Contract/Exclusions and Limitations

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SCOPE OF SERVICES PROVIDED

SCOPE OF THE INSPECTION: A home inspection is a noninvasive, visual observation and operation of the accessible systems and components of real property, including buildings and other improvements.  Its purpose is a) to identify conditions that, in the professional opinion of the Inspector, are significantly deficient or b) to identify systems and components that are at the end of their service lives.

The Inspection is strictly limited to the examination of readily accessible, installed systems and components of homes by using normal operating controls and opening readily operable access panels, where applicable, of the following components of the Property: structure, foundation, exterior, roof, attic, major mechanical systems (heating, air conditioning, electrical, and plumbing), built-in appliances, and interior (floors, ceilings, walls, windows, and doors). All components will be inspected pursuant to the Standards of Practice set forth for Home Inspectors by the Massachusetts Board of Home Inspectors as contained in the Code of Massachusetts Regulations Title 266, Chapter 6.00. This inspection is limited to only those systems or components, as set forth in these Standards of Practice, as agreed upon by the client and the inspector, or as expressly excluded in writing. Where multiple instances of the same component exist, a representative number shall be inspected. The observations of conditions are limited to those areas of the 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. Any additional services outside the list of components in this contract or in those rules must be specifically agreed to in writing between the Inspector and the Client.

The Inspector will prepare and provide the Client with a written report for the sole use and benefit of the Client. The written report shall document any deficiencies discovered in the Property’s systems and components. A deficiency is a condition that, in the reasonable judgement of the Inspector, is not functioning properly or is unsafe. However, the fact that a system or component is near, at, or beyond the end of its normal service life is not, in itself, a deficiency in the system or component.

Nothing in the report and no opinion of the Inspector should be construed as advice to the Client to purchase, or not topurchase, the Property, or serve as a prediction of future conditions or the value of the Property. Further, any descriptions of deficiencies of the Property should not be interpreted as estimates for the costs of repairs to any system or component of the Property.

CLIENT'S DUTY: The Client understands and accepts that the Inspection and report, in accordance with this Agreement, are intended to reduce, but cannot eliminate, uncertainty regarding the condition of the Property. TheClient is responsible for reviewing the permit history and for researching any legal actions or insurance claims involving the Property. 

The Client agrees to read the entire written report when it is received and to promptly contact the Inspector with any questions or concerns regarding the Inspection or written report. The written report shall be the exclusive findings of the Inspector. Verbal representations not recorded within the Inspection report are not part of the Inspection.

The Client acknowledges that the Inspector is a generalist and that further investigation of a reported condition by an appropriate specialist may provide additional information on the condition of the Property. Should the Inspector's report reveal any additional conditions that require further investigation or repair, the Client agrees that any further evaluation, inspection, and repair work needs to be provided by competent and qualified professionals who are licensed and/or certified to perform the work.

In the event the Client becomes aware of a reportable condition not contained in the written inspection report, the Client agrees to promptly notify the Inspector and allow the Inspector and/or the Inspector's designated representative(s) to inspect said condition(s) prior to making any repair, alteration, or replacement. If the Client fails to so notify the Inspector and fails to allow an additional inspection, then any costs of such repairs, alterations or replacements will be entirely at the Client’s cost without recourse against the Inspector.

LATENT DEFECTS: The Client agrees that the Inspection is not a technically exhaustive investigation or evaluation of every aspect of the Property. The Client acknowledges and agrees that the Inspection and the written report will not reveal every existing deficiency and future condition affecting the Property. The Inspector is not responsible for the non-discovery of any latent defects of the Property or any problems that may occur or become evident after the date of the Inspection. Latent defects of the Property include, but are not limited to: cracking, leaking, surface dislocations, or landslides resulting from, without limitation to, water leaks, land subsidence, or other geological problems. The Inspector is not responsible for any defects that may manifest themselves in the future, any structural failures that may occur in the future, or damages that result from future repairs. 

COMPLIANCE WITH BUILDING CODES: Consistent with the scope of the Inspection, as provided in this Agreement, the Inspector will identify items that may present a health or safety issue. However, the Inspector will not provide an opinion on compliance with any particular building code.

