Team, I’m using a 3rd party for WDO, Sewer scopes and radon (for now). Should I add verbiage (cya) inside the agreement? If so would anyone be willing to share with me their actual verbiage? TIA
Jake
JEI, Inc. (Jake Edenfield Inspections) does not provide Radon, Mold, Sewer Scope or other ancillary services. These services may be provided by a Third Party Vendor, and are not affiliated with JEI, Inc. blah, blah, blah.
Imo… when it comes to SF residential properties, refer them to the contractor and stay out of it, as you will take some liability no matter what protection you think you have. It’s not worth the few ‘extra’ dollars you are upcharging for managing the process. Even the act of ‘referring’ places some perceived liability on your company.
On larger projects, I hire the contractor as part of my team (1099-NEC) which changes the dynamics of everything.
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Welcome to our forum, Jake!..Enjoy! 
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Thank you sir. I’m just not good at writing info into the pre agreement. My insurance co said it didn’t NEED to be done but would be nice to have. I appreciate your response.
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I include a WDI inspection with every inspection and offer Radon testing & sewer scopes which I sub out.
My inspection PIA specifically states “this inspection agreement is for the home inspection only”. And as of July 1st a home inspector license will be required to inspect residential properties in Ohio and they require specific language be included in the report and PIA concerning the inspection.
Ancillary services stand on there own.
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Hi there, just getting started here in Ohio, and am working through this and want to make sure I understand.
So since you include the WDI, do you have them sign a second agreement for that, that is different than the main Home Inspection agreement? And then a third agreement if they order any services you sub out?
And for the ones you do sub out, do you collect payment from the customer and then the contractor sends you the bill? Or do you just get them in touch with the contractor and let them work it out from there?
Any guidance is appreciated; thank you!
Hi Michael,
The Pre-inspection agreement is for the home inspection only, which is not only required by the state, but also my insurance company.
The WDI, Radon test and any other services I offer are stand alone add on services that have seperate reports, so there are times when I’m sending out 4 seperate reports, and yes, I collect payment and then pay any sub contractors for their services.
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Thank you for the breakdown! This makes a lot of sense, and is a big help in wrapping my head around how to structure all this.
In this case, do you have to issue a 1099 to the sub contractors you paid?
No, but if they asked I would send them one, on the other hand, my CPA had me get 1099s from them.
We would like to contract out termite inspections here soon. Wondering if I need to ask each termite company for a W-9 and in turn each January send a 1099 to both the pest control company and the IRS (If I have paid them over $600 or w/e the threshold is). I know when field inspection companies contract work out to us they ask for a w-9 and in turn give us a 1099 in January.