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TCO COM Remit MOUNTAIN INVOICE I ROCKY MOUNTAIN TITLE& INSURED CLOSING SVCS.,LLC 400 N. PARK AVE.HELENA,MT 59601 406-449-2244 Billed To: Invoice Date: November 26,2007 JEFFERSON COUNTY, MONTANA Please Pay Before: PO BOX H Our File Number: JX9815 BOULDER, MT 59632 Your Reference Number: Property: Brief Legal: LOTS 12, 13& 14 BLOCK 21 CONSOLIDATED ADDITION BOULDER, MT 59632 JEFFERSON County DESCRIPTION AMOUNT Policy premium for Owner's 734.00 Invoice Total Amount Due $ 734.00 BUYER/BORROWER:JEFFERSON COUNTY, MONTANA SELLER: BRUCE E.WAGNER and JACQUELINE M.WAGNER CC: MONTANA EXCHANGE PLEASE REFERENCE OUR ORDER NUMBER WHEN REMITTING PAYMENTS. IF YOU HAVE ANY QUESTIONS PLEASE CALL KREE BARBOUR. THANK YOU FOR YOUR BUSINESS. (JX9815/JX981512) s t AMER , t 9 ALTA Plain Language Commitment Form INFORMATION The Title Insurance Commitment is a legal contract between you and the Company. It is issued to show the basis on which we will issue a Title Insurance Policy to you The Policy will insure you against certain risks to the land title, subject to the limitations shown in the Policy. The Company will give you a sample of the Policy form, if you ask. The Policy contains an arbitration clause. All arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or you as the exclusive remedy of the parties. You may review a copy of the arbitration rules at <hap://www.alta.org/>. The Commitment is based on the land title as of the Commitment Date. Any changes in the land title or the transaction may affect the Commitment and the Policy. The Commitment is subject to its Requirements,Exceptions and Conditions. THIS INFORMATION IS NOT PART OF THE TITLE INSURANCE COMMITMENT. YOU SHOULD READ THE COMMITMENT VERY CAREFULLY. TABLE OF CONTENTS Page AGREEMENT TO ISSUE POLICY SCHEDULE A 1. Commitment Date 2. Policies to be Issued, Amounts and Proposed Insureds 3. Interest in the Land and Owner 4. Description of the Land SCHEDULE B-I -- REQUIREMENTS SCHEDULE B-II—EXCEPTIONS CONDITIONS CONDITIONS 1. DEFINITIONS (a) "Mortgage" means mortgage, deed of trust or other security instrument. (b) "Public Records" means title records that give constructive notice of matters affecting your title according to the state statutes where your land is located. 2. LATER DEFECTS The Exceptions in Schedule B — Section II may be amended to show any defects, liens or encumbrances that appear for the first time in the public records or are created or attach between the Commitment Date and the date on which all of the Requirements (a) and (c) of Schedule B— Section I are met. We shall have no liability to you because of this amendment. 3. EXISTING DEFECTS If any defects, liens or encumbrances existing at Commitment Date are not shown in Schedule B, we may amend Schedule B to show them. If we do amend Schedule B to show these defects, liens or encumbrances,we shall be liable to you according to Paragraph 4 below unless you knew of this information and did not tell us about it in writing. 4. LIMITATION OF OUR LIABILITY Our only obligation is to issue to you the Policy referred to in this Commitment, when you have met its Requirements. If we have any liability to you for any loss you incur because of an error in this Commitment, our liability will be limited to your actual loss caused by your relying on this Commitment when you acted in good faith to: Comply with the Requirements shown in Schedule B — Section I or Eliminate with our written consent any Exceptions shown in Schedule B — Section II. We shall not be liable for more than the Policy Amount shown in Schedule A of this Commitment and our liability is subject to the terms of the Policy form to be issued to you. 5. CLAIMS MUST BE BASED ON THIS COMMITMENT Any claim, whether or not based on negligence, which you may have against us concerning the title to the land must be based on this Commitment and is subject to its terms. TITLE INSURANCE COMMITMENT BY First American Title Insurance Company AGREEMENT TO ISSUE POLICY We agree to issue policy to you according to the terms of the Commitment. When we show the policy amount and your name as the proposed insured in Schedule A,this Commitment becomes effective as of the Commitment Date shown in Schedule A. If the Requirements shown in this Commitment have not been met within 6 months after the Commitment Date, our obligation under this Commitment will end. Also, our obligation under this Commitment will end when the Policy is issued and then our obligation to you will be under the Policy. Our obligation under this Commitment is limited by the following: The Provisions in Schedule A. The Requirements in Schedule B-I. The Exceptions in Schedule B-II. The Conditions. This Commitment is not valid without SCHEDULE A and Sections I and II of SCHEDULE B. COMMITMENT FOR TITLE INSURANCE SCHEDULE A Order No: JX9815 1. Effective Date: November 19,2007 at 08:00 AM 2. Policy or Policies to be issued: Amount (a) (X) ALTA OWNER'S POLICY(6/17/06) $ 169,000.00 Proposed Insured: JEFFERSON COUNTY,MONTANA Amount (b) ( ) ALTA LOAN POLICY(6/17/06) Proposed Insured: 3. The estate or interest in the land described or referred to in this Commitment and covered herein is FEE SIMPLE and is at the effective date hereof vested in: BRUCE E.WAGNER and JACQUELINE M.WAGNER,as joint tenants with right of survivorship 4. The land referred to in this Commitment is situated in the County of JEFFERSON, State of Montana,and is described as follows: LOTS 12, 13 AND 14 IN BLOCK 21 OF THE CONSOLIDATED ADDITION TO THE TOWN OF BOULDER,JEFFERSON COUNTY,MONTANA. 1 AfI Countersigned: ROCKY MOUNTAIN TITLE&INSURED CLOSING Authorized 9 fficer or Agent SVCS.,LLC 400 N.PARK AVE. HELENA,MT 59601 VALID ONLY IF SCHEDULE B AND COVER ARE ATTACHED (JX9815/JX9815/3) • SCHEDULE B - SECTION 2 Order No: 3X9815 Schedule B of the Policy or Policies to be issued will contain exceptions to the following matters unless the same are disposed of to the satisfaction of the Company: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. 2. Any facts,rights,interest,or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession,thereof. 3. Easements,claims of easements,or encumbrances which are not shown by the public records. 4. Any encroachment,encumbrance,violation,variation,or adverse circumstance affecting the title including discrepancies,conflicts in boundary lines,shortage in area, or any other facts that would be disclosed by an accurate and complete land survey of the land,and that are not shown in the public records. 5. (a)Unpatented mining claims; (b)reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c Water rights,claims or title to water,whether or not he matters excepted under(a),(b),or are shown by the public records. 6. Any lien,or right to a lien, imposed by the law for services,labor or material heretofore or hereafter furnished,which lien or right to a lien is not shown by the public records. 7. Any right,title or interest any minerals,mineral rights,or related matters,including but not limited to oil,gas,coal and other hydrocarbons. 8. Any minerals,mineral rights, or related matters,including but not limited to oil,gas,coal and other hydrocarbons. 9. No liability is assumed hereunder untill full policy premium is paid in full. 10. General County Taxes for the year 2007 First Half: $472.85 Due and payable Second Half:$464.83 Not yet due and payable Total for year:$937.68 Geo Code: 51-1490-33-2-10-15-0000 Taxpayer No.: 000001964 Prior Years Delinquent Taxes:NONE PLEASE NOTE: DELINQUENT TAX AMOUNTS ABOVE,IF ANY DO NOT INCLUDE PENALTY AND INTEREST. 11. Any Special Improvement District,any Rural Improvement District,special liens and levies of which is not yet due and payable. 12. No liability is assumed for errors,omissions,or changes in assessed evaluations or amount of taxes assessed by any state,county,city,or federal taxing or assessing authority. 13. General County Taxes and assessments for the year 2007 and subsequent years,a lien which is not yet due and payable. 14. This Order does not include a search for financing statements filed in the office of the Secretary of State and the Clerk and Recorder and no liability is assumed. PLEASE NOTE: Please contact this office if a search is requested. (JX9815/JX9815/4) - SCHEDULE B - SECTION 2 (Continued) Order No: JX9815 15. County road rights-of way the existence of which is dependent in whole or in part upon writings which have not been recorded and indexed as conveyances in the office fo the Clerk and Recorder pursuant to Title 70,Chapter 21 MCA. 16. DEED OF TRUST and related matters dated November 18,2002,executed by BRUCE E. WAGNER AND JACQUELINE M. WAGNER,as Grantors to ROCKY MOUNTAIN TITLE,as Trustee and MOUNTAIN WEST BANK,as Beneficiary,to secure payment of$91,518.25 plus interest,recorded November 18,2002,as Document Number 204026,records of JEFFERSON County,Montana. 17. ASSIGNMENT OF LEASE BY LESSEE WITH RIGHT OF ENTRY TO SELL COLLATERAL AND RIGHT OF RE-ASSIGNMENT,RECORDED MAY 27,2003 AS DOCUMENT NUMBER 206619,JEFFERSON COUNTY, MONTANA. NOTE: Any Deed Restrictions, Covenant,By-Law,Declaration of Condominium and/or any amendments thereto and/or otherwise as shown herein as an exception which may contain a clause indicating a preference,limitation or discrimination based on race, color,religion,sex,handicap, familial status,or national origin to the extent that such reference violates 42 USC 3604(c), is hereby deleted as to said reference;no other deletion is hereby intended or implied. NOTE:As an accommodation and not part of this commitment,no liability is assumed by noting the following conveyances describing all or a part of the subject property,which have been recorded within the past 6 months: NONE NOTE: Other than as shown in Schedule B,we find no Judgment Liens,Federal Tax Liens or Child Support Liens of record which attach to the name(s)or interest of the vested owner and/or proposed insured owner/borrower. END OF SCHEDULE B (JX98 15OX9815/4) OMB NO.2502-0265 3- A B. TYPE OF LOAN: U.S.DEPARTMENT OF HOUSING&URBAN DEVELOPMENT 1.0FHA 2.0FmHA 3.DCONV.UNINS. 4.0VA 5.❑CONV.INS. 6. FILE NUMBER: 7. LOAN NUMBER: SETTLEMENT STATEMENT JX9815 8. MORTGAGE INS CASE NUMBER: C. NOTE: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked"(POOP were paid outside the closing;they are shown here for informational purposes and are nab included in the totals 10 39e 03981 50(9815/14) D. NAME AND ADDRESS OF BORROWER: E. NAME AND ADDRESS OF SELLER: F. NAME AND ADDRESS OF LENDER: JEFFERSON COUNTY,MONTANA P.O.BOX H MONTANA EXCHANGE SERVICES,INC BOULDER,MT 59632 as Qualified Intermediary for Bruce E.Wagner and Jacqueline M.Wagner G. PROPERTY LOCATION: H. SETTLEMENT AGENT: 20-8095035 I. SETTLEMENT DATE: 118 W.CENTENNIAL AVE. ROCKY MOUNTAIN TITLE 8 INSURED CLOSING SVCS.,LLC BOULDER,MT 59632 November 28,2007 JEFFERSON County,Montana PLACE OF SETTLEMENT LOTS 12,13&14 400 N.PARK AVE. BLOCK 21 CONSOLIDATED ADDITION HELENA,MT 59601 J.SUMMARY OF BORROWER'S TRANSACTION K.SUMMARY OF SELLER'S TRANSACTION 100. GROSS AMOUNT DUE FROM BORROWER: 400. GROSS AMOUNT DUE TO SELLER: 101. Contract Sales Price 169,000.00 401. Contract Sales Price 102. Personal Property 402. Personal Property 103. Settlement Charges to Borrower(Line 1400) 154.00 403. 104. 404. 105. 405. 1 Adjustments For Items Paid By Seller in advance Adjustments For Items Paid By Seller in advance 106. City/Town Taxes to 406. City/Town Taxes to 107. County Taxes 11/28/07 to 01/01/08 87.35 407. County Taxes to 108. Assessments to 408.Assessments to i 109. 409. I 110. 410. 111. 411. I 112. I 412. 120. GROSS AMOUNT DUE FROM BORROWER 169,241.35 420. GROSS AMOUNT DUE TO SELLER 200. AMOUNTS PAID BY OR IN BEHALF OF BORROWER: 500. REDUCTIONS IN AMOUNT DUE TO SELLER: 201. Deposit or earnest money 501. Excess Deposit(See Instructions) I • 202. Principal Amount of New Loan(s) 502. Settlement Charges to Seller(Line 1400) I 203. Existing loan(s)taken subject to 503. Existing loan(s)taken subject to .. 204. 504. 205. 505. 206. 506. 207. 507. 208. 508. 209. 509. Adjustments For Items Unpaid By Seller Adjustments For Items Unpaid By Seller 210. City/Town Taxes to 510.City/Town Taxes to 211.County Taxes to 511.County Taxes to 212. Assessments to 512.Assessments to 213. 513. 214. 514. 215. 515. 216. 516. 217. 517. 218. 518. 219. 519. 220. TOTAL PAID BY/FOR BORROWER 520. TOTAL REDUCTION AMOUNT DUE SELLER 300. CASH AT SETTLEMENT FROM/TO BORROWER: 600. CASH AT SETTLEMENT TO/FROM SELLER: 301. Gross Amount Due From Borrower(Line 120) 169,241.35 601. Gross Amount Due To Seller(Line 420) 302. Less Amount Paid By/For Borrower(Line 220) ( ) 602. Less Reductions Due Seller(Line 520) ( 303. CASH(X FROM)( TO)BORROWER 169,241.35 603. CASH( TO)( FROM)SELLER The undersigned hereby acknowledge receipt of a completed copy of pages 1&2 of this statement 8 any attachments referred to herein. Borrower JEFFERSON COUNTY,MONTANA BY: COUNTY COMMISSIONER HUD-1(3,6)RESPA He4305.3 rage e L. SETTLEMENT CHARGES 700.TOTAL COMMISSION Based on Price $ @ -% PAID FROM PAID FROM Division of Commission(line 700)as Follows: BUYER'S SELLER'S 701 $ to FUNDS AT FUNDS AT 702.$ to _ SETTLEMENT SETTLEMENT 703.Commission Paid at Settlement 704. to 800.ITEMS PAYABLE IN CONNECTION WITH LOAN 801.Loan Origination Fee J to 802.Loan Discount % to 803. to 804. to 805. to 806. to 807. to 808. 809. 810. 811. 900. ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE 901.Interest From to @ $ May ( days %) 902. Mortgage Insurance Premium for months to 903. Hazard Insurance Premium for years to 904. 905. 1000.RESERVES DEPOSITED WITH LENDER 1001. Hazard Insurance @ $ per 1002.Mortgage Insurance @ $ per 1003. City/Town Taxes p $ per 1004. County Taxes $ per 1005. Assessments @ $ per 1006. @ $ per 1007. @ $ per 1008. AGGREGATE ADJUSTMENT @ $ per 1100.TITLE CHARGES 1101. Settlement or Closing Fee to ROCKY MOUNTAIN TITLE&INSURED CLOSING SVCS.,LLC 147.00 1102. Abstract or Title Search to 1103. Title Examination to 1104. Title Insurance Binder to 1105. Document Preparation to 1106. Notary Fees to 1107. Attorneys Fees to (includes above item numbers: 1108. Title Insurance to (includes above item numbers: ) _ 1109. Lender's Coverage $ 1110. Owner's Coverage $ 1111. 1112. 1113. 1200.GOVERNMENT RECORDING AND TRANSFER CHARGES 1201.Recording Fees: Deed $ 7.00;Mortgage $ Releases $ 7.00 1202.City/County Tax/Stamps:Deed $ ;Mortgage $ 1203.State Tax/Stamps: Deed $ ;Mortgage $ 1204. 1205. 1300.ADDITIONAL SETTLEMENT CHARGES 1301. Survey to 1302. Pest Inspection to 1303. to 1304. 1305. 1400.TOTAL SETTLEMENT CHARGES (Enter on Lines 103,Section J and 502,Section K) 154.00 By signing page 1 of this statement,the signatories acknowledge receipt of a completed copy of page of this two page statement. Certified to be a true copy. ROCKY MOUNTAIN TITLE&INSURED CLOSING SVCS Settlement Agent JX88151JX9815 17 I BUYER / SELLER CERTIFICATION Borrower: JEFFERSON COUNTY, MONTANA Seller: MONTANA EXCHANGE SERVICES, INC Settlement Agent: ROCKY MOUNTAIN TITLE & INSURED CLOSING SVCS., LLC (406)449-2244 Place of Settlement: 400 N. PARK AVE. HELENA, MT 59601 Settlement Date: November 28, 2007 Property Location: 118 W. CENTENNIAL AVE. BOULDER, MT 59632 JEFFERSON County, Montana LOTS 12, 13 & 14 BLOCK 21 CONSOLIDATED ADDITION The Buyer and Seller this date have checked, reviewed and approved the figures appearing on the Disclosure/Settlement Statement(Statement of Actual Costs), consisting of two(2) pages. Buyer acknowledges receipt of the payment of the loan proceeds in full, and Seller acknowledges payment in full of the proceeds due Seller from the settlement. The Buyer and Seller understand that the tax prorations shown on the Settlement Statement are Based on the prior tax period rate(s). The Buyer and Seller agree to adjust the tax prorations shown on the Settlement Statement when the actual advalorem tax bill is rendered. Seller agrees to forward the next tax bill to Buyer immediately upon receipt of the bill from the tax office. Buyer understands that the next tax bill (even though in the name of the Seller) is the responsibility of the Buyer. Seller understands that the payoff figure(s) shown on the first page of the Settlement Statement are figures supplied to the Settlement Agent by the Seller's lender(s) and is/are subject to confirmation upon tender of payment. If the payoff figure(s) are inaccurate, Seller agrees to immediately pay any shortage(s) that may exist. As part of the consideration of this sale, the contract between the parties is by reference incorporated herein and made a part hereof; the terms and conditions contained therein shall survive the closing and shall not merge upon the delivery of the warranty deed. I have carefully reviewed the HUD-1 Settlement Statement and to the best of my knowledge and belief, it is a true and accurate statement of all receipts and disbursements made on my account or by me in this transaction. I further certify that I have received a copy of the HUD-1 Settlement Statement. JEFFERSON COUNTY, MONTANA MONTANA EXCHANGE SERVICES, INC BY: COUNTY COMMISSIONER To the best of my knowledge, the HUD-1 Settlement Statement which I have prepared is a true and accurate account of the funds which were received and have been or will be disbursed by the undersigned as-p9rt of the settlement of this transaction. READ AND APPROVED ROC MOUNTAIN TITLE &INSURED CLOSING SVCS. Settlement Agent ONLY WARNING: It is a crime to knowingly make false statements to the United States on this or any similar form. Penalties upon conviction can include a fine and imprisonment For details see: Title 18 U.S. Code Section 1001 &Section 1010. (jX9815/JX9815114) CLOSING INSTRUCTIONS DATE NOVEMBER 28,2007 ORDER No.1X9815 ROCKY MOUNTAIN TITLE&INSURED CLOSING SVCS.,LLC IS HEREBY AUTHORIZED AND DIRECTED TO COLLECT DOCUMENTS AND FUNDS ON THE ABOVE REFERENCED ORDER NUMBER AND DISBURSE SAME AFTER ALL DOCUMENTS HAVE BEEN PROPERLY EXECUTED AND RECORDED IN ACCORDANCE WITH THE SETTLEMENT STATEMENT OF SAME DATE. ROCKY MOUNTAIN TITLE& INSURED CLOSING SVCS.,LLC RESERVES THE RIGHT TO AMEND THE DISBURSEMENT SCHEDULE TO REFLECT ANY CHANGES IN PAYOFF FIGURES,OR PRORATIONS SHOULD THE ACTUAL DATE OF DISBURSEMENT BE OTHER THAN ANTICIPATED. GENERAL PROVISIONS 1. PRORATIONS: All proration called for in this closing are to be made on the basis of three hundred sixty-Eve(365)day year unless the parties instruct otherwise. REAL ESTATE TAXES in the State of Montana are computed each year based on an assessment made of the property as of January lsL However, the actual amount due for real estate taxes is not available until late in the year,after mill levies have been established in each county. For this reason, real estate closing customarily utilize the previous year's taxes as a basis for prorating taxes between buyers and sellers. Relative to the sale of the property in the order referenced above,( )the buyer has received from the seller a credit for the current year's real estate taxes(for that portion of the seller's ownership),lc)the seller has received from the buyer a credit for the current year's real estate taxes(for that portion of the buyer's ownership). Both buy&and seller specifically agree as shown by(X)that: Taxes have been prorated on the 2007 year's taxes. ( Taxes have been prorated on the current year's taxes. ( ) Taxes have been prorated on an estimate of taxes. ( ) Taxes have not been prorated. ROCKY MOUNTAIN TITLE&INSURED CLOSING SVCS.,LLC assumes no responsibility for any future adjustment of taxes. 2. AUTHORIZATION TO FURNISH COPIES: You are to only furnish to the Real Estate Broker or Brokers,Lender or Lenders and/or the Attorney or Attomeys identified with this transaction,copies of instructions.amendments thereto,closing statements and/or any other documents deposited in this escrow upon request. 3. TITLE COMMITMENT: I(We)have read the above referenced preliminary title commitment and approve the policy of title insurance to be issued. 4. CERTIFICATION: The purchaser and seller hereby certify that the terms and conditions of the sales contract are true to the best of their knowledge and belief and that all conditions have been met. 5. CITY/COMMUNITY WATER: The Sellers of the property associated with the above referenced order hereby agree to pay the water billing for the period ending as of the date of closing. Both Buyer and Seller agree to hold ROCKY MOUNTAIN TITLE&INSURED CLOSING SVCS.,LLC harmless for any unpaid water assessments due. Buyer and Seller agree to make any additional adjustment outside of the closing between themselves. 6. WATER RIGHTS: The parties hereby acknowledge that ROCKY MOUNTAIN TITLE&INSURED CLOSING SVCS.,LLC is not responsible for the transfer or filing of any water or water rights associated with the property in the above referenced order. 7. LOAN CALCULATIONS/PAYOFFS: Loan amounts shown in seller(s)and buyer(s)settlement statements were determined from information provided to ROCKY MOUNTAIN TITLE&INSURED CLOSING SVCS.,LLC by the lender,or escrow provider,copies of which are available to the parties for inspection. Any inaccuracies or deficiencies in the calculations ofthese amounts by the lender or escrow provider remain the responsibility of the party legally obligated hereunder. 8. DEPOSIT OF FUNDS AND DISBURSEMENTS: All disbursements shall be made by your check. You are authorized not to close escrow or disburse until good funds,as provided for in MCA-32-7-117(5)have been confirmed. All funds received in this escrow shall be deposited in one or more of your general escrow account or accounts. Upon specific instructions from all parties to this escrow,you may hold funds as otherwise instructed herein. 9. CLOSE OF ESCROW: The expression"close of escrow"means the date on which instnsmenls referred to herein are filed for record,unless otherwise indicated herein. 10. CONFLICTING DEMANDS OR CLAIMS: Should you,before or after the close of escrow,receive or become aware of any conflicting demands or claims with respect to this escrow or the rights of any of the parties hereto,or any money or property deposited herein or affected hereby,you shall have the right to discontinue any or all further acts on your part until such conflict is resolved to your satisfaction,and you shall have the further right to commence or defend any action or proceedings for the determination of such conflict. THE PROVISIONS HEREIN SHALL INCLUDE,BUT ARE NOT LIMITED TO,CONFLICTING DEMANDS OR DISPUTED CLAIMS RELATING TO THE REAL ESTATE COMMISSIONS AND/OR BROKERAGE FEES. II. ATTORNEYS FEES,COST/SUIT IN INTERPLEADER: The parties hereto jointly and severally agree to pay all costs.damages,judgments and expense,including reasonable attorney's fees suffered or incurred by you in connection with,or arising out of this escrow,including,but without limiting the generality of the foregoing,as suit in interpleader brought by you. The parties expressly agree that you,as escrow holder,have the absolute right,at your election,to file an action in interpleadcr. You are authorized to deposit with the Clerk of Court all documents and funds held in the escrow. 12. RIGHT OF CANCELLATION: If any party to this escrow elects to cancel these instructions because of the failure of any party to comply with any of the terms hereof within the time limits provided herein,said party so electing to cancel shall deliver a written notice to the other party and escrow agent demanding that said other part'comply with the terms thereof within ten days from the receipt of said notice by escrow agent that these instructions shall hereupon become canceled. When the written notice is delivered to escrow agent by the party so electing to cancel,escrow agent shall thereafter send a copy of said notice to the other party in the manner provided by law and the usual practices of the escrow agent. In the event said other party shall fail within said ten day period to comply with all of the terms hereof,these instructions shall become canceled and escrow agent is thereupon authorized: (a)first,to pay to the party electing to cancel any earnest money deposited hereunder by said other party,after deducting any charges;(b)second,to pay to said other part',any other money deposited hereunder by said other party,after deducting any charges remaining unpaid;(c)third,to pay to the party electing to cancel,any money deposited by said party,after deducting any charges remaining unpaid;and(d) fourth,to return all documents deposited hereunder to the party who delivered the same except documents executed by more than one party,which shall be marked"canceled"and retained in the files of the escrow agent. BUYERS' SELLERS' INITIALS INITIALS INITIALS INITIALS READ AND APPROVED ONLY: (x9815/3X9815/10) CLOSING INSTRUCTIONS (Continued) 13. LEGAL ADVICE: Both Seller and Buyer acknowledge by their signature hereon the following: I have been specifically informed that ROCKY MOUNTAIN TITLE&INSURED CLOSING SVCS.,LLC(hereinafter designated as"Rocky Mountain Title")is not licensed to practice law and no Legal advice has been offered by Rocky Mountain Title or any of its employees. I have been further informed that Rocky Mountain Title is acting only as escrow agent and that it is forbidden by law from offering advice to any party regarding the menu of this escrow transaction or the nature of the instruments utilized,and that it has not done so. 14. FACSIMILES: In the event Seller and/or Buyer utilize facsimile transmitted signed documents,Seller and Buyer agree to accept and instruct Rocky Mountain Title to rely upon documents as if they bore original signatures. Seller and Buyer agree to provide any documents bearing the original signatures within 5 days of transmission. Seller and Buyer acknowledge and agree that any documents necessary for recording will not be accepted by the County Clerk and Recorder,with facsimile signatures,thus delaying the close of escrow. 15. MOBILE HOME: If a mobile/modular home is included in the sale,both buyer and seller agree to hold ROCKY MOUNTAIN TITLE&INSURED CLOSING SVCS.,LLC harmless from any liability resulting in the non-transference of title of said personal property. 16. LIMITED POWER of ATTORNEY: The undersigned hereby grants Rocky Mountain Title as settlement agent,limited power of attorney to correct and/or execute or initial any errors discovered in any or all of the closing documentation required to be executed by the undersigned at settlement. 17. AMENDMENTS TO ESCROW INS'T'RUCTIONS: Any amendments of and/or supplements to any instructions must be in writing. If any"Eamest Money Agreements","Receipt and Agreements to Purchase"or the like are attached to these instructions and one or more terms of said agreements conflict with or vary from these instructions,these instructions shall nevertheless,control. 