Inspection Agreement Review.

General Inspection Topics General Inspection Discussion
1

Hello,

Please take a look at my home inspection agreement. Any suggestions, comments, or criticisms are greatly appreciated.

Thank you in advance.

Sincerely,

Ben Savage
1st Call Home Inspections, LLC
843-338-4732

1st Call Home Inspections, LLC
P.O Box 22817, Hilton Head Island, South Carolina, 29925****
Phone: 843-338-4732 Fax:815-642-1408 Email:inspectorbensavage@hotmail.com

INSPECTION AGREEMENT

THIS AGREEMENT is made and entered into by and between Benjamin Savage, 1st Call Home Inspections, LLC, herein after referred to as “INSPECTOR”, and___________________________. Hereinafter referred to as “CLIENT”.

In consideration of the promise and terms of this Agreement, the parties agree as follows:

  1.   The CLIENT will pay the sum of $____________ for the inspection of the property(being the residence, garage, carport, or other attached and unattached buildings, if applicable) located at

THE INSPECTION FEE IS DUE UPON COMPLETION OF YOUR HOME INSPECTION.

  1.   The INSPECTOR will perform a visual inspection and prepare a report of the apparent conditions of the readily accessible installed systems and components of the property existing at the time of inspection.  Latent and concealed defects and deficiencies are excluded from the inspection.  The parties agree that  The South Carolina Home Inspection Standards of Practice shall define the standards of duty and conditions, limitations, exclusions of the inspection, and is incorporated by reference herein(A copy is available upon CLIENT request ). 

  2.   The inspection will not include an appraisal of the value, termite inspection, or a survey.  The written report is not a compliance inspection or certification for past or present governmental codes or regulations of any kind.  

  3.   CLIENT, by signing this agreement, states that they are within legal authority and represent the household for which the inspection is being completed.

  4.   This agreement represent the entire agreement between the parties. There are no other agreements either written or verbal between both parties.   The agreement shall be amended on by written agreement signed by both parties.  Any disagreement that may arise will be arbitrated by NACHI's Alternate Dispute Resolution Service (ADRS) and shall be final and fully binding.

  5.   The parties agree that any litigation arising out of this Agreement shall be filed only in the Court having jurisdiction in the County in which the INSPECTOR has its principal place of business.  In the event that CLIENT fails to prove any adverse claims against INSPECTOR in a court of law, CLIENT agrees to pay all legal costs, expenses and fees of INSPECTOR in defending said claims.  

  6.   CLIENT agrees for INSPECTOR to release reports and photographs to any real estate agency that is participating in the buy/sell of the inspected property.  A release to any other party will only be completed with the approval of the CLIENT.  INSPECTOR accepts no responsibility for use or misinterpretation by third parties.   

  7.   CLIENT understands and agrees that any claim arising out of or related to any act or omission of the INSPECTOR in connection with the inspection of the residential structure, as limited, herein shall be made in writing and reported to 1st Call Home Inspections, LLC within ten(10) business days of discovery.  The CLIENT further agrees that the INSPECTOR is only liable up to the cost of the inspection and only if there has been a complete failure to follow South Carolina Home Inspection Standards of Practice.  If the INSPECTOR has missed an area that can be inspected visually without going outside South Carolina Home Inspection Standards of Practice, a claim can be filed with INSPECTOR’S insurance company after another follow up inspection on said claimed area.  If the repair or replacement is done without giving the INSPECTOR the required notice, the INSPECTOR will have no liability to the client.  Furthermore, any legal action must be brought within ninety (90) days from the date of the inspection or the ability to bring suit against the INSPECTOR, by CLIENT, shall be deemed waived and forever barred.

1st Call Home Inspections, LLC
P.O Box 22817, Hilton Head Island, South Carolina, 29925****
Phone: 843-338-4732 Fax:815-642-1408 Email:inspectorbensavage@hotmail.com

INSPECTION AGREEMENT**- Continued**

  1.   Systems, items, and conditions which are not within the scope of the building inspection include, but are not limited to: radon, formaldehyde, lead paint, asbestos, toxic or flammable material, or other environmental hazards, pest infestation, security systems, fire systems, household appliances, humidifiers, paint, wallpaper, window treatments, interior walls, recreational or playground equipment or facilities, underground storage tanks, energy efficiency measurements, portable appliances(i.e. washers, dryers, window A/C-Heating units), internal or underground drainage, or plumbing, any systems which are shut down or otherwise secured,  water wells(water quality/ quantity), zoning ordinances, concealed or private secured systems, heating systems accessories, solar heating/power systems, irrigation systems, water softener systems, central vacuum systems, telephone, intercom, cable television, satellite television, antennae, heat or motion sensors, lighting arrestors, trees or plants, governing codes, ordinances, statures, and/or covenants for cosmetics code conformity. CLIENT understands that these systems, items and conditions are exempted from this inspection.  Any general comments about these systems, items, and conditions found in the written report or photographs are informal and DO NOT represent an inspection.

