Standards of Practice

Client Name:                                                                                                Date:

Inspection Address:                                                                                   Time:  

SCOPE OF THE INSPECTION: A home inspection is a noninvasive, visual survey and basic operation of the accessible systems and components of a home, to identify conditions that have a significant negative effect on the value, desirability habitability or safety of the building(s) and to identify issues that Client should further investigate prior to the release of any contingencies.

    Inspector will prepare and provide Client a written report for the sole use and benefit of Client. Except as otherwise provided herein, the written report shall document any material defects discovered in the building’s systems and components which, in the opinion of the Inspector, are safety hazards, are not functioning properly, or appear to be at the ends of their service lives.

    The inspection shall be performed in accordance with the Standards of Practice of the California Real Estate Inspection Association (CREIA®), attached hereto and incorporated herein by reference, and is limited to those items specified herein.

CLIENT'S DUTY: Client understands and accepts that an inspection and report in accordance with this Agreement is intended to reduce, but cannot eliminate, the uncertainty regarding the condition of the property. Client is responsible to review the permit history and research any legal actions or insurance claims involving the property. Investigating the property, neighborhood and area are also recommended.

   Client agrees to read the entire written report when it is received and promptly contact Inspector with any questions or concerns regarding the inspection or the written report. The written report shall be the final and exclusive findings of Inspector.

    Client acknowledges that Inspector is a generalist and that further investigation of a reported condition by an appropriate specialist may provide additional information which can affect Client's purchase decision. Client agrees to obtain further evaluation of reported conditions before removing any investigation contingency and prior to the close of the transaction.

    In the event Client becomes aware of a reportable condition which was not reported by Inspector, Client agrees to promptly notify Inspector and allow Inspector and/or Inspector's designated representative(s) to inspect said condition(s) prior to making any repair, alteration, or replacement. Client agrees that any failure to so notify Inspector and allow inspection is a material breach of this Agreement.

ENVIRONMENTAL CONDITIONS: Client agrees what is being contracted for is a home inspection and not an environmental evaluation. The inspection is not intended to detect, identify, or disclose any health or environmental conditions regarding this building or property, including, but not limited to: the presence of asbestos, radon, lead, urea-formaldehyde, wood destroying organisms, fungi, molds, mildew, feces, urine, vermin, pests, or any animal or insect, "Chinese drywall", PCBs, or other toxic, reactive, combustible or corrosive contaminants, materials, or substances in the water, air, soil, or building materials. The Inspector is not liable for injury, health risks, or damage caused or contributed to by these conditions.

SEVERABILITY: Should any provision of this Agreement be held by an arbitrator or court of competent jurisdiction to be either invalid or unenforceable, the remaining provisions of this Agreement shall remain in full force and effect, unimpaired by the court’s holding.

MEDIATION: If a dispute arises out of or relates to this Agreement, or the alleged breach thereof, or any alleged torts, and if the dispute cannot be settled through negotiation, the parties agree to try in good faith to settle the dispute by mediation administered by a mutually agreed upon neutral, third-party mediator and according to the rules and procedures designated by the mediator, before resorting to further litigation.

    Initiation of binding arbitration or court action, whether based in tort contract or equity, must be made no more than one year from the date Client discovers, or through the exercise of reasonable diligence should have discovered, its claim(s) under this Agreement. In no event shall the time for commencement of a arbitration or court action, exceed two years from the date of the subject inspection. THIS TIME PERIOD IS SHORTER THAN OTHERWISE PROVIDED BY LAW.

LIMITATION ON LIABILITY: THE PARTIES UNDERSTAND AND AGREE THAT INSPECTOR’S CUMULATIVE LIABILITY FOR (A) ACTUAL AND ALLEGED ERRORS OR OMISSIONS IN THE INSPECTION OR THE INSPECTION REPORT, (B) ANY BREACH OF THIS AGREEMENT, AND (C) ALL OTHER LOSSES, CLAIMS, LIABILITIES OR CAUSES OF ACTION, WHETHER SOUNDING IN TORT OR CONTRACT WHICH ARISES FROM OR RELATES TO THIS AGREEMENT, IS LIMITED TO 3 TIMES THE INSPECTION FEE PAID. CLIENT SPECIFICALLY ACKNOWLEDGES THAT INSPECTOR IS NOT AN INSURER, AND IS NOT RESPONSIBLE FOR ANY REPAIRS, WHETHER DISCOVERED OR NOT, THAT MUST BE MADE. CLIENT ASSUMES THE RISK OF ALL LOSSES IN EXCESS OF THIS LIMITATION OF LIABILITY.