18. SIDE PAYMENTS: Any disbursements in excess of$5,000.00 on the seller's side of the FlUD-1,which are non-lien related,as defined in the title commitment,or for normal closing costs must be approved by the lender prior to funding. I have been afforded adequate time and opportunity to read and understand these escrow instructions and all other documents referred to herein. JEFFERSON COUNTY,MONTANA MONTANA EXCHANGE SERVICES,INC (SS# ) (55# Mailing Address Mailing Address • City,State,ZIP City,State,ZIP Phone Phone :BEAD AND APPROVED 3RLY: (jx98155X98I5/t0) NOTICE OF ASSIGNMENT TO: Jefferson County PO Box H Boulder,MT 59632 You are hereby notified that all of our rights and interest in that certain Buy/Sell Agreement dated November 20, 2007 , for the sale and purchase of the property described on Exhibit"1"attached and incorporated by this reference,which agreements are attached as Exhibit "2" and incorporated by this reference, have been assigned to MONTANA EXCHANGE SERVICES,INC.,of 2801 Connery Way,Missoula,Montana 59808, who is acting as our intermediary and agent for an exchange of like-kind property, qualifying as such under Internal Revenue Code Section 1031. EXCHANGOR: Date: Bruce E Wagner Date: Jacqueline M Wagner RECEIPT ACKNOWLEDGED: BUYERS: Jefferson County Date: Date: RETURN ORIGINAL TO: Montana Exchange Services,Inc. 2801 Connery Way,Missoula,MT 59808 -23- SWEDE Erwin"Swede" Schock Inc State General Certification#536 1006 Washington Street-Helena,Montana Phone 406-443-2236-Cell-431-0163-Fax 406-443-2236 May 25,2007 Boulder Administration Services P.O. Box 1046 Boulder,MT 59632 Attn: Bruce Wagner RE: Office Building at 118 Centennial Street Boulder,MT 59632 As per your request for a narrative appraisal report on the above referenced real property, I hereby submit the following report,on the subject property, legally described as: Lots 12, 13 &14 Block 21 of Boulder Consolidated Addition to Boulder,in Jefferson County, Montana I certify that I have inspected the subject property both externally and internally and have taken into account all factors, pertinent and influencing, necessary to make a determination of probable fair market value as of the appraisal date. The appraisal analysis report is prepared in accordance with the standards and code of ethics set forth by the Appraisal Foundation. Also,this analysis and report sets forth the directives and guidelines issued by the Appraisal Foundation with regards to the Final Rule of USPAP contained in Title 11, Standards 2-2b. The property is presently occupied by Offices. Based on my analyses of the characteristics of the property, the local market and. all the other transactions in the area. 1 have concluded that the current market value of the subject property is: $169,000 Res�ctfully su fitted, l '1 E in"Swede" Schock Jr Montana General Certification # 536 SUMMARY OF SALIENT FACTS AND IMPORTANT CONCLUSIONS Owner of Record: Bruce&Jacqueline Wagner Dba Boulder Admin Services Inc P.O .Box 1046 Boulder, Mt.59632 Address: 118 West Centennial Legal Description: Lots 12, 13,& 14 Block 21 Consolidated to Boulder Jefferson County,Montana. Highest and Best Use: Commercial Outlet Zoning: Commercial Land: 13,500 Square Feet. Improvements: 1703 sq. ft. Class"D" Office/Retail Land Value: $40,000 Value Indications: The Cost Approach $ 181,000 The Market Data or Sales Comparison Approach: $ N/A The Income Approach: $ 169,000 Final Value Estimate: $ 169,000 Objective of the Appraisal The purpose of the appraisal is to estimate the fair market value of the subject real estate(structural improvements,site improvement and land). The valuation does not include some furniture and fixtures. Property Rights Appraised The property rights appraised are those of Fee Simple Estate. PURPOSE OF THE APPRAISAL As per your request,the subject property is being valued with improvement and land for fee simple estate,to establish a fair market value as defined by the"Appraisal Foundation"as set forth in Title I I,FIRREA guidelines. The definition of Fair Market Value as defined by the Appraisal Institute is"most probable value, as of a specific date, in cash,or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property will sell with both buyer and seller each acting prudently, knowledgeably,and for self interest, and assumes that neither is under undue stress,duress, or influence. LEGAL DESCRIPTION According to the Jefferson County Clerk and Recorder's Office,the correct legal Lots 18 thru 22 Block 15 of Boulder Consolidated Addition of Boulder To Boulder,Mt. Jefferson County, Montana TAXES AND ASSESSMENTS Taxes for 2006: $911.06 Tax Code No.: 41964=51-1490-33-2-10-15-0000 Assessments: All taxes and assessments are paid as of the effective date of this analysis. Comments: Taxes are typical of this type of improvements. The assessed values are related to the 2005 reappraisal cycle and periodically updated. LEGAL OWNERSHIP-TITLE HELD BY According to the Jefferson County Clerk and Recorder's Office,the legal title is held by Bruce and Jacqueline Wagner dba Boulder Admin Services Inc. ASSUMPTIONS AND LIMITING CONDITIONS This appraisal report has been made with the following general assumptions: 1. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2.The property is appraised free and clear of any or all liens or encumbrances unless otherwise noted. 3 .Responsible ownership and competent property management are assumed. 4. The information furnished by others is believed to be reliable. However,no warranty is given for it's accuracy. All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 5 It is assumed that there are no hidden or unapparent conditions of the property,subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 6. It is assumed that there is full compliance with all applicable federal, state,and local environmental regulations and laws unless noncompliance is stated,defined,and considered in the appraisal report. 7. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated,defined,and considered in the appraisal report. 8. It is assumed that all required licenses, certifications of occupancy,consents,or other legislative or administrative authority from any local,state, or federal government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 9. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. REGIONAL AND AREA DATA GEOGRAPHICAL LOCATION: The subject property is located in the Town of Boulder,which is located in West Central Montana along Interstate Highway 1-15, which is a main north-south highway arterial across Montana.Boulder is the center part of the county with a population of approximately 1700 residents in the town limits. Boulder is the home of the State of Montana Developmental Center and the New Meth Treatment Center which is just being built. There is also offices both private and government which is one of the primary economic bases of the community and located approximately 30 miles south of Helena,Mt.the State Capital of Montana, and 32 miles north of Butte Mt., which are the major trade and employment centers for Boulder area. Boulder is the county seat of Jefferson County with all county services. There are excellent town services in the form of water, sewer, etc. Several small tracts that are clustered in throughout the area surround Boulder. The market in the Boulder area has stabilized over the past several months with marketing activity increasing and decreasing on a month-by-month basis. The Jefferson County line extends from the outskirts of Butte to nearly the city Limits of Helena. GENERAL FORCES THAT AFFECT VALUE The basic forces that affect value are social,economic, governmental and environmental. The forces that affect present value, likewise affect value into the future. These forces are difficult to relate directly to the subject property,but are taken into consideration and regulate future development of the subject property. Though all of the general forces affect a property,the major force that affects the subject property is economic. According to the estimated 2000 census statistics, Montana's population was projected at 902,195, with Jefferson County estimated at 10,049, which has shown a significant increase since 1990 of 7900,The town of Boulder which is the county seat has population estimated at 1654 persons for 2000,the increase in the county and town appears to be directly related to the subdivisions that have developed over the past five to ten years. The City of Helena, which is a major economic factor to the subject area,shows a population of 25,780 and is the county seat of Lewis and Clark County, with a estimated 54,719 population in 2000 The greatest increase in Jefferson County is from residential starts and in the past two to three years commercial development has begun to flourish,in the Boulder area and the northern portion of the county,following the residential population increase. There have been several new home built in the town of Boulder and the immediate area showing a stay increase in market value and the need for adequate housing and related properties. Boulder has good elementary and high schools,post office, several commercial outlets,retail stores,2 grocery stores, major truck stop and casino, parts store/garage,tire shop,2 motels, a Bed and Breakfast Inn, emergency medical clinic, library,bank,senior citizen center,restaurants, bars, a local newspaper office and all denomination of churches are represented. The area also has several Radon health mines that attract several hundred visitors a year. plus the attractive mountain setting, which the area offers. The Boulder area offers several recreational activities mainly in the form of hunting,fishing and snowmobiling. The major Interstate Highway 1-15 that is available to the subject marketing area. This area is a major traveling link between Glacier and Yellowstone National Parks and is very attractive to tourist travel. The area's economic base is predominately by mining and the governmental employment of the County, State and Federal segments. Several other large corporate enterprises are located in the area and in Helena/Butte,which are suppliers of governmental services and natural resources. Several other large commercial outlets have recently developed in the Helena/Butte areas which are service oriented and new development is attributed, mainly,to a stable employment base in the area. NEIGHBORHOOD DATA AND TRENDS The subject property is located in an excellent location on West Centennial Street in the Town of Boulder, Montana. Boulder is an incorporated town with a population of estimated at 1700 persons within the town limits.The market has stabilized over last several months with marketing activity increasing and decreasing on a month-to-month basis. The town of Boulder has all the community service. S&S Appraisal&Consulting Inc SUBJECT PHOTO AND MAP LOCATION File No. Wagners Ins Case No. Borrower Boulder AdminServices/Jeff Co Property Address 118 Centennial Street City Boulder County _ Jefferson State Mt _Zip Code 59632 Lender/Client Jefferson Co Comm&Wagners Address Boulder Mt FRONT OF SUBJECT PROPERTY t 0 ��'u i I 1 -77 SUBJECT PROPERTY LOCATION t,'..t!i'';;t-. NN..„sNi / rKfi _ -.> ' 'N''' -"N's7://417.4:r7 *-.,.. ri.. ."'N''' IrNj NR,N. / d'4 4. %.yili* ,... r,....,.... ........,„ tit 7J ... /A 4 110 ''''' .'4%....i 11/4"N..../ 1 / 7 /%.‘"srb, .. "*"Nj ,(:,:y." S141Z‘.--..N IC 1 '''.."%) 1 ...1....‘"Nj o Nal psi Ms 4p r� �I'"1thn.� 111 4 ti ("N......4s7 P .. ClickFORMS Appraisal Software 800-622-8727 Page of S&S Appraisal&Consulting Inc SUBJECT PHOTO ADDENDUM File No. Wagners Ins Case No. Borrower Boulder AdminServices/Jeff Co Property Address 118 Centennial Street Cily Boulder County Jefferson State Mt Zip Code 59632 Lender/Client Jefferson Co Comm 8 Wagners Address Boulder Mt FRONT OF SUBJECT PROPERTY 118 Centennial Street Boulder AL' is 1 Ili e:4 "" — _ . • -- • REAR OF SUBJECT PROPERTY .1* 4. ■ 111 Y, l STREET SCENE v1*t l It •-. A_ 4 tstri$04444tet41. '14'; CtickFORMS Appraisal Software 800-622-8727 Page of S&S Appraisal&Consulting Inc SUBJECT PHOTO ADDENDUM File No. Wagners Ins Case No. Borrower Boulder AdminServices/Jeff Co Property Address 118 Centennial Street City Boulder County Jefferson State Mt Zip Code 59632 Lender/Ctent Jefferson Co Comm&Wagners Address Boulder Mt ���` �' Coy Porch&Ramp i r it -A I ,. ..' shed v :',. T S t ra • I ■ ' 4 k., ClickFORMS Appraisal Software 800-622-8727 Pane of S:ti S Appraisal&Consulting Inc SUBJECT PHOTO ADDENDUM File No. Wagners Ins Case No. Borrower Boulder AdminServices/Jeff Co Properly Address 118 Centennial Street City Boulder County Jefferson State Mt Zip Code 59632 Lender/Client Jefferson Co Comm&Wagners Address Boulder Mt 1 111 Eli I `.. II L _'J i R l y.,_ • 11.„ i ''1'''.''• t- 1 ,,I4d1,%\t ‘ t%1%,‘\\\,, -.: e Jr i j `�1 r1 • r * - —^ (A, , :„ . . .,'1rr - • R�� w r' i • .. ClickFORMS Appraisal Software 800-622-8727 Page of S&S Appraisal&Consulting Inc LOCATION MAP ADDENDUM File No. Wagners Ins Case No. Borrower Boulder AdminServices/Jeff Co Property Address 118 Centennial Street _ City Boulder County Jefferson State Mt Zip Code 59632 Lender/Cient Jefferson Co Comm&Wagners Address Boulder Mt / / MipoeoR' C /' i 4 MapPoint il/ c ,... ..... ,. ■ 5 C !!,, tIT _f / / f r 001101101 . . woe r f r ,, E !_ - L b / r c-- ' 1 ,r _ d �, i je ...§-*1: _i tip_ ".„, 1,,i-- cli-Pf .,—.x: .._---------______:----. --;? 1 I----'-- -.-- i7-5/ J J .,- t 1l' . 11 I i /C7/, , ., - — 1 i ir---_„7— 1.--______,,. i l 1 �� C4rt1RltlflQy_ -___,} i ----1,/__ ' 7` � 4=a r J�y7,yl�r , 1- - 1°7 j r-J . ii y 5 5 _-___________________-_ -- -------1 i:-.-.-::_." _... I `\\` l ce I y2b071diorosoR Corp*326D6 NAV1E4,and JorTele kills,tnc.'I I ClickFORMS Appraisal Software 800-622-8727 Page of S&S Appraisal&Consulting Inc SKETCH ADDENDUM File No. Wagners Ins Case No. Borrower Boulder AdminServices/Jeff Co Property Address 118 Centennial Street Cily Boulder County Jefferson State Mt Zip Code 59632 Lender/Client Jefferson Co Comm&Wagners Address Boulder Mt • • 118..0 8.0' rm 14.0 Cot ,g lunch 4.0' • office 13.0' 7.0' office 4.0' 10.0 office 1ST FLOOR 5.0' MIPPIM- 5.0' Coy Porch Rarrp 25.0' 13.0' office • office 28.5' 15.5' office 2RD FLOOR 22.0' • • • • • • L. ClickFORMS Appraisal Software 800-622-8727 Page of S&S Appraisal&Consulting Inc SKETCH ADDENDUM File No. Wagners Ins Case No. Borrower Boulder AdminServices/Jeff Co Property Address 118 Centennial Street City Boulder County Jefferson State Mt Zip Code 59632 Lender/Client Jefferson Co Comm&Wagners Address Boulder Mt • • • • III it SKEICH CALCULATONS Perimeter Area AI I Al:220x50= 110.0 1 Coy Porch 110.0 • A2:19.0 x5.0= 95.0 1 A2 1 Ramp 95.0 Total Mac.Area -205.0 A3:18.0 x 14.0= 252.0 Ad:34.8 x7.0= 243.8 A6:22.0 x 15.5= 341.0 A6:OS x2.8�Q.8= 4.0 A7:32.0 x 2.8= 90.5 A8:05 x2.8x3.2= 4.5 AS A9:320 x3.2= 101.5 First Floor 1037.3 • A10:25.0 x13.0= 325.0 Ala All :22.0x15.5= 341.0 Second Floor 666.0 • Total Living Area 1703.3 Al2:200 x250= 500.0 Al2 Patio 500.0 Total Patio/Deck Area 500.0 ClickFORMS Appraisal Software 800-622-8727 Page of SUBJECT PROPERTY IDENTIFICATION ZONING: The subject property is zoned by the Jefferson County Commissioners and Town of Boulder as Commercial. The subject property conforms to the imposed zoning restrictions and is not only a benefit, but would appear to enhance the value of the properties in the area. SITE DESCRIPTION: The site under the legal description consists of a rectangular site,that is level and to grade. The subject fronts on Centennial Street and Washington Street of Boulder. There is access to the rear of the property by an alley.The total site consists 13,500 square feet of area in the site of which is adequate for the existing improvements. There were no recorders easements across the property or any known easements or encroachments that would adversely affect the property. The public utilities available to the sites are electricity,natural gas,telephone,sewer and water which appear to meet and have been approved by Local and State Health authorities. The subject is site is located on Centennial Street which is less than one half mile from Interstate Highway 1-15, a main north-south highway arterial that runs the width of Montana, with adequate access and exposure from the highway. IMPROVEMENTS: The improvements were a residential house built in the early 1900s.The structure has been totally remodeled in 2002 to a very nice office building meeting all the local codes. The improvements consist of a 1037 square feet on the 1 sty floor with 3 offices,restroom and employee lounge,the 2 rd floor of 666 square feet has 3 good offices. The total remodeling was both inside and outside and is being well maintained and is in above condition. The original building was constructed partly in the early 1900 per the Jefferson County records.The Construction is wood frame above quality construction. The construction features consist of wood frame with metal siding on the exterior,new vinyl windows. The roof is a truss construction with new metal cover. The interior was totally remodeled with more insulation added to the walls and ceiling,new carpet, etc.The interior has all copper or approved PVC plumbing for both water and drains,one restrooms for facilities for patrons. Electrical service is rigid conduit to all outlets and fixtures, heating is gas forced air with air conditioning. The improvements are in above average condition. appear to meet all fire codes, current local and state building codes and requirements and CABO building standards. The existing building improvements are considered to be proper improvements for the subject site. There were no noted or observed evidence of settlement, infestation,dampness or other detrimental influences to the present improvements or any adverse environmental conditions associated with the property. Further construction details of the improvements are made a part of my permanent file on this property and available on request. The construction features of the existing improvements appear to represent a proper improvement to the site and consistent with the Highest and Best Use of the property under appraisal. SITE IMPROVEMENTS: The additional site improvements are gravel parking on the west side and a concrete patio,a covered porch on the front with a handicap ramp. Adequate ingress and egress to the subject is from both Centennial and Washington Street. HIGHEST AND BEST USE OF THE PROPERTY: By identifying and interpreting the market forces that affect a specific property in a local and regional context,the appraiser determines the property's highest and best use. Highest and best use is a fundamental concept in real estate appraisal because it focuses market analysis on the optimum use in light of market conditions as of a specific date. Highest and Best Use reflects a basic assumption about real estate market behavior that the price a buyer will pay for a property is based on his or her conclusions about the most profitable use of the site and/or property. Therefore, site and improved properties tend to be put their highest and best uses. However,the determination of a property's highest and best use sets forth in an appraisal may or may not conform to the existing use. The determination of highest and best use must be participation,change and the existing use of the subject property. HIGHEST AND BEST USE HAS BEEN DEFINED AS FOLLOWS: The reasonable, probable and legal use of vacant land or improved property,which is physically possible,appropriately supported,financially feasible,and results in the highest net return to the property within a reasonable period of time. Because the use of land can be limited by the presence of improvements,highest and best use is determined separately for the land or site as though vacant and available to be put to it's highest and best use,or for the property as improved. The first determination reflects the fact that land value is derived from potential land use. Land has limited value unless there is a present or anticipated use for it;the amount of value depends on the nature of the land's anticipated use,according to the concept of surplus productivity among all reasonable, alternative uses,the use that yields the highest present land value,after payments are made for labor,capital,and coordination, is generally regarded as the highest and best use of the land as though vacant. For the purposes of analysis,the appraiser assumes that the parcel,though is partially improved, in question is vacant. Even a site with a large building on it can be made vacant by demolishing the building. The question to be answered is: as if vacant plus, what new improvement should be constructed on the site? The relationship between the supply of,and demand for, land adaptable to a particular use is significant in determining highest and best use. If a more profitable use must be delayed due to insufficient present demand,an interim use will continue until or unless the value of the land,as if vacant plus the cost of demolishing the existing improvements exceed the total value of the improved property at it's current use. In the context of most probable selling price(market value)another appropriate term to reflect highest and best use would be the most probable use. In the context of investment use another alternative term would be the highest price or profitable use. Often times in estimating the highest and best use of a parcel of land,the appraiser is controlled by governmental regulations. These controls are generally zoning regulations pertaining to parking requirements,building codes,height requirements or other governmental limitations, but the most important estimate is the attitude of the investor in the marketplace. Real estate will normally fall into a definite developmental pattern,and their uses can be classified as being residential,commercial, industrial,agricultural recreation or quasi-public in nature. In this appraisal assignment, the appraiser has considered each of these possibilities and classifications. At the outset, certain types of these uses were eliminated. The subject is located on Centennial street just off of Main street(which has totally been rebuilt)of Boulder, Mt. and in the heart of the commercial district,the area has experience some vaccines,but over the past few year there also is new business in some of the vacant building(small commercial retail outlets) The subject site, in my opinion, is ready for development as a small retail business as the highest and best use of the subject site "as if vacant". The major trend in this neighborhood market area is remodeling vacant building to be used as small retail outlets and office space and the subject improvements represent this type of improvements. The appraiser feels these uses are appropriate and realistic to represent the highest and best use"as improved". DEFINING MARKET VALUE The concept of market value is of paramount importance to the business and real estate communities. Vast sums of debt and equity capital are committed annually in real estate investments and mortgage loans on the basis of market value estimations. Real estate taxation, litigation,and legislation also reflect an ongoing,active concern with market value issues. In virtually every aspect of the real estate industry and its regulation at local,state and federal levels,consideration of market value are of vital importance to economic stability. Precisely for these reasons, the definition of market value used by appraisers and by the clients they serve must be clearly understood and communicated. However, in real estate appraisal, definitions of market value can and do represent different beliefs and assumptions about the market place and the nature of value. Market value is inherently a simple concept- it is objective value created by the collective patterns of the market-but the ultimate definition of market value is controversial issue. Thought on the subject continues to evolve, sometimes in term of rather fine distinctions. The market value appraisal is always valuation of specified rights in the subject property rather than valuation of physical entity of the real estate. The specified property rights can be the Fee Simple Estate, the As-leased or as Mortgage Estate,or some other interest in the real estate. For the purpose of this appraisal report the definition of market value that is considered the most applicable for the use of this is as follows: The most probable price,as of a specified date,in cash or in terms equivalent to cash,or in other precisely revealed terms,for which the specified property rights should sell,after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently,knowledgeably,and for self-interest,and assuming that neither is undue duress. APPLICATION OF THE THREE APPROACHES TO VALUE The valuation process is used to develop a well-supported estimate of a defined value,which is based on consideration of all pertinent general and specific data. The appraisal process estimates property value by applying specific appraisal procedures which reflect three distinct methods for analyzing data mathematically-- sales comparison, cost and income capitalization. One or more of these approaches employed depend on the type of property,the use of the appraisal,and the quality and quantify of data available for analysis. All three approaches are applicable to many appraisal problems. However,one or more of the approaches may have greater significance in a specific assignment. For example, the cost approach may be inappropriate in valuing properties that show substantial accrued depreciation because the physical deterioration,functional and external obsolescence of older buildings are difficult to estimate with accuracy. The sales comparison and/or market data approach is rarely applied to very specialized properties, such as churches or garbage disposal plants because comparable data may not be available. The income approach is rarely used to value owner-occupied residential interest,although it may be with market support. Income capitalization can be particularly unreliable in a commercial or industrial property where use-occupancy outbids investors. SALES COMPARISON AND/OR MARKET DATA APPROACH: The sales comparison and/or market data approach is most useful when a number of similar properties have been sold recently or are currently for sale in the subject property market area. Using this approach,an appraiser produces a value indication by comparing a subject property with similar properties,called comparable sales. The sale prices of properties that are judged to be the most comparable tend to indicate a range in which the value indication for the subject property will fall. An appraisal process estimates the degree of similarity or difference between the subject property and comparable sales by considering various elements of comparison. I. Rear Property Rights Conveyed 2. Financing Terms 3. Condition of the Sale 4. Market Conditions 5. Location 6. Physical Characteristics 7. Income-Producing Characteristics 8. Other Characteristics(E.G.,access and zoning) Dollar or percentage adjustments are made to the sale price of each comparable property,with consideration for the real property interest involved. Adjustments are made to the sales prices of the comparable because the values of the