Inspection Agreement Review 2

You refer to the “client” and the “customer” in the same sentence. How are they different?

You do realize that the “cost of this inspection” is not the same as the fee paid for the inspection? The cost of an inspection could be interpreted as the total financial loss (cost) of a bad inspection, not the fee paid for it. Change “cost” to “fee paid.”

What does “technically expansive” mean? Your paragraph #1 references “technically exhaustive.” Is that what you mean?

In #6:

Missing apostrophe in the word “Client’s.”

In #7:

Perhaps change the last word to “inaction” instead of “action.”

But in #7 you said it was O.K. for third parties to use your report (provided they assume the risk of doing so):

Make up your mind.

Also, it’s probably to your advantage to allow others to see your work product. Read:

So you reserve the right to charge an additional fee if the home is cluttered, but if your client doesn’t know it’s cluttered when he/she schedules, you don’t do the inspection, don’t charge the fee for it being cluttered, and instead charge a “travel fee?” Sounds nutty to me. Why not just do the inspection, charge for it, and add the fee for it being “cluttered” like you originally reserved the right to?

In #11 you state:

In #14 you state:

No need to keep repeating it.

How do you expect your client to know who the TPSP is or to have enough information about what they are going to be calling about to be able to make a decision as to whether they want the TPSP to call them?

From #17:

What the inspection company understands is irrelevant to this agreement.

And finally, without signature lines, this isn’t an agreement at all. Add signature lines, property address, date, etc.

Not as bad as I thought it would be shhuuu :). Sig lines are there. You just can’t see them. I have them programmed in using your contractor system. Thanks Nick. I’ll look at making the changes and once done I am going to repost to see what you think.

Ok Nick I have corrected what you told me. See anything else? Also I have attached information I take and signature blocks are at the bottom by using your system.

<b>Address to Inspect:</b> _______________________________________

<b>Date of Inspection: </b>_________________

<b>Time Inspection Starts: </b>_________________

<b>Client Phone Number: </b>_____________________________

<b>Realtor or Rep: </b>_____________________________

<b>Realtor/Rep Email:</b> ______________________

<b>Ancillary Services Ordered:</b> ______________________

<b>Fee For All Services:</b> ______________________


<b>1. How We Inspect: </b>The inspection company STL Home Inspection Services LLC guarantees they will provide the client with a written report identifying the readily visible defects that the inspector both observed and deemed “material” at of the time and date of the inspection. In consideration of the fee paid and the services rendered, the client and inspection company agree that: The inspection company will perform a limited visual inspection of the major components and/or systems of the building at the address listed below. The inspection will be based upon limited observations that are visual & non-invasive. The inspection is not technically exhaustive. The inspection may offer additional comments as a courtesy, but these type of comments do not comprise the bargained-for written report. The inspection or report is only supplementary to the seller’s disclosure. The client understands and agrees the limited visual inspection will not detect or report on many minor defects, cosmetic concerns obvious to a casual observer, or routine maintenance conditions, and if this is the type of inspection desired, it is beyond the scope of a “InterNACHI Standard of Practice Inspection” and would require additional time and additional fee(s).

<b>2. Scope of the Inspection: </b> The client understands and agrees the inspection will be performed substantially in accordance to the…

<center><b>International Association of Certified Home Inspectors
(Standards of Practice)
The client may get a copy from the inspector or view the SOP online at
<font color=“blue”><a href=“”>NACHI.ORG/SOP</a></center></b></font>