GENERAL PROVISIONS: The written report is not a substitute for any transferor’s or agent’s disclosure that may be required by law, or a substitute for Client’s independent duty to reasonably evaluate the property prior to the close of the transaction. This inspection Agreement, the real estate inspection, and the written report do not constitute a home warranty, guarantee, or insurance policy of any kind whatsoever.

    This Agreement shall be binding upon and inure to the benefit of the parties hereto and their heirs, successors, and assigns.

    This Agreement, including the attached CREIA Standards of Practice, constitutes the entire integrated agreement between the parties hereto pertaining to the subject matter hereof and may be modified only by a written agreement signed by all of the parties hereto. No oral agreements, understandings, or representations shall change, modify, or amend any part of this Agreement.

    Each party signing this Agreement warrants and represents that he/she has the full capacity and authority to execute this Agreement on behalf of the named party. If this Agreement is executed on behalf of Client by any third party, the person executing this Agreement expressly represents to Inspector that he/she has the full and complete authority to execute this Agreement on Client's behalf and to fully and completely bind Client to all of the terms, conditions, limitations, exceptions, and exclusions of this Agreement.

     Client acknowledges having read and understood all the terms, conditions, and limitations of this Agreement, and voluntarily agrees to be bound thereby and to pay the fee listed herein. Client understand that the inspection fee stated is for the initial inspection and report. I agree to pay for the inspector's time for any reinspection or meetings with third parties at the hourly rate of $150.00 per hour with a $200 minimum. Client also agrees to pay for the inspector's time to participate in any legal or administrative proceeding at the hourly rate of $220 per hour. This includes time for depositions, research, and court or other appearances.

                                                                                                   ________________________________________

________________________________                                                 ____________________________  ___________

Inspector for Company                   Date                                          Client                                   Date

Total Fee $0.00       Paid by: Check # ____________      Payment acknowledged: _______________________________

These Standards of Practice provide guidelines for a home inspection and define certain terms relating to these inspections. Italicized words in these Standards are defined in Part IV, Glossary of Terms.

A.    A home inspection is a noninvasive visual survey and basic operation of the systems and components of a home which can be reached, entered, or viewed without difficulty, moving obstructions, or requiring any action which may result in damage to the property or personal injury to the Inspector. The purpose of the inspection is to provide the Client with information regarding the general condition of the building(s) to assist client in determining what further evaluation, inspection, and repair estimates Client should perform or obtain prior to the release of contingencies.
B.    A home inspection report provides written documentation of material defects discovered in the inspected building’s systems and components which, in the opinion of the Inspector, are safety hazards, are not functioning properly, or appear to be at the ends of their service lives. The report may include the Inspector's recommendations for correction or further evaluation.
C.    All further evaluation, inspection, and repair work needs to be provided by competent and qualified professionals who are licensed and/or certified.
D.    Client should consider all available information when negotiating regarding the Property.
E.     Inspections performed in accordance with these Standards of Practice are not technically exhaustive and shall apply to the primary building and its associated primary parking structure.
F.     Cosmetic and aesthetic conditions shall not be considered.

A home inspection includes the readily accessible systems and components or a representative number of multiple similar components listed in Sections 1 through 9 subject to the limitations, exceptions, and exclusions in Part III.

