For information regarding a specific legal issue affecting you, pleasecontact an attorney in your area. 2600 West Executive Parkway, Suite 500 All required materials for the course, including a 100% online access package, a workbook, DVD backups, and more, will be included. DoNotPay can help streamline the suing process by taking care of all the technical aspects of filing a small claims suit. Further, these contract clauses emphasized the clients duty to hire separate consultants to investigate potential mold. State laws outline the standard of care a professional must provide the paying client. If an inspection reveals serious flaws, potential buyers can walk away from a home purchase or demand a new price. Unless you are keeping equally detailed notes about the conversation you have with the inspector, you might be up against proof such as: The cost of the inspection usually covers: However, the inspector can only review what is accessible and visible during the appointment. Some clauses include language that specifies the inspector may only refund the cost of inspection if substantial damages are discovered later. It was at this point that the home inspector informed us of the situation. Before you begin the lesson, youll need to learn the objectives, which youll then complete in a short practice quiz. That might, for example, be the cost of repairing the damage from the burst pipe. This will allow you to have extra coverage against claims. In so doing, he put himself at risk of not receiving defense and payout help. In this article, we will explain the liabilities of a home inspector and what legal elements you must prove if youre suing a home inspector in small claims court. If you feel a Home Inspector has acted in an unethical or unprofessional manner you can file a complaint with CAHPI or the Provincial licensing body, and they will answer your complaint fairly and responsibly. OIG rarely intervenes in personal or civil grievances. For information pertaining to the testing material for the National Home Inspector Examination, please visit www.homeinspectionexam.org, or you may call 1-847-298-7750. But what if, weeks or months later, you start to notice problems no one warned you about? Title 10, Chapter 7. They might also counter-sue you. All rights reserved. Buying a home comes with many challenges and home inspections could be one of the least of your worries. Less than a month post inspection, a home inspector received an attorney letter alleging that he failed to detect an active water leak in a bedroom and its bathroom, which led to foundation issues. The home inspector would have issued a report, perhaps saying that the house was basically sound, with all its major parts and systems in working order. The Board administers and enforces statutory requirements, examines and certifies all eligible candidates for entry into the profession of home inspection. Your case may be affected by the details of your circumstances as well as the home inspector you hired. How Much Do I Need to Save for Retirement? It varies by state if the buyer, seller, or both can sue the inspector for a contract-based lawsuit. An inspector's duty is critical to a potential buyer's decision about whether or not to purchase a home. An example is when the home inspector skipped items on a checklist which resulted in water leaks or faulty electrical wires. Even if your inspector has an exculpatory clause that would limit liability, he or she probably does not want to deal with an expensive lawsuit; particularly since lawsuits are publicly filed. If they failed to find something that harmed you or another resident, you have the legal option of pursuing legal action. As for the client, he changed course and pursued a general liability claim against the roofing contractor that the inspector had recommended. If you are a seller and want to sue the buyer's inspector, you should carefully consider if an inaccurate report is to blame, or if the buyer got cold feet. Therefore, the attorney argued, our home inspector owed the tens of thousands of dollars required to replace the polybutylene pipes on the property. One of the most important steps in the home-buying process is a home inspection. It takes up an average of 12 hours per day for Tennessee-based training, including course instruction, field assignments, report writing, and testing. (Read more about storing inspection assets here.). June 9-11, 2023 If you think the inspector skipped a step, you may be able to sue them for breaking the terms of their contract. Despite extensive negotiations with the claimants attorney, the claimant has been unwilling to admit the inspectors lack of liability. An inspection of the property is required by the local municipal board in order to ensure that it meets local safety and zoning regulations. Home inspectors are frequently members of professional associations such as the National Association of Home Inspectors (NAHI). Buyers frustrated by the construction process and the lack of progress after they have purchased a home file the vast majority of homebuilders claims. Further, the claimant refuses to lower their tens-of-thousands-of-dollars demand. When you hired a home inspector to evaluate the house you bought, the idea was to make sure nothing was seriously wrong with it. Nine months after his inspection of the home, another home inspector received an email from his inspection clients. Sit back and relax