Sample Contract for Home Inspection

CONTRACT 


Client Name:

Inspection Location:  


THIS CONTRACT LIMITS OUR LIABILTY AND SUPERSEDES ALL PREVIOUS COMMUNICATIONS, PLEASE READ CAREFULLY 


For the fee of $_____Client hereby requests a limited visual inspection of the property at the above address to be conducted by Knox Quality Home Inspections LLC (COMPANY) for my sole use and benefit. I understand that I am bound by all the terms of this contract and that the inspection fees are due and payable upon completion of the inspection. 


SCOPE OF THE INSPECTION 


Company will perform a limited visual inspection to identify the general features and the major deficiencies of the property in accordance with the State of Tennessee Home Inspection Licensing Board “Standards of Practice” (SOP available upon request).  Client understands that the SOP contains limitations, exceptions, and exclusions.   The inspection will address major components and systems such as: site grading, structure, roof, heating, and cooling, visible portions of plumbing and electrical systems, built in appliances, doors and windows to provide the client with a better understanding of the property conditions. Any area which is not exposed to view or is inaccessible because of soil, walls, floors, carpets, ceilings, furnishings, or any other item, is not included in this inspection. Items not addressed in the inspection report are to be considered not inspected. The inspection does not include any destructive testing or dismantling. Client agrees to assume the risk for all conditions that are concealed from view at the time of the inspection or are outside the inspection scope. This is not a warranty, guarantee, express or implied, insurance policy, regarding future use, operability, habitability or suitability of the home/building or its components and is not a substitute for the seller property disclosure.  We disclaim all warranties, express or implied, to the fullest extent allowed by law. 


Whether or not they are concealed, the following are OUTSIDE THE SCOPE OF THIS INSPECTION and we will NOT test for: Cosmetic or subjective defects; building code or zoning ordinance violations; geological stability or soil condition; flood potential determination; structural certification or engineering analysis; presence/damage caused by termites, pest or dry rot; building value appraisal; insurability of property; cost estimates; specific components noted as being excluded in the inspection report; systems shut down or inactive; private water or sewage systems or any component thereof; buried piping; drip and bubbler systems; fountains; shower pans; saunas; mist systems; steam baths and equipment; ponds;  outbuildings of any kind except garage or carport; landscaping; playground equipment; buried or not visible foundations; BBQ’s; radio controlled devices; automatic gates; elevators; central vacuum systems; load control devices; audio/alarm/intercom systems; thermostatic, motion, light sensitive, and time clock controls; telephone or television systems; security/display lighting; water conditioners or circulating devices; solar systems; fire sprinklers and piping; hidden moisture or the hermetic seal of dual-glazed windows and skylights; sink/tub overflows; heat exchangers; freestanding appliances, or other personal property; gas fired cooling systems; humidifiers; electronic air cleaners; stucco and eifs; environmental conditions such as asbestos, radon, formaldehyde, lead, water pollutants, mold/fungus, soil contamination, sick building syndrome, air quality, toxic or flammable substances, electromagnetic fields; adequacy or efficiency of any system, or prediction of life expectancy ; manufacturer’s recalls. The inspection will not include any area that has access or clearance less than twenty- four inches in any direction or is not safely accessible from a fourteen-foot ladder.  This list should not be represented as complete or exhaustive.

   

I HAVE READ AND AGREE TO THE ABOVE SCOPE OF INSPECTION 


Clients Initials:__________________


Your inspector is a property inspection generalist and is not acting as a licensed engineer or expert in every trade. If your inspector recommends consulting other specialized experts, Client agrees to do so at client’s expense. Any items not specifically addressed in the written report are considered beyond the scope of this inspection and are excluded. No verbal statements or information provided as a courtesy by the inspector shall expand the scope of the inspection or take precedence over the inspection report. This agreement represents our entire agreement; there are no terms other than those set forth herein.  All prior discussions are merged into this Contract.  No statement or promise by Company or inspector shall be binding unless reduced to writing and signed by an authorized officer of Company.  Any modifications of this Contract must be in writing and signed by you and by one of our authorized officers.  This Contract is binding upon and enforceable by parties and their heirs, executors, administrators, successors and assignees. 


USE BY OTHERS: The inspection and report are performed and prepared for the sole, confidential and exclusive use and possession of the Client only. The report is not for use or to be relied upon by any third party. Receipt of this report by purchasers of the property (other than the above listed Client) is strictly prohibited. Client agrees to indemnify, defend and hold Company harmless from any third-party claims arising out of Client’s unauthorized distribution of the report.  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 from any liability and agree to pay our costs and legal fees in defending any action naming us. You give us permission to discuss our observations with real estate agents, owners, repair person or other interested parties. 


