Home Inspection Contract

This is a SAMPLE contract for your review. Each and every client gets a contract specific to them that will be different from this sample contract.

1. CLIENT REPRESENTATIONS AND PARTICIPATION: CLIENT represents that CLIENT or CLIENT’S agent have made all necessary arrangements with the selling party for Accurate Inspections, Inc., its agents, employees, subcontractors, or officers (collectively, the “COMPANY”) to enter, photograph, and inspect the home and property, as well as consent from those in attendance to be photographed. Inspector may arrive and start early and may use a drone. CLIENT represents CLIENT is the prospective buyer of the subject property who has the legal authority to sign this document. CLIENT is encouraged to participate in the inspection and recognizes that failure to do so may result in a less than complete understanding of the findings. CLIENT understands that CLIENT’S participation is at CLIENT’s own risk of bodily injury and/or property damage, and that the COMPANY has no knowledge of whether there are any dangerous conditions of the property that may be encountered during the inspection. The CLIENT understands that the COMPANY will not be liable to CLIENT for any accidents that occur during the home inspection.

2. PURPOSE OF THE INSPECTION: A home inspection is a visual, functional, non-invasive (without moving personal property, furniture, equipment, plants, soil, snow, ice, or debris), inspection conducted using the mandatory equipment and including the preparation of a home inspection report of the readily ACCESSIBLE elements of the following components of a residential building: structural components, exterior components, roofing system, plumbing system, electrical system, heating system, cooling system, interior components, insulation components and ventilation system, fireplaces, and solid fuel-burning appliances, or any other related residential housing component, excluding recreational facilities and outbuildings other than garages or carports to determine if MATERIAL DEFECTS exist. A MATERIAL DEFECT is a condition, or functional aspect, of a structural component or system that is readily ascertainable during a home inspection that SUBSTANTIALLY affects the value, habitability, or safety of the dwelling, but does not include decorative, stylistic, cosmetic, or aesthetic aspects of the system, structure, or component. For the purpose of this inspection the parties agree to define “substantially affecting the value” as used above to be more than 3% of the purchase price of the inspected property. Should CLIENT desire a report with a lower threshold client agrees to obtain one from another provider PRIOR to expiration of CLIENT’s home inspection contingency. The purpose of the home inspection is to identify and report on ACCESSIBLE MATERIAL DEFECTS found in those systems and components. ACCESSIBLE means available for visual inspection without requiring the moving of personal property, dismantling, destructive measures, or any action which will likely involve risk to persons or property.

3. SCOPE OF WORK: CLIENT hereby engages COMPANY (the term COMPANY throughout this Contract refers to Accurate Inspections, Inc. and to perform a home inspection by a licensed home inspector (not a professional engineer or architect) to the standards of practice of N.J.A.C.13:40-15, and to provide CLIENT with a written Home Inspection Report. Comments on items that exceed the minimum regulatory standard are for CLIENT’S information, they are NOT part of the inspection. Should CLIENT desire an inspection that exceeds the standards of practice of N.J.A.C.13:40-15.16, such an inspection is available for an additional charge to be negotiated. Home inspectors are governed by the rules contained at N.J.A.C 13:40-15, failure to comply with the rules may subject the licensee to discipline.

4. HOME INSPECTION REPORT: The COMPANY will provide the CLIENT with a written report which: (1) discloses those systems and components which are designated for inspection pursuant to N.J.A.C.13:40-15 and are present at the time of the inspection, as well as those which are present at the time of the home inspection but are not inspected and the reason(s) they are not inspected; (2) describes systems and components as specified in N.J.A.C.13:40-15 and states what MATERIAL DEFECTS are found in those systems or components; (3) states the significance of findings; and (4) provides recommendations regarding the need to repair, replace, or monitor a system or component, or to obtain examination and analysis by a qualified professional, tradesman, or service technician.

5. UNFORESEEN CONDITIONS & RE-INSPECTION: Inclement weather and other unforeseen conditions existing on the day of the inspection will vary the scope of the work to be performed by the COMPANY. The COMPANY will return to inspect any areas of the property that could not be inspected for a fee of $150, or to evaluate repairs made after the Company’s Home Inspection Report is distributed for a fee of $249. Systems may not be inspected due to weather or unforeseen conditions. Air conditioning equipment will not be evaluated, operated, or inspected during cold weather. No area that poses a threat to the inspector’s safety will be inspected, including steep, slippery, or brittle roofs, or walk roofs not ACCESSIBLE from an eleven-foot ladder. COMPANY cannot warrant that the Property is free from any water penetration, whether the water penetration relates to the roof, eaves, exterior wall cladding, interior wall cladding, defects in window installation, landscaping, exterior drainage issues, interior plumbing, or any other system or component at the property.

6. COST ESTIMATES: Prior to expiration of CLIENT’S home inspection contingency, CLIENT agrees to obtain cost estimates from reputable firms for the repair of MATERIAL DEFECTS and all concerns mentioned in the inspection report with the expectation additional problems may exist. CLIENT agrees not to rely upon cost estimates provided by COMPANY.

