Chinese drywall question

[John M. Supley]

I did a HI on my neighbor's rental property a couple months ago and feel strongly that it has bad drywall. Since then he has let it go back to the bank and I am seeing prospective buyers looking.
We cut the wall behind the shower valve, looked at the a/c coils, ground wires, etc and all the traits are there. Question is, since I am not aware of any field testing other than sending a sample to a lab, what should I do?

[David P. Valley]

John,

Was this home built between 2001 & 2006?

Does the home have a strong smell (a sulfur or rotten egg-type smell)?

Do the homeowners have breathing irritation or headaches while in the home?

Does the home have corroded copper components in the air conditioner or are the copper electrical wires black / discolored?

Does this drywall have KNAUF or ASTM36C or CHINA written on the tag of the drywall? (some have no stamps at all). The best way to tell is to look for the name on the back side along the edges. If it is stamped Knauf, then it is Chinese Drywall.

Here is an easy solution to identifying suspect drywall, and it beats the cost of testing hands down...

Measure up about 49" above the floor (that should be the horizontal joint between the sheets), then cut out a piece about 6" above and 6" below that height, for about 4 feet, that should give enough edge to find the name of the manufacturer.

Repairing this drywall is cheap and easy, (the owner won't even know) and if the piece comes out in one piece as it should, that same piece can be put back in and patched around. Of course, if it is Chinese drywall, put it back in temporarily, but why patch it? All of the drywall may end up being ripped out anyway.

A related site...http://www.chinesedrywall.com/

[William E. Siegel]

Repairing the drywall may be cheap and easy, but what about all the wiring, appliances, AC unit, etc.

[John M. Supley]

Too late, I am sure it is present as I just walked it with a potential buyer. He informed me the house will be sold today by noon.
My question was in referance to my obligation to the general public/potential buyers as far as what should my involvement be.

[Michael R. Boyett]

Originally Posted by jsupley

My question was in referance to my obligation to the general public/potential buyers as far as what should my involvement be.

Personally, I have two schools of thought right now.

One, you could clearly disclaim Chinese Drywall in your Inspection Agreement. The E&O & GL insurance industry is watching the Chinese Drywall issue unfold but is already drawing parallels to the mold fiasco from several years ago. I would not be surprised to see E&O providers not cover Chinese Drywall without an added binder at additional cost to the HI. Tell the client upfront that you don't inspect for Chinese Drywall so that he can go elsewhere if he so chooses. This is the approach I'm taking for now since Chinese Drywall is apparently not an issue where I inspect.

Two, you can inform the client that you suspect the presence of Chinese Drywall and that limited methods exist to verify such suspicions. Provide all the the documentation available and recommend the client obtain further investigations. Have you read this article? In other words, make sure the client understands the complexity and financial impact of the potential issue.

[Greg Bell]

Originally Posted by jsupley

Too late, I am sure it is present as I just walked it with a potential buyer. He informed me the house will be sold today by noon.
My question was in referance to my obligation to the general public/potential buyers as far as what should my involvement be.

You have no obligation at all unless the new buyer hires you for an inspection. IMHO

[John M. Supley]

I blew the guy off, he lost the house and is jumping on the class action band wagon. The bank has possesion and he is wanting my construction crew to basically tresspass and do further inspecting. A bore scope is a pretty good way to check and can be non invasive, but I didn't have one when I walked the house with him back in May