The following Agreements is for MEMBERS’ USE ONLY
The updated form contains a number of important additions, but still consists of only a single page . Prospective client may become wary if an inspector asks them to sign a lengthy legal document.
There are important issues home inspectors should consider in drafting their contracts. These include:
- defining the scope of the inspection;
- the fee for the inspection;
- when payment is due;
- a disclaimer of warranties;
- a limitation on liability and a liquidated damages provision;
- provision for payment of costs and attorney’s fees;
- whether to require arbitration in the event of a dispute;
- a “merger clause” stating that there are no promises other than those set forth in the agreement, and that all prior discussions are merged into the agreement;
- a clause stating that any modification of the agreement must be in writing;
- a forum selection clause so that any lawsuit must be filed in the county or district where the inspector has its principal place of business; and
- a personal guaranty of payment if the client is a corporation or similar entity.
- Laws may vary from province to province, but this contract provides a good starting point in any jurisdiction.
Inspectors should review their advertising and marketing materials with a critical eye to make sure they do not contain unfounded statements or claims that could provide the basis for a lawsuit by an unhappy client.