Question about report

[dcallahan]

I am a one year old HI and am looking for advice from some of you more seasoned guys.

I had a realtor call me to do an inspection on a townhome. We scheduled a date and time for the inspection. Coincidentally I had inspected this same townhome two weeks ago for another realtor.

Today I got a call from the realtor stating that they had spoken to the listing agent and he told them that there had already been an inspection done on the property and he gave the name of the other buyers (who dropped out of the sales agreement) agent to the new buyers agent. They called the old buyer and she sold them a copy of the inspection report for half of what she paid me.

My questions are:
1. Would I be liable to this new buyer for anything that may or may not be in the report.

2. Is there a good statement in the contract (if any of you have one could I get a copy) that I could put in to maybe prevent this, or am I thinking to hard about this and it is common practice that can't be stopped.

All input is greatly appreciated

[James H. Bushart]

This sentence appears under the title of all of my reports:

"The inspector's obligations extend exclusively to the Customer(s) whose signature(s) appear on the signed Contract. The inspector unequivocally denies any responsibility to third parties that have not signed the Contract. NO obligations to the home inspector's customer can transfer or extend to person(s) or entities other than those with signatures on the Contract. "

[Frank M. Carrio, CMI]

[quote=jbushart]
This sentence appears under the title of all of my reports:

"The inspector's obligations extend exclusively to the Customer(s) whose signature(s) appear on the signed Contract. The inspector unequivocally denies any responsibility to third parties that have not signed the Contract.
NO obligations to the home inspector's customer can transfer or extend to person(s) or entities other than those with signatures on the Contract.

I believe that this specific sentence can truly save you a lot of money and headaches.
Might I suggest that you add a "box" at the end of this small paragraph where your customer will either have to the initial or by signing...acknowledge that they have read and agreed to the stipulation."

[/quote]

Jim,
once again you have shown that you are an invaluable member of NACHI.
Your experience and legal background are truly an asset!

[Jae Williams]

From my introduction to the report…

This Report has been prepared for the sole use of the CLIENT named in the Inspection Agreement.

This Report is protected by U.S. copyright laws and information is not transferable to third parties by any person or entity, including Real Estate Brokers and Agents, Realtors or Attorneys, without written permission from HOME SWEET HOME Inspections and the CLIENT named in the Inspection Agreement.

HOME SWEET HOME Inspections will not release any information to anyone who is not a party to the Inspection Agreement which has been contracted prior to the inspection.

Duplication by any means is prohibited without prior written permission and authorization from HOME SWEET HOME Inspections and the CLIENT named in the Inspection Agreement.

Transfer to any other potential buyer or another agent is prohibited. If the client named in the Inspection Agreement fails to purchase the property, any person(s) not included in the Inspection Agreement may be prohibited from using information included in this report for any reason.

From my agreement…

(3) The inspection and report are performed and prepared for the confidential use of the CLIENT only. HOME SWEET HOME Inspections accepts no responsibility for use by third parties not included or named in this Agreement. The CLIENT and INSPECTOR agree that no copies of the Report may be distributed by the INSPECTOR to any parties not named in this Agreement without written permission from the CLIENT.

From the footer on each page of the report…

Home Sweet Home Inspection will not be liable for any reliance by third parties not named in the agreement.




That should just about cover it…

[Nick Gromicko]

For any negligence suit against an inspector to succeed, the plaintiff has to prove 4 things (ALL 4):

1. duty (has to be your client).
2. breach (had to have failed to do your duty).
3. causation (that failure had to be the cause of the problem).
4. damages (the problem had to cause damages).

All an inspector has to do is to prevail on any one of these four.

You have no duty to these buyers, they were not your client.

[Erby Crofutt]

Well, you'll never completely prevent it. People will do what people will do.

Contracts don't stop all claims & lawsuits but:

I have this in mine:

-----
The inspection and report are performed and prepared for the sole and exclusive use and possession of the Client and the Client’s Agents (only when acting on behalf of the client). The report is the copyrighted work of B4U Close Home Inspections. No other person or entity may rely on the report issued pursuant to this Agreement. In the event that any person, not a party to this Agreement, makes any claim against Inspector, its employees or agents, arising out of the services performed by Inspector under this Agreement, the Client agrees to indemnify, defend and hold harmless Inspector from any and all damages, expenses, costs and attorney fees arising from such a claim. __________(Client Initials)
--------------------
I also have this scattered thru the report:
==============
This report is issued for the sole use and benefit of the client(s) listed on page 1 of this report. It is valid only at the time and date of this inspection. Property conditions change with time and use. Secondary readers of this inspection report should hire a qualified inspector to perform an inspection to meet their needs and to obtain CURRENT information concerning this property. Secondary readers may not and should not rely on the information contained in this report.
==========

I explain to them that, should they or their realtor, choose to sell the report to someone else and that person comes after me, I'll be coming after them.


But I know for a fact that a couple of them have been sold because someone else called with questions about the report they got from the buyer.


Life goes on. Don't spend a lot of time worrying about it.


It's a wonderful day when you wake up in the morning. Make it a great day.

[Frank M. Carrio, CMI]

Originally Posted by gromicko

For any negligence suit against an inspector to succeed, the plaintiff has to prove 4 things (ALL 4):

1. duty (has to be your client).
2. breach (had to have failed to do your duty).
3. causation (that failure had to be the cause of the problem).
4. damages (the problem had to cause damages).

All an inspector has to do is to prevail on any one of these four.

You have no duty to these buyers, they were not your client.

Wow..... You are almost as good as Jim

[David P. Valley]

I don't understand why the newer Buyers would purchase an older report for the same price it would cost them to have an HI walk them through the home. Pretty ridiculous move on their part.

My agreement states...

The inspection and report are performed and prepared for the use of CLIENT, who gives INSPECTOR permission to discuss observations with the Buyer’s Agent, and licensed contractors. INSPECTOR accepts no responsibility for use or misinterpretation by third parties. This Inspection report is not Transferable without the consent of Massachusetts Home Inspections, LLC. We will not accept any third party liability.

[dcallahan]

Thanks to all of you for your input. I did use much of the advice and have amended my contract.

Again, thanks for taking the time to help me out!!!

[John McKenna]

Originally Posted by gromicko

For any negligence suit against an inspector to succeed, the plaintiff has to prove 4 things (ALL 4):

1. duty (has to be your client).
2. breach (had to have failed to do your duty).
3. causation (that failure had to be the cause of the problem).
4. damages (the problem had to cause damages).

All an inspector has to do is to prevail on any one of these four.

You have no duty to these buyers, they were not your client.

and... as Joe Ferry points out...

If the Client shares just 1% responsibility in the damage they file a
claim about... then they void their rights to recover the cost of the
damage.

This is why the clause about referring all repairs and further evaluation
to a qualified Professional is so critical.

Please attend Joe's class on "Law and Disorder" to learn more about
how this works in the real world.