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I . OBJECTIVE <br /> The objective of this research is to determine the relative <br /> economic benefits of Truth in Sale of Housing and Point-of-Sale <br /> inspection programs. <br /> II. DEFINE/DESCRIBE PROGRAM <br /> A. The Truth in Sale of Housing Inspection: This inspection <br /> is essentially a buyer-beware program, and can be divided into two <br /> separate categories . <br /> (1) Truth in Sale of Housing with Immediate Hazard requires a <br /> specified list of hazards to be repaired. Truth in Sale of Housing <br /> immediate hazards can include, but are not limited to, heating <br /> systems, water heaters, electrical systems, plumbing systems, <br /> structural systems, exterior foundations, garbage/refuse, and smoke <br /> detectors. <br /> (2) Truth in Sale of Housing with no code enforcement is a <br /> disclosure only. The disclosure report informs the prospective <br /> buyer which building components are not up-to-code. Truth in Sale <br /> of Housing requires the disclosure of housing information and <br /> defects as a condition of the sale of housing and offers an <br /> overview of building components and fixtures by the evaluator. <br /> The purpose of both programs is to inform a prospective buyer <br /> (through a Truth in Sale of Housing Disclosure Report) of the <br /> condition of the dwelling at the time the evaluation is made. It <br /> also helps the seller become aware of what repairs might be made <br /> before offering the property for sale. <br /> B. Point of Sale: The purpose of Point of Sale inspection is <br /> the same as the Truth in Sale of Housing but requires code <br /> enforcement to be made either by the buyer or the seller. Either <br /> the seller is required to make repairs prior to the transfer of <br /> property or the buyer is required to sign an agreement with the <br /> City and the buyer stating when the repairs will be complete. <br /> Implementation of either program requires all houses within the <br /> City of Mounds View to have inspection prior to closing. <br /> III. DIRECT COSTS OF EACH PROGRAM <br /> A. Inspection Costs. The direct cost of Truth in Sale of <br /> Housing and Point of Sale inspection is to the seller. An <br /> inspection fee is required either by a public or private inspector. <br /> Public inspection charges range from $55 to $95. Private <br /> inspectors charge in the area of $85-200 per inspection. <br /> B. Repair Costs. <br /> 1. Truth-of-Sale of Housing. No costs for either the <br /> seller or the buyer. <br /> 2 . Truth-of-Sale of Housing with immediate hazard. The <br /> repairs may be made either by the seller or the buyer. <br /> 3 . Point-of-Sale. The repairs may be made either by the <br /> seller or the buyer. <br /> C. City. Private inspection the City usually charges a <br /> filing fee around $10-20 . In some cities the outside evaluator <br /> must register with the city paying approx. $50-$100 annually. <br /> Average homes sold between 1992-1994 is 159 . Projected homes <br /> sales are not available from either the city or the multiple <br />