  2. The inspection report should not be construed as a compliance inspection of any government or non-governmental codes or regulations. The report is not intended to be a warranty or guarantee of the present or future adequacy or performance of the structure, its systems, or their component parts. This report does not constitute any express or implied upon as such. Any opinions expressed regarding adequacy, capacity, or expected life of components are general estimates based on information about similar components and occasional wide variations are to be expected between such estimates and actual experience.

  3. INSPECTOR is not required to remove personal items, furniture, equipment, soil, snow, and/or other items that obstruct access or visibility or put the INSPECTOR in personal danger (i.e. presence of asbestos, snakes, removal of insulation in attic, or crawlspace). In addition, the INSPECTOR is not required to walk on the roof during the inspection.

Areas of Inspection are: Installed systems and components, structural components, exterior, interior, plumbing, electrical, heating and cooling(weather permitting), attic crawl space, kitchen appliances that are fixed, insulation, and ventilation, structure, bathrooms, garage, readily accessible systems and components.

CLIENT, THIS IS INSPECTION AGREEMENT IS INTENDED TO BE A LEGALLY BINDING CONTRACT. BY SIGNING THIS AGREEMENT THE CLIENT AGREES THEY HAVE FULLY READ AND UNDERSTAND THE CONTRACT INTO WHICH IS ENTERED.

Payment date:____________________________________
Signature of Client:________________________________________________________________ Date_____________
Address:_____________________________________________________________________ Buyer Present: Yes No
City:___________________________________________ State:______ Zip: Phone:_________
Email Address:_____________________________________________________________
Realty Company:______________________________________________ Agent:_______________________________
Agent Present: Yes No Phone:_________________________ Closing date:
Email Address:______________________________________________________

HOLD HARMLESS CLAUSE: CLIENT agrees to hold any and all real estate agents involved in the purchase of the property to be inspected harmless and keep them exonerated from all loss, damage, liability or expense occasioned or claimed by reasons of acts or neglects of the INSPECTOR or his employees or visitors or of independent contractors engaged or paid by INSPECTOR for the purpose of inspecting the subject home.

2

You have “areas of inspection” and list “attic crawlspace”

I believe in the south, it is more correct to call the attic the attic.
The crawlspace is under the floor and you do not have that area listed.

You imply that you have E&O insurance in that agreement, you better keep it current or change the agreement.

I have not read the whole agreement, just noticed these items.

3

#6. You had better have your attorney review this one. If your agreement calls for attorney fees, that also works in reverse and you will be responsible if you are held liable (I believe). My report does not mention attorneys fees and this might vary from state to state.

#7. I dont like this one. The report is the sole property of the client. Im not sure I would put the release to agents in there. The last line appears ok, but you may want to put in written approval. I have my clients write on my report everyones eamil addresses. If they call me later, I make them fax or email me the request.

#8. I would check with my attorney about putting the insurance part in there. You are only asking for trouble with that one. I have in my agreement that I have the right, after written notification, to return to the property and either inspect the property myself or I can hire a third party to inspect the property. I also dont think the limit of liability hold much weight (although I have it in mine also). It acts more as a deflection. And for the 90 days to file a complaint, once again, check with your attorney. I dont think that will have much weight if you get sued. You can be held liable for negligence for more than 90 days.

#9. You may want them to initail this section.

#11. I am not reallly going to go here. What does your SOP say about walking the roof?

What is attic crawl space. It is either the attic (below the roof) or crawl space (below the home).

CLIENT, THIS IS INSPECTION AGREEMENT IS INTENDED TO BE A LEGALLY BINDING CONTRACT. BY SIGNING THIS AGREEMENT THE CLIENT AGREES THEY HAVE FULLY READ AND UNDERSTAND THE CONTRACT INTO WHICH IS ENTERED. - The first four words do not make any sense to me. I would eliminate the word client and the word is.

HOLD HARMLESS CLAUSE: CLIENT agrees to hold any and all real estate agents involved in the purchase of the property to be inspected harmless and keep them exonerated from all loss, damage, liability or expense occasioned or claimed by reasons of acts or neglects of the INSPECTOR or his employees or visitors or of independent contractors engaged or paid by INSPECTOR for the purpose of inspecting the subject home. - Why would you want this in your report. You now have taken full responsibility for anything and everything that could go wrong. In most cases, if the realtor referrs you, he then becomes just a liable as you if there is a problem.

Just my two cents. I am not an attoney and would recommend you have one review any agreement that you are thinking of using.

4

#7 I agree with William, the report is the sole property of your client. you don’t want this report floating around out there and getting passed around. could come back to bite.
#9 I didn’t see where you SPECIFICALLY exempted yourself from septic tanks and cesspools. I know you mentioned “tanks” but better to be specific.
#11 I don’t see how you can be confident that you did a good roof inspection without walking the roof. I would walk any roof that you can safely do so on. If you can’t walk it than you have that in your agreement already.