comparable are known, while the value of the subject property is not known. Through this comparative procedure,the appraiser estimates one or more kinds of value as of a specific date. Data,such as, income multipliers and income rates may also be extracted from sales comparison analysis. In the sales comparison approach,data is considered,but they are not considered elements of comparison. This data is applied in the income capitalization approach. THE COST APPROACH: The cost approach is based on the premise that the value of a property can be derived by adding the estimated value of the land to the current cost of constructing a reproduction and/or replacement for the improvements and then subtracting the amount of depreciation(LE.,deterioration and obsolescence in the structures from all causes. If entrepreneurial profit has been realized, it is added to the value indication. The approach is particularly useful in valuing new or nearly new improvements and properties that are not frequently exchanged in the market. Cost approach techniques can also be employed to derive information needed in the sales comparison and income approaches to value. The current costs to construct the improvements can be obtained from cost estimators,cost estimating publications,and builder/contractors. Depreciation is measured through market research and the application of specific valuation procedures. Land value is estimated separately in the cost approach. THE INCOME CAPITALIZATION APPROACH: In the income capitalization approach,the present value of the future benefits of property ownership is measured. A property's income streams and its resale value or reversion are capitalized into a present, lump sum-value. Two basic formulas used in this approach are as follows: Income = Value and Income x Factor =Value Rate Like the sales comparison and cost approaches,the income approach requires extensive market research. Research and data analysis for this approach are conducted against a background of supply and demand relationships,which provide information on trends and market anticipation. THE COST APPROACH TO VALUE The following cost analysis is referenced from Marshall and Swift Cost indices and certified through contractor's hard costs throughout the market area. As aforementioned,the appraiser has estimated each unit-in-place replacement costs and primarily is based on the theory of substitution. That is,a purchaser will theoretically pay no more for a developed property than cost of reproducing a new similar one. The factors of depreciation being the difference of value between the older and newer properties. In the cost approach,the depreciated reproduction cost of improvements and the depreciation, if any,accruing to them. The cost approach is generally most accurate when there is a good indication of land values from recent sales of similar properties and when the land is developed with new improvements which represent the highest and best use of the land. The cost figures shown in this report are shown by builders current construction cost data and by comparison with the cost figures from the Marshall and Swift Valuation Service. Due to the lack of adequate market information and data in this particular market area considerable time and research went into analyzing cost data and information for this appraisal report. The information in this report was checked and cross-checked several times and way for accuracy and documentation. There were no vacant commercial lands sales in the town,the appraiser reviewed all sales of land sales in the immediate market area, which were only residential and that have been sold in the past years. These sales range in sale price from$30,000 to$32,000 per lot or building site,with sizes from 7000 square feet to 22,000 square feet for residential sites.The subject lots have front on Centennial Street.The appraiser made adjustment for time and date of sale, location and other physical characteristics. After careful consideration and analysis the indicated value of the subject property was estimated at$40,000 as a building site. WHOLE PROPERTY VALUATION; The appraiser has estimated the cost new of improvements by two basic methods, the Marshall and Swift Cost indices which calculates cost by a comparative square foot method and by cost comparisons noted in the market area contractor hard costs,bids or quotes. Marshall and Swift Cost Publications: Unit-In-Place Calculator Method: Principle Building Structure: Offices 1 st Floor 1037 sq. ft. x $ 84.65 =$ 87,782 Offices 2 rd Floor 666 sq. ft. x $ 74.95 =$ 49,917 Cover Porch/Shed/Ramp/Patio =$ 4,960 Total Replacement Cost New =$ 142,659 Total Accrued Depreciation: Physical Deterioration: Curable(3 %) _$ 4,259 Functional Obsol =$ 0 External Obsolescence: _$ 0 Total Depreciation =$ 4,259 =$ -4,259 Depreciated Value of Improvements =$ 138,400 Estimated Value Site Improvements =$ 2,500 Estimated Value of Land: 13,500 Sq Ft. =$ 40,000 Indicated Value By the Cost Approach =$ 180,900 Rounded to =$ 181,000 • THE INCOME APPROACH TO VALUE The income approach is based on the assumption that there is a relationship between the value of a property and the income it will produce. This approach involves projecting income on an annual basis of which the property can be expected to produce,then deducing any fixed operating expenses from the annual gross income to indicate a net annual income. This net annual income is capitalized into an indication of value from current capitalization rates extracted from the marketplace. The capitalization rate is computed by several techniques being market comparison method,mortgage equity and straight line methods. Usually,the direct market comparison method is most reliable. The quality,quantity and durability of this income is important and must be thoroughly understood in order to properly analyze this method of valuation. This method or technique is most reliable when there is sufficient data to project annual rents and expenses. QUALITY: The market shows this type of property has average appeal with rate of return average for the type of usage. QUANTITY: The estimated market for the subject property is based on rental comparison with comparable rental space including all lease information. DURABILITY: Typically,leases on this type of property are written from one to five years for this type of structure depending on the terms of the lease and in accordance with a CPI indicator or some sort of adjustment for economic conditions. COMPARABLE RENTAL SCHEDULE CORRELATION: All the comparable rental spaces were investigated in the region and area. They have varying degrees of comparability with the subject space. The only rental properties found that was comparable to the subject property in the immediate market area was smaller offices. The rental space range from 59.00 to$14.00 per square foot The subject has 3 office on the 1 st floor and 3 offices on the 2 rd floor,there is adequate restroom,storage area and a employee lounge area. After reviewing the all the limited office rentals in the area the appraiser feels that the current market rent would be$11.00 per square foot... It is the appraiser's opinion that the estimated annual for the subject's main floor would be$18,700 The differences in rent schedules depend mainly on amount of rental space, location, age/condition,appeal,and allocation of type of space use. Adjustments in the comparable rentals to the subject were primarily for location,type of lease terms,number of square feet of rental space,and type of use. There are very few if any rent controls and demand is average for these types of rental spaces. A detailed breakdown and adjustment of these comparable rentals is made a part of my permanent file on the subject property. Therefore, after adjusting for location,age and other amenities of each of the rentals available,the estimated fair market rent is calculated at$$ 11.00 per square foot for the structure. There was no other income. The appraiser felt there would be .03%vacancy and credit loss considering that the ownership. The estimate was based on historical data from major publications,which appears logical and realistic given the type of property being appraised. Real estate taxes are estimated from present taxable schedules in the taxing jurisdiction of Jefferson County. Insurance is estimated from quotes of local insurance companies in the area. Since the property is being totally remodeled there will be little maintenance expense, reserves for replacements, management estimates are on a percentage basis on other like data and expense items in similar properties. All expense ratios are from the market and other business owners in the area. Typical expense ratios from 15%to 35%depending on use and age of improvements. Taxes and insurance are variable items and will probably increase somewhat after the property is reassessed and use patterns are established, maintenance and repairs should remain fairly as the present improvement are totally remodeled an in good condition. RECONSTRUCTED INCOME AND EXPENSES; Gross Annual Income Rentals Net lease,$1700 sq ft x 11.00 = $ 18,700 Other income = $ o Annual Gross Income = $ 18700 Total Annual Gross Income = $ 18.700 Less Vacancy and Credit Loss 2% _ $ 400 Effective Gross Income = $ 18,300 Less Fixed Operating Expenses Real Estate Taxes = $ 915 Insurance = $ 750 Management = $ 500 Utilities = $ 700 Maintenance&Repairs = $ 100 Reserves for Replacement = $ 200 Total Expenses = $ 3,115 = $ -3.115 Net operating Income(N.O.1.)Before Debt Service = $ 15,185 MORTGAGE EQUITY CAPITALIZATION METHOD The mortgage equity method technique assumes that a property will be held in ownership for a period of time which is very often controlled by income tax consideration and then sold or refinanced at the end of the depreciation period. It says that value is controlled by the equity position(invested capital)and assumes that a property will be purchased only if the income it is capable of producing will be great enough to; 1)pay off the mortgage and 2)offer a fair return on invested capital (equity)invested ,tax shelters not-with-standing. It considers;a)the most typical financing terms available, b)a typical period of ownership income projection period(sinking fund factor for changing annuities)and c)expected rates of return on invested capital(equity return). Mortgage equity uses an overall composite capitalization rate which is made up of the mortgage rate,the equity built-up amortization ,and the anticipated change in the property during the holding period.The components used in deriving the rate are shown below Using the factors of an 9% interest rate over a 20 year amortization a 75%of market value, and equity yield of 8%over an anticipated 15 year at 0%appreciation/depreciation rate, 1 have calculated the present worth of future benefits as follows: Mortgage 75% loan to value ratio,on a 20 year amortization at 9% interest rate. Equity 25%equity over 15 year period at 8%yield rate Appre/Depre None Mortgage Constant .10796 Mortgage Loan .75 loan to value X .10796(mc) _ .08097% Equity Funds .25 equity X.,0800 = .02000% Basic Rate = .10097% Less equity Built-up Through Debt Reduction Debt Reduction Percent Sinking Fund Factor 15 years 9% .015059 x .75 = -.01129% Less Equity Built-up Through Appreciation/Depreciation Appreciation/Depreciation .000000% Sinking Fund Factor _ .0000% Overall Capitalization Rate = .08968% Valve= Net Income Divided by Rate(IRV) Value= $15,185 divided by.08968% _ $ 169,325 Indicated Value by the Income Approach = $ 169,000 SALES COMPARISON AND/OR MARKET DATA APPROACH The on going Sales Comparison and/or Market Data Analysis is essential in almost in every appraisal involving the value of real estate. The value estimated by this approach frequently is defined as"the price at which a willing seller would sell and a willing buyer would buy, neither being under abnormal pressure". This definition assumes both the buyer and seller are fully informed of all present and future users to which the property can be put and are familiar with the state of the market for that type of property and that the property has been exposed to the open market for a reasonable period of time. The market data approach in its most often used form, is a direct face to face comparison of sales and subject property with adjustments being made for various inequalities on an item by item basis. The reliability of this approach is dependent upon the availability of good comparable market sales in the general vicinity of the subject property. The application of this approach produces an estimation of value or indication of value by comparing similar properties of the same type that have been sold or are currently offered for sale in the same marketplace The comparative process utilized in determining the degree of comparability between two parties involves factors such as location.Construction features, age, condition, layout, and equipment. The sales price of those properties deemed most comparable sets the range of value in which the property will fall. Further consideration of the comparative data will indicate to the appraiser a figure representing the cash equivalent value of the subject property. There has been few small business in the Boulder area sell in the past years showing that the local commercial business in growing. In the case of the subject property no truly comparable sales were found that would render a sound indication of market value for the subject property. The appraiser also searches other areas in the region. After reviewing all the sales and limited information it is the opinion of the appraiser that the Market Approach was non-applicable. FINAL CORRELATION AND CONCLUSIONS The appraiser has employed the following methods of valuation in arriving at an estimate of fair market value for the subject property in its"as is"condition. THE COST APPROACH TO VALUE S 181,000 THE INCOME APPROACH TO VALUE S 169,000 THE MARKET DATA APPROACH TO VALUE N/A After analyzing each approach and the income stream on the property,more weight and consideration is given to the Income Approach analysis as it best reflects fair market value from typical investors in the marketplace The appraiser used the mortgage equity capitalization method to process the income stream.in my opinion it reflects the action of typical investors. The Cost Approach usually tends to set the upper limits of value.The cost of estimating the reproduction cost new and them accrued depreciation that has taken place in the improvements over the years is subject to errors As when analyzing cost estimates from local contractors they produce a range in costs that can vary from 5%to 15%and very seldom are any of the estimates totally the same. Marshall and Swift Cost Manuals often require a degree of judgment both in quality and interpolation for several features. Also it requires judgments unsupported conclusions when estimating accrued depreciation especially in older properties. However this approach support to the final conclusion of value an is check on the value estimated by the income approach in the final conclusion of value. The Sales Comparison andior Market Approach was considered non-applicable do to the lack pf comparable sales in the area and region. As a result of my conclusions and analyses,giving the most weight to the Income Approach plus considering all other available facts and circumstances pertinent to an estimate of value, it is my opinion, that the estimated market value of the subject property is ONE HUNDRED SIXTY NINE THOUSAND DOLLARS $ 169,000 I certify that,to the best of my knowledge and beliefs: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses,opinions, and conclusion are limited only by the reported assumptions and limiting condition and are my personal, impartial,and unbiased professional analyses, opinion and conclusions. 3.I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4.I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. My engagement in this assignment was nit contingent upon developing or reporting predetermined results. 6. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the,the amount of value opinion,the attainment of a stipulated result,or the occurrence of subsequent event directly related to the intended use of this appraisal. 7.My analyses,opinions, conclusions were developed,and this report has been prepared,in conformity with the Uniform Standards of Professional Appraisal Practice. 8,1 have made a personal inspection of the property that is the subject of this report. 9.No one has provided assistance in the pi aisal. E in"Swe e"Schock Jr. May 25 ,2007 General Certification#536 Expiration Date 03/31/2008 i steE Erwin"Swede" Schock Inc State General Certification#536 1006 Washington Street—Helena, Montana Phone 406-443-2236-Cell-431-0163—Fax 406-443-2236 May 25, 2007 Boulder Administration Services P.O. Box 1046 Boulder,MT 59632 Atm: Bruce Wagner RE: Office Building at 118 Centennial Street Boulder, MT 59632 As per your request for a narrative appraisal report on the above referenced real property,I hereby submit the following report, on the subject property, legally described as: Lots 12, 13 &14 Block 21 of Boulder Consolidated Addition to Boulder, in Jefferson County, Montana I certify that 1 have inspected the subject property both externally and internally and have taken into account all factors, pertinent and influencing, necessary to make a determination of probable fair market value as of the appraisal date. The appraisal analysis report is prepared in accordance with the standards and code of ethics set forth by the Appraisal Foundation. Also,this analysis and report sets forth the directives and guidelines issued by the Appraisal Foundation with regards to the Final Rule of USPAP contained in Title 11, Standards 2-2b. The property is presently occupied by Offices. Based on my analyses of the characteristics of the property, the local market and. all the other transactions in the area. I have concluded that the current market value of the subject property is: $169,000 Rectfully sub nitted, i / `��j r� f E ie" Schock Jr Montana General Certification #536 SUMMARY OF SALIENT FACTS AND IMPORTANT CONCLUSIONS Owner of Record: Bruce&Jacqueline Wagner Dba Boulder Admin Services Inc P.O .Box 1046 Boulder, Mt.59632 Address: 118 West Centennial Legal Description: Lots 12, 13,& 14 Block 21 Consolidated to Boulder Jefferson County, Montana. Highest and Best Use: Commercial Outlet Zoning: Commercial Land: 13,500 Square Feet. Improvements: 1703 sq. ft. Class "D"Office/Retail Land Value: $40,000 Value Indications: The Cost Approach $ 181 000 The Market Data or Sales Comparison Approach: $ N/A The Income Approach: $ 169,000 Final Value Estimate: $ 169,000 Objective of the Appraisal The purpose of the appraisal is to estimate the fair market value of the subject real estate(structural improvements, site improvement and land). The valuation does not include some furniture and fixtures. Property Rizhts Appraised The property rights appraised are those of Fee Simple Estate. PURPOSE OF THE APPRAISAL As per your request,the subject property is being valued with improvement and land for fee simple estate,to establish a fair market value as defined by the "Appraisal Foundation"as set forth in Title 11,FIRREA guidelines. The definition of Fair Market Value as defined by the Appraisal Institute is "most probable value, as of a specific date, in cash, or in terms equivalent to cash, or in other precisely revealed terms,for which the specified property will sell with both buyer and seller each acting prudently,knowledgeably,and for self interest, and assumes that neither is under undue stress. duress,or influence. LEGAL DESCRIPTION According to the Jefferson County Clerk and Recorder's Office,the correct legal Lots 18 thru 22 Block 15 of Boulder Consolidated Addition of Boulder To Boulder,Mt. Jefferson County, Montana TAXES AND ASSESSMENTS Taxes for 2006: $911.06 Tax Code No.: #1964=51-1490-33-2-10-15-0000 Assessments: All taxes and assessments are paid as of the effective date of this analysis. Comments: Taxes are typical of this type of improvements. The assessed values are related to the 2005 reappraisal cycle and periodically updated. LEGAL OWNERSHIP-TITLE HELD BY According to the Jefferson County Clerk and Recorder's Office,the legal title is held by Bruce and Jacqueline Wagner dba Boulder Admin Services Inc. ASSUMPTIONS AND LIMITING CONDITIONS This appraisal report has been made with the following general assumptions: 1. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2.The property is appraised free and clear of any or all liens or encumbrances unless otherwise noted. 3 .Responsible ownership and competent property management are assumed. 4. The information furnished by others is believed to be reliable. However,no warranty is given for it's accuracy. All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 5 it is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 6. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated,defined,and considered in the appraisal report. 7. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined,and considered in the appraisal report. 8. It is assumed that all required licenses,certifications of occupancy, consents,or other legislative or administrative authority from any local, state, or federal government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 9. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. REGIONAL AND AREA DATA GEOGRAPHICAL LOCATION: The subject property is located in the Town of Boulder, which is located in West Central Montana along Interstate Highway 1-15, which is a main north-south highway arterial across Montana.Boulder is the center part of the county with a population of approximately 1700 residents in the town limits. Boulder is the home of the State of Montana Developmental Center and the New Meth Treatment Center which is just being built. There is also offices both private and government which is one of the primary economic bases of the community and located approximately 30 miles south of Helena, Mt.the State Capital of Montana, and 32 miles north of Butte Mt., which are the major trade and employment centers for Boulder area. Boulder is the county seat of Jefferson County with all county services. There are excellent town services in the form of water, sewer, etc. Several small tracts that are clustered in throughout the area surround Boulder. The market in the Boulder area has stabilized over the past several months with marketing activity increasing and decreasing on a month-by-month basis. The Jefferson County line extends from the outskirts of Butte to nearly the city Limits of Helena. GENERAL FORCES THAT AFFECT VALUE The basic forces that affect value are social. economic,governmental and environmental. The forces that affect present value, likewise affect value into the future. These forces are difficult to relate directly to the subject property, but are taken into consideration and regulate future development of the subject property. Though all of the general forces affect a property,the major force that affects the subject property is economic. According to the estimated 2000 census statistics,Montana's population was projected at 902,195,with Jefferson County estimated at 10,049,which has shown a significant increase since 1990 of 7900,The town of Boulder which is the county seat has population estimated at 1654 persons for 2000,the increase in the county and town appears to be directly related to the subdivisions that have developed over the past five to ten years. The City of Helena, which is a major economic factor to the subject area,shows a population of 25,780 and is the county seat of Lewis and Clark County, with a estimated 54,719 population in 2000 The greatest increase in Jefferson County is from residential starts and in the past two to three years commercial development has begun to flourish,in the Boulder area and the northern portion of the county, following the residential population increase. There have been several new home built in the town of Boulder and the immediate area showing a stay increase in market value and the need for adequate housing and related properties. Boulder has good elementary and high schools,post office. several commercial outlets,retail stores, 2 grocery stores, major truck stop and casino,parts store/garage,tire shop,2 motels,a Bed and Breakfast Inn,emergency medical clinic, library, bank,senior citizen center,restaurants,bars, a local newspaper office and all denomination of churches are represented. The area also has several Radon health mines that attract several hundred visitors a year, plus the attractive mountain setting,which the area offers. The Boulder area offers several recreational activities mainly in the form of hunting, fishing and snowmobiling. The major Interstate Highway 1-15 that is available to the subject marketing area. This area is a major traveling link between Glacier and Yellowstone National Parks and is very attractive to tourist travel. The area's economic base is predominately by mining and the governmental employment of the County. State and Federal segments. Several other large corporate enterprises are located in the area and in Helena/Butte,which are suppliers of governmental services and natural resources. Several other large commercial outlets have recently developed in the Helena/Butte areas which are service oriented and new development is attributed, mainly,to a stable employment base in the area. NEIGHBORHOOD DATA AND TRENDS The subject property is located in an excellent location on West Centennial Street in the Town of Boulder, Montana. Boulder is an incorporated town with a population of estimated at 1700 persons within the town limits. The market has stabilized over last several months with marketing activity increasing and decreasing on a month-to-month basis. The town of Boulder has all the community service. SUBJECT PHOTO AND MAP LOCATION File Case No.No. Wagners Ins • Borrower AdminBervices,Jeff Co Property Atldess 118 Centennial Street CM Boulder County Jefferson State Mt Zp Code 59632 _ Le Jefferson Jefferson Co Comm&Wagners Address Boulder Mt FRONT OF SUBJECT PROPERTY ^� l i.� t r : L. c. . • . _ mss- -_.- 1 n - .,'�iMMBNIrR.. � r� � z' r ,�x�. SUBJECT PROPERTY LOCATION r u;* 7 fØs."vJa4 K 1 e. P ; r I 1 4114./ ` ,4s r C , 1 fir; 1 err t jt rl wssr 490ft f F I Page of ClickFORMS Appraisal Software 800-6622-8727 n}IlalaI5Gl a UIUIIg IOC SUBJECT PH VUIIiOTO ADDENDUM File No. Wagners Ins Case No. ` 11 B Centennial Street Bona Boulder AdminServices/Jeff Co properly Address City Boulder County Jefferson State Mt zip 59832 Lenderlaient Jefferson Co Comm 8 Wagners Address Boulder Mt I FRONT OF SUBJECT PROPERTY 118 Centennial Street Boulder if t , 2 . i REAR OF > S c�'tb' � ; t £ fx 5 `, - x , ri'• SUBJECT PROPERTY Jkiii 'ra A3 F-... .., . �$':� : 3r'4'�C'I� STREET SCENE w l Page o1 CIIckFORMS Appraisal Software 800-622-8727 r.r.a.,o u vvuaunn.y n�� SUBJECT PHOTO ADDENDUM File No. Wagners Ins Case No. Borrower Boulder AdminServices/Jeff Co Properly Addess 118 Centennial Street City Boulder County Jefferson State Mt up Code 59632 Lender/Client Jefferson Co Comm&Wagners Addess Boulder Mt `:e, - Cov Porch&Ramp 111 111, •{ WK - A.,w... .e.