2006-11-13

HOME INSPECTIONS: A PRIMER

Should a prospective homebuyer hire a professional home inspection company? Due to significant legal implications, this decision is always best left to the homebuyers themselves.  Real estate professionals face potential liabilities for recommending that an inspection go forward at all when the inspection is used against the homebuyer in subsequent litigation, and often times, for recommending specific inspectors who fail to properly inspect the home.

Inspection companies and, in particular, individual inspectors, vary widely in experience and expertise.  A real estate professional should not act as a reference for an inspection company. However, if the homebuyer has decided to go forward, it is appropriate for the professional to encourage the homebuyer to seek references.

Another issue arises with home inspection companies whose service contracts contain "limitations of liabilities."  Theoretically, if the agent or broker refers a company that has limitations of liability and fails to properly satisfy its duties, the homebuyer could turn to the agent or broker upon learning that they have no recourse against the inspector. If a homeowner does request the identity of inspection companies, it is most prudent to offer only those companies whose service contracts do not contain limitations of liabilities, and to specifically inform the homebuyer that the agent or broker is not vouching for the quality of the inspection work.

In truth, if a homebuyer is intent on conducting an inspection, a licensed professional engineer (structural) is the best resource. Undoubtedly, these services are more costly. However, in today's world of construction defect litigation and the rising costs of real estate, hiring a licensed professional engineer to conduct such an inspection may be the best recourse.