Alabama proposes legislation to broaden the definition of "aggrieved party" in a home inspection to include sellers and builders

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The language appears to also include sales agents and mortgage lenders. Killing a deal with an incorrect call outside of the SOP would adversely affect the agent financially. Missing a defect that results in an insurance company’s decision to reject coverage for a future loss that would be otherwise insured would adversely affect the mortage lender if it resulted in default or devaluation of the property.

No, it is limited to “a party to the sale or purchase” which would mean a party to the sales agreement (buyer or seller). Neighbors who are aggrieved because the home hasn’t sold due to the inspection wouldn’t be included.

Well that certainly sounds reasonable to expect a Home Inspector to PAY UP if someone disputed their comments OR if the deal went south.

A real estate agent is not a “party to the sale or purchase”? If you were limiting the language to a “buyer or seller”, would you not simply say “buyer or seller” rather than a “party to the sale or purchase”? I don’t see where this language necessarily excludes the party to the sale who is lending the money, either. This language is ambiguous and open to interpretation by the court, in my opinion.

No, a real estate agent is not a “party to the sale of purchase.”