Pre-inspection agreement: what to cover

A pre-inspection agreement should say who the client is, which property and services are included, which standard of practice you follow, what is excluded or limited, what the client pays and when, who may use the report, and how disputes and claims are handled. It is signed before the inspection begins. The exact clauses that are required, allowed or enforceable vary by state, so treat this as a map of common practice and have a local attorney review your final document.

This article is general information, not legal advice. Your state licensing board, your attorney and your errors and omissions insurer are the people who can tell you what your agreement must contain.

Why does a home inspector need a written agreement?

The agreement is where you and the client agree on what a home inspection is before anyone has an opinion about the house. Most disputes after an inspection come down to a gap between what the client expected and what was actually inspected. A clear agreement closes that gap while it is still cheap to close.

It also does practical work:

It sets the scope your report will be measured against.
It records that the client was told about limitations before the inspection, not after a problem appears.
It is often required. Many states that license inspectors require a written agreement, and some specify content. Professional association codes of ethics, such as the InterNACHI Code of Ethics, also expect one.
Your insurer may ask to see it, and some carriers have opinions about what it should include.

What should a pre-inspection agreement cover?

Below are the sections most inspection agreements contain. The order is a common one, not a rule.

The parties and the property

Name the client (every buyer, if there is more than one), your company, and the property address. If an agent books the inspection, the agreement should still name the client, because the client is the person you owe the inspection to. Include the date of the inspection and the services booked.

The scope and the standard of practice

State which standard of practice you follow. That may be your state's standard, or an association standard such as InterNACHI's or ASHI's. Link to it or attach it rather than retyping it. Say plainly that the inspection is a visual, non-invasive examination of readily accessible systems and components on the day of the inspection.

If you want help making the report reflect that same standard, see reflecting your standards of practice in the report.

What is excluded

List the things you do not inspect, in plain words. Typical exclusions include concealed or inaccessible areas, items behind finished surfaces or stored belongings, code compliance, cost estimates, the remaining life of components, environmental hazards unless an add-on was booked, and anything outside the standard you follow.

Exclusions only help if a client can read them. A long block of capital letters is harder to understand than a short bulleted list.

Limitations on the day

Some limitations are known only when you arrive: snow on the roof, utilities off, a locked room, a full garage. The agreement should explain that conditions on the day may limit the inspection and that the report will note what could not be inspected. Your report then does the specific work. Writing limitations and items not inspected covers that side.

Add-on services

Radon testing, sewer scopes, mold sampling and similar services have their own methods and limits. Many inspectors cover each one in a short addendum that attaches only when the service is booked, instead of making the main agreement longer for everyone.

Fees, payment and report release

State the fee, what it includes, when it is due, and what happens if it is not paid. If the report is released only after payment, after signing, or both, say so. Include your cancellation and reschedule terms or refer to them.

Use of the report and third parties

Say who the report is for. Many agreements state that the report is for the client's use and that others, including the seller, a later buyer or a lender, should not rely on it. Say whether you may share the report with the client's agent and with whom else, and that you will not share it without the client's permission except where the law requires.

Claims, disputes and limits on liability

This is the section where state law matters most. Clauses you may see include:

Notice of claims. The client agrees to notify you in writing of a claim within a stated period and to give you a chance to see the condition before it is repaired, except in an emergency.
Dispute resolution. Mediation or arbitration before a lawsuit, and which rules apply.
Limitation of liability. A cap on damages, often tied to the inspection fee.
Time limits. A period within which a claim must be brought.

Courts in different states treat these clauses very differently. Some states restrict or prohibit liability caps in inspection agreements, and some limit arbitration terms in consumer contracts. Do not copy these clauses from another inspector's agreement. Ask an attorney in your state what is enforceable, and ask your insurer what it expects.

Signatures and the date signed

Each client signs, ideally before you arrive. Record the date and time of the signature. If a second buyer will not sign, decide in advance what you will do. Getting inspection agreements signed before you arrive walks through the process.

State-specific required wording

Some states require particular language, disclosures or license numbers in the agreement or the report. Check your licensing board's website for current rules. Home inspector licensing by state explains how much these rules differ.

A quick reference: clauses and their purpose

Section	What it does	Check with
Parties and property	Names who you owe the inspection to	Your own records
Scope and standard	Sets what the report is measured against	State board, association
Exclusions	Lists what is not inspected	Attorney
Limitations	Explains conditions that may limit the inspection	Attorney
Add-on addenda	Covers methods and limits of extra services	Lab, equipment maker, attorney
Fees and release	Sets payment and when the report is delivered	Your own policy
Report use	Limits who can rely on the report	Attorney
Claims and disputes	Notice, mediation, arbitration, limits	Attorney and insurer
Signature	Records agreement before the inspection	Attorney

How should the agreement read?

Clients are more likely to read an agreement that sounds like you. A few habits help:

Use headings that match the questions clients ask: "What is included?", "What is not included?", "When will I get my report?"
Keep sentences short. Put the main point first.
Add a short plain-language summary at the top, while keeping the full terms below it.
Avoid unexplained jargon. If you use a term like "readily accessible", define it once.

Here is an illustration of plain wording for an exclusions summary. It is an example of tone only, not a clause to copy:

We look at the parts of the home we can see and safely reach on the day of the inspection. We don't move furniture or stored items, open walls, or test for environmental hazards unless you booked that service. Your report will note anything we could not inspect.

Plain wording does not replace precise terms. Your attorney may want both: a readable summary and the full clause.

What mistakes do inspectors make with agreements?

Using a borrowed template. An agreement written for another state can include clauses your state does not allow, or miss ones it requires.
Signing on site. A client handed a long document on a tablet at the front door, with the agent waiting, has not had a real chance to read it. That may matter if the agreement is ever challenged.
Letting the agent sign. An agent is not usually the client. Whether an agent can sign for a client is a legal question with real consequences, so ask your attorney before allowing it.
Never updating it. Laws, standards and your services change. Review the agreement at least when you add a service, when your insurer changes, or when your state updates its rules.
Contradicting the report. If the agreement says you don't inspect something but the report comments on it as if you did, the two documents work against each other.

Checklist before you use your agreement

The client and every co-buyer are named and sign.
The standard of practice is named and linked.
Exclusions and limitations are in plain language.
Add-on services have their own addenda.
Fees, payment timing and report release are stated.
Report use and sharing are explained.
Dispute and claim clauses were reviewed by an attorney in your state.
Your insurer has seen it.
State-required wording is included.
Clients receive it with time to read before the inspection.

Keeping agreements with the inspection

An agreement is easiest to manage when it travels with the appointment, so the right addenda attach to the services booked and you can see who has signed. In iSpector, agreements and invoices use reusable agreement templates attached to the inspection, show client signing status, and can hold the published report until the agreement is signed.

Key takeaways

An agreement sets scope, exclusions, fees, report use and dispute terms before the inspection.
Limitation of liability, arbitration and claim-period clauses depend heavily on state law. Have an attorney in your state review them.
Write in plain language with clear headings, and put add-on services in their own addenda.
Get every client's signature before you arrive, and keep the agreement consistent with your report.
Check your state licensing board and your insurer for required wording.

What a pre-inspection agreement should cover