<b>3. Inspection Does Not Include: </b> Negotiating issues with the builder/owner/contractor; sewer lines and/or onsite waste disposal systems; water softeners; shower pans; over-flow drains; identification of Chinese drywall; low voltage electrical systems; backup generators, data and communications systems or other ancillary wiring that is not part of the primary electrical distribution system; lightening arrestors; any timing systems; water purification systems; well systems; solar heating systems; swimming pools; spas; fencing; playground or sports equipment; underground sprinkler systems; pressure tests on central air conditioner systems; furnace heat exchangers; radiant heating systems; portable appliances (including refrigerators, washers, dryers, etc.), carbon monoxide detectors. Inspection company will not inspect for any environmental issues such as lead paint, asbestos, radon gas (unless specifically requested), or drinking water quality. Inspection company will not address conditions relating to animals, pests, or rodents. EIFS siding systems are not inspected. No sampling or analysis of mold is conducted. Cosmetic features are excluded, including without limitation: paint; wall coverings; carpeting and other floor coverings; paneling; lawn; and landscaping. Inspection company will not inspect for building code compliance, soil analysis, adequacy of design, capacity, efficiency size, value, flood plain location, pollution or habitability. Inspection company will not attempt to identify recalled systems or components. Inspection company will not operate heating or cooling systems in temperatures that may cause damage to the unit (air conditioner systems will not be operated if the outside temp. is below 60 deg. F. heat pumps will not be operated in normal heat mode if the outside temp. is above 75 deg. F.). Inspection company will not inspect heat exchangers, boilers, etc. for cracks.

<b><font color=“maroon”>4. Limitation of Liability: </b></font> The client understands and agrees that the liability of the inspection company or of its inspectors, employees, agents, sub-contractors, etc. for any type of claims or damages arising out of any dispute, controversy, error or omissions in the inspection or the report…

<center><b><font color=“maroon”>SHALL BE STRICTLY LIMITED TO THE FEE PAID FOR THIS INSPECTION</center></b></font>

This amount shall be deemed liquidated damages, and the client agrees to accept a “Refund of the Fee” as full settlement for any and all claims.

<b>5. Technically Exhaustive Inspection: </b> The client understands they may buy an inspection without “Limitation Of Liability” as provided for in Paragraph #5 above, by paying an extra fee and getting a “technically expansive inspection”. The technically expansive inspection report will be delivered to the customer within 20 working days after the inspection company has performed the “basic inspection” and then retained other specialists and performed any specialized testing or analysis. The “technically expansive inspection” fee is $2,750 or 1% of the Sales Price (whichever is more) plus the “Basic Inspection” fee. Stop here and do not sign if you choose to have a technically expansive inspection. Call or email inspection company for further details.

<b>6. If We Have a Dispute: </b> In the event of a claim against the inspection company, the client agrees to supply the inspection company with the following: (1) Written notice of the adverse conditions in dispute, within 15 days of the discovery; (2) Three detailed and written estimates for any proposed remedial repairs and/or replacements, and their costs; (3) Access to the premises by the INSPECTION COMPANY or 3rd parties as frequently as we desire to re-examine the system or component in questions, prior to making any repair or altering the conditions (unless due to a life threatening situation). Client’s failure to comply with the above conditions will release the inspection company, its employees, agents, or sub-contractors from any and all obligations or claims.

<b>7. Further Evaluation: </b> If the client fails to get further evaluation or investigation of problems and/or conditions noted in the report, or fails to have further analysis or repairs recommended by the report, the client agrees to assume all responsibility and liability for such inaction.

<b>8. Distribution of The Report: </b> The report is copyrighted by the inspection company and is prepared by the inspection company exclusively for the client (unless directed otherwise). By signing this agreement, the client gives permission for inspection company to discuss report findings with real estate agents, owners, or contractors for the sake of clarification.

<b>9. Mediation Clause: </b> Client agrees that before filing suit against inspection company, the parties must submit to non-binding mediation, with each party to pay 1/2 the costs of the mediation. The mediation shall not last more than 8 hours.

<b>10. Payment: </b> The inspection company fee is based upon the age, condition and square footage of the home and is subject to correction if the client’s assessment of the property is inaccurate once all parties are on-site. Payment is due at the time of the inspection. Cash or check is preferred. Credit Cards are accepted on site.

<b>11. Access Panels/Locks/Utilities: </b> The inspection company will not open gas or water valves, light pilot lights or gas appliances, activate electrical services that have been turned off, or cut locks open. The client is solely responsible for ensuring that all utilities are turned on, that breakers are turned on, that all water and fuel valves are open, that all pilot lights are lit, that all rooms and crawl spaces are unlocked, and that components such as attics and panel boxes are accessible prior to the inspection. Return visits because utilities were off, valves were off, pilot lights were not lit, or certain areas were locked or otherwise in-accessible will be subject to an additional travel fee at $125.00.

