So theres client(A) that is buying a house, realtor request myself to do an inspection for client(a), I do the inspection and send realtor and client(a) a report for the house, client(a) paid for my inspection service. Client(a)'s loan fell through so she didn’t get the house. New client(b) wants to buy the same house. The realtor wants to save client(b) some money so she just gives client(b) a copy of inspection report, the same report done for client(a). My question, is this fair to myself or client(a) I’s this allowed? Thank you
Welcome to our forum, Trever!
You can’t control everything others do but, by the same token, you have no liability to client (B).
Mine were passed around plenty. I just kept doing great inspections for my clients.
Bad idea for lots of reasons…You have no idea what that house looks like today …
The agent is either new and or shady… doing that to the new client is a deservice. The client should be advised that relying on old report can easily cost them 10x more than they would save on new report. Just had a house flood because pipes froze, all sort of damage. This would not be in the old report.
All good advice above. Another thing to remember is if/when client B calls you to discuss the report tell them that you can’t, for many reasons.
Thank you all!
Did you have a signed agreement about third party use of the report?
Are you liable to New Client B?
The agent has no legal right to use the report for others benefit.
*Our inspection and report are for your use only. You give us permission to discuss observations with real estate agents, owners, repair persons, or other interested parties. You will be the sole owner of the report and all rights to it. *
We are not responsible for use or misinterpretation by third parties, and third parties who rely on it in any way do so at their own risk and release us (including
*employees and business entities) from any liability whatsoever. *
*If you or any person acting on your behalf provide the report to a third party who then sues you and/or us, you release us for any liability agree to pay our costs and legal fees in defending any action naming us. *
*Our inspection report are in no way a guarantee or warranty, express or implied, regarding the future use, operability, habitability or suitability of the home/building or its components. *
We disclaim all warranties, express or implied, to the fullest extent allowed by law.
Absolutely not. Your inspection and report were bought and paid for by client A, therefore the inspection report belongs to client A. If client A wishes to give it to someone else that’s their right as owners of said report. If client B wants an inspection then inspect it again and get paid for your services.
Oh and if you give or discuss that report with anyone other than client A without permission (preferably in writing) there could be legal implications .
The disservice to client B by the agent may include the home inspection contingency. Contingencies usually provide a right to cancel the contract if not satisfied with the Home Inspection. In Maryland the law says that only a home inspection performed by a Maryland licensed Home Inspector will fulfill this right. I wonder if a replay inspection purchased by someone else (client A) would fulfill this requirement for client B. Whatever the case the agent is doing this entirely for themselves, They are certainly not doing this to benefit the client!
I have the following statement in each report, “This report may not be used in any real estate transaction by any party other than the named recipient of this report.” Probably worthless but it beats nothing
You may want to ask client A if they are aware the Realtor is GIVING away what they paid for to a 2nd client
Client (a) bought the report and inspection service. They own it. It’s plain as day in the SOP. The owner of the report can do whatever they want with it. Not the inspector nor the agent. I would assume you have this in your Pre-Inspection agreement. If the agent has a copy, it’s because the buyer signed an authorization in the agreement allowing the inspector to provide them a copy. Imo, there is no gray area here. If the agent gives away or sells the report, they in essence stole it from their own client. If the inspector gives away or sells it, not only did they steal it but the Inspector breached the contract.
The fact that the agent asked the inspector tells me that they probably aren’t aware of the ramifications of what they are are asking… but the inspector should be.
How would you know this is happening?