Contract/Inspection agreement

Standard residential Inspection agreement

California Real Estate Inspection Association

This is intended to be a legal, binding document. Please read it carefully!

SCOPE OF THE INSPECTION: The real estate inspection to be performed for

Client is a survey and basic operation of the systems and components of a building

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).

Inspector will prepare and provide Client a written report for the sole use

and benefit of Client. 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 (CREIASM), attached hereto

and incorporated herein by reference, and is limited to those items specified

herein.

CLIENT’S DUTY: Client agrees to read the entire written report when it is

received and promptly call 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.

Page 1 of 8 Cont’d.

ENVIRONMENTAL CONDITIONS: Client agrees what is being contracted for is

a building 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, fungi, molds, mildew, 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.

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.

No legal action or proceeding of any kind, including those sounding in tort or

contract, can be commenced against Inspector/Inspection Company or its officers,

agents, or employees more than one year from the date Client discovers, or

through the exercise of reasonable diligence should have discovered, the cause of

action. In no event shall the time for commencement of a legal action or proceeding

exceed two years from the date of the subject inspection. THIS TIME PERIOD IS

SHORTER THAN OTHERWISE PROVIDED BY LAW.

This Agreement shall be binding upon and inure to the benefit of the parties

hereto and their heirs, successors, and assigns.

This Agreement 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.

SEVERABILITY: Should any provision of this Agreement be held by a 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: The parties to this Agreement agree to attend, in good faith,

mediation with a retired judge or lawyer with at least 5 years of mediation

experience before any lawsuit is filed. All notices of mediation must be served in

writing by return receipt requested allowing 30 days for response. If no response

is forthcoming the moving party may then demand binding arbitration under the

terms and provisions set forth below.

Page 2 of 8 Cont’d.

ARBITRATION: Any dispute concerning the interpretation or

enforcement of this Agreement, the inspection, the inspection

report, or any other dispute arising out of this relationship,

shall be resolved between the parties by binding arbitration

conducted in accordance with California Law, except that the

parties shall select an arbitrator who is familiar with the real

estate profession. The parties agree that they shall be entitled

to discovery procedures within the discretion of the arbitrator.

The arbitrator shall manage and hear the case applying the

laws of the State of California to all issues submitted in the

arbitration proceeding. The award of the arbitrator shall be

final, and a judgment may be entered on it by any court having

jurisdiction. Any disputes are to be arbitrated by:

Judicial Arbitration and Mediation Service (JAMS®)

Client acknowledges having read and fully understanding the terms, conditions, and limitations of this agreement and voluntarily agrees to be bound thereby and to pay the fees listed here

Client acknowledges having read and understood all the terms,

Po be bound thereby and to pay the fee(s) listed here.

Property inspection address:_________________________________________________________Calif.

Inspector: Matthew Irion

Date:__________________

Client: Print name:_______________________________]_

Signature________________________________________Date:_______________

Client: Print name:_________________________________

Signature:________________________________________Date:_______________

INSPECTION FEE: $______________Dollars

________________FEE:

TOTAL FEE: $__________Dollars

Form of payment:___________________________

Check: #

Credit: Debit

Page 3 of 8 Cont’d.

RESIDENTIAL STANDARDS OF PRACTICE – FOUR OR FEWER UNITS

Part I. Definitions and Scope

These Standards of Practice provide guidelines for a real estate inspection and

define certain terms relating to these inspections. Italicized words in these

Standards are defined in Part IV, Glossary of Terms.

A. A real estate inspection is a survey and basic operation of the systems and

components of a building 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). Cosmetic and aesthetic conditions shall

not be considered.

B. A real estate 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. 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.

Part II. Standards of Practice

A real estate 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.

SECTION 1 – Foundation, Basement, and Under-floor Areas

A. Items to be inspected:

1. Foundation system

2. Floor framing system

3. Under-floor ventilation

4. Foundation anchoring and cripple wall bracing

5. Wood separation from soil

6. 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

SECTION 2 – Exterior

A. Items to be inspected:

1. Surface grade directly adjacent to the buildings

2. Doors and windows

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

enclosures

4. Wall cladding and trim

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

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

Page 4 of 8 Cont’d.

SECTION 3 – Roof Covering

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

SECTION 4 – Attic Areas and Roof Framing

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

SECTION 5 – Plumbing

A. Items to be inspected:

1. Water supply piping

2. Drain, waste, and vent piping

3. Faucets and fixtures

4. Fuel gas piping

5. Water heaters

6. Functional flow and functional drainage

B. The Inspector is not required to:

1. Fill any fixture with water or 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 or water treatment systems

SECTION 6 – Electrical

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 private or emergency electrical supply systems or components

Page 5 of 8 Cont’d.

SECTION 7 – Heating and Cooling

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

SECTION 8 – Fireplaces and Chimneys

A. Items to be inspected:

1. Chimney exterior

2. Spark arrestor

3. Firebox

4. Damper

5. Hearth extension

CONTRACT INCLUDES 3 PAGES — PAGE 2 OF 3 rev:04.06

B. The Inspector is not required to:

1. Inspect chimney interiors

2. Inspect fireplace inserts, seals, or gaskets

3. Operate any fireplace or determine if a fireplace can be safely used

SECTION 9 – Building Interior

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 or test smoke alarms or vehicle door safety devices

4. Use a ladder to inspect systems or components

Part III. Limitations, Exceptions, and Exclusions

A. The following are excluded from a real estate 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

3. Auxiliary features of appliances beyond the appliance’s basic function

Page 6 of 8 Cont’d.

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, 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. Conditions related to animals, insects, or other organisms, including fungus

and mold, and any hazardous, illegal, or controlled substance, or the

damage or health risks arising there from

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 at multi-pane glazing

14. Differentiating between original construction or subsequent additions or

modifications

15. Reviewing information from any third-party, including but not limited to;

product defects, 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.

Part IV. Glossary of Terms

*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

Page 7 of 8 Cont’d.

Page 8 of 8

Determine: Arrive at an opinion or conclusion pursuant to a real estate

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

Functional Drainage: The ability to empty a plumbing fixture in a reasonable

time

Functional Flow: The flow of the water supply at the highest and farthest

fixture from the building supply shutoff valve when another fixture is used

simultaneously

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

Inspector: One who performs a real estate 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

Real Estate Inspection: Refer to Part I, “Definitions and Scope”, Paragraph A

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 real estate

inspection, which may require disassembly, specialized knowledge, special

equipment, measuring, calculating, quantifying, testing, exploratory

probing, research, or analysis

THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA REAL ESTATE INSPECTION ASSOCIATION (CREIASM). NO

REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ADEQUACY OF ANY PROVISION IN ANY SPECIFIC

TRANSACTION. IF YOU DESIRE LEGAL ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. USE OF THIS FORM DOES

NOT GUARANTEE THAT THE USER IS A QUALIFIED INSPECTOR MEMBER OF CREIASM. TO LOCATE A QUALIFIED CREIASM

NONPROFIT ORGANIZATION. rev:04.06 CPp

pPP