`W9t".v �. shed • rv�yg r f •CAA }( F „ _ f .r. Siligrit y 'wr ClickFORMS Appraisal Software 800-622-8727 Page of Mb SUBJECT PHOTO ADDENDUM File No Wagners Ins Case No Borrower Boulder AdminServices/Jeff Co Property Address 118 Centennial Street • Boulder Cou Jefferson State Mt Lo Code 59632 Lender/Client Jefferson Co Comm 8 Wagners Addess Boulder Mt 1 E! ;Hi; r . EI t- 7f- Tai„§a Y i ,, I� / i , C 1 .. . r • ri f . f 't i iill" _ - '2 q�' Y If 1 fl w1Epy `v . ,.a�;Wry ClickFORMS Appraisal Software 800-622-8727 Page of LOCATION MAP ADDENDUM File No. Wagners Ins Case No. ' Borrower Boulder AdminServices/Jeff Co Property Address 118 Centennial Street Co Boulder County Jefferson State Mt Zip Cade 59632 Lender/Cient Jefferson Co Comm 8 Wagners Address Boulder Mt pp''��rr 1A,aremxr` aC MapPoint 2 41.3 ',. I i �J ,.r m o• al 64 r., -Z W at in ,4r b! .LsSY (1 z WY q ? U . 2pd Ake b 101/241 A� S z_ iN 3x1 Ave Ate - ti ,� Bw$der , " z _ ,it;5.3 4fre Li'41hq a C�ojm�iyr 514 Ave rn A m - f CD C CO Cattle°Ii*Rd J 7J y 03 -.. - - - Main st -. cIOl. 02007 Ifcasafttap*2006 NiV7EQ.aaahrkle aas.lee. � '. ClickFORMS Appraisal Software 800-622-8727 Pag& of S&S Appraisal&Consulting Inc SKETCH ADDENDUM File No Wagners Ins Case No. Borrower Boulder AdminServices/Jeff Co Property Address 118 Centennial Street City Boulder County Jefferson Stale Mt Zip Code 59632 Lender/Client Jefferson Co Comm&Wagners Address Boulder Mt • • 18.0 - __ _ _ - _ 8.0' -\th r m 14.0 Conc _g lunch 4.0' 13.0' I, office 7.0' •• office 4.0' 10.0' office 1ST FLOOR 5.0' MP=_ 50' Cov Perch Ramp ,. • 25.0 • • 13.0 office office 28.5 15.5' office 2 RD FLOOR • 22.0' • • I • • • CIrckFORMS Appraisal Software 800-622-8727 Page of S&S Appraisat&Consulting Inc SKETCH ADDENDUM File No. wagners Ins Case No. Borrower Boulder AdminServices/Jeff Co Property Address 118 Centennial Street City Boulder County Jefferson State Mt Zip Code 59632 Lender/Client Jefferson Co Comm&Wagners Address Boulder Mt I I SKETCH CALCULATIONS Perimeter Area c, AI:22.0 x5.0= 110.0 CoyPorch 110.0 A2: 19.0 x5.0= 95.0 I a I II Ramp 95.0 �.. Total Past.Area -205.0 A3'18.0 x 14.0= 252.0 A4.34.8 x 7.0= 243.8 A6.0 x15.5= 341.0 A6:0.5 x2.8X2.6= 4.0 • A7:32.0 x2.8= 90.5 • A8:0.5 x2623.2= 4.5 A5 A9:320x3.2= 1015 First Floor 1037.3 A10:25.Ox 13.0= 325.0 510 All :22.0 x 155= 341.0 All Second Floor 666.0 Il I Total Living Area 1703.3 A Al2:200x250= 500.0 Pa0o 500.0 Total Paeol0eck Area 500.0 ClickFORMS Appraisal Software 800-622-8727 Page of SUBJECT PROPERTY IDENTIFICATION ZONING: The subject property is zoned by the Jefferson County Commissioners and Town of Boulder as Commercial. The subject property conforms to the imposed zoning restrictions and is not only a benefit, but would appear to enhance the value of the properties in the area. SITE DESCRIPTION: The site under the legal description consists of a rectangular site,that is level and to grade. The subject fronts on Centennial Street and Washington Street of Boulder. There is access to the rear of the property by an alley. The total site consists 13,500 square feet of area in the site of which is adequate for the existing improvements. There were no recorders easements across the property or any known easements or encroachments that would adversely affect the property. The public utilities available to the sites are electricity, natural gas, telephone,sewer and water which appear to meet and have been approved by Local and State Health authorities. The subject is site is located on Centennial Street which is less than one half mile from Interstate Highway 1-15,a main north-south highway arterial that runs the width of Montana, with adequate access and exposure from the highway. IMPROVEMENTS: The improvements were a residential house built in the early 1900s. The structure has been totally remodeled in 2002 to a very nice office building meeting all the local codes. The improvements consist of a 1037 square feet on the 1 sty floor with 3 offices, restroom and employee lounge,the 2 rd floor of 666 square feet has 3 good offices. The total remodeling was both inside and outside and is being well maintained and is in above condition. The original building was constructed partly in the early 1900 per the Jefferson County records.The Construction is wood frame above quality construction. The construction features consist of wood frame with metal siding on the exterior,new vinyl windows. The roof is a truss construction with new metal cover. The interior was totally remodeled with more insulation added to the walls and ceiling,new carpet, etc. The interior has all copper or approved PVC plumbing for both water and drains, one restrooms for facilities for patrons. Electrical service is rigid conduit to all outlets and fixtures,heating is gas forced air with air conditioning. The improvements are in above average condition. appear to meet all fire codes, current local and state building codes and requirements and CABO building standards. The existing building improvements are considered to be proper improvements for the subject site. There were no noted or observed evidence of settlement, infestation,dampness or other detrimental influences to the present improvements or any adverse environmental conditions associated with the property. Further construction details of the improvements are made a part of my permanent file on this property and available on request. The construction features of the existing improvements appear to represent a proper improvement to the site and consistent with the Highest and Best Use of the property under appraisal. SITE IMPROVEMENTS: The additional site improvements are gravel parking on the west side and a concrete patio,a covered porch on the front with a handicap ramp. Adequate ingress and egress to the subject is from both Centennial and Washington Street. HIGHEST AND BEST USE OF THE PROPERTY: By identifying and interpreting the market forces that affect a specific property in a local and regional context,the appraiser determines the property's highest and best use. Highest and best use is a fundamental concept in real estate appraisal because it focuses market analysis on the optimum use in light of market conditions as of a specific date. Highest and Best Use reflects a basic assumption about real estate market behavior that the price a buyer will pay for a property is based on his or her conclusions about the most profitable use of the site and/or property. Therefore, site and improved properties tend to be put their highest and best uses. However,the determination of a property's highest and best use sets forth in an appraisal may or may not conform to the existing use. The determination of highest and best use must be participation,change and the existing use of the subject property. HIGHEST AND BEST USE HAS BEEN DEFINED AS FOLLOWS: The reasonable,probable and legal use of vacant land or improved property,which is physically possible,appropriately supported, financially feasible,and results in the highest net return to the property within a reasonable period of time. Because the use of land can be limited by the presence of improvements,highest and best use is determined separately for the land or site as though vacant and available to be put to it's highest and best use, or for the property as improved. The first determination reflects the fact that land value is derived from potential and use. Land has limited value unless there is a present or anticipated use for it;the amount of value depends on the nature of the land's anticipated use, according to the concept of surplus productivity among all reasonable,alternative uses,the use that yields the highest present land value,after payments are made for labor,capital, and coordination, is generally regarded as the highest and best use of the land as though vacant. For the purposes of analysis,the appraiser assumes that the parcel,though is partially improved,in question is vacant. Even a site with a large building on it can be made vacant by demolishing the building. The question to be answered is: as if vacant plus, what new improvement should be constructed on the site? The relationship between the supply of, and demand for., land adaptable to a particular use is significant in determining highest and best use. If a more profitable use must be delayed due to insufficient present demand, an interim use will continue until or unless the value of the land, as if vacant plus the cost of demolishing the existing improvements exceed the total value of the improved property at it's current use. In the context of most probable selling price (market value)another appropriate term to reflect highest and best use would be the most probable use. In the context of investment use another alternative tetra would be the highest price or profitable use. Often times in estimating the highest and best use of a parcel of land,the appraiser is controlled by governmental regulations. These controls are generally zoning regulations pertaining to parking requirements,building codes, height requirements or other governmental limitations,but the most important estimate is the attitude of the investor in the marketplace. Real estate will normally fall into a definite developmental pattern, and their uses can be classified as being residential,commercial, industrial, agricultural recreation or quasi-public in nature. In this appraisal assignment,the appraiser has considered each of these possibilities and classifications. At the outset, certain types of these uses were eliminated. The subject is located on Centennial street just off of Main street(which has totally been rebuilt)of Boulder, Mt. and in the heart of the commercial district,the area has experience some vaccines,but over the past few year there also is new business in some of the vacant building(small commercial retail outlets) The subject site, in my opinion, is ready for development as a small retail business as the highest and best use of the subject site"as if vacant". The major trend in this neighborhood market area is remodeling vacant building to be used as small retail outlets and office space and the subject improvements represent this type of improvements. The appraiser feels these uses are appropriate and realistic to represent the highest and best use"as improved". • DEFINING MARKET VALUE The concept of market value is of paramount importance to the business and real estate communities. Vast sums of debt and equity capital are committed annually in real estate investments and mortgage loans on the basis of market value estimations. Real estate taxation, litigation, and legislation also reflect an ongoing, active concern with market value issues. In virtually every aspect of the real estate industry and its regulation at local, state and federal levels. consideration of market value are of vital importance to economic stability. Precisely for these reasons,the definition of market value used by appraisers and by the clients they serve must be clearly understood and communicated. However, in real estate appraisal,definitions of market value can and do represent different beliefs and assumptions about the market place and the nature of value. Market value is inherently a simple concept- it is objective value created by the collective patterns of the market-but the ultimate definition of market value is controversial issue. Thought on the subject continues to evolve, sometimes in term of rather fine distinctions. The market value appraisal is always valuation of specified rights in the subject property rather than valuation of physical entity of the real estate. The specified property rights can be the Fee Simple Estate, the As-leased or as Mortgage Estate, or some other interest in the real estate. For the purpose of this appraisal report the definition of market value that is considered the most applicable for the use of this is as follows: The most probable price,as of a specified date, in cash or in terms equivalent to cash,or in other precisely revealed terms,for which the specified property rights should sell,after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently,knowledgeably,and for self-interest, and assuming that neither is undue duress. APPLICATION OF THE THREE APPROACHES TO VALUE The valuation process is used to develop a well-supported estimate of a defined value,which is based on consideration of all pertinent general and specific data. The appraisal process estimates property value by applying specific appraisal procedures which reflect three distinct methods for analyzing data mathematically--sales comparison,cost and income capitalization. One or more of these approaches employed depend on the type of property,the use of the appraisal, and the quality and quantify of data available for analysis. All three approaches are applicable to many appraisal problems. However,one or more of the approaches may have greater significance in a specific assignment. For example,the cost approach may be inappropriate in valuing properties that show substantial accrued depreciation because the physical deterioration,functional and external obsolescence of older buildings are difficult to estimate with accuracy. The sales comparison and/or market data approach is rarely applied to very specialized properties,such as churches or garbage disposal plants because comparable data may not be available. The income approach is rarely used to value owner-occupied residential interest, although it may be with market support. Income capitalization can be particularly unreliable in a commercial or industrial property where use-occupancy outbids investors. SALES COMPARISON AND/OR MARKET DATA APPROACH: The sales comparison and/or market data approach is most useful when a number of similar properties have been sold recently or are currently for sale in the subject property market area. Using this approach,an appraiser produces a value indication by comparing a subject property with similar properties,called comparable sales. The sale prices of properties that are judged to be the most comparable tend to indicate a range in which the value indication for the subject property will fall. An appraisal process estimates the degree of similarity or difference between the subject property and comparable sales by considering various elements of comparison. I. Rear Property Rights Conveyed 2. Financing Terms 3. Condition of the Sale 4. Market Conditions 5. Location 6. Physical Characteristics 7. Income-Producing Characteristics 8. Other Characteristics(E.G., access and zoning) Dollar or percentage adjustments are made to the sale price of each comparable property, with consideration for the real property interest involved. Adjustments are made to the sales prices of the comparable because the values of the comparable are known, while the value of the subject property is not known. Through this comparative procedure,the appraiser estimates one or more kinds of value as of a specific date. Data, such as, income multipliers and income rates may also be extracted from sales comparison analysis. In the sales comparison approach,data is considered,but they are not considered elements of comparison. This data is applied in the income capitalization approach. THE COST APPROACH: The cost approach is based on the premise that the value of a property can be derived by adding the estimated value of the land to the current cost of constructing a reproduction and/or replacement for the improvements and then subtracting the amount of depreciation (I.E.,deterioration and obsolescence in the structures from all causes. If entrepreneurial profit has been realized, it is added to the value indication. The approach is particularly useful in valuing new or nearly new improvements and properties that are not frequently exchanged in the market. Cost approach techniques can also be employed to derive information needed in the sales comparison and income approaches to value. The current costs to construct the improvements can be obtained from cost estimators,cost estimating publications. and builder/contractors. Depreciation is measured through market research and the application of specific valuation procedures. Land value is estimated separately in the cost approach. THE INCOME CAPITALIZATION APPROACH: In the income capitalization approach,the present value of the future benefits of property ownership is measured. A property's income streams and its resale value or reversion are capitalized into a present, lump sum-value. Two basic formulas used in this approach are as follows: Income Value and Income x Factor =Value Rate Like the sales comparison and cost approaches,the income approach requires extensive market research. Research and data analysis for this approach are conducted against a background of supply and demand relationships, which provide information on trends and market anticipation. THE COST APPROACH TO VALUE The following cost analysis is referenced from Marshall and Swift Cost indices and certified through contractor's hard costs throughout the market area. As aforementioned,the appraiser has estimated each unit-in-place replacement costs and primarily is based on the theory of substitution. That is,a purchaser will theoretically pay no more for a developed property than cost of reproducing a new similar one. The factors of depreciation being the difference of value between the older and newer properties. In the cost approach,the depreciated reproduction cost of improvements and the depreciation, if any,accruing to them. The cost approach is generally most accurate when there is a good indication of land values from recent sales of similar properties and when the land is developed with new improvements which represent the highest and best use of the land. The cost figures shown in this report are shown by builders current construction cost data and by comparison with the cost figures from the Marshall and Swift Valuation Service. Due to the lack of adequate market information and data in this particular market area considerable time and research went into analyzing cost data and information for this appraisal report. The information in this report was checked and cross-checked several times and way for accuracy and documentation. There were no vacant commercial lands sales in the town, the appraiser reviewed all sales of land sales in the immediate market area,which were only residential and that have been sold in the past years. These sales range in sale price from $30,000 to$32,000 per lot or building site,with sizes from 7000 square feet to 22,000 square feet for residential sites. The subject lots have front on Centennial Street. The appraiser made adjustment for time and date of sale. location and other physical characteristics. After careful consideration and analysis the indicated value of the subject property was estimated at S 40,000 as a building site. WHOLE PROPERTY VALUATION; The appraiser has estimated the cost new of improvements by two basic methods, the Marshall and Swift Cost indices which calculates cost by a comparative square foot method and by cost comparisons noted in the market area contractor hard costs,bids or quotes. Marshall and Swift Cost Publications: Unit-In-Place Calculator Method: Principle Building Structure: Offices 1 st Floor 1037 sq.ft. x $84.65 =$ 87,782 Offices 2 rd Floor 666 sq. ft. x $ 74.95 =$ 49.917 Cover Porch/Shed/Ramp/Patio =$ 4,960 Total Replacement Cost New =$ 142,659 Total Accrued Depreciation: Physical Deterioration: Curable(3 %) =$ 4,259 Functional Obsol =$ 0 External Obsolescence: =$ 0 Total Depreciation =$ 4,259 =$ -4,259 Depreciated Value of Improvements =$ 138,400 Estimated Value Site Improvements =$ 2,500 Estimated Value of Land: 13,500 Sq Ft. =$ 40,000 Indicated Value By the Cost Approach =$ 180,900 Rounded to =$ 181,000 THE INCOME APPROACH TO VALUE The income approach is based on the assumption that there is a relationship between the value of a property and the income it will produce. This approach involves projecting income on an annual basis of which the property can be expected to produce,then deducing any fixed operating expenses from the annual gross income to indicate a net annual income. This net annual income is capitalized into an indication of value from current capitalization rates extracted from the marketplace. The capitalization rate is computed by several techniques being market comparison method,mortgage equity and straight line methods. Usually,the direct market comparison method is most reliable. The quality, quantity and durability of this income is important and must be thoroughly understood in order to properly analyze this method of valuation. This method or technique is most reliable when there is sufficient data to project annual rents and expenses. QUALITY: The market shows this type of property has average appeal with rate of return average for the type of usage. QUANTITY: The estimated market for the subject property is based on rental comparison with comparable rental space including all lease information. DURABILITY: Typically, leases on this type of property are written from one to five years for this type of structure depending on the terms of the lease and in accordance with a CPI indicator or some sort of adjustment for economic conditions. COMPARABLE RENTAL SCHEDULE CORRELATION: All the comparable rental spaces were investigated in the region and area. They have varying degrees of comparability with the subject space. The only rental properties found that was comparable to the subject property in the immediate market area was smaller offices. The rental space range from$9.00 to$14.00 per square foot The subject has 3 office on the 1 st floor and 3 offices on the 2 rd floor,there is adequate restroom ,storage area and a employee lounge area. After reviewing the all the limited office rentals in the area the appraiser feels that the current market rent would be$11.00 per square foot... It is the appraiser's opinion that the estimated annual for the subject's main floor would be $18,700 The differences in rent schedules depend mainly on amount of rental space,location, age/condition, appeal.and allocation of type of space use. Adjustments in the comparable rentals to the subject were primarily for location,type of lease terms,number of square feet of rental space, and type of use. There are very few if any rent controls and demand is average for these types of rental spaces. A detailed breakdown and adjustment of these comparable rentals is made a part of my permanent file on the subject property. Therefore,after adjusting for location, age and other amenities of each of the rentals available,the estimated fair market rent is calculated at 5$ 11.00 per square foot for the structure. There was no other income. The appraiser felt there would be .03%vacancy and credit loss considering that the ownership. The estimate was based on historical data from major publications,which appears logical and realistic given the type of property being appraised. Real estate taxes are estimated from present taxable schedules in the taxing jurisdiction of Jefferson County. Insurance is estimated from quotes of local insurance companies in the area. Since the property is being totally remodeled there will be little maintenance expense,reserves for replacements, management estimates are on a percentage basis on other like data and expense items in similar properties. All expense ratios are from the market and other business owners in the area. Typical expense ratios from 15%to 35%depending on use and age of improvements. Taxes and insurance are variable items and will probably increase somewhat after the property is reassessed and use patterns are established, maintenance and repairs should remain fairly as the present improvement are totally remodeled an in good condition. RECONSTRUCTED INCOME AND EXPENSES; Gross Annual Income Rentals Net lease,$1700 sq ft x 11.00 = $ 18,700 Other income = $ 0 Annual Gross Income = $ 18,700 Total Annual Gross Income = $ 18,700 Less Vacancy and Credit Loss 2% = $ 400 Effective Gross Income = $ 18,300 Less Fixed Operating Expenses Real Estate Taxes = $ 915 Insurance = $ 750 Management = $ 500 Utilities = $ 700 Maintenance&Repairs = $ 100 Reserves for Replacement = $ 200 Total Expenses = $ 3,115 = $ -3.115 Net operating Income(N.O.1.)Before Debt Service = $ 15,185 MORTGAGE EQUITY CAPITALIZATION METHOD The mortgage equity method technique assumes that a property will be held in ownership for a period of time which is very often controlled by income tax consideration and then sold or refinanced at the end of the depreciation period.It says that value is controlled by the equity position(invested capital)and assumes that a property will be purchased only if the income it is capable of producing will be great enough to; 1)pay off the mortgage and 2)offer a fair return on invested capital (equity)invested ,tax shelters not-with-standing. It considers; a)the most typical financing terms available, b)a typical period of ownership income projection period(sinking fund factor for changing annuities)and c)expected rates of return on invested capital(equity return). Mortgage equity uses an overall composite capitalization rate which is made up of the mortgage rate ,the equity built-up amortization ,and the anticipated change in the property during the holding period. The components used in deriving the rate are shown below Using the factors of an 9% interest rate over a 20 year amortization a 75%of market value, and equity yield of 8%over an anticipated 15 year at 0%appreciation/depreciation rate, I have calculated the present worth of future benefits as follows: Mortgage 75% loan to value ratio,on a 20 year amortization at 9% interest rate. Equity 25%equity over 15 year period at 8%yield rate Appre/Depre None Mortgage Constant .10796 Mortgage Loan .75 loan to value X .10796(mc) _ .08097% Equity Funds .25 equity X .,0800 = .02000% Basic Rate = .10097% Less equity Built-up Through Debt Reduction Debt Reduction Percent Sinking Fund Factor 15 years a 9% .015059 x .75 = -.01129% Less Equity Built-up Through Appreciation/Depreciation Appreciation/Depreciation .000000% Sinking Fund Factor = .0000% Overall Capitalization Rate = .08968% Valve= Net Income Divided by Rate (IRV) Value $15,185 divided by.08968% = $ 169,325 Indicated Value by the Income Approach = $ 169,000 SALES COMPARISON AND/OR MARKET DATA APPROACH The on going Sales Comparison and/or Market Data Analysis is essential in almost in every appraisal involving the value of real estate. The value estimated by this approach frequently is defined as"the price at which a willing seller would sell and a willing buyer would buy,neither being under abnormal pressure". This definition assumes both the buyer and seller are fully informed of all present and future users to which the property can be put and are familiar with the state of the market for that type of property and that the property has been exposed to the open market for a reasonable period of time. The market data approach in its most often used form, is a direct face to face comparison of sales and subject property with adjustments being made for various inequalities on an item by item basis. The reliability of this approach is dependent upon the availability of good comparable market sales in the general vicinity of the subject property. The application of this approach produces an estimation of value or indication of value by comparing similar properties of the same type that have been sold or are currently offered for sale in the same marketplace The comparative process utilized in determining the degree of comparability between two parties involves factors such as location. Construction features,age, condition, layout,and equipment. The sales price of those properties deemed most comparable sets the range of value in which the property will fall. Further consideration of the comparative data will indicate to the appraiser a figure representing the cash equivalent value of the subject property. There has been few small business in the Boulder area sell in the past years showing that the local commercial business in growing. In the case of the subject property no truly comparable sales were found that would render a sound indication of market value for the subject property. The appraiser also searches other areas in the region. After reviewing all the sales and limited information it is the opinion of the appraiser that the Market Approach was non-applicable. • • FINAL CORRELATION AND CONCLUSIONS The appraiser has employed the following methods of valuation in arriving at an estimate of fair market value for the subject property in its"as is"condition. THE COST APPROACH TO VALUE $ 181,000 THE INCOME APPROACH TO VALUE $ 169,000 THE MARKET DATA APPROACH TO VALUE N/A After analyzing each approach and the income stream on the property, more weight and consideration is given to the Income Approach analysis as it best reflects fair market value from typical investors in the marketplace The appraiser used the mortgage equity capitalization method to process the income stream, in my opinion it reflects the action of typical investors. The Cost Approach usually tends to set the upper limits of value. The cost of estimating the reproduction cost new and them accrued depreciation that has taken place in the improvements over the years is subject to errors As when analyzing cost estimates from local contractors they produce a range in costs that can vary from 5%to l5%and very seldom are any of the estimates totally the same. Marshall and Swift Cost Manuals often require a degree ofjudgment both in quality and interpolation for several features. Also it requires judgments unsupported conclusions when estimating accrued depreciation especially in older properties. However this approach support to the final conclusion of value an is check on the value estimated by the income approach in the final conclusion of value. The Sales Comparison and/or Market Approach was considered non-applicable do to the lack pf comparable sales in the area and region. As a result of my conclusions and analyses, giving the most weight to the Income Approach plus considering all other available facts and circumstances pertinent to an estimate of value, it is my opinion,that the estimated market value of the subject property is ONE HUNDRED SIXTY NINE THOUSAND DOLLARS S 169,000 • I certify that,to the best of my knowledge and beliefs: 1.The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions,and conclusion are limited only by the reported assumptions and limiting condition and are my personal, impartial,and unbiased professional analyses, opinion and conclusions. 