INSURABILITY: The Client understands that the Inspection will not determine the insurability of the Property. Insurance companies have different underwriting criteria, and the Inspector cannot be expected to determine how a particular system or component may affect insurability.

ENVIRONMENTAL AND HEALTH CONDITIONS: The Client agrees that the Inspection is not intended to detect, identify, or disclose any health or environmental conditions regarding the Property, including, but not limited to the presence of: asbestos, radon, lead, or urea-formaldehyde; wood destroying organisms, fungi, molds, mildew, feces, urine, vermin, pests, or any animal or insect; drywall that may have been manufactured with contaminated materials (including carbon disulfide, carbonyl sulfide and hydrogen sulfide), polychlorinated biphenyls (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. 

If the Client wishes to have an inspection for any specific health or environmental condition, that must be covered by a separate addendum to this Agreement.

In addition to the above limitations on the scope of services, the Inspection will not include any engineering or architectural analysis. The report will not offer any opinion about the adequacy of the structural systems and components of the Property.

RE-INSPECTION OF COMPONENTS: In the event that the Inspector is asked by the Client to re-inspect a component or condition that has been repaired, the Inspector’s scope of re-inspection will be limited to the components or conditions identified. The Inspector will not be responsible for any changed conditions in other components or conditions since the date of the original Inspection. Any re-inspection of repaired components or conditions will not determine if the repair is adequate, proper, or compliant with current building codes. Any re-inspection will only determine if visually identifiable deficiencies still exist.

RESOLUTION OF DISPUTES

Any controversy or claim arising out of or relating to this Agreement shall be resolved through Small Claims Court (or similar court of limited monetary jurisdiction) in the jurisdiction applicable to this Agreement. In the event that the amount in dispute exceeds the jurisdiction of the applicable Small Claims Court, the dispute shall be settled by binding arbitration administered by Construction Dispute Resolution Services, or if unavailable, Resolute Systems, before a single arbitrator using its Commercial Arbitration Rules.  The arbitrator shall have at least three years of knowledge and experience in the home inspection industry or similar knowledge and experience in construction. Each party agrees to pay its own costs of arbitration.

Any legal action or proceeding shall be brought in the County in which the Property is located. 

ENFORCEMENT FEES AND COSTS

Any party failing to follow the RESOLUTION OF DISPUTES process identified above, shall be liable for all fees and costs associated with compelling or enforcing compliance with the RESOLUTION OF DISPUTES process.

TIME TO INITIATE ACTION

Any action regarding or arising from the condition of the Property and the Inspection and/or the written report must be filed and initiated by the Client no later than two (2) years following the date of the Inspection. Otherwise, the claim will be barred. If the matter is in arbitration, the arbitrator will be bound by the terms of this paragraph as a limitation on the arbitrator's ability to render an award in favor of the Client.

NO WARRANTIES OR GUARANTEES

The Inspection and the written report are not intended, nor shall they be used or treated by the Client or anyone else, as a guarantee or warranty expressed or implied, regarding the adequacy, performance, or condition of any aspect of the Property. The Client acknowledges and agrees that the Inspector is not an insurer of any inspected or non-inspected conditions of the Property. 

RELIANCE BY THIRD PARTIES

The Client agrees and understands that the Inspection report provided to the Client under this Agreement is solely for the Client’s exclusive use in evaluating the physical condition of the property. No representation is made by the Inspector as to the value of the Property.

If anyone other than the Client relies upon the inspection report, that person agrees to be bound by all of the terms and conditions in this Agreement. 

ENTIRE AGREEMENT AND SEVERABILITY OF PROVISIONS

This Agreement contains the entire Agreement between the Client and the Inspector. This document supersedes any and all representations, both oral and written, among the parties. This Agreement may be modified, altered, or amended only in writing and having been signed by both the parties. Any provision of this Agreement which proves to be invalid, void, or illegal shall in no way affect, impair, or invalidate any other provision of this Agreement, and all such other provisions shall remain in full force and effect.

You may not assign this Agreement. If there is more than one Client, you are signing on behalf of all of them and you represent that you are authorized to do so for all Clients and/or intended beneficiaries. The provisions of this Agreement will be binding upon any party that takes title to the Property with the Client or claims title to the Property through the Client.

