Problems with relocation home inspections

Q. We purchased a home from a nationally known relocation company and were given a home inspection report by that company. They represented the report as a complete and detailed disclosure of all defects in the property. According to their report, the only problem in the house was a noisy garbage disposal.

After moving in, we smelled leaking gas, and the garbage disposal wasn't merely noisy, it was inoperable. That's when we hired our own home inspector, and a long list of undisclosed problems came to light. Our inspector found leaking gas fittings at the furnace, broken tiles on the roof, a hole in the chimney and window panes that were detached from the metal frames. Half a dozen other problems were also found, but I'm trying to keep this letter short.

We trusted the relocation company who sold us our house because their name is commonly known as one of the largest real estate firms in America. Please let your readers know how they can avoid the expensive mistake we made.

A. Relocation services have become a burgeoning national industry. Their primary function is to purchase homes from people who need to sell in a hurry, usually because their employers have transferred them, on short notice, to other areas of the country. When a relocation company buys a home, they typically hire a home inspection company for their own information. In some cases, however, they use the inspection report as disclosure when reselling the property. That was where you came into the picture.

As you discovered too late, relocation companies do not always employ the most qualified home inspectors, and the inspection reports do not always provide an accurate representation of a property's true condition. The reasons for this unfortunate situation are three-fold:

• Relocation companies are often unwilling to pay the fees charged by qualified, experienced home inspectors. The payments they offer are generally not sufficient to attract the interest of highly skilled professionals. Furthermore, some relocation companies are known to pay inspectors in a less-than-timely manner. Consequently, many inspectors are unwilling to work for them.

• Most relocation companies refuse to accept the standard inspection report forms issued by the inspection companies they employ. Instead, the inspector must use an abridged or needlessly complicated form, designed by the relocation company and not formatted to enable disclosure of all items commonly evaluated by a professional inspector.

In one case, a home inspector performed a relocation home inspection, but attached his own detailed inspection report as an addendum to the relocation company's two-page form. The relocation company never contracted with that inspector again.

• Owing to the abridged report form and reduced inspection fee, inspectors are not inclined to spend the usual amount of time to perform a thorough home inspection. The inspection short-form can be completed in approximately one and one-half hours, and the fee paid does not warrant or encourage an adequate investment of time and effort.

As you learned too late, the best way to protect yourself when purchasing a home from a relocation company is to employ your own home inspector, preferably the most experienced and qualified inspector you can find.

• To write to Barry Stone, visit him on the web at www.housedetective.com, or write AMG, 1776 Jami Lee Court, Suite 218, San Luis Obispo, CA 94301.

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