3.I have no present or prospective interest in the property that is the subject of this report and no persona] interest with respect to the parties involved. 4.I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5.My engagement in this assignment was nit contingent upon developing or reporting predetermined results. 6.My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the,the amount of value opinion,the attainment of a stipulated result, or the occurrence of subsequent event directly related to the intended use of this appraisal. 7.My analyses, opinions, conclusions were developed,and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. 8.1 have made a personal inspection of the property that is the subject of this report. 9.No one has provided assistance in the ape .isal. ar E in "Swe e" S May 25,2007 General Certification #536 Expiration Date 03/31/2008 INVOICE Date: June 04,2007 File No. Wagners Ins Case No. Prepared for: Jefferson Co Comm&Wagners i Boulder Mt Property Appraised: Boulder AdminServiceslJeff Co 1 118 Centennial Street Boulder,Mt 59632 I Work Performed: Appraisal118 Centennial Commerical $ 650.00 $ $ Total Amount Due: $ 650.00 Please make cNcS n/ Payable to: S&-S Appraisal&Consulting Inc 1006 Washington Street Helena,Mt 59601 ClickFORMS Appraisal Software 800-622-8727 PrtIfmmar Home Inspnrian Fi ar '>ai post Inspection No. 45132 - 3040 Visual Home Inspection 118 W Centenial Boulder,MT 59632 Prepared for: Jessica Kirsch P.O. Box H Commission Office Boulder, MT 59632 4.• E s 4. f *f.e.74C.Crt .19110r0014 5 � } is "ix ' Inspected by : Keith Alltucker Pillar to Post Home Inspection 201 E.Lyndale Helena, MT. 59601 Phone: (877) 749-2225 Fax: (406)443-8071. Email: keith@inspectormt.com 3040 - Inspection Report Photographs firl .,i � QP 7b�IOSt•' 118W Centenial Exterior Example of window frame paint requirement t, x . i } 4 C 3 A Roof Structure Example of fascia and soffit gaps which should be sealed Attic - Main attic Lack of soffit baffles has resulted in insulation contact with roof deck. Confidential Page 2 Of 3 91412007 Pillar To Post Inc. 1-877-749-2225 mobile toll free,406-443-8071 fax, keith @inspectormt.com 3040 - Inspection Report Photographs 4 dNmel-pnb A Wire"' r 7b POSE' 118 W Centenial Basement/Structure - no access under main house d$ y' 3 •�`c'p `',, Dampness noted in sections of crawl space floor. AC condensate line is not connected to sewer and is draining onto crawl space floor. Confidential Page 3 Of 3 9/4/2007 Pillar To Post Inc. 1-877-749-2225 mobile toll free,406-443-8071 fax,keith @inspectomit.com a PROPERTY AND SITE R anH1 al—st- 8/24/2007 12:09:15 PM 118 W Centenial, Boulder,MT 59632 LIMITATION: Restricted/No Access 0 Debris/Obstruction 0 Snow/Ice Cover O Vegetation/Tree/Shrub 0 CONDITIONS: Clear/Sunny 0 Cloudy/Overcast 5 Rain/Snow 0 Approx.Temperature 60 Dry Ground© Approx.Hydrant Distance 1/4 block BUILDING Approx.Years Old 100 Condo O Rural 0 Bungalow 5 Bi-Level❑ 2 Story 9 3 Story 0 Semi-Detached 0 Plex RowlTown 0 Other 0 LANDSCAPING Slope to House 5 Good Condition Flower Bed 0 Hedge/Shrub 0 Tree© Ravine 0 Earth to Wood 0 Site Erosion❑ No Swale 0 Other DRIVEWAY Slopes to House D Not Applicable Paving Stone❑ Gravel 0 Concrete O Asphalt O WALKWAY/PATH Slopes to House D Visible Damage Noted Paving Stone O Patio Block❑ Concrete O Asphalt❑ PORCH Unsecured No Visible Damage Noted Metal 0 Wood❑ Concrete 0 Brick/Block 0 Crack 9 Corrosion Rot0 Repaint LIGHTING None 0 Unsecured Not Applicable RECEPTACLE Damaged/No Cover❑ Not Applicable RAILING Unsecured No Visible Damage Noted Metal 0 Wood 0 Incomplete O None 0 DECK/PATIO Unsecured No Visible Damage Noted Composite/Wood 0 Brick/Block O Concrete 9 Metal 0 • Slope to House O Paving Stone❑ Patio Block O Stone 13 Crack/Spalling 0 Deterioration 0 Mold/Mildew 0 RotC RAILING Unsecured 0 Not Applicable Metal 0 Wood❑ Incomplete O None❑ RETAINING WALL Not Stable O Not Applicable No Weep Holes 0 Wood O ConcreteD Stone D Crack/Spalling 0 Deterioration❑ Rot Leans 0 Extra Comments Continued Next Page... For the purpose of this report your house faces: north AWilt) list A Ca AC COQ a A St FRONT 1-R77-74g-2225 mobile toll free 4n6-447-Rn71 Ms knithejn¢nertnrmt nom ©2003 Pillar To Post Inc. 45132-3040 PROPERTY AND SITE N `pT - 8124200712:09:15 PM 118 W Centenial, Boulder, MT 59632 BUILDING Century old homes will have had multiple system upgrades through time. The timing of these upgrades and skill of installation will help determine longevity and probability of failure of these systems. All building materials have a finite life exceptancv. nothing lasts forever. Repairs/improvements should be anticipated with century old homes. The inspection process is not designed to provide a complete accounting of all defects/damages. A general opinion of the condition of the house and property is intended. Clients are strongly encouraged to participate in a final walk through of the house prior to closing to determine if conditions/appliances/systems have changed since the inspection. This is a century old home which has undergone several building additions and component upgrades. Areas where new structures join older structures can be areas of concerns. These areas should be monitored for any signs of change. Cracks/splits/voids in building envelope are entry points for water. Older homes will have experienced forces of nature to the extent that some settlement/shifting is likely to have occurred. Lack of maintenance and temporary/non-professional installation are sources of improvement comments in most home inspections. Qualified professional repairs are suggested throughout the report. During the inspection process a representative number of receptacles and windows will be tested. Furniture personal belongings. items in storage will not be moved to access all receptacles and windows.All repairs suggested in the report should be done by qualified professionals. LANDSCAPiNG Negative drainage and the lack of a gutter system noted. Installation of a gutter system is suggested to move roof runoff water away from the building. WALKWAY/PATH Drive/walkway is heaving, due to soil movement from tree roots. Repair as needed. FRONT PORCH Large cracks should be sealed to prevent water infiltration and possible damage. 1-877-749-2225 mobile toll free,406-443-8071 fax,keith@inspectormtcom 0 2003 Pillar To Post Inc. 45132-3040 1 EXTERIOR . Flitrpos 9/4/2007 9:44:33 AM 118 W Centenial,Boulder,MT 59632 LIMITATION Clearance° Seasonal Storm Window ° Debris/Obstruction° Shrub/Tree/HedgeNines/Ivy° Snow/Ice Cover° Restricted/No Access° Parged0 Other FOUNDATION WALL Not Exposed © No Visible Damage Noted FOUNDATION WALL Poured Concrete p Block° Brick° stone© Stone foundation has been covered with a Exterior Rigid Insulation° PWF Wood° Piling/Pier° concrete cap, which limits any inspection. Crack/Spalling 0 Mildew/Mold 0 Stain/Rot° Frost Heave° WINDOWS WALL SURFACE No Ground Clearance° No Visible Damage Wooden window frames are approaching Aluminum° Composite 51 Brick/Block 0 Stone° time for repainting. This condition is more Stucco° Vinyl Siding°Wood Siding° Steel IS apparent along the west and south facing Split/Loose° Repoint° Repaint 0 Recaulk° windows. Periodic caulking of window and Crack/Spalling 0 Mildew/Mold 0 Stain/Rot° Blister/Peel° door frames will be needed to help seal out WINDOWS Inspected with Binoculars° No Visible Damage Noted Water. Storm': Unsecured° Repaint p Recaulk p RECEPTACLE Weather-strip° Mildew/Mold° Stain/Rot 0 Poor Trim° GFCI outlet failed to trip when tested. WINDOW WELL Improper Drainage° Not Applicable Replacement is recommended. DOORS Binds° Damaged° Operational Storm° Unsecured 0 Repaint° Recaulk° Weather-strips Mildew/Mold° Stain/Rot° SplitDent 0 LIGHTING None° Unsecured 0 Operational RECEPTACLE Damaged/No Cover 0 Not Operational Install GFCI° Reverse Polarity° No Ground 0 Open Ground° BASEMENT WALKOUT Covered 0 Not Applicable Poor Condition° No Railing° No Drain° Leak° Crack/Spalling° Mildew/Mold° Frost Heave° Reparge 0 none GARAGE /CARPORT fl rtr mpost • TYPE Attached° Built-In° Detached° Single° Double° Insulated/Heated° Attic Access DOOR Binds° Damaged 0 Not Applicable Automatic° Sectional° Wood° Metal° Adjust Auto Stop° No Safety Stop° Stain/Rot° Corrosion 0 FLOOR Crack° Settlement 0 Not Applicable Asphalt° Concrete° Gravel° Stain/Rot 9 WALL No Fire Barrier° Not Applicable DiywalWPlaster°Brk/BIk/Stone° Wood° Stain/Rot° WINDOW Binds Damaged Not Applicable CEILING No Fire Barrier° Not Applicable DrywalVPlaster° Crack° Wood 0 Stain/Rot° LIGHTING None° Unsecured Not Applicable RECEPTACLE Damaged/No Cover 0 Not Applicable Install GFCI° Reverse Polarity° No Ground O Open Ground 0 CIRCUIT WIRE Concealed° Unsecured❑ Improper O ACCESS DOOR To Not Applicable Auto Door Close° Metal Clad° Wood° Composite° Gas Proof° Damaged El Stain/Rot° Corrosion° 1-877-749-2225 mobile tot free,406-443-8071 fax,keitb@inspectormtcom 1 C 2003 Pillar To Post Inc. 45132-3040 ���� � ROOF STRUCTURE - NiY�r'tapost-9/4/2007 9:45:25 AM 118 W Centenial,Boulder,MT 59632 INSPECTED BY: Binocular a Roof Edge© Walk On❑ No Access LIMITATION Deck/Patio❑ Gravel/Flat❑ Height❑ Steep Slope s Rain/Snow/Ice Cover Solar Panel❑ Fragile❑ Other MAIN ROOF Flat❑ Gable 0 Valley© Hip❑ Shed❑ Other❑ Est.Age 4yrs. Pitch medium-st GUTTER/DOWNSPOUT Unsecured Not Applicable GUTTER/DOWNSPOUT TYPE Aluminum❑ Galvanized❑ Copper❑ Plastic❑ Lack of gutters or downspouts noted, Incomplete❑ Dent/split❑ Corrosion❑ Leak❑ installation of putters and downspouts DRAINAGE Above Ground❑ Below Ground❑ Spill/Roof❑ would help direct runoff water away from Extend Leader❑ Redirect Leader0 Clean❑ the exterior, foundation, and reduce FASCIA/SOFFIT Not Vented 0 No Visible Damage Noted maintenance of facia and soffit. Aluminum❑ Wood p Vinyl❑ Other❑ FASCIA/SOFFIT Loose❑ Mildew/Mold❑ Stain/Rot❑ Corrosion❑ Gaps/splits in fascia require sealing to help protect from weather damage. COVERING #of Layers 3 No Visible Damage Noted COVERING Asphalt Shingles Conc/Clay Tile❑ Wd.Shingle 0 Wd.Shake❑ One layer of shingles above the south entry Fibreglass Shingle❑ Tar/Gravel❑ Metal© Other❑ portion of the building. Nail Pop/Exposed❑ Loose/Missing❑ Broken❑ Crack❑ Typical life of metal roof panels is up to Patched❑ Mildew/Mold❑ Stain/Rot❑ Worn❑ Curl/Claw❑ Fungus/Moss❑ Improper Installation 40vrs. Metal roof fasteners may back out ❑ through time. Periodic inspection of LIFE EXPECTANCY Typical 22 Middle/End❑ Exceeded 0 fasteners is recommended and make all ACCESSORY Unsecured❑ No Visible Damage Noted needed improvements or repairs. Three layers of shingles exceeds the Air/Exhaust Vent❑ Vent Stack p Turbine❑ Elec. Mast❑ industry standard of two. Before the metal Solar Panel❑ Skylight❑ Antenna❑ Dish❑ roof panel installation, the asphalt and FLASHING Not Checked/Concealed❑ Visible Damage Noted wood shingles should have been removed. Chimney© Dormer❑ Drip Edge© Flat Roof❑ The concern with more than two shingles Skylight❑ Roof to Wall© Stack Valley© lavers is that the snow and wind load of the Roll Roofing❑ Alum./Gale.© Copper/Lead❑ Rubber ei roof is reduced by the combined weight of Gap/Loose/Crack❑ Deterioration❑ Corrosion❑ Taried© the shingles. Reseal/Recaulk❑ Improper Replace When Re-Roofing s Roof sap noted. CHIMNEY I VENT ACCESSORY Leaning❑ No Visible Damage Noted Inspected with binoculars from roof edge. Fireplace❑ Fumace Zi Gas Insert❑ Other❑ Limited access due to heightsnow/ice Brick Is Metal Wood❑ Stucco❑ restriction. Crack/Spalling❑ Deterioration❑ Corrosion❑ Loose❑ FLASHING Abandoned❑ No Wind Cap❑ Metal Liner Required❑ Inspected from roof edge and with CHIMNEY CAP None❑ No Visible Damage Noted binoculars. Concrete❑ Masonry❑ Metal 0 Other❑ Crack/Spalling❑ Deterioration❑ Corrosion❑ Loose❑ VISIBLE FLUE LINER None❑ Not Applicable Brick/Block❑ Clay/Concrete❑ Metal❑ Metal Insert❑ Rain Cap❑ Deterioration❑ Corrosion❑ Loose❑ Crack/Spalling❑ Improper❑ Advise Cleaning/Sweeping❑ Extra Comments Continued Next Page... SECONDARY ROOF Flat❑ Gable❑ HipNalley❑ Shed❑ Other❑ Est.Age Pitch COVERING #ofLayers 1 Not Applicable Asphalt Shingle❑ Conc/Clay Tile❑ Wd.Shingle❑ Wd.Shake❑ Fibreglass Shingle❑ Tar/Gravel❑ Metal❑ ❑ Nail Pop/Exposed❑ Loose/Missing❑ Broken❑ Crack❑ Patched Mildew/Mold❑ Stain/Rot❑ Worn Curl/Claw❑ Fungus/Moss❑ Improper nstallation❑ LIFE EXPECTANCY Typical❑ Middle/End❑ Exceeded❑ i 1-877-749-2225 mobile toll free,406-443-8071 fax,keith@inspectonnt.com 0 2003 Pillar To Post Inc. 45132-3040 • ROOF STRUCTURE 91412007 9:45:25 AM 118 W Centenial,Boulder,MT 59632 CHIMNEY CAP Inspected with binoculars due to roof height or access problems. 1-877-749-2225 mobile toll free,406-443-8071 fax,keith(Sinspectormt.com C 2003 Pillar To Post Inc 45132-3040 South addition ATTIC at airt'9/4/2007 9:58:56 AM 118 W Centenial,Boulder,MT 59632 LIMITATION: No Access O Sealed 0 Stored Items 0 Looked In 0 Entered❑ Hatch Pull Down 0 Insulated0 STRUCTURE Truss Rafter❑ No Visible Damage Noted STRUCTURE Warped O Stain/Rot O Sag/Loose O Split 0 2 X 4 on 24"centers. SHEATHING Condensation 0 No Visible Damage Noted Composite Is Thermal Board❑ Plywood 0 Board 0 R Felt/R Paper 0 Mildew/Mold O Sag/Loose 0 Stain/Rot 0 INSULATION Estimated Depth 12" No Visible Damage Noted Radiant Barrier 0 Concealed O Finished 0 None 0 Vapor Barrier 0 Fibreglass© Mineral ❑ Cellulose O Wood Shavings 0 Rigid Plastic O Foam 0 Other O Batt❑ Blown/Loose 121 Sprayed O Required O VENTILATION None❑ No Visible Damage Noted Soffit© Gable End 0 Turbine ❑ MechanicalD Baffles© Roof/Ridge❑ Blocked O Required 0 EXHAUST DUCT Concealed IS Not Applicable Not Insulated 9 Into Attic 0 Plastic/Flex ❑ Metal 0 ELECTRICAL Concealed© Not Applicable Abandoned 0 Knob& Tube 0 Open Splice 0 Frayed 0 ELECTRICAL SERVICE/ PANEL SERVICE ENTRANCE Underground 0 Overhead© No Conduit 0 SERVICE ENTRANCE 120-Volt 0 120/240 Volt In Unsecured 0 Frayed 0 Additional disconnect switches are also ENTRANCE CABLE Concealed 0 Aluminum© Copper 0 located within the meter base. MAIN DISCONNECT Switch/Cartridge Fuse 0 Breaker p WIRE DISCONNECT RATING 200 Amps Have Electrician Evaluate D This home has had an electrical distribution DISTRIBUTION PANEL Not Opened 0 No Visible Damage Noted panel and wiring upgrade. Location SE closet Non Standard installation 0 Obstructed 0 Unsecured 0 Corrosion 0 Obsolete 0 PANEL RATING 200 Amps Room for Expansion FUSE Breaker 0 Glass/Screw 0 Cartridge 0 Time Delay 0 GFCI Breaker 0 AFC!Breaker 0 Blown/Broken ED Over-Fused 0 CIRCUIT WIRE lmpropero No Visible Damage Noted Aluminum 0 Copper E2 Copper Clad 0 Other 0 Non-Metallic Sheathed 0 Armoured Cable 9 Knob&Tube 0 Double Tapping 0 Spliced 0 Corrosion 0 Scorched 0 GROUNDING Concealed 0 Ground Rod 12 Water Main 0 Improper Connection/Installation 0 Meter By-Pass/Jumper 0 BONDING Concealed 0 Water Pipe 0 Gas Pipe 0 Improper Connection/Installation O Corrosion 0 Unsecured❑ AUXILIARY PANEL Concealed 0 Not Applicable Location Non Standard Installation❑ Not Opened 0 Unsecured 0 Corrosion 0 Obsolete 0 DISCONNECT RATING 0 Amps Have Electrician Evaluate 0 PANEL RATING 0 Amps Room for Expansion FUSE Breaker Glass/Screw O Cartridge O Time Delay GFCI Breaker O Blown/Broken❑ Over-Fused0 Scorched0 1-877-749-2225 mobile toll free,406-443-8071 fax,keith©inspectormt.com 0 2003 Pillar To Post Inc. 45132-3040 , Main attic ATTIC • NI r'lzorst 9/4/2007 10:09:03 AM 118 W Centenial,Boulder,MT 59632 LIMITATION: No Access 0 Sealed 0 Stored Items 0 Looked In 0 Entered 0 Hatch9 Pull Down 0 Insulatedo STRUCTURE Truss Rafter r2 No Visible Damage Noted STRUCTURE Warped 0 Stain/Rot 0 Sag/Loose 0 Split 0 2 X 4 on 16"centers. Full dimension SHEATHING Condensation 9 No Visible Damage Noted lumber. No collar ties present. Installation Composite 0 Thermal Board 0 Plywood 0 Board 0 would help support roof structure. R Felt/R Paper O Mildew/Mold O Sag a Stain/Rot 0 SHEATHING INSULATION Estimated Depth 12-14" No Visible Damage Noted Skip sheathing. Radiant Barrier O Concealed 0 Finished O None❑ Vapor Barrier❑ Fibreglass In Mineral O Cellulose 0 Wood Shavings O Rigid Plastic 0 Foam 0 Other❑ Balt0 Blown/Loose© Sprayed 0 Required 0 VENTILATION None a Not Applicable Soffit 0 Gable End❑ Turbine O Mechanical Baffles 0 Roof/Ridge 0 Blocked 0 Required 0 EXHAUST DUCT Concealed 0 Not Applicable Not Insulated❑ Into Attic 0 Plastic/Flex 0 Metal O ELECTRICAL Concealed IN Not Applicable Abandoned❑ Knob&Tube 0 Open Splice 0 Frayed 0 I Extra Comments Continued Next Page... ELECTRICAL SERVICE/PANEL SERVICE ENTRANCE Underground 0 Overhead❑ No Conduit 0 120-Volt 0 120/240 Volt 0 Unsecured❑ Frayed 0 ENTRANCE CABLE Concealed 0 Aluminum 0 Copper❑ MAIN DISCONNECT Switch/Cartridge Fuse O Breaker 0 DISCONNECT RATING 0 Amps Have Electrician Evaluate❑ DISTRIBUTION PANEL Not Opened 9 Not Applicable Location Non Standard Installation❑ Obstructed 0 Unsecured 0 Corrosion O Obsolete O PANEL RATING 0 Amps Room for Expansion O FUSE Breaker 0 Glass/Screw 0 Cartridge O Time Delay 9 GFCI Breaker 0 AFC!Breaker Q Blown/Broken O Over-Fused 0 CIRCUIT WIRE Improper 9 Not Applicable Aluminum 0 Copper 0 Copper Clad 0 Other 0 Non-Metallic Sheathed 0 Armoured Cable 0 Knob 8 Tube 9 Double Tapping 0 Spliced 0 Corrosion O Scorched 9 GROUNDING Concealed O Ground Rod 0 Water Main O Improper Connection/Installation❑ Meter By-Pass/Jumper 0 BONDING Concealed O Water Pipe 9 Gas Pipe O Improper Connection/Installation❑ Corrosion 0 Unsecured 9 AUXILIARY PANEL Concealed 0 Not Applicable Location Non Standard Installation O Not Opened 0 Unsecured❑ Conosion 0 Obsolete 9 DISCONNECT RATING 0 Amps Have Electrician Evaluate❑ PANEL RATING 0 Amps Room for Expansion FUSE Breaker0 Glass/Screw 0 Cartridge O Time Delay GFCI Breaker 0 Blown/Broken 0 Over-Fused 0 Scorched 0 1-877-749-2225 mobile toll free,406-443-8071 fax,keith @inspectormt.com 0 2003 Pillar To Post Inc 45132-3040 Main attic ATTIC p drir 9/4/2007 10:09:03 AM 1.18 W Centenial,Boulder, MT 59632 INSULATION insulation is in contact with roof decking. Providing an air space between insulation and roof deck is recommended. This installation may result in condensation on the insulation which will reduce insulating characteristics of the insulation. Condensation may also damage roof decking. See photo. VENTILATION • Consult a qualified contractor to balance attic insulation/ventilation system to reduce moisture/condensation damages,promote roof system longevity and increase heating efficiency. 1-877-749-2225 mobile toll free,406-443-8071 fax,keith@inspectormt.com ©2003 Pillar To Post Inc. 45132-3040 ,t no access under main house BASEMENT /STRUCTURE `fluiV Rlirlraipost 9/4/2007 10:28:03 AM 118 W Centenial,Boulder,MT 59632 LIMITATION Finished Clutter/Obstruction 0 Dry Weather/Drought Dry GrounC FLOOR Crack 0 Concrete 0 Not Applicable FLOOR JOIST Carpet 0 Ceramic El Vinyl 0 Wood/Lam.0 Engineered floor joists. WALL CrackE Concealed Not Applicable SILL PLATE Mildew/Mold 0 Conc./Block ID Brick/Stone 0 PWF/Vood 0 Rim foist area has been insulated which CEILING Stain❑ Unfinished 0 Not Applicable limits inspection. Drywall/Plaster O Stip/AcousMl❑ Wood 0 Tile❑ Several of the rim joists were WINDOW Binds O Not Test&0 Not Applicable exposed(pulled insulation away) for Single/Dbl.Hung 0 Cas./Awning 0 Sliding/Fxd 0 Bay/Bowl inspection. No damage noted. Ther/Fix/Sng 0 Alum./Metal El VinylN.Cld 0 Wd.Nnyl/FxdE CRAWL SPACE Damaged❑ Mildew/Mold 0 Stain/Rot 0 Repaint 0 Dampness noted in crawl space floor. DOOR Binds Damaged Not Applicable Improve perimeter drainage, extend leaders Pocket Hinged Wood Composite to move run off water away from foundation. AC condensate discharge line empties into LIGHTING Minimal Unsecured 0 Not Applicable crawl space. Suggest routing this line to RECEPTACLE Damaged/No Cover 0 Not Applicable the sewer, Vapor barrier is suggested. Install GFCI 0 Reverse Polarity No Ground O Open Ground❑ No visible crawl space vents. CIRCUIT WIRE Concealed 0 Unsecured0 improper HEAT SOURCE None 0 Thermostat 0 Electric 0 Air Register O Convector/Radiator 0 Radiant O BASEMENT STAIRWAY Unsecured 0 Not Applicable Carpet O Vinyl❑ Wood 0 Worn 0 Trip Hazard 0 RAILING Unsecured0 Not Applicable Metal 0 Wood 0 Incomplete❑ None 0 FLOOR JOIST Concealed 0 No Visible Damage Noted Unsecured D Split O Stain/Rot O Other BRIDGING Concealed 0 Not Applicable Continuous El X-Metal 0 X-Wood 0 Solid Wood El SILL PLATE Concealed 5 Not Applicable Moisture Gasket 0 Mildew/Mold O Stain/Rot O No Anchors 0 BEAM Unsecured Concealed 0 Not Applicable Laminate O Metal 0 Wood O Sag O POST On Slab❑ Concealed 0 Not Applicable Adjustable 0 Brick/Block 0 Conc./Metal 0 WoodE BEARING WALL Concealed 0 Not Applicable COLD ROOM Improper Door° Not Applicable Concrete O Brick/Block 0 Stone O Parged O Earth Floor❑ Mildew/Mold 0 Stain/Damp 0 Crack CRAWL SPACE No Access 0 Visible Damage Noted Vapor Barrier 0 Insulated 0 Entered© Looked In 0 Crack 0 Mildew/Mold 0 Stain/Rot 0 Damp p • Earth Floor IS Concrete 0 Moisture Barrier Required PIPES/DUCTS Unsecured 0 Leak❑ Insulated 0 VENTILATION Mechanical0 Blocked O Required© SLAB ON GRADE Concealed 0 Not Applicable On Piling/Pier O On Brick/Block/Poured Conc.El Floating crack/Spalling❑ Frost Heave Settling Leak 1-877-749-2225 mobile toll free,406-443-8071 fax,keith@inspectormt.com C 2003 Pillar To Post Inc. 45132-3040 HEATING/COOLINGNENTILATION • HI Ib----9/4/2007 10:40:40 AM 118 W Centenial,Boulder,MT 59632 DATA PLATE: Not Legible° incomplete 0 Model WANE TUD1009V3K4 Btu Input 100,000 Est.Age 3yrs. LIMITATIONS: Clean-Out Does Not Open 0 OillPropane Tank Not Visible° System Operating AC/Heat© System Shut-Off/Inoperative° Piping/Ducts Concealed° Weather/Temperature0 SMOKE DETECTORS Basement 0 1st Floor 0 2nd Floor© 3rd Floor° Other suggested installation CO DETECTORS Basement O 1st Floor 5 2nd Floor© 3rd Floor° Other suggested installation THERMOSTATIHUMIDISTAT Unsecured Operational HEATING SYSTEM Location North main floor room Programmable© Standard 0 Gas forced air furnace typical life FUEL SOURCE Gas MI Oil 0 Wood/Pellet 0 Electric° exceptancy is 20-25yrs. Consultation with HEAT TYPE Convector O Forced Air© Radiator° heating contractor or power company is BURNER TYPE Conventional 0 Mid 0 High° suggested to evaluate combustion air supply. HEATING SYSTEM Advise Service/Repair Contract❑ AC/HEAT PUMP AIR REQUIREMENT Internal© External 0 Inadequate 0 Thane XL14i model. VENTING Flue 5 Sidewall 0 Metal 0 Plastic 0 Condensate discharge line should be Improper Rises° Unsecured 0 Corrosion° Soot 0 connected to sewer system. Proper routing LIFE EXPECTANCY Typical© Middle/End 0 Exceeded 0 of condensate line is recommended. GAS BURNER Not Checked° Operational BURNER Corrosion 0 Advise Adjustment 0 IGNITION Electronic 0 Pilot& Thermocouple 0 HEAT SHIELD Missing O Corrosion° Soot 0 PROPANE TANK/PIPING Unsecured Corrosion❑ Kink/Leak 0 OIL BURNER BLOWER Not Checked° Not Applicable BURN CHAMBER Deterioration 0 Advise Adjustment I�I Burn Through° Corrosion 0 Crack° Soot L�'JS INSPECTION DOOR Missing Soot Sealed BAROMETRIC DAMPER Missing Unbalanced 0 Sealed OIL TANK/PIPING Basement 0 Outside 0 Buried 0 No Filter Unsecured 0 Corrosion° Kink/Leak 0 CENTRAL HUMIDIFIER Not Checked O Not Applicable Water Shut Off° Damaged❑ Clean/Repair/Replace A Mildew 0 Unsecured 0 Corrosion° Leak TU MOTOR/BLOWER Direct Drive 5 Noisy Other FAN BELT Loose/Wom0 Misalign0 Other0 FILTER Electronic Disposable 0 Permanent Missing Inoperable Undersized 0 Damaged 0 Dirty DUCT/JOINT/HOUSING Unsecured° Corrosion° Kink/Leak 0 AC!HEAT PUMP Not Checked° Operational Evaporative° Central IS Geo-Therm° Air° Through Wall° Damaged Fins 0 Corrosion 0 Noisy 0 Loose° Unsecured° Not Level° Dirty° TEMP.DIFFERENTIAL Supply Air 64 Return Air 78 FUEL SOURCE Unknown 0 Electric© Gas 0 CONDENSATION LINE Improper Drain Corrosion Leak REFRIGERANT LINE Unsecured°Not Insulated 0 Leak° HRV/Alr Exchanger Not Checked 0 Not Applicable Dirty Filter ° Unsecured 0 Corrosion 0 Noisy° ELECTRIC HEATING Not Tested 0 Not Applicable Forced Air Boiler° Baseboard° Radiant 0 Loose Connection 8 Damaged Fins O Corrosion 0 Scorched 1-877-749-2225 mobile toll free,406-443-8071 fax,Keith©inspectormt.com 0 2003 Pillar To Post Inc. 45132-3040 PLUMBING COMPONENTS • fit 7p pst 9/4/2007 10:53:59 AM 118 W Centenial,Boulder,MT 59632 LIMITATION Finished Basement O Private Vater Shut Off O Private System 0 Other PUBLIC SUPPLY Concealed 0 Not Metered HOSE BIBB Lead 0 Galvanized 0 Plastic 0 Copper© Generally speaking, the winterization of SHUT-OFF VALVE Location crawl space frost free/anti-siphon hose bibbs requires Not Tested 5 Corrosion 0 Leak 0 the removal of the hoses prior to freezing PRIVATE SUPPLY Concealed Not Applicable temperatures. SHUT-OFF VALVE Location Not Tested O Corrosion 0 Leak 0 WELL PUMP Submersible 0 Jet 0 Other 0 Short Cycle 0 Corrosion O Leak❑ Advise Well Water Quality/Recovery Test STORAGE TANK No Air Valve 0 Corrosion 0 Leak WATER PRESSURE Low0 Typical 0 High 0 WATER QUALITY Discoloration 0 Debris 0 Odor 0 Test Declined 0 Advise Water Quality Test 0 HOSE BIBB Not Checked 0 Operational Frost Free© Anti-Siphon 5 Shut Off Valve 0 Recaulk 0 Unsecured❑ Corrosion 0 Leak 0 DISTRIBUTION PIPING Concealed 0 No Visible Damage Noted Lead O Galvanized El Plastic Q✓ Copper 5 Dissimilar Metal 0 Unsecured 0 Corrosion 0 Leak❑ CROSS CONNECTION Kitchen 0 Laundry 0 Hose BibbO WASTE DRAINAGE Concealed 0 No Visible Damage Noted Galvanized/Steel 0 Cast Iron 0 Plastic© Copper 0 OdorD Unsecured Corrosion D Leak Advise Septic Tank Checked/Pumped FLOOR DRAIN Mechanical/Faucet Primer None 0 Backed-Up 0 No Water 0 No Trap SEWAGE PUMP Not Checked❑ Not Applicable VENT STACK/PIPING Concealed No Visible Damage Noted Galvanized/Steel O Cast Iron O Plastic a Copper O Undersized 0 Unsecured 0 Corrosion 0 Leak❑ MAIN CLEANOUT Concealed 0 No Visible Damage Noted Improper Plug O Location crawl space HOT WATER TANK Hybrid Heating 0 Operational Power-Vented 0 Own© Rent❑ Est.Capacity 2gallo IG Gas/Propane 0 Oil 0 Wood/Coal❑ Electric Dirty/Rusty/Odor 0 Unsecured 0 Corrosion 0 Leak 0 LIFE EXPECTANCY Typical © Middle/End 0 Exceeded FUEL SHUT-OFF Concealed 0Location RELIEF VALVE No Test Lever Corrosion 0 Other 0 DISCHARGE TUBE Undersized Discharge Missing 0 VENTING Flue 0 Sidewall 0 Not Applicable Improper Rise O Unsecured 0 Corrosion 0 Soot O BURN CHAMBER Not Checked 0 Needs Adjustment SUMP PUMP Not Checked 0 Not Applicable Submersible O Standpipe O To Exterior Grade Float Checked O No/Improper Cover 0 Permanent Connection 0 Corrosion 0 To Septic/Sewer 0 Suspect Installation 0 1-877-749-2225 mobile toll free,406-443-8071 fax,keith(dinspectormt.com ®2003 Pillar To Post Inc. 45132-3040 LAUNDRY • AI r'ItiPlisf' 118 W Centenial,Boulder,MT 59632 FLOOR Worn 0 No Drain 0 Not Applicable Concrete 0 Vinyl Wood/Lam 0 Ceramic 0 WALL Patched 0 Unfinished 0 Not Applicable Drywall/Plaster 0 BrklBlIUStone Q WoodNJP.