According to New Jersey home inspector regulations, home inspectors are required to identify and report on material defects found during the home inspection process. The material defects that are to be reported are of the accessible structure, systems and components of the property being inspected. Sometimes clients confuse the meaning of the word material. The word material describes something that is of importance rather than a tangible aspect of home. So, the word material means significant, important, or substantive. The word can also mean relevant and consequential.
In the New Jersey home inspection regulations, a material defect is a specific problem with a component or system in the home being inspected that has a significant impact on the value of the home, habitability, or that presents a risk to the people who reside in it. Sometimes there is confusion with life expectancy of components or systems. Just because a system or component is at or past its statistical life expectancy does not qualify the system or component as being materially deficient it’s just older.
After performing several thousand home inspections a New Jersey home inspector can typically determine what constitutes a material defect and what does not. New Jersey home inspectors should not in their reports categorize items specifically as defects and material defects. New Jersey home inspectors are required to report material defects, but most inspectors will go above and beyond this threshold discussing and reporting problems that do not rise to the level of being a material defect. An example of this would be a gutter that is clogged. Yes, it is important to know that the gutter is clogged but the issue does not rise to the level of being a safety issue and does not materially affect the value of the property. It is just important information for the client to know.
It is important to know that while inspectors are required to report only on material defects the regulations do not prohibit the inspector from reporting on nonmaterial defects. In fact, much of the home inspection report will consist of these other defects which are nonmaterial. The rule that home inspectors may follow is that they report or discuss the problems with the client that they themselves would find important if they were purchasing the property. It is my philosophy that the more information the client knows the better. Not discussing and reporting on other nonmaterial defects can lead to client dissatisfaction and the client learning about these defects while living in the home. It is always advantageous for the NJ home inspector to go above and beyond in his or her reporting to give the client the most information possible so they can make good decisions about the home. The client will have a clear picture of the maintenance and upkeep of the home that they are purchasing and they will know in the future areas of concern that they should be addressing. When a home inspector just focuses on the material defects many of the smaller or medium type items do not get discussed and reported on and they likely will come up later when the home is lived in by the client and this is likely to result in poor client satisfaction.
Another thing to consider is that not all material defects will be visible and accessible during the home inspection. Material defect behind walls or covered cannot be properly reported on. An example of this is improper wiring or plumbing behind walls that is improperly configured that the home inspector cannot view because they are covered by interior finishes. This is an important aspect of home inspection because home inspectors have limitations. They can view only visual and accessible components and systems. As New Jersey home inspectors we are not allowed to cause damage to interior finishes or remove any permanent finishes in a home.
Another aspect of material defect reporting is that the individual New Jersey home inspector can deem a defect material by their individual opinion or experience. It is the inspector’s own judgment and experience that enable him or her to make their decision to identify a defect as being a material defect. There are no specific checklist or home inspection software that would indicate that an issue is a material defect or not. This is up to the individual inspector to analyze the problem or defect and decide if it effects the habitability, safety or value of the home.
The New Jersey home inspection regulations specifically add various systems and components of the home that must be inspected and reported on. Home inspectors in New Jersey are not just calling out to material defects specifically. In the home inspection regulations stipulate they have to report on the various aspects of the home and report on them even though they are not material defects. An example of this is flashing. In New Jersey home inspectors have to report on and identify problems with flashing. Another example of this is that home inspectors have to identify and report on the type of water supply piping that exists in the home. So, there are many examples of this where home inspectors have to report on components and systems that are not necessarily material defects. However, it is crucially important for home inspector to clearly discuss and report on any material defects that they do find in home because these are the main issues. These are the high dollar and high priority issues that are found during a home inspection. These material defects are likely the defects that the buyer is likely to locus on during their real estate negotiation after the home inspection is performed.
As a home inspector in New Jersey, it’s important that a summary document be created in every home inspection report. In the summary document a home inspector can describe the main issues in the home including the material defects. Having a summary document aids in communication and helps the client boil down the many issues into the few often helping them in their negotiation because they are focusing on the major defects rather than the smaller item which will be found in almost every home.
A couple examples of material defects would be a roofing system that is worn out and has the potential of leakage. This can substantially affect the value of the home because water can cause a great deal of destruction to the house. Another example of a material defect would be a chimney that is leaning. A leaning chimney can both affect the value of the home and create a significant safety hazard for occupants or pedestrians. Another example of a material defect is a structural crack in the foundation of home. A major structural crack can negatively affect the value of that home.
A couple of examples of nonmaterial defects may be a couple of lower-level windows that are not functioning properly, a door that sticks in its doorframe, a gutter system that is obstructed, an exterior hose bib that does not operate. A leaking shower head, cracked floor tiles, settlement cracks in the interior walls around windows and doors. Heating or air conditioning equipment that is older and past its life but still operational. These are just some examples of nonmaterial defects. They don’t substantially affect the habitability, safety, or the value of the house.
As New Jersey home inspectors it is important for us to understand the difference between material defects and nonmaterial defects. It is important for us to properly communicate to the client what is a significant issue and what is a lesser priority issue. It is important for us to establish with the client what a material defect is and why it is important. It is also advantageous for the New Jersey home inspector to create a summary page in the home inspection report that highlights the major issues or defects found in the home so the client can have a better understanding of the major problem in the house. If a home inspection report does not have a summary page this can create confusion because sometimes the client does not understand what is a major problem and what is not.