Most of time, a home buyer will obtain a home inspection during their contingency period before they purchase a home. If something major is discovered, what we call a “health and safety” item(s), the buyer will usually ask the seller to repair those items or for a credit towards those repairs. But what if the home inspector missed something major? If it’s serious enough and the buyer thinks the inspector was negligent, they may sue them.
Many of the home inspectors will have a contract that the buyer signs as part of their working relationship with the buyer, and they will try to limit their exposure (which is reasonable, of course). They will say that they aren’t responsible for things that they COULDN’T have known about like damage or issues behind walls, or under the floors, etc. They will also limit what parts of the home they will inspect. Some inspectors even try to limit their liability to the amount that the buyer paid them, but this limitation often doesn’t hold up in court.
Their contract may also limit the amount of time that the buyer has to bring suit, what’s called the “statute of limitations.” This last one is particularly interesting, in that the inspector will want that time limit to start from the day of the inspection itself. But the buyer will want the time to start when the item is discovered.
I did find a court case where the court agreed with the buyer, that the time period starts when the item is discovered. They said that the average homeowner won’t know anything is wrong until the situation gets to the point where they would notice it. This may or may not apply as a precedent to all cases like this.
I AM NOT AN ATTORNEY. PLEASE CONSULT ONE FOR SPECIFICS TO YOUR SITUATION. If you have questions on any other real estate topic, call me at (925) 240-MOVE (6683). Voted “Best of Brentwood” multiple times. To search the MLS for free and view virtual tours of homes for sale, go to: www.SharpHomesOnline.com. Sharp Realty.