Practice Quiz

Home Inspection

Category - Business Operations

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Your pre-inspection contract clearly states that you are only conducting a standard inspection and details all exclusions and limitations. Several months after purchasing the home, your client sues you because of a defect that was not included on your report that cost them $3,000 to repair. Which of the following statements is true about this situation?
  1. Clients can sue you any time for any reason, but it does not mean you are liable for damages.
  2. Your client can only get back the amount they paid for the inspection, not $3,000.
  3. You will likely lose your general liability insurance if you are found guilty of negligence.
  4. None of the above
Explanation
Answer: A - Your pre-inspection contract clearly states that you are only conducting a standard inspection and details all exclusions and limitations. Several months after purchasing the home, your client sues you because of a defect that was not included on your report that cost them $3,000 to repair. It is that clients can sue you any time for any reason, but it does not mean you are liable for damages. As long as you have a strong pre-inspection contract and inspection reports that have been reviewed by an attorney, you should be able to protect yourself in court. Always retain copies of legal documents and communications with clients in case of a situation like the one described.
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