THIS CONTRACT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES

Exclusions and Limitations

1. In addition to the Exclusions and Limitations contained in 266 CMR 1.00 through 11.00, the Client agrees that the following items are also Excluded as part of the inspection contracted: The condition of shut-down systems and components, the assurance of dry basements or against roof / flashing leaks; repair / replacement cost estimates or building value appraisals, system or component life expectancy, suitability for building use, adequacy or efficiency of systems or components for their intended use and building size; snow covered components, obstructed components, exploratory demolition, any presence of lead or lead by-products, urea formaldehyde, radon gases, radon mitigation systems, asbestos & materials that may contain asbestos, algae, fungi, mold, mildew, any and all environmental health hazards or conditions, odors or noise, hazardous waste, PCB’s, toxins, flammable chemicals, proximity to toxic waste sites, sheds; presence of insects, rodents, vermin, or bed bugs; type & condition of concealed roof decking and fasteners; outlets blocked by furniture or appliances, electromagnetic fields, security devices and systems and burglar alarms, intercom systems, smoke & CO alarms and fire systems, sprinkler systems, solar installations, underlying siding materials, concealed piping and wiring, fixture overflows; components obstructed by dense vegetation; concealed or inaccessible crawl spaces, and the exact age assessment and remaining service life of systems and components. The inspection of buried piping, private water supply purity or quality & chemistry, concealed pumps, filtrations systems, water purifiers or softeners; private waste disposal systems and flood prevention systems; sump pumps & drainage systems, swimming pools and equipment; spas, hot tubs, saunas, steam baths, concealed shower pans, fountains; geological or soil testing, wave action or hydrological stability, engineering & analysis; proximity to railroad tracks or airports or easements or boundaries or rights of way, proximity to adjoining properties or neighborhoods or wet lands; thermostatic or time controls, radio controlled devices, automatic gates, elevators, lifts, dumbwaiters, locks, all household appliances & controls & venting, ovens, microwave ovens, refrigerators, dishwashers, disposers; free standing appliances; draperies, blinds & window treatments; concealed window & door flashings, concealed insulation & vapor retarders, determination of Chinese drywall hazards, conditions behind finished surfaces, suitability of chimneys for connected appliances or fuel, chimney condition above the smoke chamber, chimney flues and liners; central vacuum systems; through the wall air conditioning; telephone; cable TV, furnace heat exchangers, concealed furnace / boiler parts, oil tanks & underground fuel tanks; solid fuel stoves, space heaters; concealed mechanical systems;
common areas, dehumidifiers humidifiers; flooring beneath carpeting, winterized systems, recalled components, concealed insulates; insulation effectiveness; fire escapes; code compliance; and auxiliary electrical systems which are not part of the primary electrical distribution system. The inspection for Building Code and Zoning violations and permit history, sufficient capacity for intended use and the legality of any building improvements or additions are excluded. Note: Testing for radon gas & water quality is available upon request for an additional charge. 

2. No testing or inspection is included in the home inspection for wood-destroying insects, household pests or damage from insects. Your due diligence should include hiring a licensed pest control company to inspect the home NOW.

3. The results of the limited inspection and information contained in the report are based upon observations of readily accessible and observable areas on the date of inspection only and in conformance with the Commonwealth of Massachusetts 266 CMR 1.00 through 11.00. The report is not a guaranty or warranty against future defects in the inspected property. Homeownership brings with it the certainty that failures and repairs will occur, your home inspector will not be able to predict all such occurrences.

4. In any instance where there is a specific concern either by the Client or as raised by CMHI, the Client is advised to secure further evaluation and repair / replacement costs from an applicable licensed & insured contractor or specialist NOW, before proceeding with any purchase.

5. The inspection and report are in no way to be considered as a warranty, guaranty, or insurance policy expressed or implied, regarding the condition of the inspected property, hidden or latent defects and/or end use of the property. CMHI is not liable or responsible for problems which cannot reasonably be discovered by a limited inspection. The Client acknowledges that certain components may function consistent with their purpose at the time of this inspection, but due to their nature are subject to change or deterioration without notice. No destructive testing will be performed. The Inspector does not remove personal items; disturb finished surfaces, insulation, soil, snow, ice or debris which obstructs visibility of inspected areas or
components. The Inspector does not enter areas which may be dangerous or inaccessible, nor perform any procedure which may damage the property or its components. CMHI not operate any component which is shut down or otherwise inoperable.