A.  Items to be inspected:

     1. Foundation system

     2. Floor framing system

     3. Under-floor ventilation

     4. Foundation anchoring and cripple wall bracing

     6. Wood separation from soil

     7. Insulation

B.  The Inspector is not required to:

     1 Determine size, spacing, location, or adequacy of foundation bolting/bracing components or reinforcing systems

     2 Determine the composition or energy rating of insulation materials

A.  Items to be inspected:

     1. Surface grade directly adjacent to the buildings

     2, Doors and windows

     3. Attached decks, porches, patios, enclosures, balconies, stairways and their enclosures

     4. Wall cladding and trim

     5. Portions of walkways and driveways that are adjacent to the buildings

     6. Pool or spa drowning prevention features, for the sole purpose of identifying which, if any, are present.

B.  The Inspector is not required to:

     1. Inspect door or window screens, shutters, awnings, or security bars

     2. Inspect fences or gates or operate automated door or gate openers or their safety devices

     3. Use a ladder to inspect systems or components

     4. Determine if ASTM standards are met or any drowning prevention feature of a pool or spa is installed properly or is adequate or effective.
5. Test or operate any drowning prevention feature.

A.  Items to be inspected:

     1. Covering

     2. Drainage

     3. Flashings

     4. Penetrations

     5. Skylights

B.  The Inspector is not required to:

     1. Walk on the roof surface if in the opinion of the Inspector there is risk of damage or a hazard to the Inspector

     2. Warrant or certify that roof systems, coverings, or components are free from leakage

A.  Items to be inspected:

     1. Framing

     2. Ventilation

     3. Insulation

B.  The Inspector is not required to:

     1. Inspect mechanical attic ventilation systems or components

     2. Determine the composition or energy rating of insulation materials

A.  Items to be inspected:

     1. Water supply piping

     2. Drain, waste, and vent piping

     3. Faucets, toilets, sinks, tubs, showers

     4. Fuel gas piping

     5. Water heaters

B.  The Inspector is not required to:

     1. Fill any fixture with water, inspect overflow drains or drain-stops, or evaluate backflow devices, waste ejectors, sump pumps, or drain line cleanouts

     2. Inspect or evaluate water temperature balancing devices, temperature fluctuation, time to obtain hot water, water circulation, or solar heating systems or components

     3. Inspect whirlpool baths, steam showers, or sauna systems or components

     4. Inspect fuel tanks or determine if the fuel gas system is free of leaks

     5. Inspect wells, private water supply or water treatment systems

A.  Items to be inspected:

     1. Service equipment

     2. Electrical panels

     3. Circuit wiring

     4. Switches, receptacles, outlets, and lighting fixtures

B.   The Inspector is not required to:

     1. Operate circuit breakers or circuit interrupters

     2. Remove cover plates

     3. Inspect de-icing systems or components

     4. Inspect onsite electrical generation or storage or emergency electrical supply systems or components

A.  Items to be inspected:

     1. Heating equipment

     2. Central cooling equipment

     3. Energy source and connections

     4. Combustion air and exhaust vent systems

     5. Condensate drainage

     6. Conditioned air distribution systems

B.  The Inspector is not required to:

     1. Inspect heat exchangers or electric heating elements

     2. Inspect non-central air conditioning units or evaporative coolers

     3. Inspect radiant, solar, hydronic, or geothermal systems or components

     4. Determine volume, uniformity, temperature, airflow, balance, or leakage of any air distribution system

     5. Inspect electronic air filtering or humidity control systems or components

A.  Items to be inspected:

     1. Walls, ceilings, and floors

     2. Doors and windows

     3. Stairways, handrails, and guardrails

     4. Permanently installed cabinets

     5. Permanently installed cook-tops, mechanical range vents, ovens, dishwashers, and food waste disposers

     6. Absence of smoke alarms

     7. Vehicle doors and openers

B.  The Inspector is not required to:

     1. Inspect window, door, or floor coverings

     2. Determine whether a building is secure from unauthorized entry

     3. Operate, test or determine the type of smoke or carbon monoxide alarms or test vehicle door safety devices

     4. Use a ladder to inspect systems or components

A.   The following are excluded from a home inspection:

1.     Systems or components of a building, or portions thereof, which are not readily accessible, not permanently installed, or not inspected due to circumstances beyond the control of the Inspector or which the Client has agreed or specified are not to be inspected

2.     Site improvements or amenities, including, but not limited to; accessory buildings, fences, planters, landscaping, irrigation, swimming pools, spas, ponds, waterfalls, fountains or their components or accessories

4.     Systems or components, or portions thereof, which are under ground, under water, or where the Inspector must come into contact with water

