Watch Next Video: Part 3 
Faulty grade conditions relate to the height of soil in relation to the wood lying on top of the foundation. So let me start with the different parts of a foundation.
There are lots of different types of foundations but since many of the homes in my selling area were built between the 1920’s to 60’s I’m focusing on a raised perimeter foundation style. Here a contractor would dig a trench along what will be the perimeter of the structure. He would put form boards above ground to hold the concrete in place until it hardened. A piece of lumber was placed on the top of the formed concrete called the MUD SILL. This is the piece of wood that the remainder of home gets built up on. Over time, moist soil can build up along the foundation. When the soil gets up to the mud sill you have what is called a “faulty grade condition.”
A faulty grade condition can be fixed by taking the soil back down but if dry rot damage to the mud sill has already occurred then the only thing to do is to have the mud sill replaced