Inspection Agreement Review

Here it is:

Sandia Home Inspections, LLC
Inspection Contract
It is agreed by all that this inspection is to be performed according to the following terms and conditions:

  1. Sandia Home Inspections will provide the Client a limited-time visual inspection of the following readily
    accessible and visible pertinent, major elements existing in the structure on the date of inspection: central
    air conditioning, central heating, interior electric, interior plumbing, foundation, basement, roofing, siding,
    walls, floors, ceilings, and built-in kitchen appliances.
    Sandia Home Inspections shall have no obligation to repair or replace any items found to be defective,
    whether or not discussed in the Sandia Home Inspections written report. Conditions that may exist
    relating to any legal and/or public records are outside the scope of this inspection. Sandia Home
    Inspections cannot determine during the inspection that the roof leaks or is watertight; the rating is on
    material condition only.
    Further, this inspection does not cover code compliance, soil or groundwater contamination, geological,
    design, adequacy evaluation, or any low voltage wiring. Sandia Home Inspections reserves a 5% margin
    or tolerance. This inspection will include the above elements unless otherwise restricted by the client. At
    times, conditions may exist and may not have any visible signs to indicate its existence. The seller of the
    property must disclose such items. Sandia Home Inspections recommends that Client seek the advice of
    his legal counsel and/or real estate agent to identify items subject to disclosure in additions to those set
    forth in Sandia Home Inspections written inspection report. Sandia Home Inspections, inspections are
    performed with consideration given to the age of the structure; items marked good must in all cases be
    considered good for the age of the item. Also, items in less than good condition must be marked as such,
    even though the condition may be normal for the age. Opinions vary from person to person and the report
    is the opinion of the inspector and must be considered as such. This report is not a mold or hazardous
    materials inspection.

  2. Payment of the fee entitles client to one original of the written inspection report including photographs.
    Payment, in check, cash, or credit card, is due prior to the inspection report being released to the client.
    The liability of Sandia Home Inspections is limited to the terms and conditions as set forth in this contract
    between Sandia Home Inspections and the Client. Client expressly releases Sandia Home Inspections
    from any and all claims arising out of the contract.

  3. Client represents and assures Sandia Home Inspections that Client has secured all approvals
    necessary for entry onto the premises to be inspected. Client further agrees to defend, indemnify and
    hold harmless Sandia Home Inspections from demands or claims alleging a trespass upon the premises
    to be inspected. It is the responsibility of the Client or Agent to ensure the utilities are on at the time of
    inspection. Sandia Home Inspections recommends checking for permits on all additional construction
    performed on the property after the original construction.

  4. This Order Form, with its terms, conditions and disclosures, constitutes the entire agreement between
    Sandia Home Inspections and Client. Both parties agree that there is no representation, statement or
    agreement not set forth herein or incorporated by reference. No waiver, alteration of modification of this
    contract shall be valid unless it is in writing and signed by an authorized representative of both parties.
    This contract shall be construed and governed by the laws of the State of New Mexico. For all areas
    marked outside of good condition, Sandia Home Inspections recommends proper attention by the
    appropriate licensed contractor.

  5. Sandia Home Inspections has no liability for occupied/unoccupied homes and structures, and the
    inspection is only good until the inspector leaves the property. Disgruntled sellers/squatters often change
    the condition of the property and Sandia Home Inspections will make no guarantees
    6.Sandia Home Inspections will conduct the inspection following the Sandia Home Inspections Standards
    of Practice, which are available upon request. The Standards of Practice conform to the InterNACHI
    Standards of Practice.

  6. I have read the Terms and Conditions of this inspection and accept them, and also accept the Waiver
    Conditions.

  7. I have full authority to execute this contract. I fully understand the fact that only the original buyer on
    this contract shall be entitled to the information contained in the inspection report/contract.