while we do the work. There is almost never an inspection that includes this provision: It is critical that your report clearly demonstrates whether something was not inspected. A phone or in-person meeting to talk through the report with your inspector, A home walk-through to learn about its utilities or special features (may depend on your state or inspector), Material defect notes such as low budget choices in vinyl flooring or stair treads, Intrusive behavior such as digging underground, putting cameras into walls, or cutting into floors, Testing structural soundness or geological factors (aside from comments on flood zones or re-grading a yard), Recommendations to have a licensed professional inspect the area or bring the inspector back when the area is open, A warranty that the home is safe or in good condition, An insurance policy on the home's roof, leaks, or mechanical breakdowns, A guarantee that nothing will go wrong with the home, A complete list of the repairs you need to make, A list of patents or defects for materials or utilities, All-encompassing (any areas or conditions not within the home inspection's scope will be spelled out in the contract and again in the report). If the inspector fails to prepare a thorough report summarizing what he did and all his relevant observations, that could be grounds for a lawsuit. Had the client followed through on the home inspectors recommendations, they would not have had to confront roofing issues nine months later. The claimants argued that they could have avoided this damage had the inspection report provided more information. Whats more, we understand that you, as a home inspector, have unique needs when it comes to having adequate protection from claims. How a Property Damage Insurance Claim Works. The attorney listings on this site are paid attorney advertising. Since the inspection, water had entered the basement between the front porch and the vinyl siding, causing damage to the home. Join over 30,000 home inspectors who receive risk management tips twice a month from the InspectorPro newsletter. To learn more about roof damage claims and how to avoid them, read our stand-alone article on the subject here. Three months later, additional leaks appeared in separate areas of the home. In this article, we will explain the liabilities of a home inspector and what legal elements you must prove if youre suing a home inspector in. Thus, its important to make sure to review your insurance policy. You contact your insurance company, and an insurance agent handles your claim, then assigns a claims number. While the demand amount slowly trickled down, the claimants assertion that the inspector had done nothing wrong did not wane. Doing so may prevent clients from holding you accountable for issues outside of scope. If the inspector provided a detailed report that you signed off on, you may have a hard time laying the foundation for your case. Having a professionals perspective will help you determine if the inspector did not do a thorough job of evaluating the property. Your attorney will be able to help you analyze any limitations on liability within the contract document under your state's law. After all, you never know when youll need that photo of the bush in front of the propertys exterior wall. The mold exclusion, the SOP, and the call for further inspection all emphasized that there wasnt a mold inspection. According to the letter, the claimants discovered [the substantial water leak] almost immediatelyupon taking actual possession of the home. Further, the attorney argued that the damage caused by the leak was so excessive that the foundation was severely compromised and required immediate repairs. Without giving any indication to the cost of such repairs, the attorney gave the inspector six days to contact him before he would file a formal law suit. If you are considering buying a home, it is important to do your research and make sure that you find a reputable home inspector. If the inspector provided a detailed report that you signed off on, you may have a hard time laying the foundation for your case. If they agree the inspector was negligent, you may want to proceed with the lawsuit. 1. . Structural. More broadly, the contract might disclaim liability for areas the inspector couldn't see or access. Its rare for a home inspection report to contain no flaws. With the Sue Now product, all you have to do is: Log in to DoNotPay and select the Sue Now product, Select whether you need a demand letter or court filing forms, Describe the reason for the lawsuit and submit any applicable details, including photo evidence. In it, they highlighted the general exclusions in the pre-inspection agreement, which included mold. Home Inspection Advisory Committee 124 Halsey Street, 6th Floor, P.O. While the home inspector did note uneven floors in the bedroom in his report, his report did not recommend further evaluation. Contact your insurance company immediately after securing the scene. The client stated that he was aware that he did not order a mold inspection. Heres what you need to know. A sellers main aim may be to walk away with the highest offer on their house. If you win a case against a home inspector, you might be able to recover financial damages to help your property recover. A buyer may wish to avoid paying for large repairs. Contact us at 502-782-0563 or click here for more contact . Thus, our claims team sent a denial