7. DISCLAIMER OF WARRANTY: CLIENT understands that the inspection and report do not, in any way, constitute a guarantee, warranty of merchantability or fitness for a particular purpose, express or implied warranty, or an insurance policy. Additionally, neither the inspection nor inspection report is a substitute for any real estate transfer disclosures that may be required by law.

8. NOTICE OF CLAIMS: CLIENT agrees that any claim for failure of the COMPANY to fulfill its obligations under this Agreement shall be made in writing to the COMPANY upon discovery. CLIENT also agrees to allow the COMPANY ten (10) days to come to the property to inspect and evaluate any condition complained of by the CLIENT to the COMPANY and not to make, or allow others to make, any alteration to the claimed condition until the COMPANY has had the opportunity to inspect and evaluate the claimed condition, except in case of emergency.

9. CHOICE OF LAW: This Pre-Inspection Agreement shall by governed by New Jersey law. If any portion of this Agreement is found to be invalid or unenforceable by any court the remaining terms shall remain in force between the parties.

10. NON-EXHAUSTIVE LIMITATIONS ON HOME INSPECTIONS: The COMPANY IS NOT REQUIRED TO: (1) enter any area or perform any procedure which is, in the opinion of the inspector, unsafe and likely to be dangerous to the inspector or other persons; (2) enter any area or perform any procedure which will, in the opinion of the inspector, likely damage the property or its systems or components; (3) enter any area which does not have at least 24 inches of unobstructed vertical clearance and at least 30 inches of unobstructed horizontal clearance; (4) identify concealed conditions and latent defects; (5) determine life expectancy of any system or component; (6) determine the cause of any condition or deficiency; (7) determine future conditions that may occur including the failure of systems and components including consequential damage; (8) determine the operating costs of systems or components; (9) determine the suitability of the property for any specialized use; (10) determine compliance with codes, regulations and/or ordinances; (11) determine market value of the property or its marketability; (12) determine advisability of purchase of the property; (13) determine the presence of any potentially hazardous plants, animals (birds, mammals, reptiles, insects or fish) or diseases, or the presence of any suspected hazardous substances or adverse conditions including, but not limited to: mold; fungus; toxins; carcinogens; noise; contaminants in soil, water, or air; asbestos; radon; lead; urea formaldehyde; toxic or flammable chemicals; water or air quality; PCBs; electromagnetic fields; hazardous materials associated with leaks from underground storage tanks; proximity to toxic waste sites or sites being monitored by any state or federal agency; carbon monoxide; the presence of or any hazards associated with the use or placement of contaminated drywall at the property; or any other environmental or health hazards; (14) determine the presence or effectiveness of any system installed or method utilized to control or remove suspected hazardous substances; (15) operate any system or component which is shut down or otherwise inoperable; (16) operate any system or component which does not respond to normal operating controls; (17) operate shut-off valves; (18) determine whether water supply and waste disposal systems are public or private; (19) insert any tool, probe or testing device inside electrical panels; (20) dismantle any electrical device or control other than to remove the covers of main and sub panels; (21) walk on unfloored sections of attics; (22) light pilot flames or ignite or extinguish fires; (23) inspect, identify, or disclose ancillary electrical devices and/or systems, such as, but not limited to, Arc Fault Circuit Interrupters (AFCIs), standby generators, and photovoltaic (solar) panels; (24) determine the presence of any systems or components located underground, including, but not limited to: tanks; pipes; drain lines; drainage pipes; sewer pipes or any other system or component not available for visual observation. THE COMPANY WILL NOT: conduct efficiency measurement of insulation or heating and cooling equipment or determine if the equipment will provide uniform temperatures throughout the home. THE COMPANY DOES NOT DETERMINE THE CONDITION OF: (1) internal or external underground drainage or plumbing; (2) concealed wiring; (3) telephone systems; (4) propane tanks; (5) intercoms; (6) security systems; (7) cantilevers; (8) water or sewer lines; (9) chimney flues; (10) lawn and fire sprinklers; (11) water wells (water quality or quantity). Comments about the above-listed items are for the CLIENTS information and do not represent an inspection. You are advised to obtain information from experts about the existence and condition of all the above-listed items prior to expiration of CLIENT’s home inspection contingency. THE COMPANY DOES NOT DETERMINE whether any system or component of the property has been affected by the manufacture, distribution, storage, possession or sale of any controlled dangerous substances or illicit drugs, including products or by-products, and including, but not limited to, methamphetamines, opiates, or cannabis, and including any and all chemicals, tools, household fixtures or appliances used to facilitate such activities.

11. LIMITATION ON TIME TO BRING LEGAL ACTION. PLEASE READ CAREFULLY: Any legal action, including claims for, but not limited to, breach of contract, any form of negligence, fraud or misrepresentation, and/or any violation of any law, statute, ordinance, regulation or code, or any other theory of liability arising out of, from or related to this Pre-Inspection Agreement or arising out of, from or related to the inspection or report must be brought within one (1) year from the date of the inspection (before %enable-smart-templates% {dt date=”%inspectiondate%” modify=”+365 Day” format=”M d, Y”}), regardless of when the CLIENT first discovers the facts supporting such possible claims as identified herein. Failure to bring said action within one (1) year of the date of services shall be a complete bar to any such action and a full and complete waiver of any rights, actions or causes of action that may have arisen from the inspection and/or inspection report. This period is shorter than otherwise provided by New Jersey law.