5.     Common areas as defined in California Civil Code section 1351, et seq., and any dwelling unit systems or components located in common areas

6.     Determining compliance with manufacturers’ installation guidelines or specifications, building codes, accessibility standards, conservation or energy standards, regulations, ordinances, easements, setbacks, covenants, or other restrictions

7.     Determining adequacy, efficiency, suitability, quality, age, or remaining life of any building, system, or component, or marketability or advisability of purchase

8.     Structural, architectural, geological, environmental, hydrological, land surveying, or soils-related examinations

9.     Acoustical or other nuisance characteristics of any system or component of a building, complex, adjoining property, or neighborhood

10.  Wood Destroying Organisms (WDO) including termites or any insect, as well as rot or any fungus, that damage wood. Under California law, only an inspector licensed by the Structural Pest Control Board is qualified or authorized to inspect for any rot or termite activity or damage. You are advised to obtain a current WDO report and must rely on that report for any potential rot or termite activity and recommendations for repair.

11.   Risks associated with events or conditions of nature including, but not limited to; geological, seismic, wildfire, and flood

12.   Water testing any building, system, or component or determine leakage in shower pans, pools, spas, or any body of water

13.   Determining the integrity of hermetic seals or reflective coatings at multi-pane glazing

14.   Differentiating between original construction or subsequent additions or modifications

15.  Reviewing or interpreting information or reports from any third-party, including but not limited to; permits, disclosures, product defects, construction documents, litigation concerning the Property, recalls, or similar notices

16.   Specifying repairs/replacement procedures or estimating cost to correct

17.   Communication, computer, security, or low-voltage systems and remote, timer, sensor, or similarly controlled systems or components

18.   Fire extinguishing and suppression systems and components or determining fire resistive qualities of materials or assemblies

19.   Elevators, lifts, and dumbwaiters

20.   Lighting pilot lights or activating or operating any system, component, or appliance that is shut down, unsafe to operate, or does not respond to normal user controls

21.   Operating shutoff valves or shutting down any system or component

22.   Dismantling any system, structure or component or removing access panels other than those provided for homeowner maintenance

B.     The Inspector may, at his or her discretion:

1.     Inspect any building, system, component, appliance, or improvement not included or otherwise excluded by these Standards of Practice. Any such inspection shall comply with all other provisions of these Standards.

2.     Include photographs in the written report or take photographs for Inspector’s reference without inclusion in the written report. Photographs may not be used in lieu of written documentation.

*Note: All definitions apply to derivatives of these terms when italicized in the text.

Appliance: An item such as an oven, dishwasher, heater, etc. which performs a specific function

Building: The subject of the inspection and its primary parking structure

Component: A part of a system, appliance, fixture, or device

Condition: Conspicuous state of being

Determine: Arrive at an opinion or conclusion pursuant to a home inspection

Device: A component designed to perform a particular task or function

Fixture: A plumbing or electrical component with a fixed position and function

Function: The normal and characteristic purpose or action of a system, component, or device

Home Inspection: Refer to Part I, 'Definitions and Scope', Paragraph A

Inspect: Refer to Part I, 'Definition and Scope', Paragraph A

Inspector: One who performs a home inspection

Normal User Control: Switch or other device that activates a system or component and is provided for use by an occupant of a building

Operate: Cause a system, appliance, fixture, or device to function using normal user controls

Permanently Installed: Fixed in place, e.g. screwed, bolted, nailed, or glued

Primary Building: A building that an Inspector has agreed to inspect

Primary Parking structure: A building for the purpose of vehicle storage associated with the primary building

Readily Accessible: Can be reached, entered, or viewed without difficulty, moving obstructions, or requiring any action which may harm persons or property

Representative Number: Example, an average of one component per area for multiple similar components such as windows, doors, and electrical outlets

Safety Hazard: A condition that could result in significant physical injury

Shut Down: Disconnected or turned off in a way so as not to respond to normal user controls

System: An assemblage of various components designed to function as a whole

Technically Exhaustive: Examination beyond the scope of a home inspection, which may require disassembly, specialized knowledge, special equipment, measuring, calculating, quantifying, testing, exploratory probing, research, or analysis

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