Published to Real Estate
“I exceed the Standard of Practice”. Many inspectors make this statement all the time. Many put it in their brochures and on their website. But, what exactly do they mean? What measure can anyone apply, with any degree of certainty, to gauge what can be expected of an inspector who “exceeds the standard of practice”? I suppose it can mean that whatever the SOP dictates is a minimum inspection standard is enhanced. Okay, I’ll buy that. But, now comes the next logical question: is everything in... Read Full Story
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The home inspection process is one of the few occupations where the professional inspector purposely places himself/herself between a rock and a hard place. Think about it for a moment. There are pressures from all sides. The client expects a top-notch inspection, even though the inspector has no history of the property about to be inspected. The seller may have done their very best to try and conceal any or all defects, including recent repairs. The Inspector does not possess x-ray vision... Read Full Story
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Having “special knowledge” can actually be considered a pitfall. For instance, an inspector who also carries a pesticide applicator’s license may find himself/herself in a bind someday for failing to report conditions conducive to wood destroying insect infestation, even though he was not contracted to perform a WDI inspection. Why you ask? Well, it is entirely possible that the argument could be made that the inspector had specific knowledge or expertise in a specific licensed area and that... Read Full Story
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There’s an interesting question. While most disputes surrounding home inspections primarily deal with allegations of negligence on the inspector’s part, what recourse actually exists for the defendant or plaintiff? Well, there are always the courts. Cheap you say? Maybe. Sure it only costs a couple of bucks to file the complaint, but what about costs thereafter? There are court costs, depositions, time lost, and more. Strong positions sometimes fade as discovery progresses. For the inspector... Read Full Story
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Arbitration is an alternate means of dispute resolution, which in theory expedites the process, helps clear the court calendar, and helps plaintiff and defendant avoid the costs associated with a trial. But, what happens when the decision of the arbiter is just plain wrong in your opinion? What if he erred in his assessment? What recourse do you have? That depends on if the arbitration was binding or not. In binding arbitration, there is typically little recourse for the losing party. In non... Read Full Story
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When a home inspector gets sued, several things tend to happen. At first, the inspector is often dumbfounded; did he miss something on the inspection? Well, the Client apparently thinks so! But, what happens next? Well, if the inspector carries professional liability insurance, such as an Errors and Omissions policy, the inspector may need to immediately tender the complaint to his carrier. Depending on the coverage and terms of the policy, the inspector may be on his/her own at that point... Read Full Story
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Professional liability is defined as “the area of law concerning lawsuits brought against a professional in the course of their profession”. Home inspectors, like other professionals, are vulnerable to professional liability actions. When a client is dissatisfied with an inspection, typically because some defect is discovered after closing, the knee-jerk reaction is often to blame the inspector. Second only to the inspector comes placing blame on the Realtor, especially if the inspector was... Read Full Story
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Find Out Why… Many times, in an effort to afford ourselves the maximum protection permitted by contract law, inspectors include everything but the “kitchen sink” in their inspection agreements. In this particular case, and in addition to some unforeseen consequences in the follow-on processes associated with the arbitration clause, one inspector found himself forced back into court. Arbitration clauses are generally thought of as enforceable within common contracts. Many contracts contain... Read Full Story
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Published to Real Estate
For the home inspector, documentation is a key area of protection. This would include documenting the conditions encountered during the inspection process especially when you come across conditions that block the inspectors view or access. This would also include situations where, in the inspector’s opinion, conditions may be unsafe for him/her to enter a section of a dwelling. Remember, it is your life at stake. For the multi-inspector firm the risk can be higher as OSHA rules and... Read Full Story