  8. Client shall be liable for Sandia Home Inspections attorney’s fees in the event of litigation. Any negative
    comments/actions reflected on/towards Sandia Home Inspections shall be grounds for a slander-suit for
    defamation of character in Superior Court. The defamation of character suit shall be filed against the
    instigator of said comments/actions.

  9. 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 Sandia Home Inspections for the purpose of inspecting the
    subject home.

  10. I have read and understand the terms and conditions of this contract as set forth on the front of this
    form. I fully understand that if there is no signature on the line below, this inspection report shall be null
    and void.


Clients Name:
Clients Address:

Clients Phone Number:
Property to be Inspected:

Client Signature Date

Inspectors Name:

Inspectors Signature Date

In second line of title, I would change “Inspection Contract” to “Home Inspection Contract” to reinforce your position that you are performing a general home inspection (a specific type of inspection).

In #1 of your contract you state that you are going to do some kind of an inspection that is very different than what a general home inspection is:

That’s fine I guess, but it isn’t a home inspection.

Of course. Do you really need to spend contract space explaining that which is over obvious? You already explained what your inspection is. I don’t think anyone could reasonably argue that they expected an inspection to include repairs and replacements, so there really is no need for this line.

So if you see the roof leaking, you can’t determine that it leaks? Also, no roof, even one that doesn’t leak, is “watertight.” Submarines are watertight. Roofs shed water.

Also, it appears you are now issuing a “rating” to the condition of the material. What rating system are you using? What material are you rating?

5% margin on what? Gross profit? You aren’t seriously claiming that your evaluation of anything is so accurate as to be within plus or minus 5% of the true value, do you?

You just got done saying the inspection doesn’t include the above elements. Now you say that it does include the elements you named above this line. Make up your mind.

Also, what if they are restricted by the seller instead of the client?

I got this agreement from HIP’s software and obviously did not do my due diligence in reading through it before deciding to use it. The only section I added is #10, what are your thoughts on that? I think I will use InterNACHI’s agreement instead of this one after all the holes in it you have pointed out to me!

The first sentence is true. The second is false. A seller of a property need not disclose such items if he/she doesn’t know about them. One has no duty to disclose that which one has no knowledge of.

“in additions to?” I think you mean “in addition to.”

Also, how would legal counsel or a real estate agent identify items subject to disclosure?

Interesting concept based on age of the structure.

You just told me the exact opposite. Furthermore, Who must mark them as such? Are you telling your client to mark them as such or are you explaining to your client that you have no choice but to mark them as such?

#2 of your contract reads:

But not you personally, just your company?

#3 reads:

I wouldn’t waste contract space telling your client they have to assure you that you can enter the property to inspect the property. You are already getting that assurance by virtue of them hiring you and scheduling the inspection. Overkill IMHO.

Over-overkill. What damages could someone claim in the 1 in a million chance that you didn’t have permission to inspect the property anyway? That you peeked at their furnace filter? No need for this.

Only permits after it was built? But don’t check to see if the home was permitted to begin with?

#4 reads:

What “Order Form?” Do you mean this “Inspection Contract?” You titled this document: “Inspection Contract” so “Order Form” must be referring to some other document.

#5 reads:

Making untrue statements doesn’t make them true.

But happy sellers don’t change anything?
Also, you are missing punctuation at end of that sentence.

#6 reads:

So not only are you inspecting to the “Sandia Home Inspection Standards of Practice” (which I’ve never heard of) instead of an industry standard, you don’t even furnish a copy? Your client has to request this unknown SOP separately?

#7 reads:

We’re only on #7 of 11 and we’re agreeing to have read something and accepting it?

Also, who is “I” in this sentence? “I” meaning you Chris Franklin? That’s how it reads.

Also, how does one "accept the Terms and Conditions of an inspection? An inspection doesn’t have terms and conditions. An inspection contract does.

Also, you mention a fourth secret document “The Waiver Conditions.” What is that and where is it? Where are all these documents you’ve mentioned?: Items subject to disclosure, The Order Form, The Sandi Home Inspection Standards of Practice and now The Waiver Conditions.