Contract Clause

[sepefrio]

4. The parties understand and agree that the Inspector and its employees and its agents assume no liability or responsibility for the costs of repairing or replacing any unreported defects or deficiencies either current or arising in the future or any property damage, consequential damage or bodily injury of any nature. If repairs or replacement is done without giving the Inspector the required notice, the Inspector will have no liability to the Client. The client further agrees that the Inspector is liable only up to the cost of the inspection. Not valid in State of _____________.

The above is a clause that is included in the contract that comes with the InspectIt Plus software. Where or how can I find out if Virginia is one of those states that this applies too? Also should I include the states that it is not valid in? That seems pointless really. And if it does not apply to Virginia (the only state I'm going to do business in) is that last sentence (Not valid in State of _____________. ) even needed?

Thanks.

[ozofprev]

You really need to have an attorney help you draw up a contract. The attorney I used eventually sent me enough business to more than offset her expense.

[sepefrio]

I was thinking that as I typed it, but I figured if I found where is was/or was not required would save me billable hours, lol.

[Jim Katen]

Originally posted by sepefrio

I was thinking that as I typed it, but I figured if I found where is was/or was not required would save me billable hours, lol.

Your attorney should review your contract -- *especially* if it came from a home inspection software program.

As for that particular paragraph, you might want to translate it into English before handing it to your attorney.

BTW, it's always best to find an attorney who has experience representing home inspectors. Try asking people in your local HI association chapter.

- Jim Katen, Oregon

[Les]

Excellent advice from two old guys. Think of it this way - When, not if, you get into a scrape that atty will be your first call. All attys are not bad. It is quite important the atty has some home inspection knowledge.

[Eric B]

Hmm, The way I read it, inspector is not responsible for his missing something that he should have caught - so client is stuck with related costs even if it's inspector's mistake. That aside, I think that it could be better written.

My contract has no clause that limits my liability to the cost of the inspection - to me such a limitation says that I don't stand behind my work or take responsibility for it. BTW - my attorney wanted the liability clause in the contract.

Just an opinion or two here.

[ozofprev]

BTW - my attorney wanted the liability clause in the contract.

Eric, you paid an expert and ignored his advice?

I applaud your principles, but...

Principles work only when everybody has them. Your attorney was not trying to devalue your principles, but protect you from those who have none.

[SonOfSwamp]

Originally posted by sepefrio

4. The parties understand and agree that the Inspector and its employees and its agents assume no liability or responsibility for the costs of repairing or replacing any unreported defects or deficiencies either current or arising in the future or any property damage, consequential damage or bodily injury of any nature. If repairs or replacement is done without giving the Inspector the required notice, the Inspector will have no liability to the Client. The client further agrees that the Inspector is liable only up to the cost of the inspection. Not valid in State of _____________.

The above is a clause that is included in the contract that comes with the InspectIt Plus software. Where or how can I find out if Virginia is one of those states that this applies too? Also should I include the states that it is not valid in? That seems pointless really. And if it does not apply to Virginia (the only state I'm going to do business in) is that last sentence (Not valid in State of _____________. ) even needed?

Thanks.

Alert! Alert! Do not use contract language that comes from a purveyor of HI software. The above is amateurish and wretched. Get a lawyer who knows something about contract law and the HI biz to write your contract.

I'm amazed that I have to explain this. This is the kind of document that HIs try to fall back on when they get into trouble. When the hammer falls, an HI doesn't want to sit in the witness chair and say, "Hey, it came from InspectIt."

FWIW, I sat in a deposition a while back, in which the plaintiff's lawyer dismantled an errant HI using the realtor-suckup thank-you-for-the-referral(s) letter that comes with a certain "brand" of HI software.

WJid="blue">

[sepefrio]

Originally posted by SonOfSwamp

FWIW, I sat in a deposition a while back, in which the plaintiff's lawyer dismantled an errant HI using the realtor-suckup thank-you-for-the-referral(s) letter that comes with a certain "brand" of HI software.

WJ[/blue]

LOL! I was going through those very same letters in the software and couldn't help but think that they were familiar. Then I remembered a post a read on here about a law suit (can't find it right now) where the HI firm was torn up in court because it coddled to the Realtor and not the customer.

The other thought, if your any good, you should have to write more than one of these thank you notes to the same Realtor. If I received a carbon copy thank you note, it would be meaningless. So taking those two factor's I only made one small change to those stock thank you letters.....

Select all

Delete

Type - DON'T FORGET A THANK YOU NOTE

So instead of a note, a reminder is printed out to write one by hand.

[Les]

I guess I am not a nice guy. I have hand written dozens of notes to my clients and nary a one to a real estate agent. I'll admit to calling several agents, after the inspection, asking them "What the hexx are you thinking?" "If you want to do inspections, go for it. Right now, I am the inspector and you are the agent. If you have a problem with that then we will just have to agree to be, at least, polite."

[Les]

Right after post the above message, I opened the mail and this card was there. I did not get a card from the real estate agent, in fact he does not even speak to me!

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[Chris Bernhardt]

In my opinion contracts are pretty useless in this business. I put them in front of clients all the time and they just sign the damn thing without even reading it and they won't block the initiation of a frivilous claim and thats what you're really worried about.

Between a good contract and a good report the report wins hands down. Think of it this way - the report is the contract that you wished the contract was.

The best advice is to go find an atty that you like and who has some HI litigation experience. Of course that advice is given out here all the time like handing candy out to kids but I think just about nobody actually follows that advice.

Chris, Oregon

[SonOfSwamp]

Originally posted by Chris Bernhardt

In my opinion contracts are pretty useless in this business. I put them in front of clients all the time and they just sign the damn thing without even reading it and they won't block the initiation of a frivilous claim and thats what you're really worried about.

Between a good contract and a good report the report wins hands down. Think of it this way - the report is the contract that you wished the contract was.

The best advice is to go find an atty that you like and who has some HI litigation experience. Of course that advice is given out here all the time like handing candy out to kids but I think just about nobody actually follows that advice.

Chris, Oregon

There is a school of thought that contends that in the HI world, no contract is the best way to go. Can't be sued for breach of contract if you never had a contract. That just leaves fraud and gross negligence as worries. An HI who commits fraud and/or gross negligence won't be helped by a contract or an SOP.

Cuts down on paperwork, too.

That said, I always got signed contracts. My lawyer and I didn't spend all those hours writing that contract for nothing...

WJ

PS: My humble observation is that HIs get away with all kinds of sloppy, sorry bonehead work every day, no matter how much they don't adhere to their own contracts. The only time I see an HI end up in court is when he (metaphorically) takes candy from a baby, beats the baby about the head and shoulders, then swears to all who'll listen that he never did anything wrong...

[sepefrio]

Dropped my contract off at my lawyers office today. He is a real estate attorney and my business agent. His friend is a contract attorney and he is forwarding it to him for approval/corrections. Although it may cost me a little more it works better since not only is it approved by a contract attorney but also the guy that would be defending it.

[Les]

YOU win the smart prize of the day!!