❑ Ceramic O CEILING Patched0 Unfinished Not Applicable DrywalUPlaster 0 Stip/Acousm ❑ Wood 0 Tile 0 WINDOW Binds 0 Not Tested 0 Not Applicable Single/Dbl.Hung❑ Cas./Awning 0 Sliding/Fx❑ Bay/Bow o Ther/Fix/Sng 101 Alum./Metal VinyIN.CI 0 Wd.Nnyl/Fxd 0 Damaged,LJi Mildew/Mold 0 Stain/Rot 0 Repaints DOOR Binds❑ Damaged❑ Not Applicable Packet/Bi-Fold 0 Hinged❑ Wood❑ Composite O LIGHTING None 0 Unsecured 0 Not Applicable RECEPTACLE Damaged/No Cover 0 Not Applicable Install GFCI Reverse Polarity❑No Ground 0 Open Ground TUB I FAUCET Unsecured 0 Not Applicable Plastic 0 Other O Slow Drain❑ Corrosion 0 Leak❑ TRAP I DRAIN Unsecured O Not Applicable Improper Trap 0 Slow Drain O Corrosion 0 Leak 0 WASHER Make Not Applicable DRYER Make Not Applicable DRYER VENT Unsecured 0 Not Applicable With Other Exhaust❑ To Craw/space❑ To Attic 0 Plastic Duct HEAT SOURCE None 0Thermostat❑ Electric❑ Air Register O Convector/Radiator O Radiant O FIREPLACE Fifim Tn,fit TYPE Built-In❑ Free Standing O Gas Insert Wood Insert O Metal Liner 0 Firebrick❑ External Air Supply❑ FIREPLACE FRONT Soot/Stain 0 Not Applicable Brick O Ceramic 0 Marble❑ Stone O HEARTH Raised❑ None O Not Applicable DOOR/SCREEN None O Not Applicable Binds O Glass 0 Metal❑ Mesh❑ Poor Fit 0 Unsecured 0 Corrosion El Crack 0 FIREBOX Fan O Not Checked O Not Applicable DAMPER None 0 Not Applicable Sticks❑ Unsecured❑ Corrosion O Creosote 0 GAS INSERT Fan 0 Not Tested 0 Not Applicable WOOD/PELLET STOVE Not Tested❑ Not Applicable Soot❑ Suspect/nstadation El Certification Not Apparent 0 CHIMNEY FLUE Not Checked 0 Not Applicable Soot 0 Unsecure/Improper 0 Advise Inspection/Sweeping 0 1-877-749-2225 mobile toll free,406-443-8071 fax,Keith©inspectormt.com 2003 Pillar To Post Inc. 45132-3040 BATHROOM AI'arib post-9/4/2007 10:55:17 AM 118 W Centenial,Boulder,MT 59632 LOCATION Basement 0 1st Floor 15 2nd Floor 3rd Floor Other WATER FLOW Normal Suspect0 LowQ FLOOR Worn O Crack/Stain 0 No Visible Damage Noted Carpet 0 Vinyl 5 Wood/lam.0 Ceramic O WALL Patched 0 Crack/Stain 0 No Visible Damage Noted Drywall 5 Brk/Blk/Stone f Wood/WP.O Ceramic CEILING Patched0 Crack/Stain❑ Not Applicable Drywall© Stip/Acous/WP. 0 Wood❑ Tile p WINDOW Binds 0 Not Tested 0 Not Applicable Single/Dbl.Hung 0 Cas.iAwning jJ Sliding/Fxd 0 Bay/Bow 0 Ther/Fix/Sng O Alum./Metal 0 Vinyl/VC!O Wd.Nnyl/Fx 0 Damaged Mildew/Mold 0 Stain/Rot 0 Repaint0 DOOR Binds Damaged Operational Pocket 0 Hinged 0 Wood 0 Composite LIGHTING None 0 Unsecured 0 Operational RECEPTACLE Damaged/No Cover 0 Operational Install GFCI Reverse Polarity 0 No Ground°Open Ground EXHAUST FAN Advise Installation 0 Operational SINK Worn 0 Chip/Scratch 0 No Visible Damage Noted FAUCET No Shut-Off 0 Operational Sticks 0 Unsecured O Corrosion❑ Leak❑ TRAP/DRAIN Unsecured 0 No Visible Damage Noted Improper Trap 0 Slow Drain 0 Corrosion 0 Leak 9 VANITY Wom secured No Visible Damage Noted Laminate 0 Unsecured all Wood© Metal 0 Scratch 0 Mildew/Stain 0 Missing/Loose Hardware 0 COUNTER Unsecured 0 No Visible Damage Noted Solid Surface 0 Mrbl./Granite 9 Laminate© Ceramic 9 Regrout/Recaulk 0 Mildew/Stain 0 Scratch 0 Worn 0 TOILET No Shut-Off 0 Operational Tank Loose 9 Unsecured 0 Crack 9 Leak 0 TUB!ENCLOSURE Unsecured 0 Not Applicable Ceramic O Cult./Marble 9 Fiberglass❑ Plastic O Regrout/Recaulk 0 Mildew/Stain 0 Crack 9 Worn 0 JETTED TUB Not Tested 0 Not Applicable GFCI Protected 0 Motor Access 0 Corrosion 0 Leak 9 FAUCET/SHOWER HEAD Not Tested 0 Not Applicable Slicks/Clogged 0 Unsecured 0 Corrosion 0 Leak 0 SHOWER ENCLOSURE Unsecured l'1 Not Applicable Ceramic 0 Cult/Marble,L�JI Fiberglass 0 Plastic 9 Regrout/Recaulk O Mildew/Stain 0 Scratch 9 Worn 9 FAUCET/SHOWER HEAD Not Tested 0 Not Applicable Sticks/Clogged❑ Unsecured 0 Corrosion 9 Leak 9 HEAT SOURCE None 0 Thermostat 0 Electric O Air Register 15 Convector/Radiator 0 Radiant 0 1-877-749-2225 mobile toll free,406-443-8071 fax,keith@inspectormt.com 2003 Pillar To Post Inc. 45132-3040 (l KITCHEN Ali io PO.m 9/4/2007 10:57:15 AM 118 W Centenial,Boulder,MT 59632 FLOOR Worn 0 Crack/Stain 0 No Visible Damage Noted Carpet 0 Vinyl ©Wood/Lam.❑ Ceramic❑ WALL Patched O Crack/Stain 0 No Visible Damage Noted Drywall 15 Brk/Blk/Stone O Wallpaper O Ceramic • CEILING Patched 0 Crack/Stain 0 No Visible Damage Noted Drywall© Stip/AcousNV❑ Wood 0 Tile WINDOW Binds Not Tested❑ Operational Single Hung© Cas./Awning❑ Sliding/Fxd❑ Bay/Bow❑ Thermal in Alum./Metal 0 Vinyl © Wd.Nnyl/Fx❑ Damaged0 Mildew/Mold 0 Stain/Rot 0 Repaint DOOR Binds 0 Damaged 0 Operational Pocket/Bi-Fold❑ Hinged Si Wood 9 Composite 0 PATIO DOOR Binds O Damaged 0 Operational • Sliding 0 Hinged Ei Wood O Metal in LIGHTING None 0 Unsecured❑ Operational CEILING FAN None 0 Unsecured 0 Not Applicable RECEPTACLE Damaged/No Cover 0 Operational Install GFCI 0 Reverse Palenty 0 No Ground 0 Open Ground 0 SINK Worn 0 Chip/Scratch 0 No Visible Damage Noted Single 0 Double 9 Stainless 0 Enamel/S.Sf 0 FAUCET No Shut-Off Valve O Operational Sticks 0 Unsecured 0 Corrosion 0 Leak O TRAP/DRAIN Unsecured 0 No Visible Damage Noted Improper Trapp Slow Drain 0 Corrosion❑ Leak COUNTER Unsecured O No Visible Damage Noted Ceramic O Marble/Granite O Laminate 9 Solid Surf.0 Regrout/Recaulk❑ Mildew/Stain 0 Scratch❑ Worn❑ CABINET Worn 0 Unsecured No Visible Damage Noted Laminate 0 Plywood C] Wood 0 Metal O Miss/Loose Hdwr 0 Mildew/Stain❑ Scratch 0 Other RANGE HOOD Cooktop Exhaust O Not Applicable Corrosion O No Exhaust O No Light❑ Noisy 0 EXHAUST VENT Unsecured 0 Ductless 0 Concealed O With Other Exhaust 0 To Attic 0 Improper 0 To Exterior FILTER None 0 Unsecured❑ Damaged❑ Greasy MAJOR APPLIANCES(Built In) DISHWASHER Not Applicable GARBAGE DISPOSAL Not Applicable STOVE/OVEN/RANGE Not Applicable REFRIGERATOR Operational MICROWAVE Not Applicable Tested On/Off C] Did Not Check All Functions/Full Cycle O HEAT SOURCE None❑ Thermost 0 Electric❑ Air Register 0 Convector/Radiator O Radiant O 1-877-749-2225 mobile toll free,406-443-8071 fax,keith©inspectonnt.com CO 2003 Pillar To Post Inc. 45132-3040 AtL FOYER / HALLWAY / STAIRWAY Rllahr airiest-7 9/4/2007 10:59:13 AM 118 W Centenial,Boulder,MT 59632 FLOOR Worn 0 Crack/Stain 0 No Visible Damage Noted LIGHTING Carpet° Vinyl Wood/Lam Ceramic° Stairs lack properly installed two way light WALL Patched 0 Crack/Stain 0 No Visible Damage Noted switch. Drywall/Plaster El BrkiBlWStone° Wood❑ Wallpaper° CEILING Patched Crack/Stain0 Not Applicable Drywall/Plaster Q Slip/Acous/W° Wood 0 Tile O • WINDOW Binds 0 Not Tested 0 Not Applicable Single/Dbl.Hung 0 Cas./Awning 0 Fixed I7 Bay/Bow° Ther/Fix/Sng 0 Alum./Metal°VinylN.Cld° Wood Damaged° Mildew/Mold° Stain/Rot 0 Repaint° LIGHTING None 0 Unsecured° Operational CEILING FAN None° Unsecured° Not Applicable • RECEPTACLE Damaged/No Cover 0 Not Applicable Switched 0 Reverse Poladty°No Ground 0 Open Ground 0 CLOSET/DOOR Binds 0 Damaged° Operational Light° PocketBi-Fold 0 Hinged MI Sliding° STAIRWAY Unsecured° No Visible Damage Noted Carpet El Vinyl 0 Wood Worn 0 Trip Hazard 0 RAILING Unsecured No Visible Damage Noted Metal 0 Wood Incomplete° None 0 FRONT DOOR Damaged Operational Binds 0 Metal Clad 0 Wood© Dead Bolt 0 Replace Sill/Trim 0 Weather Seal° Split/Dent 0 Worn 0 SIDELIGHT Loose° Crack/Stain° No Visible Damage Noted i FAMILY/ RECREATION ROOM Ilfn>r3+ipiist• FLOOR Worn 0 Crack/StainD Not Applicable Carpet 0 Vinyl°Wood/Lam 0 Ceramic 0 WALL Patched 0 Crack/Stain0 Not Applicable Drywall/Plaster°Brk/BIk/Stone° Wood 0 Wallpaper° CEILING PatchedU Crack/Stain° Not Applicable Drywall/Plaster Stip/Acous/0 Wood 0 Tile° WINDOW Binds 0 Not Tested° Not Applicable Single/Dbl.Hung° Cas./Awning°Sliding/Fxd 0 Bay/Bow° Ther/Fix/Sng ° Alum./Metal°VinylN.Cld° Wd.Nnyl/Fxd 0 Damaged 0 Mildew/MoldO Stain/Rot 0 Repaint0 DOOR Binds 0 Damaged° Not Applicable PockeVBi-Fold 0 Hinged° Wood 0 French 0 PATIO DOOR Binds O Damaged° Not Applicable Sliding° Hinged Wood° MetalNinyl 0 LIGHTING None 0 Unsecured° Not Applicable CEILING FAN None 0 Unsecured° Not Applicable RECEPTACLE Damaged/No Cover° Not Applicable Switched° Reverse Polarity°No Ground 0 Open Ground° HEAT SOURCE None°Thermostat 0 Electric❑ Air Register 0 Convector/Radiator° Radiant O 1-877-749-2225 mobile toll free,406-443-8071 fax,keith @inspectormt.com ®2003 Pillar To Post Inc. 45132-3040 LIVING ROOM AI- r7b Post- 118 W Centenial,Boulder,MT 59632 FLOOR Worn 0 Crack/Stain 0 Not Applicable Camel❑ Vinyl 0 Wood/Lam.fl Ceramic 0 WALL Patched0 Crack/Stain O Not Applicable Drywall/Plaster 0 Brk/BIk/Stone[J Wood 0 Wallpaper 0 CEILING Patched0 Crack/Stain❑ Not Applicable Drywall/Plaster p Stip/Acous/W 0 Wood 0 Tile p WINDOW Binds 0 Not Tested 0 Not Applicable Single/Dbl.Hung O Cas./Awning 0 Sliding/Fxd Bay/Bow Ther/Fix/Sng O Alum./Metal VinylN.Cld0 Wd.Nnyl/Fxd 0 Damaged Mildew/Mold 0 Stain/Rot 0 Repaint0 DOOR Binds❑ Damaged❑ Not Applicable Pocket/Bi-Fold O Hinged❑ Wood O French 0 PATIO DOOR Binds 0 Damaged 0 Not Applicable Sliding O Hinged 0 Wood 0 MetalNinyl 0 LIGHTING None 0 Unsecured0 Not Applicable CEILING FAN None❑ Unsecured 0 Not Applicable RECEPTACLE Damaged/No Cover O Not Applicable Switched 0 Reverse Polarity 0 No Ground 0 Open Ground 0 HEAT SOURCE None 0 Thermostat❑ Electric 0 Air Register O Convector/Radiator 0 Radiant❑ DINING ROOM Fifiar�rpo"st" FLOOR Worn❑ Crack/Stain O Not Applicable Carpet 0 Vinyl 0 Wood/Lam.❑ Ceramic D WALL Patched0 Crack/Stain O Not Applicable Drywall/Plaster O Brk/Bik/Stone O Wood O Wallpaper El CEILING Patched0 Crack/Stain❑ Not Applicable Drywall/Plaster O Stip/Acous/VV Wood O Tile O WINDOW Binds 0 Not Tested 0 Not Applicable Single/Dbl.Hung❑ Cas./Awning Sliding/FxdO Bay/Bow O Ther/Fix/Sng Alum./MetalO VinyIN.CId0 0 Damaged Mildew/Mold0 Stain/Rot 0 Repaint DOOR Binds 0 Damaged O Not Applicable Pocket/BI-Fold Hinged 0 Wood 0 French❑ PATIO DOOR Binds 0 Damaged 0 Not Applicable Sliding❑ Hinged 0 Wood❑ MetalNinyl O LIGHTING None❑ Unsecured 0 Not Applicable CEILING FAN None Unsecured0 Not Applicable RECEPTACLE Damaged/No Cover 0 Not Applicable Switched 0 Reverse Polarity O No Ground 0 Open Ground 0 HEAT SOURCE None 0 Thermostat 0 Electric❑ Air Register 0 Convector/Radiator 0 Radiant❑ 1-877-749-2225 mobile toll free,406-443-8071 fax,keith@inspectormt.com 0 2003 Pillar To Post Inc. 45132-3040 r: SW office R(n7U(lOSf' 9/4/2007 11:01:43 AM 118 W Centenial,Boulder,MT 59632 FLOOR Worn❑ Crack/Stain❑ No Visible Damage Noted FLOOR Carpet SI Vinyl❑Wood/Lam❑ Ceramic❑ Base molding is incomplete. WALL Uneven Crack/Stain❑ No Visible Damage Noted CEILING Drywall© Brk/Blk/Stn/❑Wood/WP. ❑ Composite❑ Suspended type ceiling tiles. CEILING Patched❑ Crack/Stain❑ No Visible Damage Noted Drywall/Plaster❑ Acoustic© Wood❑ Tile 0 WINDOW Binds❑ Not Tested❑ Operational Single Hung 51 Cas./Awning❑Slitling/Fxd❑ Bay/Bow❑ Thermal 15 Alum./Metal❑ Vinyl©Wd.Nnyl/Fxd❑ Damaged Mildew/Mold❑ Stain/Rot❑ Repaint❑ DOOR Binds❑ Damaged Operational Pocket/Bi-Fold❑ Hinged© Wood© Composite❑ PATIO/DOOR Binds❑ Damaged❑ Not Applicable Sliding❑ Hinged❑ Wood❑ MetalNinyl❑ CLOSET/DOOR Binds❑ Damaged Not Applicable Light❑ Hinged❑ Bi-Fold❑ Sliding❑ LIGHTING None Unsecured 0 Operational CEILING FAN None 0 Unsecured 0 Not Applicable RECEPTACLE Damaged/No Cover❑ Operational Switched❑ Reverse Polarity❑No Ground❑Open Ground❑ HEAT SOURCE None❑ Thermostat❑ Electric❑ Air Register 5 Convector/Radiator❑ Radiant❑ SE office FLOOR Worn❑ Crack/Stain❑ No Visible Damage Noted CEILING Carpet 5 Vinyl❑Wood/Lam❑ ceramic Suspended type ceiling tiles. WALL Uneven❑ Crack/Stain❑ No Visible Damage Noted Drywall 51 Brk/Blk/Stn/❑Wood/WP. ❑ Composite❑ CEILING Patched Crack/Stain❑ No Visible Damage Noted Drywall❑ Acoustic© Wood❑ Tile❑ WINDOW Binds❑ Not Tested❑ Operational Single Hung MI Cas./Awning❑Sliding/Fxd❑ Bay/Bow❑ Thermal© Alum./Metal❑ Vinyl I9 Wd.Nnyl/Fxd❑ Damaged❑ Mildew/Mold❑ Stain/Rot❑ Repaint❑ DOOR Binds Damaged 0 Operational Pocket/Bi-Fold❑ Hinged© Wood 5 Composite❑ PATIO/DOOR Binds❑ Damaged❑ Not Applicable Sliding❑ Hinged❑ Wood❑ MetaVnyl❑ CLOSET/DOOR Binds Damaged 0 Operational Light❑ Hinged© Bi-Fold❑ Sliding❑ LIGHTING None❑ Unsecured❑ Operational CEILING FAN None❑ Unsecured❑ Not Applicable RECEPTACLE Damaged/No Cover❑ Operational • Switched❑ Reverse Polarity❑No Ground❑ Open Ground❑ HEAT SOURCE None❑ Thermostat❑ Electric❑ Air Register a Convector/Radiator❑ Radiant❑ 1-877-749-2225 mobile toll free,406-443-8071 fax,keith(inspectormt.com 0 2003 Pillar To Post Inc 45132-3040 north office • AI gr BiSl- 9/4/2007 11:04:45 AM 118 W Centenial,Boulder,MT 59632 FLOOR Worn❑ Crack/Stain❑ No Visible Damage Noted CEILING Carpet 5 Vinyl❑Wood/Lam❑ Ceramic❑ Suspended type ceiling tiles. WALL Uneven❑ Crack/Stain❑ No Visible Damage Noted Drywall© Brk/Blk/Strd❑Wood/WP.❑ Composite❑ CEILING Patched❑ Crack/Stain❑ No Visible Damage Noted Drywall/Plaster❑ Acoustic 5 Wood❑ Tile❑ WINDOW Binds❑ Not Tested❑ Operational Single Hung© Cas./Awning❑Sliding/Fxd❑ Bay/Bow❑ Thermal© Alum./Metal❑ Vinyl 5 Wd.Nnyl/Fxd❑ Damaged❑ Mildew/Mold ❑ Stain/Rot❑ Repaint❑ DOOR Binds❑ Damaged❑ Not Applicable Pocket/Bi-Fold❑ Hinged❑ Wood❑ Composite❑ PATIO/DOOR Binds❑ Damaged❑ Not Applicable Sliding❑ Hinged❑ Wood❑ Metal/Vinyl❑ CLOSET/DOOR Binds❑ Damaged❑ Not Applicable Light❑ Hinged❑ Bi-Fold❑ Sliding❑ LIGHTING None❑ Unsecured❑ Operational CEILING FAN None❑ Unsecured❑ Not Applicable RECEPTACLE Damaged/No Cover❑ Operational Switched❑ Reverse Polarity❑No Ground❑Open Ground❑ HEAT SOURCE None❑ Thermostat❑ Electric❑ Air Register© Convector/Radiator❑ Radiant❑ && & North second floor. Agar ilipiut• FLOOR Worn❑ Crack/Stain❑ No Visible Damage Noted Carpet 5 Vinyl❑Wood/Lam❑ Ceramic❑ WALL Uneven❑ Crack/Stain❑ No Visible Damage Noted Plaster 5 Brk/Blk/SIN❑Wood/WP.❑ composite!: CEILING Patched❑ Crack/Stain❑ No Visible Damage Noted Plaster 5 Stip/AcousAN❑ Wood❑ Tile❑ WINDOW Binds❑ Not Tested❑ Operational Single Hung 5 Cas./Awning❑Sliding/Fxd❑ Bay/Bow❑ Thermal 9 Alum./Metal❑ Vinyl 5 Wd.Nnyl/Fxd❑ Damaged❑ Mildew/Mold ❑ Stain/Rot❑ Repaint❑ DOOR Binds❑ Damaged❑ Not Applicable Pocket/Bi-Fold❑ Hinged❑ Wood❑ Composite❑ • PATIO/DOOR Binds❑ Damaged❑ Not Applicable Sliding❑ Hinged❑ Wood❑ MetalNinyl❑ CLOSET/DOOR Binds❑ Damaged❑ Not Applicable Light❑ Hinged❑ Bi-Fold❑ Sliding❑ LIGHTING None Unsecured Operational CEILING FAN None Unsecured Not Applicable RECEPTACLE Damaged/No Cover❑ Operational Switched❑ Reverse Polarity❑No Ground❑ Open Ground❑ HEAT SOURCE None❑ Thermostat❑ Electric❑ Air Register 5 Convector/Radiator❑ Radiant 1-877-749-2225 mobile toll free,406-443-8071 fax,keith@inspectormt.com ©2003 Pillar To Post Inc. 45132-3040 4Ak SE second floor pl rigor— 9/4/2007 11:08:16 AM 118 W Centenial,Boulder,MT 59632 FLOOR Worn 0 Crack/Stain 0 No Visible Damage Noted Carpet Is Vinyl 0 Wood/Lam 0 Ceramic 0 WALL Uneven 0 Crack/Stain 0 No Visible Damage Noted Plaster S Brk/Blk/Stn/0 Wood/WP.0 Composite 0 CEILING Patched 0 Crack/Stain 0 No Visible Damage Noted Plaster 0 Stip/AcousNJ 0 Wood 0 Tile0 WINDOW Binds 0 Not Tested 0 Operational Single/Dbl.Hung 0 Casement Q Sliding/Fxd 0 Bay/Bow 0 Thermal Q Alum./Metal 0 Vinyl IS Wd.Nnyl/Fxd 0 Damaged Mildew/Mold 0 Stain/Rot 0 Repaint° DOOR Binds° Damaged° Not Applicable Pocket/Bi-Fold 0 Hinged 0 Wood 0 Composite 0 PATIO/DOOR Binds Damaged0 Not Applicable Sliding 0 Hinged 0 Wood 0 MetalNinyl° CLOSET/DOOR Binds 0 Damaged° Operational Light 0 Hinged 0 Bi-Fold 0 Sliding 0 LIGHTING None 0 Unsecured Operational CEILING FAN None Unsecured Not Applicable RECEPTACLE Damaged/No Cover 0 Operational Switched 0 Reverse Polarity 0 No Ground 0 Open Ground HEAT SOURCE None 0 Thermostat 0 Electric 0 Air Register 0 Convector/Radiator 0 Radiant 0 SW second floor Flour m Oar FLOOR Worn 0 Crack/Stain 0 No Visible Damage Noted Carpet S Vinyl 0 Wood/Lam 0 Ceramic0 WALL Uneven 0 Crack/Stain 0 No Visible Damage Noted Plaster 0 Brk/Blk/Stn/0 Wood/WP. 0 Composite0 CEILING Patched 0 Crack/Stain 0 No Visible Damage Noted Plaster Stip/Acous/VV 0 Wood 0 Tile° WINDOW Binds 0 Not Tested 0 Operational Single Hung 2 Cas./Awning°Sliding/Fxd 0 Bay/Bow 0 Thermal© Alum./Metal 0 Vinyl©Wd.Nnyt/Fxd 0 Damaged 0 Mildew/Mold 0 Stain/Rot 0 Repaint0 DOOR Binds 0 Damaged 0 Not Applicable Pocket/BI-Fold 0 Hinged 0 Wood 0 Composite0 PATIO/DOOR Binds Damaged Not Applicable Sliding 0 Hinged 0 Wood 0 Metal/Vinyl0 CLOSET/DOOR Binds 0 Damaged 0 Not Applicable Light 0 Hinged 0 Bi-Fold 0 Slidirg0 LIGHTING None Unsecured 0 Operational CEILING FAN None O Unsecured 0 Not Applicable RECEPTACLE Damaged/No Cover 0 Operational Switched 0 Reverse Polarity 0 No Ground 0 Open Ground° HEAT SOURCE None O Thermostat O Electric° Air Register I21 Convector/Radiator 0 Radiant0 • 1-877-749-2225 mobile toll free,406-443-8071 fax,keith©inspectormt.com ©2003 Pillar To Post Inc. 45132-3040 HOT WATER/STEAM HEATING Apr—prst 118 W Centenial,Boulder,MT 59632 LIMITATION System 0 Temperature 0 Other HOT WATER(w)/STEAM(s) Not Applicable BOILER CASE(w) Deterioration 0 Corrosion 0 Leak 0 CIRCULATING PUMP(w) inoperative 0 Corrosion Noisy0 AQUASTAT(w) Missing Corrosion Unsecured BACK FLOW PREVENTOR Missing 0 Corrosion 0 Leak 0 PRESSURE REDUCER(w) Missing Corrosion❑ Leak O EXPANSION TANK Location Drain Tank 0 Open 0 Closed 0 Diaphragm❑ Waterlogged❑ Unsecured 0 Corrosion O Leak O PIPING(w/s) Deterioration 0 Corrosion 0 Leak PRESS.RELIEF VALVE Missing 0 Corrosion 0 Leak 0 SITE GLASS(s) Missing 0 Corrosion D Low Water LOW WATER CUTOUT(s) Missing O Corrosion O Leak O PRESSURE CONTROLLER(s) Missing❑ Corrosion 0 Leak 0 For the purpose of this report your house faces: HiiurTnpost' A in AC 4) P New • A **Drawing is not to Scale** 1-877-749-2225 mobile toll free,406-443-8071 fax,keith@lnspectormt.com ©2003 Pillar To Post Inc. 45132-3040 ADDITIONAL COMMENTS ..��.__ fllr rin plXt'9/4/2007 71:12:33 AM 118 W Centenial,Boulder,MT 59632 Attic access Attic access located in closet ceiling. Attic Vent Consult a qualified contractor to balance attic insulation/ventilation system to reduce moisture/condensation damages, promote roof system longevity and increase heating efficiency. AC/Heat Pump Condensate discharge line should be connected to sewer system. Proper routing of condensate line is recommended. Crawl Space Incomplete crawl space/foundation insulation. Dampness noted in crawl space floor. Improve perimeter drainage, extend leaders to move run off water away from foundation.No visible crawl space vents. Lighting-Exterior Motion sensor exterior lights were not checked. If these lights fail to work when dark, check bulbs before taking further action. Receptacles Receptacles currently in use or inaccessible were not tested. 1-877-749-2225 mobile toll free,406-443-8071 fax,keith@inspectormt.com 0 2003 Pillar To Post Inc. 45132-3040 LIMITATIONS AI drltiO115f'9/4/2007 11:27:55 AM 118 W Centenial,Boulder,MT 59632 The folowing limitations pertain to your report as marked. ❑ Snow Cover/Obstruction— Areas in report noted as"not visible" have not been inspected because of snow cover or other obstruction impeding a visual inspection. © Occupied Home— The home is occupied by seller/tenant with their personal belongings and furniture which may limit some areas to inspect. ❑ Skylight—Skylights are an excellent source of light to dwellings,but frequently have condensation problems and are always a risk for potential future water leaks because flashings require regular ongoing maintenance by an experienced roofer. ❑ Solarium— Solariums in most cases are installed as an addition to the main structure to necessitate additional living space. They are high maintenance and most often have condensation problems which can be controlled but never eliminated. Expect a need for frequent re-glazing of panes and/or replacement of thermal units as this structure ages and deteriorates.Also,with dramatic seasonal changes in temperature, it is difficult to control the interior climate of this part of the dwelling. ❑ Built Up Roofs— This roof is constructed of a built-up membrane that is essentially hidden from view.As such,it is difficult to inspect fully without destructive testing which is beyond the scope of the inspection.This inspection is limited to reviewing and describing the roof system and does not guarantee or warranty now or in the future that the roof will not leak. ❑ Finished Basements— The finishing of the basement prevents visual inspection of foundation walls,floors,mechanical and structural components. ❑ Normal f High moisture readings were found at time of inspection. Despite these tests results, a dry basement at this time or at any time in the future is not guaranteed. O Circuit Sizing— The Inspector is required to address the compatibility of conductors and overcurrent devices. In some instances,general trade procedures include over-sizing overcurrent devices to guard against nuisance(e.g.air conditioning units,dryers).The Inspector is not required to evaluate such general trade procedures,but to inform you of incompatibility. ❑ Standard and Mid-Efficiency Furnace- Only a limited section of the heat exchanger could be viewed with a light and mirror.Dismantling the furnace to thoroughly inspect the heat exchanger is beyond the scope of this inspection.You are advised to obtain the services of a qualified gas fitter/technician to perform a complete inspection of your furnace prior to the start of the heating season. ❑ High-Efficiency Furnace— No part of the exchanger or the burner area could be viewed.Dismantling the fumace to thoroughly inspect the heat exchanger is beyond the scope of this inspection.You are advised to obtain the services of a qualified gas fitter/technician to perform a complete inspection of your furnace prior to the start of the heating season. ❑ Chimney—The interior of chimneys and their flue liners are not visible on our visual inspection.You are advised to obtain the services of a qualified chimneysweeper or other qualified personnel to perform a complete inspection and tune up of your fireplace/stove prior to using the appliance. ❑ Heat Pumps— Heat pumps are complex systems that require frequent maintenance and repair costs once they reach the age of five to ten years or more.Only qualified technicians can properly inspect all the cycles of these units because it is technically exhaustive and beyond the scope of this visual inspection.At this time theD heating ❑ cooling cycle could not be checked due to seasonal temperature limitations. Heat pumps are not a practical source of heating when temperatures fall below 32°F ❑ Septic System and/or Well— Have not been inspected.Both the septic system and the quality/quantity of the well water supply are beyond the scope of this inspection.Obtain the services of a qualified technician to perform a complete evaluation of your septic tank and leaching field and/or well water quality and recharge rate. ❑ Common Areas— In general,the Inspector is not required to review or assess common areas in multi-unit developments. Attached common areas may include roads,paths,landscaping,integral roofs and wall systems.As a matter of courtesy,the Inspector will provide a general overview of what you should consider with respect to these areas.This may include evaluation of roof and external building attachments that may affect you via future additional service fees. ® Vintage Homes— (homes built prior to 1950)—Character homes have inherent defects because they were built without the benefit of the standardized Building Codes.You must keep in mind that the defects noted throughout this report are typical of such dwellings because of normal wear and tear throughout the years.Often,maintenance repairs are ongoing and done based on your budget.If you tried to repair or improve all at once,costs could become high to the point where it is not practical or affordable to you at this time.Repairs or improvements which you would like to repair in the immediate future or have been advised to do,should be quoted prior to purchase by qualified contractors for costs and methods of repair. 