Sample contract clause to inform your client that their data stored by 3rd party.

Sample contract clause to use to inform your client that their data is stored by a third party. - InterNACHI

This is why I would never use a 3rd party at anytime…
I would never sign such a thing.

"We contract with a third party to store certain information online, such as our inspection reports, and the identity of our clients. In signing our Agreement, you give us permission to do so. We will not sell your personally identifying information. It is the duty of the third party we contract with to keep your information secure. We are not liable for any misuse of that information or their failure to safeguard it. In that event, your sole remedy is against that third party. "

Should I worry? I’ve been using the NACHI online contract thingy for years, (one of the best member benefits) no one has ever refused to sign it, nor have I ever had any complaints. So, why fix something which isn’t broke?

  1. Nick, is Nachis agreement system a 3rd party to nachi inspectors?

2 Will nachi or anyone associated with nachi ever have access to any information in our clients agreements, that we were not aware of?


A few members asked for the clause, so we created it for them. No, don’t worry.

  1. Yes, I guess so.
  2. We technically have access I suppose, but we’ve never accessed it and never will.

Nick, will the information contained in Inspectors agreements that are in the NACHI Agreement system ever be Released in anyway to anyone other than if the inspector does the releasing themselves ?




I personally believe no information is safe from being released as the data is worth a lot of money.

Nick can so no now but if something happens to him then it is a whole different story.

Everything now a days is about the MONEY

If you think we are protecting the client from someone selling their data think again. They have already given it to banks for a loan, the insurance man, the moving company, the utility company, the cable company, facebook, google, amazon, Pay pal, credit card, and the list goes on and on. I don’t think the home inspector is the last wall of protection.

I don’t think that clause is worth much. The contract is between you and the client, not subcontractors or third parties.
If you buy a new home from a builder and you find a defect, you go after the builder for repairs and not its subcontractors or third parties.

Interesting idea, Nick … however, how does this clause in an inspection agreement really protect the inspector?

When he discloses to his client that he is possibly sharing their inspection report with the home insurance company that owns his software program, and the insurance company subsequently uses it to improperly deny or underpay his client’s insurance claim based on the information contained in that report, how does this generic disclosure absolve him from liability for their use of the information that he provided to them? Is he not always liable for the information that he composes, publishes, and distributes?

Another question is, by confessing that he has shared his inspection report with unnamed entities in his agreement, is he not opening himself to liability for any damages caused to his client by anyone’s future use of the information that he included in that report for any reason?

My last question is, how does this clause not contradict any other promises made to the client to require his written permission before sharing his home inspection report with any third party? Does this contradiction create a condition of ambiguity?

Just because the laundry mat hangs a sign saying “Not Responsible for Slips or Falls”, it does not necessarily preclude them from being sued and held liable for damages when someone actually slips or falls on their property. Isn’t this clause something like that sign in the laundry mat?

Never ever ever ever ever.

I don’t think it does.

It depends on intent I suppose. If you are adding the clause so that you can specifically sell or trade your client’s private information, I’d say so. I’m not an attorney though, I just play one on the message board. :wink:

Some, yes.

Partially. But it’s also a disclosure. It’s more akin to a sign that says: “Not Responsible for Slips and Falls - Our Floors are Wet.”

That all may be true, but that is their decision to make

Also did you know that if an Inspector Releases their clients information Without their Express written permission, that is a Nachi COE violation ? sadly it never gets enforced, but it is a coe violation nonetheless.


I didn’t think so, thanks for a great member benefit.