<b>12. Generalist vs. Engineer /Licensed Specialist: </b> Client understands that the inspection company does not perform engineering, architectural, plumbing, or any other job function requiring an occupational license in the jurisdiction where the inspection is taking place. Inspection company is not responsible to determine all that may be wrong with that system or component, and may advise that the system or component of the home be evaluated by a specialist such as (but not limited to) licensed electricians, HVAC techs, plumbers, foundation contractors or structural engineers.

<b>13. Ancillary Inspections: </b> Radon, Termite or Lateral Sewer Inspection by video (Includes DVD): If ordered, STL Radon performs Radon testing following EPA guidelines. Test takes 48 hours and reports are released on the next business day. In addition, as a courtesy, inspection company will arrange to have a state licensed termite control company and/or Lateral Sewer Scope company evaluate the property. Client holds inspection company harmless for services and reports rendered by 3rd party inspectors and will deal directly with third parties and their insurance in the event a problem related to the property arises from their independent inspection.

<b>14. Property Entry and Accessibility: </b> Client has obtained a right of entry by seller’s agent or seller to perform this inspection.

<b>15. Your Personal Contact Information: </b> Inspection Company has an affiliation with a Third Party Service Providers (TPSP) in order to offer value-added services to its clients such as our 90 day warranty and recall programs. Inspection Company will arrange for the TPSP (Residential Warranty Services based out of Indiana) to send literature or make post-inspection contact by phone with its clients. If the client does not wish to receive literature from or be contracted by Residential Warranty Services then the client must notify our office no later than 2 hours after your inspection takes place.

<b>16.</b> <b>InterNACHI Buy Back Program: </b>The inspection company is a member of a professional organization called InterNACHI. Visit them online at to learn more. InterNACHI has a limited liability program where in writing according to their website ( has agreed to buy back the home we inspected within 90 days or less from the day the client closed on the house for the price the client paid for it. See the full release at Fine print reads as follows.

  1. Honored for 90 days after closing.
  2. Valid for home inspections performed for home buyers by participating InterNACHI members.
  3. InterNACHI will pay you whatever price you paid for the home.
  4. Excludes homes with material defects not present at the time of the inspection, or not required to be inspected per InterNACHI’s Residential Standards of Practice.
    <b>Privacy Policy</b>: InterNACHI don’t collect identifiable consumer data; therefore, they can’t sell or release it. No data is sold or released to any third party.

<b>Important: </b> Client understands this offer is through InterNACHI only and that the inspection company WILL NOT any any time prior or after the closing transaction offer to buy back the home in the event InterNACHI denies your claim. Client holds inspection company harmless and agrees to deal directly with InterNACHI in the event the client wishes to file a buy back claim.

<b>17</b>. <b>90 Day Limited Repair Warranty Offer:</b> The limited visual inspection conducted by the inspection company can help reduce the risks of ownership, but it will not eliminate the risks. The client understands and agrees the inspection company will not be able to observe every square inch of the structure; that the inspection company could fail to see or note a defect; and that defects may exist at the time of inspection that may not be detected by visual observation alone. Client understands and agrees that components or systems can break or malfunction at any point in time especially old equipment, and that repairs or replacements may be needed at any time in the future, including the day after the inspection. As a courtesy the inspection company will sign the client up for a free limited repair warranty offered/executed by a 3rd party company called Residential Warranty Services based out of Indiana. Client understands that the warranty covers a limited number of components related to the home with strict exceptions. Client is highly advised to read full details about the warranty at If you cannot access the document through a internet connection please call the inspection company before the inspection takes place so we can send a copy by mail. Client holds inspection company harmless and agrees to deal directly with Residential Warranty Services in the event the client wishes to file a claim.

Yes, you still are using the term “technically expansive” when I think you mean “technically exhaustive.”

Good catch. Thank you.

Pretty good agreement overall. Nice work.:wink:

Yes I think it is a very nice agreement. Nick also has done a good job of critiquing it as well. I believe he is watching Kate over on the website thread closely as well.!

Good job Billy and good job of looking it over Nick.


Thanks guys I appreciate it.

Seems long to me. Some of the wording, such as inspection limitations, are already in the SOP’s that you stated that you use. IMO.

Nice Inspection Agreement Billy … Is it 2 pages OR a short form.