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Inspection Contracts/Agreements

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Why do home inspectors require a signed home inspection contract?

 

Home inspectors require all customers to sign inspection agreements prior to performing a home inspection for several reasons:

  • Many state licensing boards (including North Carolina) require a signed inspection agreement that details what the home inspection will include, not include, and the fee charged.
  • Insurance companies require signed agreements, you can rest assured that your inspector does not have insurance if they do not require a signed agreement and they may not be licensed as well.
  • Home inspection contracts make sure everyone understands that a home inspection is not an appraisal, survey, valuation, or home warranty.
  • An inspection agreement protects the client because it establishes set guidelines detailing what the inspection will cover and the fees charged.
  • An inspection agreement protects the home inspector from frivolous law suits which in turn helps clients by allowing the inspector the ability to keep their rates lower.

 

Why does my home inspector want me to sign an agreement that limits their liability?

 

Home inspection agreements, like almost every agreement written today, have clauses that limit liability.

  • If the home inspector carries insurance, the insurance company will demand a limit of liability clause.
  • Home inspectors are not allowed (by state regulations) to move furniture, open walls, excavate the yard, or disassemble mechanical components.  This limits the inspector’s ability to inspect every inch of the home and ultimately inspect the entire home.  Even when a home is vacant the inspector can not pull up the carpet, move all of the insulation in the attic to see 100% of the roof structure, or move all of the insulation in the crawlspace to see 100% of the floor structure and sub floor.
  • To keep fees down, a typical home inspection is a generalist observation and not technically exhaustive in nature.  (A technically exhaustive home inspection on a 3,000 square foot home can easily cost in excess of $ 3,000.00).
  • If you have concerns about the credibility of the inspector, we recommend you retain another home inspector.

PAHI Members: 

2004 Piedmont Association of Home Inspectors / PAHI 
The PAHI website was built as a refrence tool, free information source, and to be one central web site where homebuyers, home sellers, and realtors can obtain answers to almost all questions they may have regarding home inspections.  In order to accomplish this task most of this information is gathered from other web sites and sources including, but not limited to: EPA, CPSC, HUD, NRSB, ALA, IAQA, Code Check, Mike Holt, Inspect-NY (Daniel Frediman), ASHI, etc.  The Piedmont Association of Home Inspectors and its members have not authored any of the opinions on this web site.  Users of this web site agree to hold The Piedmont Association of Home Inspectors and its members harmless and realase all liability for any inforamtion contained on www.pahi.org or any site that www.pahi.org links to including but not limited to: www.inspectorpaul.com www.sherlockcarolinas.com www.arrowhomeinspectionservice.com www.carolina-homepro.com www.schomeinspections.com www.a-prohome.com www.aohomeinspection.com/ www.betterhomeinspection.net www.downunderinspections.com