of liability letter to the claimant on behalf of the home inspector. Home inspectors, whose job is to point out defects, often seem to be at odds with the other players. To learn more about foundation defect claims and how to avoid them, read our stand-alone article on the subject here. When an inspector reports a false or fraudulent claim, he or she is committing fraud. However, inspection photos are one of the best ways to manage risk. Your attorney may file an inspection fraud suit, a negligence suit against the inspector or organization, or a suit against the government for a state or county . As every inspector should, our home inspector contacted us immediately to report the incident. So if you find a hole in your roof that costs $15,000 to repair, your inspector would only have to reimburse you for the money you spent on the inspection fees. Why? If a home inspector makes a false report to the client, they may be committing home inspection fraud. Protect yourself from meritless claims by having clear and assertive exclusions and limitations of liability throughout your inspection contracts. In that case, the inspector is probably not liable. One year later, those allegationswater damage, roof issues, foundation defects, mold, and plumbing problemscontinue to be common. keys to navigate, use enter to select, Stay up-to-date with how the law affects your life. (Learn more about the difference between simple deductibles and self-insured retentions here.). Let's say, for example, there's a strange smell in the basement, which turns out to indicate an extensive water leak, which caused mold. An award-winning writer with more than two decades of experience in real estate. Do not ignore the lawsuit if they choose to counter-sue you. Yes, you can sue your home inspector. . For example, the inspector may include wording in their contract that only requires them to repay the buyer for the cost of the inspection, if necessary. Here's our list of the 12 most common areas of inspection for which claims are made against home inspectors: Water damage (non-roof) Water damage (roof) Foundation. You should begin by reviewing your notes concerning the transaction and the documents contained in your file. Copyright 2023 MH Sub I, LLC dba Nolo Self-help services may not be permitted in all states. It is up to you if you have these re-inspected before signing the home sale contract or close of escrow. While the home inspector's report might lead a buyer to walk away from a house, the home inspector usually can't be blamed for the sale falling through. Home inspectors are prohibited from: Making repairs to a dwelling that they are inspecting, unless state laws allow for repairs after a waiting period; Inspecting a property that the inspector or the employer of the inspector has an interest in; Have the report's outcome contingent upon payment of the inspector; and. Although you can ask your inspector if the home passes or fails the inspection, the decision is not their to make. Its not uncommon for inspectors to include an exculpatory clause, which limits their liability. Verify what mold coverage your policy includes, if any, and what coverage you might add to limit your liability. Additionally, the realtor had told the home inspector that the floors were uneven floors because the last homeowner used a walker to get to the bathroom, and the inspector had verbally accepted this explanation. The client threatened to take legal action and file a complaint with the state licensing board if the home inspector did not pay for the latest damage and repairs. Regulatory jurisdiction is limited to seeking discipline against a Respondent's license. The claim was closed at no cost to the home inspectornot even the cost of his deductible. If you feel that your home inspector failed to properly inspect your home and as a result you suffered damages, you may be able to sue the home inspector in Michigan. It is not uncommon for inspectors to include an exculpatory clause, which limits their liability if the inspection is found to have occurred. You could go this route if you had a contract in place with the inspector that you believe was somehow violated. Although the pay is good for home inspection, the profession comes with some challenges. This amount of money is likely insignificant compared to what you will have to pay to cure various structural or mechanical defects now found in your home. Do Not Sell or Share My Personal Information, Homeowners: Taxes, Improvements, and More, Do Not Sell or Share My Personal Information. This is not an offer to buy or sell any security or interest. All rights reserved. Contracts with home inspectors may also be voided or breached. And if those sellers are on a budgetwhich they often arepoor do-it-yourself repairs may occur. Unfortunately, each partys best interests do not always align. What to do if you disagree with the insurance adjusterBeing in a situation where an insurance claim from your home insurance company can be stressful. It is your responsibility to list any minor issues that need to be addressed by the seller or his or her realtor. Yet again, we have an instance where a third partyin this case, a roofing contractorpointed the finger at the home inspector. They will look for any signs of water damage, termites, and pests such as mosquitoes. An example is when the home inspector skipped items on a checklist which resulted in water leaks or faulty