Inspection Agreement

Building Inspection Agreement

Agreement made on the , between

of , referred to herein as Client, and

a corporation organized and existing under the laws of the state of , with its principal office located at , referred to herein as Company.

For and in consideration of the mutual covenants contained in this agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

The Company agrees to perform for the Client (check one):

A limited-time inspection of the major structural, mechanical, and electrical elements of the building proper; or

A special limited-scope inspection of:

A. Particular concerns include:

B. The building to be inspected is located at , hereinafter called the Premises.

1. Inspection Generally

Company will provide the Client with an inspection based on the inspector's judgment of conditions at the time of the inspection. Due to the complexity of the elements of the Premises and the hundreds of value judgments made by Company's inspectors in a limited-time (usually hours) inspection, it is possible that inspector error could occur. Since neither the Company nor the inspector is an insurer of the property, including its present or future condition, they assume no responsibility for liability arising out of litigation alleging inspector error or negligence. However, for those Clients desiring greater assurances after an inspection, the Company will assume liability for inspector errors or negligence on extended-time inspections which are performed without time constraints. During such inspections, a greater in-depth evaluation process can be applied in the inspection of accessible elements. For most properties, the increased inspection time will increase the inspection fee approximately five fold. Clients wishing this extended-time inspection must indicate their choice prior to the scheduling of the inspection. A special extended-time inspection order agreement outlining the terms and conditions of the inspection and complimentary limited warranty will be prepared and presented to the Client prior to inspection.

2. Alternative Warranty

For those Clients not choosing the extended-time inspection but still wishing increased protection against unexpected repair or replacement expenses, the Company offers, at a modest additional cost, an optional one-year warranty on owner-occupied, one- and two-family resale houses. This limited warranty is backed by insurance and covers specified repair or replacement costs not outlined or forecast in the inspection report. Under all circumstances concerning a limited-time inspection, the Company's maximum liability for the inspection is limited to the fee paid by the Client should the warranty not be purchased.

3. Specialized Testing

No water, air, soil or material analyses for health or environmental considerations will be performed, since they require specialized testing.

4. Inaccessible Items

Company will inspect and report only on visible and readily accessible major elements of the building proper. Components which are inaccessible or are concealed at the time of inspection (by walls, rugs, slabs, furniture, low crawl spaces, and the like) cannot be adequately inspected and accurately judged. Out of respect for the present owners, the Company will not perform any destructive tests during the inspection. Further, it is understood that this inspection does not cover code compliance, design, or adequacy evaluation.

5. Plumbing

Company will visually inspect the area above the exterior plumbing systems (septic, well, water, and sewer lines) for readily observable signs of current malfunction or failure. However, since these components are concealed below ground, no definite judgment can be made. The Company advises Client to obtain additional independent evaluation (such as water analyses, check of past service record, obtaining plans, speaking to owner, consulting town officials, etc.).

6. Property History

Company will provide the Client with a history of the Premises form which should be reviewed by the Client with the present owner prior to purchase. When the owner is present at the time of the inspection, the inspector will endeavor to complete this important case history of the Premises.

7. Inspector’s Safety

Company assumes full responsibility for the inspector's safety during the performance of the inspection.

8. Preliminary Report

Company, at the option of the Client, will prepare an on the spot preliminary report after the inspection providing a checklist of items requiring Client attention. A formal typed report will be prepared and distributed as follows:

1. Original to: Client;

2. Copies to (Check as appropriate):

, Attorney at Law;

, Realtor;

Other (names of other persons to receive report)

Unless authorized and paid for by the Client, no other copy distribution will be made. The formal report will be distributed on receipt of the inspection fee. The Company makes no representation or guarantee concerning the delivery date of the report.

9. Client’s Participation

Company encourages the Client to attend the inspection and to participate in the evaluation process and to discuss the condition of the various elements, their expected life expectancies, the likelihood of future repairs and the extent of any noted deficiencies. The report alone without the valuable personal involvement does not provide the same depth of information.

10. Post-Inspection Counseling

Company will provide complimentary post-inspection counseling.

11. Pre-Closing Inspection

Client will perform a pre-closing inspection of the Premises, including systems and appliances, when such evaluation is not hampered by furniture, rugs, drapes, animals, occupants, or other obstructions. The Company provides a special nontechnical checklist for this purpose. Should any major deficiency be uncovered by the Client or the Client's representative during this re-inspection, they will immediately notify the Company. The Company will assess the matter by telephone and, when necessary, will promptly re-inspect and evaluate the condition at the Company's expense.

12. Fees

The fee for this limited-time inspection is: $. Payment is due on completion of the physical inspection. Payment is made by:

Cash

Check

Money Order

Credit Card

Name on card:

Expiration Date:

Card Number:

13. Severability

The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. If any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision.

14. No Waiver

The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

15. Governing Law

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of .

16. Attorney’s Fees

In the event that any lawsuit is filed in relation to this Agreement, the unsuccessful party in the action shall pay to the successful party, in addition to all the sums that either party may be called on to pay, a reasonable sum for the successful party's attorney fees.

17. Mandatory Arbitration

Any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

18. Entire Agreement

This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

19. Modification of Agreement

Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

20. Assignment of Rights

The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party.

21. In this Agreement, any reference to a party includes that party's heirs, executors, administrators, successors and assigns, singular includes plural and masculine includes feminine.

22. Client has read and understands the terms and conditions of this Agreement.

WITNESS our signatures as of the day and date first above stated.