12. HIDDEN AND LATENT DAMAGES: Prior to the expiration of CLIENT’s home inspection contingency, all areas requiring invasive testing, destructive testing, and removal of finishes, must be made ACCESSIBLE, accessed, invasively or destructively tested and professionally inspected; all areas not accessed, not entered, inaccessible, not traversed or with restricted access including areas above suspended ceilings, behind insulation and obstructed by personal effects must be made ACCESSIBLE, accessed and professional inspected, or CLIENT accepts open-ended risks. Under no circumstances will the COMPANY perform invasive testing, destructive testing, or remove finishes.

13. CLIENT’S PRE-SETTLEMENT RESPONSIBILITIES: CLIENT accepts that this home inspection is no substitute for a pre-settlement inspection. Damages, symptoms, clues, mechanical failures, etc. may appear after the home inspection is performed and before closing. A guide inside the home inspection book provides a list of suggested tests and inspections for which the CLIENT is solely responsible. CLIENT agrees to conduct a PRE- SETTLEMENT INSPECTION of the home as close as possible to time of closing. The COMPANY will attend the PRE-SETTLEMENT INSPECTION for $249 to determine if visible and ACCESSIBLE conditions have changed between the time of the home inspection and the time of the closing. CLIENT waives any right to make a claim against COMPANY if CLIENT has not diligently performed a PRE-SETTLEMENT INSPECTION. CLIENT waives any right to make a claim against COMPANY if CLIENT did not initiate more extensive investigation and follow through with specialists on all problems noted in the report.

14. THIRD PARTIES AND SUBROGATION: The home inspection and Home Inspection Report are intended to be used ONLY for the CLIENT’S benefit. They are not intended to be used or relied upon by any other person or entity for any purpose. CLIENT agrees to protect, indemnify, defend, and hold harmless COMPANY from liability against any and all claims made against the COMPANY resulting from CLIENT’S unauthorized distribution of the inspection findings or Home Inspection Report to any other person or entity.

15. COVID-19 & PATHOGENS: COMPANY and CLIENT acknowledge the existence of pathogens (including the COVID-19 virus), the dangers of pathogens, and the potential exposure to the pathogens that could occur because of us performing the inspection. COMPANY and CLIENT agree that each of them will hold harmless, release, and indemnify each other, their agents, and representatives for any exposure to or lawsuit or other claims by anyone as a result of the pathogens causing injury, illness or other damages arising from the home inspection process. The inspector, and those whom the inspector resides, are to the best of their knowledge, COVID-19 free and have no reason to believe that they have had any direct exposure to the virus.

16. ENTIRE AGREEMENT: This Pre-Inspection Agreement and any subsequent report issued to the Client by the Company represent the entire agreement between the parties. No oral agreements, understandings, or representations shall change, modify, or amend any part of this Agreement. No change or modification shall be enforceable against any party unless such change or modification is in writing and signed by the parties and supported by valid consideration. This Agreement shall be binding upon and inure to the parties hereto and their spouses, heirs, executors, administrators, successors, assigns, and representatives of any kind whatsoever. The inspection is being performed for the exclusive use and benefit of the Client. The inspection, including the written report, is not to be transferred to, utilized, or relied upon by any other person or entity without prior written permission of the Company.

17. CLIENT’S AGREEMENT & UNDERSTANDING OF TERMS: The Client understands that the Client has a right to have an attorney of the Client’s choice review this Agreement before signing it. The Client understands that if the Client does not agree with any of the terms, conditions, limitations and/or exclusions set forth in this Agreement, the Client is free to not sign it. The Client understands that the Client may retain another provider to perform the services contemplated by this Agreement. The Client further understands that, should the Client not agree to the terms and conditions set forth in this Agreement, the Client may negotiate with the Company for different terms and conditions. By signing this Agreement, the undersigned Client agrees that he/she/I/they have read, understand, and agree to all the terms and conditions on all pages of this Agreement, and limitations and exclusions, and agree to pay the fees shown according to the terms of this contact.

CLIENT agrees to pay all listed below fees before or during the time of the inspection.

Michael Del Greco – N.J. Home Inspector License: GI0121
COMPANY: Accurate Inspections, Inc Phone: (973) 812-5100

In order to avoid incurring delays and additional fees please be sure you, sale related real estate agents, the owner, and all occupants all agree and understand: 1.) All the utilities (electric, water, and gas) must be operational upon our arrival at the home in order to allow the inspection to be completed as scheduled. 2.) The inspector will NOT turn on any: utilities, valves, circuit breakers, disconnect switches or light pilots or plug in anything that is not plugged in all under any circumstances. 3.) All areas of the home including crawl spaces must be readily accessible upon our arrival at the home.
Page 2 of 2 Revised 12-9-19

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