electrical wires. After the home inspector reported the claim, our team issued a denial of liability letter to the claimant. For example, you might have a claim for negligence or professional malpractice, if the inspector deviated from the professional standard of care in the course of the inspection. We revisit each claim type by looking at recent claims from our archives and the lessons we can learn from each of them. In response, the claimant stated he was very disappointed and called our claims team very unprofessional. However, the claimant ceased demands. Major insurance companies in Tennessee have approved our coursework for home inspector errors and omissions coverage. Thats when our home inspector reported the claim to us. Heres a guide on how to file a claim against a home inspector. Wood rot. DHS employees, contractors, subcontractors, grantees, and personal services contractors are protected by law from retaliation for making a protected disclosure. 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Home Inspector Insurance Requirements, Washington Home Inspector Insurance Requirements, American Society of Home Inspectors (ASHI), California Real Estate Inspectors Association (CREIA), Florida Association of Building Inspectors (FABI), Georgia Association of Home Inspectors (GAHI), International Society of Certified Home Inspectors (InterNACHI), Maryland Association of Home Inspectors (MAHI), Metropolitan Association of Home Inspectors (MAHI), North Carolina Licensed Home Inspectors Association (NCLHIA), Oregon Real Estate Inspectors Association (OREIA), Texas Association of Real Estate Inspectors (TAREI), Texas Professional Real Estate Inspectors Association (TPREIA), Wisconsin Association of Home Inspectors (WAHI), Worldwide Inspectors Network Group (WING), 5 Things to Better Explain to Your Home Inspection Clients, Avoiding the Top 12 Claims Against Home Inspectors, How Home Inspectors Can Avoid Ceiling Hole Claims, Top E&O Claims | Claim 3: Foundation Damage, Watch Your Step: A Condo Inspection Claim, 7 Things to Do If You Receive a Complaint: ASHI Webinar, Paying for the repairs but on the condition of receiving a signed release of all claims, Refunding the inspection fees with a signed release of all claims. Unfortunately, there have been some cases where home inspectors have lied on their reports in order to try and get the sale. While a breach of contract entails the breaking or failure to perform a duty, this does not entail the violating of a warranty. Home inspectors may be sued in a civil lawsuit for the following: Failing . Plumbing. In addition, its common for third parties, like the construction contractor in this example, to cast doubt or blame on home inspectors. Your email address will not be published. A demand letter is a formal notice that requests payment or other action from another party. The inspector's firm might have insurance to cover minor settlements. If the seller knew there was a problem but didnt disclose it during the home-buying process, you may be able to sue them for damages. In so doing, those providers cap the mold endorsements limits of liability, meaning you get less coverage for mold claims. It may seem tedious taking photo after photo. A home appraisal is required by mortgage lenders in order to determine the value of the property you intend to purchase. The inspector will most likely be looking for a few things, so learn what he or she will look for and how to deal with them. In it, he explained that he had performed a limited, non-invasive condominium inspection that did not include the attic. If you are successful, you may be awarded compensation for your damages, which could include the cost of repairs, the value of your home, and other costs. A seller might have a claim if the inspection report is misleading or if the inspector makes statements of fact when they are really just opinions. 2023 MAC ASHI Spring Technical Seminar Wanting to prioritize customer service, our home inspector contacted a roofer in his network to perform the repairs. Even if you did, in fact, make a mistake, saying so could make you more vulnerable to additional claims or could jeopardize your insurance coverage. We closed the claim at no cost to the home inspectornot even the cost of his deductible. When an incident causing damage happens, homeowners should report it immediately. The seller may have also accidentally or non-maliciously failed to clear boxes or furniture barring access to the attic, rooms, closets, electrical boxes, plumbing, utilities, and more. (Learn more about the difference between simple deductibles and self-insured retentions here.). It is entirely up to the home inspector to determine how badly he or she messed up, but the inspector is not held liable for any injuries. Instead of notifying us immediately, the home inspector wrote his own reply to the attorney letter. Further, they emphasized that the pricing structure for the condo inspection takes the exclusion of common areas into account. Be sure to emphasize that you can only diagnose the propertys systems and components on the day of the inspection and cannot predict what may occur in the future. The email address cannot be subscribed. When filing a small claims case, a court must consider . Copyright 2023 Citadel Insurance Services, LC. You hire an engineer, at great expense, who surveys the home and notifies you that the the leak is one of several major structural