These days, roofing certifications are fairly common. Many real estate transactions require a roof certification in order to satisfy requirements for home inspections or mortgage underwriters. Many Denver roofers provide these certifications. Some roofing companies will only provide them when they install a new roof, while others will perform an inspection and provide a quote for required repairs to bring it to the certification level. So what is a roofing certification and why are they required?
For many years, when someone purchased a home they were required to put a significant down payment on the property. Often 20% or more of property value. Due to the higher equity in the property, the underwriters were confident in the borrowers ability to maintain the property. Over the last two or three decades, low or no equity mortgages have become far more common.
Because of the diminished equity, the underwriters began to ask for roof certifications to ensure the roof would not need to be replaced soon after the property was purchased. From experience, the banks knew that a low equity borrower often did not have the savings to pay for a new roof shortly after purchasing a home. This sometimes resulted in a roof not being replaced and the property sustaining significant water damage. Ultimately this often started a downward spiral that ended with the bank foreclosing on the property. Not good for bank or borrower. To address this concern, underwriters began asking for a roof certification. These roof certifications basically state that the existing roof is in good serviceable condition and will not need to be replaced for a stated period. Typical requirement is for at least 5 years.
The Denver-metro area has a very active real estate market that has been booming for many years. As a result, roof certifications are very common. Most Denver roofing companies provide some form of roof cert. There is no standardized roof certification so roofers will all compose their own. Roof certifications should not be confused with a warranty though. This is a commonly misunderstood, yet very critical point. When a roof cert is given, it’s important to read it and understand the terms. Alan Parkes, Owner of Roofcorp Of Metro Denver, advises people to “Carefully read the terms of the roof cert. While roof certifications are not warranties, they should hold the roofing company accountable if there were clearly major issues present at the time of the inspection which should’ve been brought to the attention of a buyer”.
Over time, roof certifications are being requested more and more. Currently, certifications are often recommended by realtors in every transaction in order to ensure their clients are protected. Whether requested by an underwriter, realtor or the buyer, make sure to research the Denver roofing company who is providing the roof cert and verify they are reputable and established.