LIMITATION OF LIABILTY AND DAMAGES 


Company assumes no liability for undetected/undisclosed/unreported defects in this inspection and report for the cost of repair, replacement or displacement of unreported defects, either current or arising in the future. In all cases, our liability is limited to a maximum period of one year from the date of the inspection and is limited to a refund not greater than the fee paid. The liability of the Company’s principals, agents, subcontractors, and employees is also limited to fee paid. This liability limitation is binding on Client and Client’s spouse, heirs, principals, assigns anyone else who may otherwise submit a claim through the Client. Customer assumes the risk of all losses greater than the fee paid for the inspection.  Client agrees to waive any claim for consequential, exemplary, special or incidental damages or for the loss of the use of the home/building.  Client agrees to immediately accept a refund of the fee as full settlement of any and all claims that may arise from this inspection. You acknowledge that this liability limitation is not a penalty, but that we intend it to: (i) reflect the fact that actual damages may be difficult or impractical to ascertain; (ii) allocate risk between us; (iii) enable us to perform the inspection for the agreed-upon fee.  Client may elect to remove this liability limitation at the cost of 4 times the Client Fee, to be paid in advance. If a dispute arises from the inspection: (1) client agrees to provide written notification of your claim within seven days of discovery, in sufficient detail and with sufficient supporting documents that we can evaluate; and (2) client agrees not to alter, repair or modify any disputed component or condition without the Company being granted immediate access to premise for re-inspecting the situation following written notice from the Client. Failure of the Client to provide written notice within seven days and/or the opportunity to re-inspect the component or condition prior to repair shall result in the forfeiture of the Client’s right to a claim/refund.   Any dispute relating to this contract or breach thereof shall be settled by Mediation using a Mediator or, if unsuccessful, by binding arbitration in accordance with the rules of the American Arbitration Association, and judgment upon the arbitration award rendered may be entered in any court having jurisdiction. 


I HAVE READ AND AGREE TO THE ABOVE


Clients Initials:_________________


Client and/or Client Representative(s) are responsible for their own safety during the inspection. Use of inspector’s equipment is at your own risk. Company specifically advises against entering dangerous areas or manipulating equipment. The inspection is performed for the purpose of informing the Client of the condition of the property on the day of the inspection. If any stated limitation or standard is exceeded it is done solely at the inspectors option and does not void the terms and conditions of this contract. Furthermore, if any portion of this contract conflicts with local statutes or a court declares any provision of this Contract invalid, only those sections are amended, the balance of the contract applies as stated and remains in effect. This report contains technical information that may not be understandable to the layperson. If you have questions about any part of this report it is your responsibility to consult with the inspector. Company is not responsible for the report misunderstandings resulting from the failure to request clarification. 

 

Each party signing this Contract warrants and represents that he/she has the full capacity and authority to execute this Contract on behalf of the named party(s). If this Contract is executed on behalf of Client by any third party, the person executing this Contract expressly represents to Inspector that he/she has the full and complete authority to execute this Contract on the Clients behalf and to fully and completely bind Client to all of the terms, conditions, limitations, exceptions and exclusions of this Contract. Use or reliance on the findings of this inspection and report in any way binds the client to the terms and limitations of the inspection as noted herein and within the aforementioned “Standards of Practice”. This Agreement shall be governed by the laws of the state of Tennessee. 


You agree that the exclusive venue for any litigation arising out of this Contract shall be in Knox County, Tennessee, which is the principal place of business for Company.  If you fail to prove any claim against Company or Inspector, you agree to pay all legal cost, expenses and attorney’s fees incurred in defending that claim.  


Past-due fees for your inspection shall accrue interest at 8% per year. You agree to pay all costs and attorney’s fees we incur in collecting the fees owed to us.  If the Client is a corporation, LLC, or similar entity, you personally guarantee payment of the fee.

If you request a re-inspection, the re-inspection is subject to terms of this Contract.  There may be an additional fee associated with the re-inspection.


You may not assign this Contract.


If the court finds any term of this Contract ambiguous or requiring judicial interpretation, the court shall not construe that term against us by reason of the rule that any ambiguity in a document is construed against the party drafting it.  You had the opportunity to consult qualified counsel before signing this.


If there is more than one Client, you are signing on behalf of all of them, and you represent that you are authorized to do so.


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 Contract, 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.


HOLD HARMLESS AGREEMENT: 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 the INSPECTOR or Company or his employees or visitors or of independent contractors engaged or paid by INSPECTOR for the purpose of inspecting the subject home.


I HAVE CAREFULLY READ THIS AGREEMENT. I AGREE TO IT AND ACKNOWLEDGE RECEIVING A COPY OF IT.


Signed:____________________________________Date:___________________________


Home Inspection Contract

Knoxville and surrounding areas