5

Another question to this point is how long should the timeframe be that a lawsuit can be brought? It’s hard to narrow down a specific statute of limitation due to varying circumstances, ie…injury or death of a person as opposed to simple financial setback because something was missed. My agreement states that after 2 years, all lawsuits are forever barred. My guess is that the contract needs to state the maximum statute of limitation that your state allows for the worst possible scenario relating to the home inspection. Any thoughts?

6

I suggest:

  • the agreement should be between the client and your company, not you. any protection the LLC gives you is lost if you are named as an individual. you are the manager or other titled representative of the company, best not to have your name on it until the last line where you sign.
  • do not list your email address. it contains your name.
  • if you use the hold harmelss clause it needs to come before the signatures
  • why is a realtor signing this agreement?

Have a lawyer go over it. This message board is not a replacement for that.

7

Furthermore, any legal action must be brought within ninety (90) days from the date of the inspection or the ability to bring suit against the INSPECTOR, by CLIENT, shall be deemed waived and forever barred.

Are you expecting to be sued? I think terminology such as that can make a wrong impression or give and unwanted suggestion.

I once went to a tire shop back around 1960 for set of tires. The sales guy said this tire is a better buy than that tire because it was less likely to blow-out.

Seemed as if he was telling me that either tire was going to blow-out…so I bowed-out. Didn’t like the implication. Got 'em at his competition down the road…

Talk of lawsuits in the Agreement seems to convey that same concept.

8

P. and S. The tires I did buy never did blow-out.

9

Ben here is the one I use. Fell free to use it or copy any sections in it. I just send with the report.

The receipt and use of this report for its intended purpose constitutes acceptance of the following Terms and Conditions. An inspection of the type indicated on page 1 of the report has been performed on the subject property. Payment for this service is required when the report is delivered. An additional fee of $30 will be added to the inspection fee when payment is delayed and additional billing is required.

The report is based on the inspector’s opinion of all information obtained through an extensive visual inspection of the premises. No warranty is either issued or implied. The liability of** Priority Home Inspections Inc.** is limited to the inspection report fee. No errors or omissions claim will be considered if any repair work is begun or completed prior to Priority Home Inspections Inc. written approval. No claim of any type will be considered more than 90 days after the date of the inspection.

The findings are not intended to cover latent defects that might not be discovered without extensive removal or disassembly of wall, floor, or ceiling coverings, wallboard, molding, or structural assemblies inaccessible for visual inspection. We are not responsible for moving personal items to gain inspection access.

The report represents the condition of the property and associated systems at the time of the inspection only. Changes to the reported condition of the property and associated systems occurring after the inspection and caused by failure to correct an existing deficiency, fair wear and tear, age and deterioration, expiration of useful life, lack of preventative maintenance and/or services, neglect, abuse, or acts of God are not the responsibility of Priority Home Inspections Inc.

The inspection report is the personal property of the person(s) for whom the inspection is performed and will not be used under any circumstances by any other party as evidence of the condition of the property and associated systems.

The inspector represents himself to be a subject matter specialist on the inspection of property and associated systems found in residential and commercial properties.** Priority Home Inspections Inc.** ** **sole proprietorship licensed by Brevard County.

Priority Home Inspections Inc. is not responsible for damages beyond our control, to the subject property occurring during or as a result of the inspection.

We welcome questions on any aspect of our service, our inspection techniques, and the accompanying report.

10

Jae what you’re saying is not only true but very interesting. However, a contract is a legal document and, in and of itself, can be said to be a trigger for litigation. Nevertheless, I happen to think the power is in “initialed clauses.”

11

Does anyone have an agreement where they are using a second party to do a termite inspection. I am looking to use someone to do termite inspections for my company but I want to keep my liability out of his work. I need an agreement that reflects this. Should my client also sign something that limits our liability on termite inspections. Thanks Hank Jaworowski

12

It’s a total disaster starting with your new definition of what a home inspection is, then it gets worse from there.

Do yourself a favor and use InterNACHI’s. It’s time tested.

13

Ben, NACHI has a team of attorneys who regularly review and update the standard agreement that is provided, free of charge, to InterNACHI members.
I figure if a team of sharks writes it, they know a lot more about it than I do.
That agreement, plus abiding (strictly) by our SOP, will do you the most good.
Your (paid) attorney may say otherwise, but you’ll notice there aren’t any discussions on this MB about members who have lost their shirts. Must be a reason for that!:wink: :smiley:

14

Started at the top and skipped down to state what you guys just said.
I know that unless I get an attorney the NACHI agreement is the best I can do.
I just add a ryder for condos.

15

No attorney on the planet earth can do better than the InterNACHI agreement IMHO. Too many attorneys, too many cases, too much research, too much time in the ring over too many years have created an agreement with a flawless success record. It continues to enjoy one undefeated season after another.

16

Where can I find the agreement on this site?

17

Michael, try here…

http://www.nachi.org/agreement.htm

You can create an online agreement rather quickly.

Regards,

18

Here is what you want

19

Thanks:d

20

Thanks