Can you explain how you conduct business to protect yourself from this provision in your State.
7199. The time for commencement of a legal action for breach of
duty arising from a home inspection report shall not exceed four
years from the date of the inspection.
Please define what would be considered a breach of duty and how would it be proven in court outside of not reporting everything outlined in your standards of practice?
Simple: Breach of duty is failure to peform a promised act. Use NACHI’s agreement between you and your client which promises that you will NOT find every defect. Failing to find every defect would not be a breach of duty if you use NACHI’s agreement which never lost in any court.
Jay, without meaning to sound pedantic, the answer to your question would fill a book. As it happens, and in about a week, I have a book coming out called Inspect and Protect, which will answer your question in many ways. If you can’t afford it, I’ll give you a copy; if you can afford it, and read it, and don’t think that it was worth the price, send it back to me and I’ll send you a full refund. Take care, Keith.
Jeffrey, I applaud you. I also attempt to limit my liablility, but to two years, but neither of us would prevail. The attempt to limit liabilty from the current four years was tried in “Moreno vs. Sanchez,” and it didn’t work. We’re stuck with four years whether we like it or not, which is why many of us also have a clause saying that if one clause is deemed to be eninforceable that the rest of our contract should still apply. To make matters worse, in California, we can be sued by persons who have never had a contract with us and who have never even paid for our services. Try wrapping your mind around that idiocy. In California, and all other states for that matter, we have to “avoid litigation,” because we’re sure as heck not going to prevent it, which is the thesis of my book. “Walk softly, and carry a big stick.”
I hear ya Keith. It’s just another one of those speed bumps. Fortunately, if the need ever arises, my attorneys specialize in three important areas (Contract Litigation, Construction Defect Litigation and Real Estate Law), and just so happen to be related to me - my father and brother-in-law :D.
It’s a bit like owning a gun rather than having an expensive alarm system