THE BLACKSTONE COMMENTARIES
The Kitchen Aide
Copyright © Leopold A. Rodriguez, USA, 1998
Attorney/Exclusive Buyer Broker
All rights Reserved
Printed With Permission - 09/98

I read a recommendation from an E&O insurance specialist to real estate
licensees that they should sit alone in the kitchen, leaving the buyers and
their contractor to inspect the home on their own - elevating risk management
to the status of five hundred pound gorilla-hood.

The suggestion was based on the premise that the consumer cannot later
point an accusing finger at the lowly licensee and accuse him or her of a
cover up during the inspection process since he really wasn't there. He said
nothing. Perhaps heard nothing. Perhaps saw nothing.

The inspection is the most important aspect of a home purchase. It borders
on the ceremonial. The buyers are there, their licensee is there, the general
contractor in the business of home inspections is there, the structural pest
control operator is there, the masonry contractor (for fireplaces in existence
prior to the 1989 Loma Prieta earthquake) is there: and, as necessary, a
structural engineer, a soils engineer, a civil engineer, etc. The Mission: to
thoroughly critique the condition of the property through an exchange of
ideas/observations among everyone present.

There are certainly deficiencies to be found in new construction. So one can
imagine what lurks in the shadows of older homes. I keep a large marble in
my briefcase - which comes in handy when inspecting some of San
Francisco's painted ladies - the Victorians of course. Yes, it does roll from
one end of the room to the other. Must be due to a defect in the concrete
foundation. What concrete foundation? It's unreinforced masonry; looks like
bricks to me. You wouldn't pay $150,000 for this kind of place? They're not
asking $150,000. They're asking $1,150,000!

I recall an inspection where I noted that a section of mudsill looked like it
should be replaced. I asked the GC for his opinion and he agreed. While he's
upstairs the Structural Pest Control Operator came by and I asked his
opinion. It was not a problem, he said. My clients heard both exchanges.
Who was right? I suggest that it is not important who was "right." What
matters is that my clients were educated by the process. There's a lot of
"grey" in the process.

Roofs are an interesting arena of contention. The seller doesn't want to
replace something that ain't broke. We don't want to incur a bill of from $5,000
to $10,000 next winter if it's that close to broke. If our GC alerts us that the
roof is at or near the end of its useful life I advise my clients to retain a roofing
contractor for his opinion. The first challenge is to find a roofing contractor who
is in the business of inspections and who does not do the work. The second
challenge is to find a roofing contractor who has been in business using the
same name over the past five years. Must have something to do with inhaling
all that tar.

And there are more esoteric concerns. We saw a newer home that was
impeccably maintained. But it had been on the market quite a while and was
apparently underpriced. The answer was hidden from view in a clump of trees
behind the rear yard: power poles with large transformers - the dreaded EMF!
The local power company had provided the seller with an analysis comparing
the emissions from the transformers, in milligauss (I call them zaps), to
emissions from household appliances such as televisions and microwaves. Of
course, at some point the microwave oven shuts off. However, are EMF
emissions worse that the ultra violet rays of the sun? Read Carl Sagan's
wonderful The Demon-Haunted World.


I suggest that for a licensee to sit in the kitchen during this process is not
gross negligence: it is intentional dereliction of duty!

I suppose that if the licensee is not a fiduciary then such conduct is not
egregious. In fact, no need to even show up. The licensee could simply
provide buyer-customers with lists of inspectors. Better yet, the licensee
could let Bill Gates provide the lists. This would free up more time for the
licensee to stay in his/her own kitchen, browsing http://newcareers.com.