Home Inspector Carelessness

• • Failing to get an inspection agreement signed BEFORE the inspection.
  • Using a poorly drafted or hand-me-down inspection agreement.
  • Inspecting systems the Home Inspector is not qualified to inspect. (Examples include but are not limited to stucco, septic/aerobic systems, built-in refrigeration, swimming pools, termite inspections without a termite technician license, etc.)
  • Failing to follow TREC standard operating procedures during the inspection.
  • Failing to prepare comprehensive, properly worded inspection reports.
  • Failing to promptly respond to complaints.

Non-Observable Deficiencies

Consider a situation where a buyer discovers a legitimate deficiency, but the deficiency was not visible at the time of inspection due the fact that the Home Inspector did not have access to the deficient systems/items because access was blocked by stored items or furnishings. When something in the newly purchased home fails, the repairman, the Buyer’s agent, or even other Home Inspectors will say “your inspector should have caught that.” Buyers tend to believe the last “repairman” they speak with. Roofers, foundation repair companies, HVAC technicians, plumbers, electricians and most other trades do not know TREC Standards of Practice that apply to Home Inspectors, nor were they aware of the condition of the home at the time of inspection. Only the Home Inspector knows the condition of the home at the time of inspection.

Disgruntled Buyers

The United States is the most litigious country in the world. When something in the newly purchased home fails, buyers want to blame someone—and as they say in the plaintiff-lawyer’s conference room—the Home Inspector is the “low hanging fruit”. Some buyers have unrealistic expectations of what a home inspection includes, and some buyers may not read or understand the inspection agreement or what the Home Inspector is not required to do during the inspection. And if a disgruntled buyer files a complaint with TREC, the wheels are in motion for the Home Inspector to be sued, especially if TREC rules for the buyer in response to the complaint.

Disgruntled/Unscrupulous Agents

Did you know that both the seller’s and the buyer’s agents are required to disclose visible deficiencies to their clients as material facts? And if an agent fails to disclose visible deficiencies, the agents can be held liable. As a result, when a buyer calls their agent with a complaint that a system in their home has failed, most agents will refer them to the Home Inspector because all agents know that Home Inspectors carry liability and E&O insurance. In addition, most buyers and sellers have no idea they can file a complaint against a Home Inspector with TREC, so when a Home Inspector’s client files a TREC complaint, they often do so at the recommendation of their agent.

Inspectors Are Easy Targets

With $3,000 to $5,000 deductibles and with 90% of claims against Home Inspectors being within these amounts, Home inspectors are basically self-insured. As a result, insurance companies will pressure the Home Inspector to pay these claims without any type of investigation or defense. In these circumstances, most Inspectors will feel forced to pay these claims to avoid creating a “claims history” with their insurer and to eliminate the possibility of a TREC complaint being filed. Did you know that effective February 1, 2021, agents are REQUIRED to inform their clients that Home inspectors carry E&O insurance? Even when TREC rules on a complaint in favor of an inspector, they end their ruling by stating “this ruling does not preclude you from pursuing the license holder in civil court”. The Texas Real Estate Licensing Act (“TRELA”) was enacted to “protect the public” and TREC was established to enforce TRELA. Home Inspectors must protect themselves. If you think we are exaggerating, Google “Can I sue my Home Inspector?”