April 13, 19xx

Dr. Xxxxx Xxxx
#### Multiview Terrace
Studio City, California
Re: Real property transaction review and cite inspection

Dear Doctor,

This is a narrative report where there are no special findings and the sale was completed prior to this written report. These items were communicated orally prior to sale to both you and your fiance.

You will recall that I was first introduced to your purchase of a hillside home in Studio City by your revelation to Mr. Xxxxx of the (newspaper) which I suggested at the time was inappropriate because of the nature of the interview and that it tended to reveal your income. Both Mr. Xxxxx and I expressed our concern that the propsed purchase price was unusually low, Mr. Xxxxx having just recently published an extensive article on the subject of prices of Valley homes. You were told by the broker that the home was available at an unusually low price because the consortium of sellers had other real estate dealings and this property was to be liquidated to finance another, which justified the exceptional price. In light of this conflict of opinions and concern about the property you engaged me to investigate the sale and property which I did do as follows:

A copy of the transaction papers were reviewed and my initial finding was that the evaluation, though extensive, failed to designate whether the property was hooked up to city sewer or cesspool; and if cesspool, what was its location and condition.

I further noted that the inspection report of the geologist did not clearly indicate that he entered the subbasement to inspect the caissons with any technical equipment. It was later determined that the structure is only eight years old so there is no reason to believe that in the absence of any reported difficulties in the neighborhood or obvious structural unsoundness, no technical study was indicated. The geologists license required further investigation to determine if he could render an opinion. I was also concerned that the hand written inspection report was minimal and not sufficient upon which to base liability should the structure's foundation prove unsound.

Your fiance expressed the concern that the selling agent indicated that the geologist who inspected the property was under investigation and his license was in question. I telephone the California State Department of Mines and Engineering twice to determine the status of the geologist's license. He was listed as in good standing, but subject to investigation by the Attorney General's office based upon a complaint. I called the local office of the Attorney General and spoke with the investigator. He would not officially reveal any findings of the report, but when I explained my concerns he revealed that a complaint was lodged on the basis that the geologist had failed to list certain soils as being filled and the owner eventually had to bear the cost of its removal. This explained the paragraph in his report on your property regarding the removal of 'yellow soil' which could slip down the hillside if saturated with water.

I telephoned the City of Los Angeles regarding sewer line hook-ups and found that your street does not have public sewage.

Street markers of brass would indicate that the actual property lines are well defined, but the legal description is difficult to follow; it appears to be correct at the street level; the projections below the street and on the slope are unmarked. I am unable to render an opinion regarding the accuracy of the land description without survey. There is nothing obvious to the eye to indicate a problem.

I did note that the side yard to the east is fenced with heavy materials. Should a car miss the curve in the street it would plow into the heavy stakes. The rails of this fence should be strong enough to re-direct the movement of the car. The outflow gutter near the entrance requires a screen as it presents a minor hazard to a woman's heel or could throw someone off balance.

The hillside above is mostly rock outcropping, so there is little chance of slide toward your home.Directly across the street is a very large storm drain outflow from the street level above your street. During a downpour, a great deal of water could be directed out onto the street directly in front of your home.

The quantity of water from the drain could pose a danger and it would be nice to know if that is a lawful private or public drain. The size of the gutter curb indicates that water flows down the street in front of the house at a sufficient flow to warrant having the entire front of the house re-tared in the past with the build-up of a lip at the property edge. It would be appropriate for you to have a supply of sandbags on hand, say at the back of the garage, for a very rainy day in the event that waterspout should overflow onto your property, you could quickly redirect the flow. I think you should take a garden hose out and flood the outflow entrance just to see which way the water moves. The angle of the street is such that it would require a major flow to move onto your property, but the spout is very large and I imagine it is so for a good reason; copious water flow after a rain storm. The topography to the east of the house was probably caused by the natural waterflow prior to construction.

The seal between the house and the garage apron is broken and this is indicative of some earth movement or possible heat expansion and contraction. The exposed side of the apron support wall, to the west, is cracked, also indicating movement. I can not determine if the movement is a result of settling which is to be expected from a new home, earthquake damage or otherwise. It seems sturdy enough; the seal should be restored to prevent water seepage into the subbasement or erosion of the apron subsoils.

On the west wall of the subbasement is a pipe whose seal into the structure is broken. I am unable to determine if this is damage or eroded fitting. Further down I note a stain on the plaster wall below the chimney. This indicates water flows down the side of the house. This might be from wind, or it could be an internal stain from a leaking chimney flashing, I can't tell. It does pose a danger to the plaster and the stairs on the side of the house. It indicates an improper water flow which should be corrected. The stairs have been slightly undermined either by water flow or settling of the foundations.

To the rear of the house is a 'yellow soil' deposit. It appears to be the tailings from drilling the caissons that support the foundation in to the hillside. You were interested in having a deck placed over this area. My suggestion is that pylons be set to hold the decking as the soil is probably unstable as suggested by the geologist. This would be especially so if you want a hot tub installed. The tub would need to be both anchored and supported. I suggest that a pre-fabricated fiberglass tub be installed because of the location. There is no home below you at this time, but that could change as property prices rise and construction techniques permit use of difficult lots such as that below you. Any slide or flow would travel to the street below.

When the cement and steel pylons are set, I would strongly urge you to have steel rings set in them to run lines down the hillside. The slope is so steep that it is currently inaccessible to all but the most adventuresome. Rings set in the pylons would permit a rope to be placed down, possibly a rope and wood ladder. You could then safely access the area to plant more desirable trees.

I ventured down into the slope to inspect and found burrowing rodents. There were a few burrows, and they can undermine the slope over time. Their numbers and burrows should be checked from time to time to determine if and when it is appropriate to have them reduced by pest control. They seem to thrive on an elderly and feeble California Walnut tree which is on the slope. I suggest removing that tree.

The noted that the rear of the house does not have an accessible gutter. This will result in a water wash below and a drip line.

The east side of the house also shows erosion or separation of the stairs away from the foundation. The cause is unknown, but should be corrected.

Although I did not have access to the house, I understood that one of the windows was not set in its frame. I also understand that this has been repaired. My concern at the time was whether this is indicative of any more substantial structural problem. You investigated this matter to your satisfaction and determined that it could be repaired. It seems that this was only an ill fitted window that settled out of frame.

Further up the east side of the property at street level is the cesspool, or so I am lead to believe by the agent for the then current owners. I telephoned him repeatedly for an answer regarding the location and condition of the sewer outlet, but he made no certain reply. I understand that you finally located it and that it is accessible from the street for cleaning.

Without the opportunity to inspect the interior nor subbasement I was not able to make a further inspection. The title was to be covered by title insurance. There is not much else to remark upon. I think there are seasonal aspects to the home which should be taken into account in your planning. These are that the home is on a north slope and the natural vegetation is dry, scrub and unattractive but sturdy. North slopes do not get the moist fog from the ocean at night, it all lands on Bel Air to the south. The home should be cool in summer as it may be in the shadow of the hillside. It should be delightful in the winter with the northern exposure lighting the interior. If you proceed to build decks, be warned that you may experience strong winds gusting up the hillside.

I think the contributions made were the resolution of the sewer access, identification of the tar dump, the resolution of the condition of the geologists license and creditability, identifying the water problem(s), potential and real.

I hope you enjoy your new home and are very happy with it.