Pre-Listing Inspection Questions

We are getting ready to do our second pre-listing inspection. I had some problems with the 1st one. Here are the problems that I had with it.

  1. The agent paid for the pre-inspection. I put the contract in the agents name. Should I have put it in the sellers name, since it is their home?

  2. We were never called back to do a re-inspection, until after the home sold. The agent / seller used the prelisting inspection as a marketing tool, but the prospective buyers wanted us to come out to do a re-inspection to make sure that everything listed on the pre-listing inspection was completed. I put the re-inspect agreement in the sellers name.

I am uneasy with the scenerio I listed above. I always imagine what will be presented in court, and to be honest, I think the above is screwed up.

Does anyone have a copy of a pre-listing inspection contract, and give me some feedback on how you handle prelisting inspections, such as when to do a re-inspection on a pre-listing inspection?
Any help would be appeciated.
Thank you!
Gloria

Hello Gloria,

In the Pre-listing agreement, I use the homeowner/sellers’ name, noting that their RE Agent is acting as their Representative…

In the “re-inspection”…it should be a Buyers’ inspection, paid for and in the buyers name, not a “re-inspection”…

I use the same type agreement for both, just noting in the pre-listing it is as such.

Jeff

Note; a “re-inspection” is ordered and paid for by the seller or sellers agent for the seller…not the Buyer.

The party who signs the check is my client.

So who does the preinspection report belong to? Are you still bound to the buyer of the home, if they used the prelisting report instead of getting their own inspection?
How do you market this to real estate agents? (Question for RR - couldnt find it on your website)
Thanks

Jeff

That could be a problem…

I get checks from the clients relatives or friends who are later reimbursed by the client. I’m certainly not having a neighbor or friend sign the inspection agreement, nor will I list the relative or friend as the client.

We are getting ready to do our second pre-listing inspection.
Congrats!

I had some problems with the 1st one. Here are the problems that I had with it.

  1. The agent paid for the pre-inspection. I put the contract in the agents name. Should I have put it in the sellers name, since it is their home?
    In this case the realtor is the client and I would not have a problem with that. I would not add the owners because there is no need to be liable to them as well.

  2. We were never called back to do a re-inspection, until after the home sold.
    Do you mean after the offer was accepted or after closing escrow? Not very smart of the buyers to do it after closing.

The agent / seller used the prelisting inspection as a marketing tool, but the prospective buyers wanted us to come out to do a re-inspection to make sure that everything listed on the pre-listing inspection was completed.
Twice the business is nice!

I put the re-inspect agreement in the sellers name.
But it was the buyer who was the client. Makes one wonder about the legal validity of the agreement.

I am uneasy with the scenerio I listed above. I always imagine what will be presented in court, and to be honest, I think the above is screwed up.
I agree. These type of inspections need to be carefully handled when it comes to the legal specifics.

Does anyone have a copy of a pre-listing inspection contract, and give me some feedback on how you handle prelisting inspections, such as when to do a re-inspection on a pre-listing inspection?
Any help would be appeciated.
Thank you!
I do not have one drafted yet but I’ll share some ideas …

If the inspection report is being used as a marketing tool by the realtor, the agent should be the client and a contract should be tailored specifically to this situation. A crucial item in the contract, as well as written into the body of the report itself would be …

The inspector only assumes liability to the client for accuracy of the inspection findings. The inspector and the client do not assume liability to any individuals who make any decisions with financial implications based on the report findings. The client agrees he or she is only permitted to endorse the inspection report itself. The client agrees that endorsement of the inspection findings in any manner makes the client solely liable for the accuracy the report findings. The client agrees that liability can not be transferred from him/ or her to the inspector.

I also put pre-listing inspection contracts in the agent’s name if the agent ordered it. Occasionally, very rarely, I actually have the seller order it and he also pays for it. Whomever is hiring me is the name that goes on the contract.

What you called a “re-inspection,” I call an “update,” and I provide a discount of 25% if the “update” is done within 60 days of the original inspection, regardless of what type of inspection that original inspection was. Sometimes the buyer will order their own inspection, choosing not to go for the update.

That wouldn’t fly here, and I’m not sure who signs the check makes any difference anyway. If King George II wanted to pay for home inspections for everyone in the nation instead of invading foreign countries, somehow I don’t think we’d all be putting our contracts in his name.

I have lots of parents paying for inspections for children, current husbands paying for inspections for soon-to-be-divorced wife, and Realtors paying for inspections for Clients (Jim, my Domestic Partner, and a Realtor with Century 21 Award, pays for all home inspections for his Client, including LIST inspections for his selling Clients).

To determine whose name to put the contract in, I can ask several questions:

  1. Who’s buying the house?
  2. Whose name is escrow in?
  3. Who will own the house after escrow closes?
  4. Whose name will be on the title?

I’ve never had to go so far as to ask all four questions, though. If there’s any doubt, why not ask the caller, “Who’s name would you like me to put on the contract?” I did have to ask that question yesterday since there were five people buying the house. They did want all five people on the contract.

Sometimes to whomever orders it, sometimes to whomever pays for it.

Here in California, yes. That’s why I offer an “update” (see previous posts).

See different inspection types.

As already stated earlier, “words or wording” is extremely important in a legal sense. We developed a work sheet that we work off of and put all the scheduling information on. One of the items is “clients name”. Who am I working for? Who and how will I be paid? If the realtor orders the report but is only acting on the behalf of the customer, I want the customers signature on the agreement contract. The second inspection was in fact a new inspection, not simply a re-inspection due to the fact it was ordered by the buyer whom you had no previous contact or agreement with. Whatever discounts you want to offer is up to you and not Germaine to the legal issues here but I would make the new customer understand the fine distinctions fully. I would also want to know what exactly I was inspecting…full new inspection or only a list of discrepancies identified by the new customer. We have to become more specific and hold all the other parties to the terms of the agreement. If we deviate from the agreement it could leave us open for all kinds of assumptions by the other parties. How often have you ever been asked to “look at something else” while you were there? It is usually innocent and someone trying to get freebies but the HI hangs it out there trying to be agreeable. This is a business and should be treated as such. One does not have to be a hard nose but should firmly inform or remind the customer that anything outside the original agreement is not covered (and make a note of it somewhere) We write down all such things or occurrences on that work/schedule sheet. That is attached to the office file copy of the report so if a year later I get a phone call I can retrace my discussions and actions. Hope this helps someone.