1-877-749-2225 mobile toll free,406-443-8071 fax,keith(ginspectormt.corn C 2003 Pillar To Post Inc. 45132-3040 H � Report Commentary • This summary is not the entire report. The complete report may include additional information of concern to the client. It is recommended that the client read the entire report. Property: 118 W Centenial Boulder,MT 59632 Client: Jessica Kirsch Address: P.O.Box H Commission Office Zip/Postal Code: 59632 Real Estate Company: Real Estate Agent: Inspector: Keith Alltucker Scheduled Inspection Time: 9/4/2007 9:30:00 AM 1) PROPERTY AND SITE • 1.1 BUILDING Century old homes will have had multiple system upgrades through time. The timing of these upgrades and skill of installation will help determine longevity and probability of failure of these systems. All building materials have a finite life exceptancy, nothing lasts forever. Repairs/improvements should be anticipated with century old homes. The inspection process is not designed to provide a complete accounting of all defects/damages. A general opinion of the condition of the house and property is intended. Clients are strongly encouraged to participate in a final walk through of the house prior to closing to determine if conditions/appliances/systems have changed since the inspection. This is a century old home which has undergone several building additions and component upgrades. Areas where new structures loin older structures can be areas of concerns. These areas should be monitored for any signs of change. Cracks/splits/voids in building envelope are entry points for water. Older homes will have experienced forces of nature to the extent that some settlement/shifting is likely to have occurred. Lack of maintenance and temporary/non-professional installation are sources of improvement comments in most home inspections. Qualified professional repairs are suggested throughout the report. During the inspection process a representative number of receptacles and windows will be tested. Furniture, personal belongings, items in storage will not be moved to access all receptacles and windows. All repairs suggested in the report should be done by qualified professionals. 1.2 LANDSCAPING Negative drainage and the lack of a gutter system noted. Installation of a gutter system is suggested to move roof runoff water away from the building. 1.3 WALKWAY/PATH Visible Damage Noted Drive/walkway is heaving, due to soil movement from tree roots. Repair as needed. 1.4 FRONT PORCH Large cracks should be sealed to prevent water infiltration and possible damage. 1-877-749-2225 mobile toll free,406-443-8071 fax,keith@inspectormt.com 0 2003 Pillar To Post Inc. 45132-3040 2) EXTERIOR 2.1 FOUNDATION WALL Stone foundation has been covered with a concrete cap, which limits any inspection. 2.2 WINDOWS Wooden window frames are approaching time for repainting. This condition is more apparent along the west and south facing windows. Periodic caulking of window and door frames will be needed to help seal out water. 2.3 RECEPTACLE Not Operational GFCI outlet failed to trip when tested. Replacement is recommended. 3) ROOF STRUCTURE LIMITATION STEEP SLOPE 3.1 GUTTER/DOWNSPOUT Lack of gutters or downspouts noted, installation of gutters and downspouts would help direct runoff water away from the exterior, foundation, and reduce maintenance of facia and soffit. 3.2 FASCIA/SOFFIT Gaps/splits in fascia require sealing to help protect from weather damage. 3.3 COVERING One laver of shingles above the south entry portion of the building. Typical life of metal roof panels is up to 40vrs. Metal roof fasteners may back out through time. Periodic inspection of fasteners is recommended and make all needed improvements or repairs. Three layers of shingles exceeds the industry standard of two. Before the metal roof panel installation, the asphalt and wood shingles should have been removed. The concern with more than two shingles layers is that the snow and wind load of the roof is reduced by the combined weight of the shingles. Roof sag noted. 3.4 ACCESSORY Inspected with binoculars from roof edge. Limited access due to height/snow/ice restriction. 3.5 FLASHING Visible Damage Noted Inspected from roof edge and with binoculars. 3.6 CHIMNEY CAP Inspected with binoculars due to roof height or access problems. 4) ATTIC -South addition LIMITATION 1-877-749-2225 mobile toll free,406-443-8071 fax,keithcinspectormt.com I C 2003 Pillar To Post Inc. 45132-3040 Report Commentary • A17trio post. This summary is not the entire report. The complete report may include additional information of concern to the client It is recommended that the client read the entire report. Property: 118 W Centenial Boulder,MT 59632 Client: Jessica Kirsch LIMITATION LOOKED IN HATCH 4.1 STRUCTURE 2 X 4 on 24" centers. 5) ATTIC - Main attic LIMITATION LOOKED IN 5.1 STRUCTURE 2 X 4 on 16" centers. Full dimension lumber. No collar ties present. Installation would help support roof structure. 5.2 SHEATHING Skip sheathing. 5.3 INSULATION Insulation is in contact with roof decking. Providing an air space between insulation and roof deck is recommended. This installation may result in condensation on the insulation which will reduce insulating characteristics of the insulation. Condensation may also damage roof decking. See photo. 5.4 VENTILATION Consult a qualified contractor to balance attic insulation/ventilation system to reduce moisture/condensation damages, promote roof system longevity and increase heating efficiency. 6) ELECTRICAL SERVICE / PANEL 6.1 SERVICE ENTRANCE Additional disconnect switches are also located within the meter base. 6.2 WIRE This home has had an electrical distribution panel and wiring upgrade. 7) BASEMENT/ STRUCTURE - no access under 7.1 FLOOR JOIST Engineered floor joists. 1-877-749-2225 mobile toll free,406-443-8071 fax,keith@inspectormt.com C 2003 Pillar To Post Inc. 45132-3040 jantin Report Commentary This summary is not the entire report. The complete report may include additional information of concern to the client. It is recommended that the client read the entire report. Property: 118 W Contents] Boulder,MT 59632 Client: Jessica Kirsch 7.2 SILL PLATE Rim joist area has been insulated which limits inspection. Several of the rim ioists were exposed(pulled insulation away) for inspection. No damage noted. 7.3 CRAWL SPACE Visible Damage Noted Dampness noted in crawl space floor. Improve perimeter drainage, extend leaders to move run off water away from foundation. AC condensate discharge line empties into crawl space. Suggest routing this line to the sewer. Vapor barrier is suggested. No visible crawl space vents. 8) HEATING/COOLINGNENTILATION LIMITATION SYSTEM OPERATING (AC/HEAT) 8.1 HEATING SYSTEM Gas forced air furnace typical life exceptancy is 20-25vrs. Consultation with heating contractor or power company is suggested to evaluate combustion air supply. 8.2 AC/HEAT PUMP Trane XL14i model. Condensate discharge line should be connected to sewer system. Proper routing of condensate line is recommended. 9) PLUMBING COMPONENTS 9.1 HOSE BIBB Generally speaking, the winterization of frost free/anti-siphon hose bibbs requires the removal of the hoses prior to freezing temperatures. 10) FOYER/ HALLWAY / STAIRWAY 10.1 LIGHTING Stairs lack properly installed two way light switch. 11) - SW office 11.1 FLOOR RASP mnlriinn is inrmmnlpte 1-877-749-2225 mobile toll free,406-443-8071 fax,keith©inspectormt.com c 2003 Pillar To Post Inc. 45132-3040 Report Commentary ler pst This summary is not the entire report. The complete report may include additional information of concern to the client, It is recommended that the client read the entire report. Property: 118 W Centenial Boulder,MT 59632 Client: Jessica Kirsch 11.2 CEILING Suspended type ceiling tiles. 12) - north office 12.1 CEILING Suspended type ceiling tiles. 13) - SE office 13.1 CEILING Suspended type ceiling tiles. 1-877-749-2225 mobile toll free,406-443-8071 fax,keitl(ginspectorrnl.com C 2003 Pillar To Post Inc. 45132-3040 Appendix A: SYMBOL INDEX Itii post r ACAir Conditioner 4 Chimney s. a Electrical Meter 1 Gas Meter ' J Pink Hose Bibb AL Main Entry L piPlumbing Stack F Sec.Entrance C 2003 Pillar To Post Inc 45132-3040 A ground fault circuit interrupter(GFCI) is an electrical device, either a receptacle or circuit breaker, which is designed to protect people from electric shock in a wet or damp environment. GFCI protection should not be confused with grounding. Even if a system is properly grounded, minor faults in a circuit can cause a dangerous shock to a person using an appliance in a damp location or near water. The GFCI senses the flow of electricity through a circuit. If more current is flowing through the black, or hot wire than the white or neutral wire, there is a current leakage (a"ground fault"). The GFCI can detect a leakage as little as five thousands of an amp (.005 amps), which will shut off the current in '/pp of a second to prevent injury. WHERE TO LOOK FOR GFCI PROTECTION: • ALL OUTDOOR RECEPTACLES THAT ARE WITHIN SIX FEET OF THE GROUND • RECEPTACLES AT HOT TUBS,SPAS AND AROUND SWIMMING POOLS • RECEPTACLES AND SUPPLIES FOR FOUNTAIN OR POOL PUMPS AND RELATED EQUPMENT • ALL BATHROOM RECEPTACLES • RECEPTACLES WITHIN SIX FEET OF THE KITCI-EN SINK,WET BARS AM)LAUNDRY TUBS • AT LEAST ONE RECEPTACLE IN THE BASEMENT AND CRAWL SPACES • ALL RECEPTACLES IN THE GARAGE(EXCEPT ONE MARKED FOR FREEZER) • ALL LIGHTING IN HIGH-RISK AREAS SUCH AS WET BARS,BATHTUBS,SPAS,SAUNAS,OR SHOWERS If you have GFCI receptacles, it is recommended that you test(and reset)them monthly. On a GFCI receptacle when you push the TEST button, the RESET button should pop out, hence shutting off the circuit. Or you can use a GFCI tester/analyzer, available at most hardware stores to perform the same test. There is a button on the tester/analyzer that should trip the circuit within a couple of seconds and the RESET button should pop out. The GFCI receptacle contains a resistor connecting the LOAD side of the hot wire to the LINE side of the neutral wire. When you press the TEST button, current through this resistor shows up as an imbalance and trips the GFCI. However, failure of the GFCI to trip in response to a tester/analyzer may or may not indicate a real defect. There may be an absence of ground, and the tester/analyzer does not trip the circuit. The absence of ground has no effect on the operation of the GFCI. The device should work if there is a real short to ground. That is why GFCI receptacles are also used in ungrounded circuits such as KNOB and TUBE wiring. The sane procedure should be done with a GFCI breaker. The GFCI will be located in the distribution or service panel. The breaker can be identified by a TEST button in addition to the breaker switch. Press the TEST button and the breaker switch should trip. Switch the breaker back to the ON position. Do this once a month —breakers have a tendency to stick, and may not protect you when needed. If you have a GFCI breaker you should also use the tester/analyzer to test the receptacles in the vulnerable areas listed above. Note that the receptacle may appear like a normal receptacle without any TEST or RESET buttons, but may be protected in the circuit by the GFCI breaker. Remember to reset the breaker to the ON position after the tester/analyzer has tripped the breaker. It is mandatory that receptacles be label if protected by GFCI but ungrounded. If a grounded GFCI does not trip with a tester/analyzer, or if an ungrounded GFCI receptacle does not trip with its own built in buttons, it is probably defective or miswired. Again, if the TEST button on the receptacle or breaker does not work, something is broken and potentially dangerous. The problem should be corrected immediately. If your house does not have GFCI protection, an electrician can add it. This is an important safety improvement. Electrical wiring and device installation should be handled by a licensed electrician. For further information contact your local public utilities office or a licensed electrician. 0 1999-2001 Pillar To Post INSERTED WITH REPORT* � E lia�( - 'C..'da - .. .- ..� i ti r: '-` .,....N F .. TRP _3WITCLI r V ~ 1' iai real) 0 AMPEfAACE 0. E T -5T INDI�uT 0 I DUTTON TAT /= w 12asET auTToN o eUTToN Ground Fault Circuit Interrupter Ground Fault Circuit Interrupter (GFCI) breaker (GFCI) receptacle RED LEAD LIVE WIRES FUSC SPLICE SPLIGL/ (6LAC✓J To NEXT RECEPTACLE uVa WEE ■ 1 U5L ACYJ DLAQC LEAD INSULATE ENDS or RED AND GRAY WIRES IF No oT1-ILR RECEPTACLES ARL TO 6C. CONNECTED TEST cr CI LC PTACLE 0 o C o CO 0 ° G ® ° C O 3 4C1 RESET _ GREEN LEAD wi�� . — iy aorta)= 11 WLY7L EGAD 7- _ (6A WrzL TO NEXT RECEPTACLE ic NEUTRAL WRE SPLIGL. AV11TU GREY LEAD SPACE NEUTRAL WIRES (WLIITE) Typical connection for GFCI receptacle installation (one GFCI protective standard receptacle on same circuit) C 1999-2001 Pillar To Post fi 416ne+yne... # y [I la : • = RADON GAS It is estimated that about 20,000 deaths annually, in the U.S.; and 2,000 in Canada, are caused by radon gas poisoning. Radon gas, an invisible, odorless and tasteless gas, occurs naturally in the environment–it is the product of decay of uranium and it is measured in units called picocuries per liter (pCi/1). It seeps up through rock and soil and enters a house through cracks in the foundation, around water and sewer pipes and floor drains, or in well water. In the U.S., the EPA (Environmental Protection Agency) has set the "action level" at 4 pCi/l. In Canada, Health and Welfare has set the"action level"at 20 pCi/1. If you have a concern your Pillar To Post Home Inspector can perform a radon test in addition to the visual inspection. There are many detectors available to test for radon gas. Most common, for"short term"testing –a minimum of 48 hours–are charcoal canisters which absorb radon from the air to determine the presence of radon. A "long term" test, 90 days or more, provides a more accurate reading. Radon is more of a concern in finished basements with a living space. In the upper levels of the house (due to greater ventilation), the gas diffuses. Remedies usually involve minor construction and no special containment or decontamination procedures. MEASURES TO FIX THE PROBLEM: • SEAL LARGE CRACKS IN THE BASEMENT FLOOR AND WALLS;SLABS ON GRADE;AND GAPS AROUND PIPES • PRESSURIZING BASEMENTS OR CRAWL SPACES BY ADDING PIPES BELOW THE BASEMENT SLAB TO CARRY THE GAS AWAY • MECHANICAL VENTILATION TO DISSIPATE THE RADON GAS OUTDOORS CARBON MONOXIDE Annually about 200 people die due to accidental carbon monoxide (CO) poisoning; another 500 are treated in hospital emergency rooms; and many more are not accounted for, since many of the symptoms–dizziness, nausea, vomiting and fatigue –are mistaken for the flu. These symptoms stem from toxic products known as Aldehydes. Aldehydes have an acrid odor and are produced along with CO. LEVELS OF CO—ppm(parts per million):* 12,800 can cause death in one to three minutes 1,500 can cause nausea within 20 minutes and death within one hour 800 serious health consequences and death within two hours 400 frontal headaches within one to two hours and fatal within three hours 50 maximum exposure in a eight hour period 9 typical indoor air quality *levels according to the American Society of Heating,Refrigeration and Air Conditioning Engineers(ASHRAE) The source of the CO is usually faulty fuel-burning (any combustible fuel such as oil, gas, propane, wood or coal) appliance such as a furnace, water heater, space heater, wood stove, gas range, or gas dryer. The best way to minimize the risk of poisoning is through proper maintenance of those appliances. But an essential backup is a CO detector that monitors the air constantly. • heat exchanger cracks alone do not produce CO –CO is produced in the combustion process. CO is produced when there is not enough air supplied to a combustion appliance –or when there is insufficient or restricted air openings into the space in which the appliance is located. • properly adjusted equipment will produce very little CO –regardless of the amount, it is important to have the CO properly vented outside the dwelling. Weather-tight houses and the increased use of exhaust fans, can create a negative pressure within the home thus contributing to the problem. INSERTED WITH 1999-2001 Pillar To Post TH REPORT# } lic�4emtie � ' } . War a . 1 l VVG I 1 WATER BIlDWG' 1-111 MA71-PIAI S SERVICE ENTPC S r �.M snCrc�Vn //�.HV,,. iil L�Iwo_ TI-f�ll�=�, GAPS ._-'-- I■-.,- i ■ CRACKS fi p. Ff i \VGLPNG fl AND Stir FLOOR Alb WALL JOINT Common paths by which radon gas enters a house BLOCKED ullMNEY ll 'MINI a ® O .. 'f��� BOGGED �PROPERLY I t Cu EY NSTALLED RANGE R COOKTOP VENT PORTABLE G4-5 DR 1CATER Y �� s� REFRIDGERATOR � r ni :1111 \VOOD OR GAS ill 117111111".—ill.I illi a' BURNING r----- _ ' D' FREPLACE CORRODED OR DISCONNECTED OPERATING B4RBEOUE CLILNtY -, O \VATER 1JEATER ,� GRILL IN ENCLOSED PIPE / FLUE VENT PIPE AREAS SUCUJ AS GARAGE OR INDOORS CRACKED LIEA.T EXCLIANCER 0 RG_COMa_P CAR60N MONOXDG DETECTOR L_OCATION,3 Potential carbon monoxide (CO) sources in the home 1999-2001 Pillar To Post UREA FORMALDEHYDE FOAM INSULATION (UFFI) Urea Formaldehyde Foam Insulation, more commonly known as UFFI, is a highly expandable foam-in-place that became popular as a residential retrofit insulation in the mid-70s. As a suspected health hazard, UFFI was banned in Canada in 1980 and by 1982 in the U.S. (the ban was later lifted in 1983 but it was hardly used after that). Studies over the years have shown that UFFI alone was not a health concern. In fact there may be other air pollutants such as dust mites, other gases, and molds that my have contributed more toward health problems. Formaldehyde gases also emanated from other construction materials and furniture such as plywood, particle board, plastic laminates, carpets, drapes cosmetics, cleaners, paper products and tobacco smoke. It is impossible to determine if a house contains UFFI from a visual inspection. If UFFI is suspected in a dwelling, more extensive testing should be undertaken by an environmental specialist. If the gases are below the prescribed levels of 0.1 ppm (parts per million), no further remedial action would be necessary. Levels decline rapidly to below this level after the first year. If the foam was installed years ago, any vapors from the insulation would be negligible. Typical indoor air quality contains .03 ppm formaldehyde gas. UFFI look and feels like dried up shaving cream— it has a crumbly structure and a powdery residue. A positive identification can only be through laboratory testing. It should not be confused with "foam-in-a-can" that emits no toxic gases; nor with a new product known as Icynene, a water-based product that has a softer texture than UFFI. It has been used in new construction since the early 1990s. ASBESTOS Asbestos is a rock fiber once used in many building material products and insulation. In residential dwellings, it can be found in the following: • ROOFING AND SIDING SHINGLES MADE WITH ASBESTOS CEMENT • VINYL FLOOR TILES A10 ADHESIVES;WALL APD CEILING SOUNDPROOFING(TILES) • SPRAYED COATING ON CEILING AND WALL(STIPPLEISPACKLE;BANNED IN 1977) • INSULATION IN ATTICS AND WALLS(HOMES BUILT BETWEEN 1930 TO 1950) • INSULATION BLANKETS ON FURNACE DUCTS,HOT WATER OR STEAM PIPES AND BOILERS • DOOR GASKETS ON A FURNACE AND WOOD STOVE The amount of asbestos in these products varies from 1 to 75%. Since the late 1970s, the fiber has been eliminated from most construction materials. Proper identification can only be done by laboratory analysis. Most of the time the insulation around pipes looks like white plaster. Asbestos-containing material in the home does not necessarily pose a health risk. It becomes hazardous only when the material is "friable" (the material can be crumbled, pulverized or reduce to powder by hand pressure — dispersing asbestos fibers into the air) and is inhaled. If there is no sign of deterioration there is no health risk. Doing nothing and maintaining the product in good shape is the best approach. In most cases, asbestos fibers are released into the air when demolition or renovation work is undertaken. The testing and repair of asbestos is best left to a professional. Identification of asbestos is beyond the scope of a visual home inspection. The decision whether to remove, enclose or encapsulate deteriorating or damaged material, should be made by a certified trained professional. Most repairs usually involve encapsulation —sealing or covering the asbestos so that fibers do not become airbome. Removal of asbestos products can be an expensive proposition, not only in the physical removal of the product but also in the disposal of asbestos materials. For more information,contact your local health department,regional EPA office or Consumer Products Safety Commission(CPSC),in the U.S. In Canada contact National Research Council of Canada,Occupational Health and Safety or Canadian Mortgage and Housing Corporation(CMHC). INSERTED WITH REPORT# © 1999-2001 Pillar To Post Insulation Ratings :flP x'Y ,,i5} a "r„.l n e.i: q � ralar lb post Though lead-based paint(LBP) can be a health risk for teenagers and adults, it is more of a threat for children under six and pregnant women. Children can ingest a dangerous dose from a single a paint chip and from lead dust that gets onto their toys and playthings. After the mid-1940s, lead was used as a pigment in many paints—as much as 50% per weight. In 1976 the Canadian government limited the amount of lead to 0.5% per weight. If your house was built before 1980, the interior and exterior paint may contain small amounts of lead. A house painted before 1950 the paint will certainly contain significant levels of lead. In the U.S., Congress passed the Residential Lead-Based Paint Hazard Reduction Act of 1992 (referred to as Title X). This regulation requires the disclosure of the presence of lead for any house built before 1978. The following requirements have been established by HUD and EPA: • SELLERS/LESSORS MUST DISCLOSE THE PRESENCE OF LBP FOR ANY HOUSE BUILT PRIOR TO 1978 • SELLERS/LESSORS MUST PROVIDE AVAILABLE RECORDS/REPORTS PERTAINING TO THE PRESENCE OF LBP • SELLERS/LESSORS MUST PROVIDE FEDERALLY APPROVED LEAD HAZARD INFORMATION PAMPHLET • SALES/LEASING CONTRACTS MUST INCLUDE DISCLOSURE AND ACKNOWLEDGMENT LANGUAGE • PURCHASER IS ALLOWED UP TO 10 DAYS TO CONDUCT A RISK ASSESSMENT OR LEAD INSPECTION • SELLERS/LESSORS AND REAL ESTATE AGENTS SHARE RESPONSIBILITY FOR ENSURING COMPLIANCE Given its durability, LBP was primarily used on surfaces that take punishment such as kitchen cabinets, door and window trims. Exterior siding and porch floors are not dangerous if they are in good condition. If the paint is crumbling, peeling or flaking then a potentially harmful situation exists. Renovating and remodeling can produce large amounts of lead-containing dust. Dust is also produced from the friction from opening and closing windows and doors. A good test kit should be sensitive enough to indicate as little as 0.05% of lead in the paint. (In the U.S., the legal limit for lead in paint is 0.06%). A complete lead analysis involves an X-ray fluorescence (XRF) analyzer that produces instant results on site. Another alternative is to send paint or dust samples from floors and window sills to a lab. A Certificate of Lead-Based Paint Safe Housing should be issued by the professional if the house is lead free or if the LBP poses a minimal health risk. CONTROLLING THE HAZARD: Most often the best way to deal with LBP is to leave it alone. If paint chips are accessible to children, such as on window ledges, then it should be remedied: CLEANING UP—If there is lead dust, it is not hazardous to your children if it is cleaned up before they ingest it. Floors, window sills and window troughs should be scrubbed with water and detergent. Rinse out the mop or rag in a separate bucket and change the rinse water frequently. ENCAPSULATION—Cover the old paint so that it is no longer exposed. If the surface is in good condition then another coat of lead-free paint may be all that is required. If the wall is deteriorating then you may want to cover the lead-based paint with wallpaper, paneling or drywall. Though not a permanent solution this method is the safest, easiest and least expensive remedy. REPLACEMENT— In addition to encapsulating the walls, remove and replace doors, windows, baseboards and other trim with lead-free ones. Use proper preparation and care so as not to disturb the paint when removing these items. REMOVAL—Mechanical removal or stripping of paint is the most dangerous method to deal with lead-based paint. This should be done by licensed contractors who adhere to strict safety precautions. For further information contact your local public health department or environmental agency.In the US contact your local EPM-IUD office,National Lead Information Clearinghouse or Consumer Product Safety Commission. In Canada contact Standards Council of INSERTED WITH REPORT u C 1999-2001 Pillar To Post l LIT � S aFua.a.11{a..elmx+.: f � insit RAVE. FASCIA '' ~t AND ooFfri �� WOOD .SIDING' EXTERIOR �4�, + Iu WINDOW' 41.114, Er: 0 l°' TwM 4I0 -WamNmIIIIIIIIIIbb_ . A5.5EMP-Y ------------ - SLIUTTERS 1h∎h \ i � V� :-,-.4,111' INTERIOR 1 \VINDO\V CI' �I .