deficiencies. At FindLaw.com, we pride ourselves on being the number one source of free legal information and resources on the web. We hope this exclusive look into the types of claims plaguing home inspectors most helps you better safeguard your business. Our claims team reasserted their defense of the home inspector, explaining that the polybutylene piping was only visible in the attic, which the inspector did not inspect and had no obligation to inspect. Without the assistance of their lawyerpresumably because the lawyer dropped the casethe client responded to our denial of liability letter. According to a BLS study, the states with the highest home inspector salaries have the highest number of complaints filed against them. There are no guarantees that working with an adviser will yield positive returns. Additionally, the client had since hired mold inspectors and remediators to visit the property to provide quotes for cleanup. To prove negligence, you must be able to show that the inspector did something wrong (typically something another inspector wouldn't have done) and that their action or inaction directly caused you damages -- usually the cost of fixing the defects. Such sublimits may cause you to unintentionally be out of compliance with your state or contractual obligations. The Home Inspector Licensing Program was created to enforce the law and rules . If you cant prove negligence, you may be able to sue your inspector for breach of contract. This can happen for a variety of reasons, including if the inspector missed something during the inspection that resulted in damage to the home. If the sink was clearly and extensively leaking, and the inspector had clear access to it but did not document the leak, you should be concerned. 7 Ways to Up The Price of Any Home Youre Selling, Different Types Of Nursing Homes In Henderson County NC. (Learn more about taking inspection photos to manage your risk here. We urge home inspectors to be aware of whats going on around them and to ask questions. The construction company that repaired the stoop had written a five-page letter on the claimants behalf. Thats why its essential to carry errors and omissions insurance (E&O) with the proper endorsements for defense and payout help. Choosing a home inspector should include their certification and experience. If red flags are going up during your inspection, we invite you to ask: Whats the reason? Can I Sue My Mortgage Company for Stress? A home inspector can identify issues that may not be obvious to the average person while inspecting a home. If you can demonstrate that the inspectors findings caused you harm, you could have a good case. If the inspector missed any issues during a home inspection, the inspector could be held liable for damages. You can choose to go to a small claims court (your winnings are limited to your state's cap, often around $10,000) or take the lawsuit to the local courts. Nov. 12, 2004 11:59 pm ET. . To learn more about mold claims and how to avoid them, read our stand-alone articles on the subject: from our blog here and the ASHI Reporter here. Many of the facts suggest that these claimants purposely concealed known defects in order to bill the inspector for repairs. If you feel a home inspection report is inaccurate or the inspector hid things on purpose, you might have a strong lawsuit. He photographed but did not call out the water stains on the exterior siding, the company wrote. An inspector also has professional knowledge in many areas of home building and utilities. Your use of this website constitutes acceptance of the Terms of Use, Supplemental Terms, Privacy Policy and Cookie Policy. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. First, please verify the inspector is a CAHPI member. Most sellers will play ball with this idea if they don't want to risk losing the sale. We are unaware of the results of that claim. Less than two months post inspection, a home inspector was notified by his client that polybutylene pipes were present in the attic of the property. However, suing and winning a case against a home inspector may be able to award you with financial damages that can help restore your property to a livable state. They are not liable for the advice they give on this point. DoNotPay can simplify the process of filing a small claims suit by assisting with all of the technical details. The key, however, is that the seller must have known about these material defects at the time of sale, and failed to disclose them to you. The plaintiff must prove that the inspector was negligent. One-Time Checkup with a Financial Advisor, 7 Mistakes You'll Make When Hiring a Financial Advisor, Take This Free Quiz to Get Matched With Qualified Financial Advisors, Compare Up to 3 Financial Advisors Near You. But proving that the inspector was negligent may not be easy. For example, if a buyer is present for the inspection and the inspector uses persuasive language to convince the buyer that the house is not worth buying, the seller might have a claim. Ask to be named as an additional insured on the insurance policies of the businesses to whom you refer business, including other home inspection businesses and contractors. The other half is having them at the ready when a claim comes along. If the home inspector does not respond positively to the demand letter, the next step may be to file a complaint with the state licensing board or take legal action.