6. The Client understands that it is impossible to accurately predict when any item or component in the premises which is the subject of this agreement may need replacement or repair. The Client understands that this is due, in part, to the fact that previous owners may or may not have maintained and serviced the systems or components properly and that problems are time-related. The Client understands that because of many variables, components working at the time of inspection may not necessarily function correctly in the future.

7. If any part of this contract is declared invalid or unenforceable by any court or competent jurisdiction, the remaining parts of this agreement shall remain in effect, and shall NOT be affected thereby except as necessary to adjust for the invalidated part.

8. It is strongly recommended that the Client attend and participate in the inspection for valuable information exchange about the condition of the property and maintaining its value. The Client's presence and questions during the inspection are crucial to understanding the final report and to the Client's ability to arrive at his/her own conclusions about the inspected property. If for any reason the Client is not present at the time of the inspection, this agreement will become part of the inspection report and acceptance of the inspection report will constitute the acceptance of the terms and understanding of the above.

9. CMHI does not make any recommendations as to whether or not the Client should purchase the home, the fair market value, or fairness of the price. CMHI will Report on each individual system and major component of the home listed in 266 CMR 1.00 through 11.00 Standards of Practice but will NOT attempt to "rate" the home as a whole.

10. It is the responsibility of the Client to provide sufficient lighting and safe access to the home and applicable common areas; and to make sure that utilities are on at time of inspection. CMHI is not responsible or liable for problems which cannot reasonably be discovered in a limited inspection. The
Client has been informed that a trip charge and hourly fee will be charged for a requested “return visit inspection.”

11. The Client has been informed that the inspection is not a substitute for a PRE-SETTLEMENT WALK-THROUGH as conditions can change between the day of inspection and the day of settlement.

12. The Client has agreed to assume all the risks for all conditions that are concealed, not readily accessible or obstructed from view at the time of inspection or exist in any area excluded from inspection. In addition, the Client has agreed that inspection of the excluded items shall be performed, detected and evaluated by “other specialists of his/her choice and hire.

13. The Client has agreed to perform timely due diligence regarding the recommendations made in this report and further that estimated cost to repair and/or replace items recommended be secured from a qualified appropriate licensed contractor prior to signing the final purchase and sale agreement
in order to determine the financial impact on your budget. Any item noted as a SAFETY HAZARD, should be repaired NOW.

14. The Client has agreed that CMHI shall be indemnified and reimbursed by the Client for its respective counsel fees, costs, expenses and efforts in defending against any civil action, where the Client does not prevail in a court of competent jurisdiction. Further, the Client agrees to indemnify and hold harmless CMHI from subrogation.

15. The Client has agreed that the inspection of detached buildings (sheds, garages, barns, etc.) is EXCLUDED from the inspection and report unless separately contracted.

16. The Client has agreed that if the home inspection is for reasons NOT PERSUANT TO THE SALE OF THE PROPERTY, or if the number of dwelling units in the building exceeds five, that the limit of liability to CMHI and its employees be limited to the cost of the inspection.

17. The Client has agreed that the copy righted report issued under this agreement is confidential and for the exclusive use of the Client. The report is for the sole use of the Client, and may not be transferred, assigned to or relied upon by any third party. ALL COPYRIGHTS ARE RESERVED. The Client shall indemnify and hold harmless CMHI from losses, liabilities, damages, and penalties and all related costs and expenses (including reasonable attorney’s fees) related to third party lawsuits.

18. In consideration for the inspection, the Client agrees to pay CMHI its fees as specified. Payment is due in full when the inspection is performed, and shall constitute acceptance of the terms and conditions of this Agreement. It is understood and agreed to by the parties hereto that all the provisions, limitations, exceptions, and exclusions of this Agreement shall apply to any optional services entered into by the parties.
Please print a copy of the home inspection agreement for your records.