Home Inspection Contracts for InterNACHI Member Use
InterNACHI's standard home inspection agreement is a form many InterNACHI® members use as the basis for their own contracts with clients. This version offers inspectors greater legal protection. It is designed to work hand-in-hand with InterNACHI's Standards of Practice and InterNACHI's Online Inspection Agreement System. The updated version is available to InterNACHI® members free of charge.
The following Agreements are FOR MEMBERS' USE ONLY:
InterNACHI® Home Inspection Agreement (Word.docx)
En español:InterNACHI Home Inspection Agreement in Spanish
(revised November 2017) PDF
(revised November 2017) Word.docxEn français:
(revised November 2017) PDF
(revised November 2017) Word.docx
Download Word.docx versions of state-specific Pre-Inspection Agreements at www.nachi.org/documents.htm
There are several important issues that home inspectors should consider in drafting their standard inspection contract. These include:
There are several important issues that home inspectors should consider in drafting their standard inspection contract. These include:
- defining the scope of the inspection (and including a link to InterNACHI's Standards of Practice or the state’s mandatory SOPs);
- the fee for the inspection;
- when payment is due;
- a disclaimer of warranties;
- ownership of report and permission to discuss findings;
- procedure for asserting claims (notice to inspector and opportunity to inspect, time limits);
- a limitation on liability and a liquidated damages provision;
- a provision for payment of costs and attorney’s fees;
- dispute resolution (mediation, arbitration, litigation, etc);
- a “merger clause” stating there are no promises other than those set forth in the agreement, and that all prior discussions are merged into the agreement;
- a clause stating that any modification of the agreement must be in writing;
- a forum selection clause so that any lawsuit must be filed in the county or district where the inspector has his/her principal place of business;
- a waiver of the right to trial by jury; and
- a personal guaranty of payment if the client is a corporation or similar entity.
Laws vary from state to state, but the updated InterNACHI form provides a good starting point in any jurisdiction. Again, use state-specific Pre-Inspection Agreements at www.nachi.org/documents.htm
In addition to always using a written contract, home inspectors who have not incorporated should 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.
In addition to always using a written contract, home inspectors who have not incorporated should 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.
Inspectors should 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.
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