� TwM i 51LL % CCIt1 77 w� l�I I \ I [5A5E6OARD5 I AND CORNER DOORS AND ANTI R[ art FLOORS ROUNDS POOR TWM CAI3IItT5 © 1999-2001 Pillar To Post • fY"fi K During the winter, attic insulation prevents heat within the house from escaping through the ceiling and into the unheated attic space. During the summer, it reduces outside heat from radiating downward through the attic and into the house. All insulating materials work on the principle of trapping. They have millions of tiny air pockets to restrict heat of trying to pass through. The thermal resistance of insulation is expressed in R (RSI metric) values. In general, the thicker the insulation, the more air pockets it has and hence, has a higher capacity to resist heat transfer. Many older houses are probably under-insulated by today's standards and should be evaluated to determine if it is economically feasible to upgrade their insulation. Note that during a visual inspection, hidden problems may exist that are not documented due to limitations such as access, obstructions or stored goods. TYPES OF ATTIC VENTILATION: The maximum heat difference between the air in the attic and the outside air should be approximately 10° F (6° C) to avoid reducing the life of the roof covering. Never block off vents in winter, since moisture from the house will condense and cause problems. In a properly insulated attic, the ventilation will not lower the temperature in the house. The general rule of thumb is one square foot of free vent area for each 150 square feet(with no vapor barrier), or 300 square feet(with a vapor barrier)of attic floor. SOFFIT VENTS—are provided on the underside of the eave either as gills or the preferred continuous type. Soffit vents are used in conjunction with roof, gable or ridge vents. ROOF VENTS—are either round or rectangular and are cut in the roof near the top of the roof. The higher the better to allow hot air to rise and dissipate out through these vents. GABLE VENTS—are louvered openings commonly used at the gable ends of gabled roofs. RIDGE VENTS—are cut into the ridge of a roof and are popular with a cathedral ceiling. POWER VENTILATORS and GABLE VENTILATORS—are equipped with a thermostat that turns on the unit when the attic temperature reaches a certain point and tums off when the attic cools. TYPES OF ATTIC AND ROOF CONSTRUCTION: Gable and Hip Roofs—These are common and can be easily insulated by placing the insulation between the ceiling joists or bottom chords of trusses. A polyethylene vapor barrier must be placed under the insulation (warm side of insulation) to reduce any moisture entering the attic from the house. A provision should be made for unblocked adequate airflow from the eave of the roof(soffit vent)to the open attic portion of the structure. This is achieved by using air chutes or channels between insulation and the rafters or top chord on roof trusses. Cathedral Ceilings—Due to the inherent lack of access, cathedral ceilings cannot be fully inspected for insulation or ventilation. It is very important that adequate ventilation be provided in these roof structures. The best ventilation system is one that uses continuous ridge and soffit vents to vent each rafter bay. When using cross purlins, there must be a minimum 1'/i' air space above the insulation and below the underside of the roof sheathing for adequate airflow (in some jurisdictions, the minimum air space requirement is 3"). This airflow is necessary to remove any condensation and reduce the build up of heat. One and One Half Story Houses and Mansard Roofs —These types of attics have several small sections that must be properly insulated on the vertical knee walls, on the floor of the attic, on the sloping ceilings and on the top flat portion of the 1% story area. The outer attic is treated as a non-heated area and it must be insulated and ventilated. Air can be allowed to enter through the soffit vents and exit up above the slopping ceiling to the attic space above the 1% story portion. The top portion of the attic can be vented using roof or gable vents. Note: If using the older batt insulation with a paper backing(vapor hamar)make sure that the paper is on the warm side of the insulation or facing the finished wall or ceiling surface. C 1999-2001 Pillar To Post INSERTED WITH REPORT# u i E rn AtAL 3E >g 1 } ,ya tir 1ti"lUt. 1 , j 16 , --7 --i C V,-1 tl t \ ti ' S; \CI* q ! l\ ;`, 4 r gab le '}�?t ,,�� rage �� ,I Y _ ` ' roof rant 1 1 ri v , vapor bar- '---, , \la`a z�s-l�.@s 71. 0 ' soffit 11 IS (sr' t �##11-7-\\ DIFFERENT TYPES OF VENTILATION ,, ^fib ;:t. '�- ' 1 TYPICAL INSTALLATION OF INSULATION IN A 1Y2 STORY ATTIC cc al- chamol/ V �1 \ s r rl "tee.. �kir - ` .' \ 5... d • r 5 N. J. 11111.-W ripli‘IC.I.\IS� .ter rime- 1f'1, ilt '». iI x lit soffit vapor bar- AIR CHANNELS OR BAFFLES PROVIDE VENTILATION IN EACH RAFTER SECTION ® 1999-2001 Pillar To Post �, r In a forced warm-air system, a blower fan pulls air from various rooms through the house into the cold-air return duct. The air passes through a filter, into the furnace and is heated. The warm-air is then forced into the rooms through ducts and registers that are located adjacent to exterior walls near windows or doors. FORCED-AIR MAINTENANCE COMPONENTS FOR SERVICE TECHNICIAN: • CLEAN OR REPLACE THE AIR FILTER MONTHLY DURING THE HEATING SEASON • CLEAN THE FAN BLOWER BLADES AT THE START OF EACH SEASON(ESPECIALLY IS THERE IS A DRYER NEARBY) • CHECK THE BELT FOR WEAR,ALIGNMENT AND TENSION-THE BELT SHOULD HAVE 1/2'TO%"DEFLECTION • EXAMINE THE DUCTS FOR LEAKS AND SEAL WITH DUCT TAPE • KEEP COLD-AIR RETURNS CLEAR OF FURNITURE(IT IS INEFFICIENT AND MAY LEAD TO BACKDRAFTING) • LOOK FOR SIGNS OF SOOT AROUND WARM-AIR REGISTERS-THIS MAY INDICATE A CRACKED HEAT EXCHANGER • CHECK AUXILIARY COMPONENTS HUMIDIFIER AND CENTRAL AIR CONDITIONER)FOR LEAKS INTO THE UNIT Gas burners are usually associated with warm-air furnaces but could also fuel hot water or steam heating systems. When the thermostat calls for heat, the gas valve opens, allowing gas to flow into a manifold and then into venturi tubes where it mixes with air. The mixture is ignited by an electric-spark (intermittent pilot)or a constant pilot light. The heat exchanger separates the circulated warm air and exhaust gases. The heat exchangers should be checked for cracks every few years. The thermocouple closes the gas valve if the pilot is not working. It is a heat-sensing probe that holds the gas valve open when it is hot. CONVENTIONAL, or natural aspirating, furnace has a 60 to 70% efficiency. The unit has a large air requirement in order for exhaust gases to vent up through a chimney. In most jurisdictions, a conversion from oil to as requires a metal liner in the chimney to ensure proper draft to reduce condensation. MID-EFFICIENCY, is similar to a conventional furnace but achieve a 75 to 85%efficiency. It does so by incorporating an induced draft fan. Some units also have a motorized damper, that closes when the unit is off so that heated air is not lost up the chimney. In some areas, units with plastic flues (about five inches in diameter) from the furnace to the chimney are not be permitted and must be replaced. Check your local utilities office for regulations concerning plastic vent pipes for mid-efficiency furnaces in your area. HIGH-EFFICIENCY,or condensing furnace, achieves a 90 to 97% efficiency. Increased efficiency is due to a secondary heat exchanger that extracts heat from the exhaust gases that will normally flow up the chimney. Instead of a flue, the unit incorporates an induced draft fan or power vent fan and plastic piping to vent the cooled gases through a side wall. Condensate drainage piping carries the condensate from the cooled gases to a waste pipe. In some units, a pump discharges the condensate to the exterior. Units with a sealed combustion system also have an intake air duct so that outside air is used for combustion.A pulse-combustion produces about 60 to 70 tiny explosions of air-gas mixture per second in the combustion chamber instead of a continuous flow of fuel as with most common high-efficiency units. Since this system is noisy , a vibration isolator(canvas fabric) is installed between the furnace and plenum. GAS BURNER MAINTENANCE ITEMS FOR SERVICE TECHNICIAN: • BURNERS DO NOT LIGHT-CHECK TO SEE IF THERE IS A PILOT FLAME;CHECK THE THERMOCOUPLE POSITION AND CONNECTION;CHECK THE BREAKER OR FUSE WITH AN ELECTRIC-SPARK IGNITION • PILOT FLAME WILL NOT STAY ON-CHECK THAT THE HEAD OF THE THERMOCOUPLE IS DIRECTLY IN THE FLAME; REPLACE THE FAULTY ELECTRIC STARTER;REPLACE THE THERMOCOUPLE • INSUFFICIENT HEAT-ADJUST THE AIR INTAKE;CLEAN CLOGGED BURNER PORTS • EXPLODING SOUND A START-UP-CLEAN THE PILOT ORIFICE;CLEAN CLOGGED BURNER PORTS OR CROSSOVER • BURNER IS YELLOW OR ORANGE-ADJUST AIR INTAKE;CLEAN MANIFOLD GAS JETS;CLEAN BURNERS For further information contact your local public utilities office,gas company, a licensed HVAC contractor or the American Society of Heating,Refrigerating and Air-conditioning Engineers(ASHRAE)or the Heating,Refrigerating and Air conditioning Institute of Canada (HRAI). INSERTED NTH REPORT# C 1999-2002 Pillar To Post Inc. • ni '44111101r 7r/j AND-maw PLOT CAS Lit PWb-4112 PLC 1 te r) 6----1--E-E..f_� 'Opretraiwstcig..__„..••• FIIZNACC : i� 1 _� i r' ±1-. PLOT �� pANAI�L�T l ' i D2AFF I 1 CONTROL ,i i 1 `s , ,PLOT DNG2TErz �11� i 1�� � SAT I J _GAS unt I ;I /ta�sil� j4titS, aXCUANC,�R Gas caNTua- TLtRMOCQPt- `�;N "� C'A5 VALVL VALVE i � �5 RE-LIGHTING THE PILOT �. � t�/1 BLOAVE2 PZ.BRN DucT �� FAN FLTC2 MOT `, / TYPICAL CONVENTIONAL FURNACE WARM AQ- WARM ALL FL1.16. P7 A 5TCC VC.NT a �t trio: ,��„,,..� -x•0.,1„ tbIILL° NPIrTo DRAFT Fa ficp.ticso(PO\VCR VCNT) ( :Cali ! bas VALVE g alga t i/ ExcUaNasns 1kaT 1„!'1, i 1 # !/ig f euzNc.RS Exc1JaNGER �I r `q 111001P-101�V `/ ( e � � MOTaR FLT=R ' l"e I %It tt COLD-AR RCT'IFSI— ‘s � • FL TER SLOWER FAN n Rc7lRN TYPICAL MID-EFFICIENCY FURNACE TYPICAL HIGH-EFFICIENCY FURNACE ©1999-2002 Pillar To Post Inc. i Pliar Toptist ¢ ' An air conditioner controls and regulates humidity and temperature; and filters, cleans and re-circulates the air within the house. A unit that is too small will run continuously without sufficiently cooling the area. A unit that is too large will cool the area quickly and shut off before sufficiently removing moisture from the air.A ton air conditioner is required for every 300 to 550 square feet in sub-tropical climates (Florida) and 750 to 1,000 square feet in northern climates (Ontario) and will provide 12,000 BTUs (British Thermal Units) of cooling in an hour. Capacity can be determined by its full load amperage (FLA) or rated load amperage RLA. There are about 7 amps per ton of cooling. Thus a unit with an RLA of 27 is approximately 4 tons. EVAPORATIVE or "swamp coolers"are typically used in dry desert regions. The unit is mounted on the roof or beside the house. Inside the unit water is sprayed on a sponge-like blanket, then hot outside air is pulled through the blankets by a blower causing the water to evaporate and cool the air. The cool air enters the house, forcing hot stale air through open windows. • CLEAN EVAPORATIVE UNIT AND REPLACE THE BLANKET EACH SEASON TO PREVENT BACTERIA BUILDUP REFRIGERATED systems simply absorbs heat from air within the house and transfer it to the outside. The system contains liquid refrigerant that is forced through a nozzle causing it expand into a gas. The gas flows through the evaporator coils, cooling the coils and extracting heat and moisture from the room air. Then the warm gas flows into the compressor and is heated by compression. The hot gases then enter the condenser where the coils dissipate heat to the outside. From this the gas turns into a liquid ready to repeat the cycle. The condenser tray catches the moisture and discharges the condensate to the exterior or a waste drain, floor drain, sink, waste pipe or through the foundation wall. Occasionally, the condensate is discharged into lift pump . This pump lifts the condensate to a level where it can flow to any location. An INTEGRAL,or self contained system, has all the components encased in a single unit. This unit can be located in the attic or crawlspace with ducts through the exterior wall to provide air for cooling the condenser In a split system,the compressor-condenser is located outside and the evaporator coils are located in the house either in the attic or inside the warm-air plenum of the furnace. The compressor-condenser is connected to the evaporator by two copper pipes -the smaller pipe is the liquid line which carries the high-pressure liquid refrigerant from the condenser to the expansion valve. The larger pipe or suction line (which should be insulated), carries low-pressure gas from the evaporator coils to the compressor. The air differential—room air and the output air—should be between 12°F to 22° F.A high split may indicate inadequate air flow, clogged evaporator coil, high fan speed, restricted ducts or dirty blower fan blades. MAINTENANCE ITEMS : • DO NOT OPERATE THE SYSTEM AT TEMPERATURES BELOW 60°F • DO NOT OPERATE UNLESS THE COMPRESSOR HAS HAD POWER FOR AT LEAST 24 HOURS • DO NOT LOCATE THE CONDENSER COILS IN DIRECT SUNLIGHT • CLEAN THE CONDENSER COILS AT LEAST ONCE A SEASON • THE UNIT SHOULD BE PLACED ON A LEVEL SLAB ON GRADE OR MOUNTED LEVEL ON THE OUTSIDE WALL • THERE SHOULD BE A CLEARANCE OF 54 INCHES ABOVE AND 15 INCHES ON ALL SIDES OF THE OUTSIDE UNIT CLEAN THE AIR FILTER EVERY MONTH DURING THE COOLING SEASON • THE CONDENSATE DRAIN SHOULD HAVE A USHAPED TRAP{ESPECIALLY IF CONNECTED DIRECTLY TO A WASTE PIPE OR FLOOR DRAIN) • IF ACCESSIBLE,VACUUM AND CLEAN THE EVAPORATOR COILS-ITS A BREEDING GROUND FOR BACTERIA • SIGNS OF RUST AND MINERAL DEPOSITS AROUND THE PLENUM MAY INDICATE A CLOGGED CONDENSATE TRAY DRAIN OR FAULTY INSTALLATION • FROST ON A LOW-PRESSURE LINE INDICATES A DEFICIENCY IN REFRIGERANT OR DIRTY EVAPORATOR COILS OR INSUFFICIENT AIR FLOW THROUGH THE EVAPORATOR For further information contact your local public utilities office,a licensed HVAC contractor or the America Society of Heating,Refrigerating and Air-conditioning Engineers(ASHRAE)or the Heating, Refrigerating and Air conditioning Institute of Canada(HRAI). ID 1999-2002 Pillar To Post Inc. INSERTED WITH REPORT# nklr lirposf n \V " 4�J � ARM n¢ *II PR&.35uza GAS ,...4u •• i OF AETY TYPICAL AIR CONDITIONER i CxPanL�aN VALVC 1.YG11PRL �Jo[ uatv COOL AR. LVAPORATOR FLI L PLG.NLIM COHPUbc"2 CALL CONDEN , 5E2 I i FAN a 9 ; J! \F • I►2 \ 4, REF12Ja COMPR-L5.502 LUGS Alt MOTOR CVAPORAT02 I cap TRAY ' I , N l! AID /4, ,,„ \ Iwo.... ....s, RLTURN 1,77 !LC Vc.,R FAN PtICT FLTE2 MOTOR TYPICAL SPLIT AIR CONDITIONING SYSTEM ©1999-2002 Pillar To Post Inc. i kf IE All areas below the grade line are susceptible to water at one time or another. A house with water problem does not necessarily mean it was poorly constructed. Its a fact of home construction. The most common cause of basement water problems is inadequate surface grading and drainage. In general, over 90% of basement water problems are the result of neglected gutters and downspouts or improper grading.A very small percentage of basement moisture problems are the result of high water table. Basement moisture problems are not always obvious. Moldy or musty odors are not always present during the time of inspection, and signs of moisture may be hidden by interior finishes. SIGNS OF BASEMENT LEAKS/MOISTURE: • FOUNDATION WALLS THAT ARE CRACKED OR BULGING • EFFLORESCENCE(A WHITE POWDER MINERAL DEPOSIT)ON MASONRY OR CONCRETE WALLS • STAINS,DISCOLORATION OR DECAY ON WINDOW SILLS,SILL PLATES,WOOD POSTS, FURNITURE OR CARDBOARD BOXES • BULGING OR LIFTING DRYWALL TAPE,POPPED NAILS, BUBBLING OR PEELING PAINT AND DETACHING WALLPAPER • RUST AT THE BASE OF HEATING EQUIPMENT,STEEL POSTS OR APPLIANCES • LIFTED FLOOR TILES,BUCKLED PANELING.MILDEW ON CARPET Direct one-time leaks occur infrequently and are due to specific conditions. Leaks may be the result of wind- driven rain into cracks or an abnormal early spring when melting snow cannot penetrate the frozen soil and instead finds its way down the side of the foundation where the soil is permeable due to heat loss. Seepage may occur on a regular basis, but at a slower rate than direct leakage. This is noticeable in the fall or spring when heavy rainfall and melting snow cause the soil around the foundation to become saturated with water. The weeping tiles may not be able to carry the excess water away, subsequently, it seeps into the basement. Note that weeping tiles (or footing drains)were not commonly installed for homes built before 1950. Many are no longer effective due to deterioration, clogging or poor design, for houses that are 20 years or older. Condensation is a significant source of basement moisture. When the basement air is humid, the moisture in the air condenses on cool surfaces such as cold water pipes, foundation walls or floor slab. SOURCES OF BASEMENT LEAKS/MOISTURE: • IMPROPER GRADE(INCLUDING DRIVEWAYS AND WALKWAYS) • CLOGGED/OVERFLOWING GUTTERS AND DOWNSPOUTS FLOW TOO CLOSE TO FOUNDATION • GROUND WATER SEEPAGE THROUGH WALL AND FLOOR CRACKS • PLANTING BEDS ADJACENT TO THE HOUSE(THE SOIL TENDS TO HOLD A SIGNIFICANT AMOUNT OF WATER • CLOGGED/DAMAGED WEEPING TILES(INCLUDING POORLY DRAINED WINDOW WELLS) • RAIN PENETRATION IN SMALL CRACKS(FOR EXAMPLE,BETWEEN BRICK VENEER AND FOUNDATION WALL) METHODS TO REDUCE CONDENSATION: • IMPROVE VENTILATION BY OPENING BASEMENT WINDOWS OR INSTALLING AN EXHAUST FAN • RAISE THE TEMPERATURE IN THE BASEMENT • VENT MOIST AIR TO THE EXTERIOR(SUCH AS FROM A CLOTHES DRYER OR BATHROOM) • INSTALL A DEHUMIDIFIER • INSULATE COLD WATER PIPES AND BASEMENT WALLS • PLACE A MOISTURE BARRIER OVER THE DIRT FLOOR IN CRAWLSPACES For further information contact your local building authorities or a licensed basement contractor. r ®1999-2002 Pillar To Post Inc INSERTED WITH REPORT#L Past i lPS:1i_ �.Ti7/ A at7Nre i�rrm�=i //(4\ NMI, is at �� i �i�� b �DOWN.5pOIr, \I / , .. WcboW� / C . % PL 4 PC 45 Wes.. �,/1. TOWARD ---- OA Illits,„,„„,, 4ROUt WATtg n" r'"d.t:t i /ipiJZE .S.CCPA4C 1±�� ./I�a CRACKS �. �f TLC,. f ----- COMMON CAUSES OF A WET/MOIST BASEMENT k,fig II1 1S4 rrl WPTAL , 6xT�.w LEADER 0 / � _6 To o FE=..T �C L �VN7O�V\V[r r �., NPY70�V SOD/TOP SOI_� ... ->- .op/TOP SDt -✓ -r : ,- g.ag..s CLAY CAP 4r,ar i 4RAVE� a GLAY CAP c b Jr PLA•5T4'• Lk G T ,41 \VATCRPROOF s ,` i 2 O , / EXPANt�oN-IONT /.IA LAYC1z- .Am.! T 4 ItU D i . POLD.CD �� lVIT1l 4RAVCL o 10 ••/ WC�PN4 TLC. s„ 0 ,.-.—_ Wt.r.P Ds_ GRAVEL MNSTi oC b4QPCG ' • Sl7 °e^,d ry\-+ _ 'vt: ;. PROPER EXTENDED LEADER AND GRADE PROPER WINDOW WELL DRAINAGE 0 1999-2002 Pillar To Post Inc. IT rMvtlrWVi„prctbe € r � y i [ RE 23 Roofing problems can develop at any time. Most asphalt/fiberglass shingles are made to last about 15 years but you should begin to expect some problems when your roof reaches the age of 8 to 10 years. Roof leaks are often difficult to find and can be the cause of significant structural damage that may appear sometime later. SIGNS OF ATTIC LEAKS/MOISTURE: • STRUCTURAL SAGGING;WAVY ROOF FRAME AND SHEATHING • DAMAGED,WORN OR MISSING SHINGLES; MOSS GROWTH • CORRODED FLASHING(AROUND CHIMNEY,DORMER,VENTS AND IN VALLEY) • RAISED SHINGLES ALONG THE BOTTOM OF THE ROOF • ICICLES HANGING FROM GUTTER IN THE WINTER(EVIDENCE OF POTENTIAL ICE DAMS) • STAINED/DISCOLORED OR DELAMINATING SHEATHING • RUSTED NAILS AND RUST STAINS ON SHEATHING • DAMP OR DISCOLORED INSULATION • WATER SPOTS OR BLACK MARKS ON THE CEILING OR AT THE JUNCTION BETWEEN CEILING AND WALL • WATER MARKS AROUND CEILING FIXTURES SOURCES OF ROOF LEAKS/MOISTURE: RAIN/WIND—Some roof problems occur when wind forces the rain under the edges of the roof or shingles. Two factors contributing to this phenomenon is an improperly sloped roof or failure to adhere, using roofing cement, the asphalt/fiberglass shingle tabs in high wind areas. ICE DAM—is an accumulation of ice at the lower edge of a sloped roof. They form when there is a layer of snow on the roof, which melts due to heat loss from the house into the attic The water refreezes at the eave because it extends past the warm interior of the house and the backup of water seeps underneath the roof covering. MOSS-Wood and built-up roofs are vulnerable to the deterioration by moss for its ability to retain moisture and its root system penetrating the roof surface. WATER VAPOR-Until the late 1970s residential construction codes did not require thermal or vapor barriers that are now standard practice. Exfiltration of warm moist air to drier colder air results in condensation (frost in the winter), mold and mildew and wood decay. It causes curling; cupping and shrinkage in asphalt/fiberglass shingles, corrosion of metal roofing and rotting of wood shakes and shingles. Adding insulation doesn't seal the leak; it merely filters the air going through it. Seal well around ceiling fixtures, plumbing pipes, exhaust pipes and other obstructions running through the ceiling FACTORS CONTRIBUTING TO LEAKS/MOISTURE: • POOR ROOF SLOPE DESIGN;INCORRECT SHINGLE INSTALLATION ON LOW SLOPED ROOFS • EXCESSIVE EXPOSURE LENGTH,IMPROPER JOINT LOCATIONS OR NO UNDERLAY ON WOOD SHAKE/SHINGLE ROOFS • WATER PONDING OR CLOGGED ROOF DRAINS ON FLAT ROOFS • MISSING OR DAMAGED SHINGLES; EXPOSED NAILS • IMPROPER FLASHING OR SEALING(AROUND PROTRUSIONS OR VALLEYS) • INADEQUATE EAVE PROTECTION;IMPROPERLY HUNG GUTTERS OR DRIP EDGES • DETERIORATED CHIMNEY(SOFT OR ERODED MORTAR JOINTS;CRACK OR DISINTEGRATING CAP) • INSUFFICIENT INSULATION;INSUFFICIENT VENTILATION;ABSENCE OR DAMAGED VAPOR BARRIER • VENT PIPES OR EXHAUST PIPES TERMINATING INTO THE ATTIC • WATER HEATER,AIR CONDITIONER OR AIR HANDLER MISSING SAFE PAN AND DRAIN For further information contact your local building authorities or a licensed basement contractor. INSERTED WITH REPORT M ©1999-2002 Pillar To Post Inc. Af , d r:vlrY4 { 1 S UR x VALLL 41, C111MNE LIP 2DGE VALLE Ili:AV WALL ROOF SLOPC.D/FLAT - \VATER/.SNo\V NTERSECTI D LD5 up AT TUE. JUNCTION of TUC TWO DIFFERENTLY PITCIJED ROOFS I (.5uC14 AS AN uNl-IEATED ATTACULD VULNERABLE FLASHING AREAS uNVENTED Art U\NOLLATLP SNOvd MELTS DY UEAT i` 1.7: LOSS FROM IDEATED 7 .SLOPED/SLOPED - Tao OPPOSING SNO\V MELT / - 0 HEATED FACNG SLOPED ROOF PLANES COME REFREEZES 'V OVER T11E EAVE '; To4ET1JER AT Tit EDGE OR EAVE TO FORM PAM Zy 4': STANDING \VATER AND FORM A VALLEY- TI-b CAUSES � RUNS VATER 6ACKUP OR AN ICE DAM IN UNDERNEATLI oUNGLE.S AND j VENTED AND I CIZ a COLD AR CULATWG UNDER TIDE ROOF. PREVENTS Tit RooFFROM DECOMNG '� ;� coLD AR. AIR GIJUTES KEEPS Mt WSULATIaN t N T1°JE,!- Ali1811{{[1!1!1 (111 �� . SLOPGDAVALL - AN EXTREMELY POOR DESIGN \VUERE A SLOPED SOFFIT AND RIDGE 1" IDEATED AIR 1 ROOF PLANE MEETS A WALL VENTS U/ATER/SNO\V CAN ACCUMULATE N ALLO\V CIRCULATION OF TIJIS VALLEY' AND CAUSE DAMAGED. ICE DAMMING ON A TYPICAL ROOF ROOF SLOPES/DESIGN ® (999-2002 Pillar To Post Inc. Cigar lb �ra Smoke alarms are an incredible success story.Once the concept took hold in the 1970s,it wasn't long before the fire death rate was cut in half! Now, more than three decades later, most homes have at least one smoke alarm but we still have a problem—the smoke alarms aren't working!In one quarter of the homes with smoke alarms, the alarms don't work. The cause is missing or dead, disconnected batteries(National Fire Protection Association). Pillar To Poste would like to encourage you to pay more attention to your smoke alarms. The Benefits of Smoke Alarms To Wake You:Most of us have heard this story more than once but it can't hurt to hear it again: If a fire breaks out while you are asleep, you might expect the smoke and flames to wake you up but it does not. You cannot sense the smoke while you are asleep. The fact is you will not wake up.This is the main reason we have smoke alarms. Early Warning:There is another key benefit of smoke alarms, early warning. The sooner you know you have a fire, the better the outcome. For a minor fire,early warning may make the difference between quick containment and a fire that is ' out of control. For a bigger fire, early warning could make the difference between minor damage and complete loss of your home. Placement of Smoke Alarms Here are the general guidelines. We do not address local bylaws and codes here. • There should be at least one smoke alarm per floor including the basement. • Smoke alarms should be placed outside every separate sleeping area. • Many authorities suggest an alarm inside each bedroom as well. • The alarm can be placed on the ceiling or high up on the wall. • If the alarm is on the ceiling, it should be at least four inches away from any walls. • If the alarm is on the wall, it should be at least four inches but not more than twelve inches from the ceiling. • Peaked ceilings have stagnant air at the top. The smoke alarm should be three feet from the highest point. • Do not place the smoke alarm where it could be affected by drafts such as next to a window or air vent. • Follow the installation instructions provided with the smoke alarm. Types of Smoke Alarms There are two different types of smoke alarms, photoelectric and ionization.Without going into the technical details, photoelectric smoke alarms are slightly better at detecting smoldering fires such as from a cigarette burning on a couch whereas an ionization type is slightly better at detecting flaming fires such as burning paper. In the past,this generated much discussion about which one was better. The fact is they are both so good that the difference is insignificant. Both must pass the same certification requirements for all types of fires. Maintaining Smoke detectors require very little maintenance: • Test the smoke alarm once per month by pressing the test button until the alarm sounds then release the button. • If the smoke alarm is battery operated, replace the battery every year. • If you hear a chiming sound from the smoke alarm, change the batteries. • Dust or vacuum the surface periodically. • Replace the entire unit if it is older than 10 years or if you are not sure how old it is. Print the installation date inside the cover. 1999-2004 Pillar To Post® INSERTED WITH REPORT# r km.d,t9vr r a False alarms Nuisance tripping of your smoke alarm is bound to happen occasionally. For example, smoke from the stove could trip the alarm. Unfortunately, many people remove the battery to silence the alarm with the good intention of replacing it after . the smoke clears. This is one of the most common causes of non-functioning smoke alarms. Here are some better ways to deal with nuisance tripping: ii • Use an alarm with a 'hush button'. If the smoke alarm sounds,just press the hush button, you will have up to ten minutes to clear the smoke. • Move the smoke alarm a little further from the kitchen area. • Try a different type of alarm. Some experts say that a photoelectric smoke alarm is a little less sensitive to common causes of false alarms. Long life battery If you are the type that is unlikely to remember to change the battery every year there is a product for you. Some modern smoke alarms come with a ten year lithium battery built in.After ten years, you replace the unit.You still have to test monthly to make sure it's working. Hard wired alarms Many homes today have smoke alarms wired right into the household electrical system. There are two benefits: • You don't have to change the batteries every year because the alarm is powered from the electrical system. Many also have a battery backup so the alarm operates even if there is a power failure. • You can have the alarms interconnected. This means if one alarm in the home sounds then the others sound as well. This is a big advantage. For example, if there is a fire in the basement, you may not hear a smoke alarm sounding from two floors away while you are asleep. If the alarms are interconnected, the alarm in the basement will trigger all of the alarms in the home. Escape plan Smoke and flame can spread quickly so you need to react quickly. It is vital that you and your family know what to do on hearing a smoke alarm.You should plan an escape route from every area of the home and identify a safe area to meet outside the home. You should rehearse the escape plan with your family. Walk through and identify obstacles that may slow you down such as windows that are jammed or exits that are crowded with storage etc. 4" Min. "Inlus Dead Air II Bedroom Hall Bedroom Space a (never place Living Room Family Room detector here) o Basement Placement on Walls & Ceilings Placement Throughout Home ©1999-2004 Pillar To Post®