Inspection Reports Going To Lenders

[Scottpat]

If the buyer is using any government backed funding like FHA or USDA Rural Developent it is very likely that if a home inspection is mentioned in the contract for sale the underwriter is going to want to see it. I have seen this more with USDA than anything. I have also discovered that whatever is gigged in the inspection report they (USDA) will require them to be repaired or corrected.

[gtblum]

Blum, would you prefer rabbet?

I didn't realize typos were a job hazard in this gig.

Yes. Rabbets make a nice glue joint. Rabbits make nice pets, are good to eat, and fun to hunt with dogs. Now, stop disrupting class.

[hausdok]

If the buyer is using any government backed funding like FHA or USDA Rural Developent it is very likely that if a home inspection is mentioned in the contract for sale the underwriter is going to want to see it. I have seen this more with USDA than anything. I have also discovered that whatever is gigged in the inspection report they (USDA) will require them to be repaired or corrected.

Yep,

I've had those. When the client lets me know that it's a VA/FHA type mortgage and I know upfront that the report is going to that agency, I give them permission to distribute it to that agency.

I've been doing this almost seventeen years. The closest I've ever come to a lawsuit was with a crazy lady from California that wanted me to pay for a chimney damaged by the Nisqually earthquake. It never got farther than my insurance company making an appointment to go see a mediator. That appointment was cancelled and she ultimately settled two years later for a refund from the insurance company. Nonetheless, it cost me the insurance deductible that was far higher than the amount she was refunded (One reason I won't carry E & O). It smart and since then I've been really careful to ensure folks understand the terms of the contract implicity before I even unpack my equipment; that's why this instance of a purchaser who was not my client calling me wanting to discuss the report had to be nipped in the bud.

Hey Guys, it's your business and your livelihood to run as you see fit. All I'm trying to do is help some of you understand that there are ways to not become a doormat.

ONE TEAM - ONE FIGHT!!!

Mike

[Jim Baird]

These days lenders stand way near the bottom of the totem pole of respect in our society, somewhere around that of realtors and pickpockets. They have no voice in declaring what shall be said to whom about what in this biz.

[Scottpat]

These days lenders stand way near the bottom of the totem pole of respect in our society, somewhere around that of realtors and pickpockets. They have no voice in declaring what shall be said to whom about what in this biz.

He who has the gold makes the rules!

[Eric B]

I regard the report as the client's property - they did pay for it after all. Also, I don't tell the client who they should not give the report to, that would seem to verge on some sorta legal advice. Last I heard I'm on this earth for a finite period of time and spending time worrying about who gets my report is no where to be found on my radar.

[hausdok]

I regard the report as the client's property - they did pay for it after all. Also, I don't tell the client who they should not give the report to, that would seem to verge on some sorta legal advice. Last I heard I'm on this earth for a finite period of time and spending time worrying about who gets my report is no where to be found on my radar.

Then, in that case your report is work made for hire. See post #14 above.

As I said above, you have to make a conscious decision to either keep the report your intellectual property and license it to the customer for his use or you can consider it a product. I'm selling my time and expertise. The report is my record of the inspection wherein I was paid for that time and expertise and I allow the client to use it for his transaction, with limits.

Everyone has to decide how he plans to run his company. This is the way I run mine. Others' mileage may vary.

ONE TEAM - ONE FIGHT!!!

Mike

[Marc]

I took the time to become familiar with post 14, even printed it out. I think all HI's should copyright their HI reports but I'd make the terms a little different. See, I added that paragraph at the top of post 14 to my contract a while back and lost a job within a few months with a client who worked in a contract attorneys office. Her point made sense and I removed the paragraph afterwards.

I'd rather make the copyright terms like this:

Report can be used only in conjunction with the purchase of the property listed in the report BY the client also listed in the report. No restriction on who the client wants to give the report to. It becomes a copyright violation only if used by anyone not named in the report on that particular property.

I'd like to add language something like that to the footnotes of every page and on every report of mine so everyone who gets a copy is clear on that.

Marc

[Charlie R]

I know some lenders here in Maryland have been requiring they get a copy of the inspection report for years, and then they dictate what needs to be repaired. The clients usually call me for a reinspection because the lender wants something from me saying the items have been repaired. I charge for the reinspection, give my client a reinspection report. Some lenders provide their own version of an inspection form and want me to fill that out. I do, but I charge for that and write on their form that I don't accept any liability for anything because it's their form.

This is where I have a problem. Everyone in this business has a contract they spent time and money on to hopefully make it as bullet proof as possible. Everyone has a limitation of liability that goes into some detail about responsibility ending with their client.

Why would you without a contract of any kind, allow yourself to be put into a position of liability to a bank for repairs made by contractor who's warranty of the repair should serve to satisfy their concern?

I spoke with my attorney about this and was told I would have been out of my mind to put myself in that position.

If we're done with english class, you might want to check with your attorney.

When did I say I do anything without a signed contract?

[gtblum]

I know some lenders here in Maryland have been requiring they get a copy of the inspection report for years, and then they dictate what needs to be repaired. The clients usually call me for a reinspection because the lender wants something from me saying the items have been repaired. I charge for the reinspection, give my client a reinspection report. Some lenders provide their own version of an inspection form and want me to fill that out. I do, but I charge for that and write on their form that I don't accept any liability for anything because it's their form.

This is where I have a problem. Everyone in this business has a contract they spent time and money on to hopefully make it as bullet proof as possible. Everyone has a limitation of liability that goes into some detail about responsibility ending with their client.

Why would you without a contract of any kind, allow yourself to be put into a position of liability to a bank for repairs made by contractor who's warranty of the repair should serve to satisfy their concern?

I spoke with my attorney about this and was told I would have been out of my mind to put myself in that position.

If we're done with english class, you might want to check with your attorney.

When did I say I do anything without a signed contract?

Why would you anyone without a contract of any kind, allow yourself themselves to be put into a position of liability to a bank for repairs made by contractor who's warranty of the repair should serve to satisfy their concern?