Expert: Todd C. Menard - 10/7/2009

Question
QUESTION: Does anyone know if a home inspector has any liability to a seller when performing an inspection for the buyer?

Possible mold was sighted to the buyer, and the deal fell through.

Seller claims it was soot not mold and wants to file claim against the inspector for cost of repairs.

Contract for services was between buyer and inspector with no obligation to the seller. Seller over reacted and claims to have replaced roof as a result of the inspection.


ANSWER: Hello Jack - To begin, all Home Inspectors must be licensed. Each state has specific laws that govern the area of expertise of the Home Inspector. It is preferred that the Home Inspector of choice be a member of The American Society of Home Inspectors (ASHI) which establishes standards of practice as well as ethical considerations for the Home Inspector. Typically Home Inspectors are only providing an opinion of condition. Discovery of 'items of disapproval' benefits all parties from a disclosure standpoint. Better to know up front than discover after the closing. In addition, Home Inspectors are no longer allowed to grandfather conditions on the report. (i.e. GFI's would still be recommended in the report even if the property was contructed prior to the time GFI's were required) In most situations, when notified by the Buyer of the items of disapproval, the Seller is not required to make any repairs. Rather, the Seller has the right to reject/refuse to repair at whic time the Buyer could elect to cancel and would be entitled to a refund of their earnest money on deposit. Now contract terms can alter this reply so it is imperative the contract terms and conditions are reviewed. Unless their was an agreement by the parties to coduct such repair the seller was under no obligation to correct the item of disapproval. Finally, the seller should have been advised to seek a licensed roofer for further investigation of the item. If the roofer discovered additional concern then this repair might have been a stigmatization of the property until repaired. Remember I am not an attorney therefore this is not to be considered legal advise, rather it is to be considered real estate information any experienced REALTOR should be able to provide. I recommend that the seller seek legal advice if they feel they have been wronged. Hoep this has helped. - Todd Menard

---------- FOLLOW-UP ----------

QUESTION: Todd Thanks for reply.
Seller just jumped the gun, claims to have done repairs or trying to initialize repairs at some cost which he claims to be my responsibility since he feels I erroneously sited mold which he claims was soot.
This happened Sat AM the complaining started Sunday 1PM. It rained here all day/night Sat. so I don't know how any work to a roof could have been undertaken within the brief 24/30 hours involved.
 I'm licensed in MA, a member of NACHI and intend to ignore him at this point.
His reaction and attitude have me spooked, but I don't feel he has any standing as he was not my client, my inspection met trade and state standards and my obligation is to view, identify and report conditions to my client only.

Answer
Jack - Got your message an ddid not anticipate the need to follow-up although I didn't want to leave the message hanging in my inbox. I agree with your assessment of the situation. In AZ we have the local AZ Society of Home Inspectors (ASHI) which under similar circumstances I would refer to for personal advice as well as refer the complainant (seller in your situation) to so that they could receive advice from the governing agency. Some times when we reply the complainant feels we are trying to cover up their complaint rather than provide correct advice. So, in an effort to allow the consumer to have their voice heard by a third neutral party I many times follow this advice myself. Thank you for replying and please accept my late reply. May you have a prosperous remainder of 2009 and throughout 2010. - Todd Menard