier has performed to discover the standard of care, c)specify the acts or omissionsthat the certifier contends are not in conformance with the standard of care for a registered structural engineer performing

    professional services under similar circumstances; and d)state in detail the basis for the certifiers opinion that such acts or omissions do not conform to the standard of care. This certificate shall be provided to me not less than thirty (30) days prior tothe presentation of any claim, or the institution of any arbitration or legal proceeding. This certificate of merit clause will take

    precedence over any existing state law in force at the time of the claim or demand for arbitration. Insurance: Insurance to pay undiscovered repairs and unsafe conditions is not carried Cotton & Company. Some error in theinspection process is inevitable; however Cotton & Company provides a standard of care substantially better than the industryaverage. If there are concerns raised by the inspection, you should have comprehensive inspection(s) by an appropriately ratedand licensed engineer, specialist, or repair contractor conducted.

    Client(s) agrees that in the event any portion of the contract, report or addenda is ruled inadmissible as evidence that theremainder of all aforementioned documents, or any portion therefore, shall remain admissible as evidence.

    Changes to this contract are not accepted without specific written approval of Cotton & Company.

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    Entire Agreement: This Agreement and no other implied, or verbal pronouncements by Cotton & Company or the client(s) shall be relied upon.

    Third Party Indemnification: This inspection and the report are not intended for the use or benefit of anyone other than theClient(s). No third party shall have any right arising from the inspection or the report. In consideration for Cotton & Companyfurnishing the report, Client(s) shall indemnify and hold Cotton & Company harmless from any claims, demands or costs as aresult of any third party demand or claim arising out of the inspection or report.

    Hold Harmless Agreement: CLIENT agress t hold any and all real estate agents involved in the purchase of the property to beinspected harmlessand keep them exonerated from all loss, damage, liability or expense occassioned or claimed by reasons of acts or neglects of INSPECTOR or his employees or visitors or independent contractors engaged or paid by INSPECTOR for the purpose of inspecting subject home.

    ________________________________________________________________________________________________________________

    CLIENT ACKNOWLEDGES HAVING READ THIS CONTRACT, AND WILL READ THE REPORT AND ALLATTACHMENTS BEFORE PURCHASING THE PROPERTY. FURTHER, THAT CLIENT UNDERSTANDS THETERMS AND CONDITIONS AND AGREES TO BE BOUND BY THESE TERMS AND CONDITIONS AND TO PAYINSPECTION FEES AS AGREED AT THE TIME OF INSPECTION. THE FINAL REPORT WILL NOT BE RELEASEDUNTIL PAYMENT IS RECEIVED BY COTTON & COMPANY. Payment of fees indicates acceptance of these provisions.

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