InterNACHI

InterNACHI updates inspection agreement between InterNACHI member and client.

PRESS RELEASE
 
 
InterNACHI UPDATES STANDARD INSPECTION AGREEMENT
 
            InterNACHI has updated its standard inspection agreement, a form many InterNACHI members use as the basis for their own contracts with clients.  InterNACHI attorney Mark Cohen says the updated version offers inspectors greater legal protection.  It is designed to work hand-in-hand with InterNACHI's Standards of Practice.  The updated version is available to InterNACHI members free of charge at www.nachi.org/documents.htm or at either of the following links:

InterNACHI Agreement (PDF Version)
Members Only

InterNACHI Agreement (MS Word Version)
Members Only

 
            The updated form contains a number of important additions, but still consists of a single page.  InterNACHI understands that a prospective client may become wary if an inspector asks them to sign a lengthy legal document.
 
            Cohen, an attorney with experience in drafting and litigating contract and commercial claims, says there are several important issues home inspectors should consider in drafting their contracts.  These include:           
    1. Defining the scope of the inspection;
    2. The fee for the inspection;
    3. When payment is due;
    4. A disclaimer of warranties;
    5. A limitation on liability and a liquidated damages provision;
    6. Provision for payment of costs and attorney’s fees;
    7. Whether to require arbitration in the event of a dispute;
    8. 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;
    9. A clause stating that any modification of the agreement must be in writing;
    10. 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
    11. A personal guaranty of payment if the client is a corporation or similar entity.
 
            Cohen cautions that laws vary from state to state, but believes the updated InterNACHI form provides a good starting point in any jurisdiction.  Colorado home inspectors can receive a form specific to Colorado free of charge by sending an email to mark@cohenslaw.com    
 
            In addition to always using a written contract, Cohen urges home inspectors who have not incorporated to form a limited liability company (LLC) or subchapter S corporation because forming a separate entity offers some additional liability protection.  Inspectors may also be able to reduce their self-employment taxes by doing business as an LLC or corporation.
 
            Finally, Cohen urges inspectors to 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.
 
 
            Mark Cohen received his law degree from the University of Colorado in 1983.  After service as an Air Force JAG and Special Asst. U.S. Attorney, he entered private practice.  His practice includes representation of creditors, drafting and reviewing contracts, and litigating contract claims.  He has authored six articles in the American Jurisprudence Proof of Facts series and is an attorney for the International Association of Certified Home Inspectors.  He welcomes inquiries from Colorado home inspectors and is also available to work with local counsel in other states.
 
Mark S Cohen
Attorney at Law
4450 Arapahoe Avenue, Suite 100
Boulder, CO 80306-1801
(303) 258-0561 or (303) 546-7937
mark@cohenslaw.com
Mailing address: P.O. Box 617, Nederland, CO 80466
About Mark Cohen.
 
 

InterNACHI Agreement (PDF Version)
Members Only

 
 
 
 
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