Inspections that Entergy Arkansas Inc. will require prior to the transfer of boat dock permits on lakes Hamilton and Catherine are intended to protect homebuyers from unexpected costs after close of sale, officials with the utility said Tuesday.
Shoreline facilities on real estate changing ownership after Jan. 1 will be subject to an inspection by a licensed home inspector prior to approval of permit transfers, the utility announced Monday. Entergy will honor inspections paid for by prospective sellers for up to a year after the inspection, which will be transferable to one buyer for submission as part of the permit transfer process.
Inspections are otherwise the responsibility of the buyer. Floating docks will also be subject to inspection, even if the associated real estate transaction closes during a drawdown of the lake.
Gary Bettis, Entergy's manager for area design, said inspections will inform buyers if docks, piers and other construction are permitted and in compliance with the utility's shoreline management plan, preventing unexpected costs after the sale.
Entergy will post a list of certified inspectors on its website starting Dec. 7. The news release it issued Monday said it will only honor full reports prepared by an Arkansas Real Estate Inspection Board certified inspector.
"We see a lot of issues with buyers from out of state," Bettis said. "They buy a house with a dock, and there's an issue with it not being properly permitted. They're stuck with all the fines and repair costs. It's a bad scene for us and everybody.
"They get stuck with a large bill to fix the sins of the previous owners. We want a way to make it where the buyer doesn't get stuck with stuff from the previous owner."
The current transfer fee will remain the same under the new policy, which David Batson, Entergy's lakes and property coordinator, said only applies to new construction. A $200 fee is assessed on transfer applications submitted 60 days before closing. Applications submitted after the 60-day window are assessed a $400 fee.
"We're not raising any of our fees for this," Batson said. "We're not planning on raising any of our fees in the foreseeable future."
He said the new policy will improve compliance with safety mandates such as Jesse's Law, also known as the Boat Dock and Marina Safety Law the Legislature passed in 2011 to warn swimmers of electrical shock hazards. In addition to the posting of warning signage, the statute also applies national code standards to electrical wiring that's connected to boat docks.
A violation of the statute is an admissible cause of action in a civil claim seeking redress for injury or bodily harm.
Batson said the inspections will also aid the enforcement of the county ordinance requiring 911 addressing on boat docks.
The noncompliance review Entergy began in 2012 to check shoreline facilities against permit records is ongoing, Batson said. The comprehensive audit determines if facilities match dimensions and composition listed on permits property owners are required to obtain before adding new construction to the lakes.
The shoreline management plan regulating that construction is required under the federal license authorizing Entergy to use the lakes for power generation. According to the plan, the Federal Energy Regulatory Commission empowers Entergy to implement a permitting process to prevent unauthorized use of the shoreline.
Local on 11/29/2017