HOME  INSPECTION SERVICE AGREEMENT

IT IS IMPORTANT THAT YOU READ AND UNDERSTAND THE INFORMATION CONTAINED WITHIN THIS CONTRACT.

WHAT YOUR INSPECTION INCLUDES: CONFIDENTIAL PROPERTY INSPECTION CONTRACT

THIS IS A BINDING CONTRACT. It is understood that the client is retaining this inspector to perform a home inspection pursuant to the Standards of Practice of the American Institute of Inspectors. The Standards of Practice are available on line through http://www.inspection.org/ .

1. This "inspection report" is confidential and the sole possession of the client. All warranties or representations are made and limited to "client" only and cannot be used, relied upon or considered by anyone else without the expressed written permission of the inspector and client.

2. SCOPE OF THE GENERAL INSPECTION: Client understands that this home inspection is a "non-invasive inspection/physical examination" of the home as it appeared on the day of this inspection. No representation is made as to any condition that may change from the date of the inspection to the close of escrow. It is acknowledged and understood that the inspector is not to open, move, lift or change any condition within the home on the day of the inspection. It is further understood that the inspection is performed to identify material defects in the systems, structures, and components of the above-referenced home and its associated primary structure. A material defect is a condition that significantly affects the value, desirability, habitability or safety of the building. Style or aesthetics shall not be considered in determining whether a specific system, structure, or component is defective.

LIMITATIONS, EXCEPTIONS AND EXCLUSIONS:

There are limitations, exceptions and exclusions contained within the Standards of Practice for the inspection of this home. These limitations, exceptions and exclusions may include any system, structure, or component of the building which is inaccessible, concealed from view, or cannot be inspected due to circumstances beyond the control of inspector, or which client has agreed is not to be inspected. The following are excluded from the scope of this real estate inspection unless specifically agreed in writing and otherwise between inspector and client for an additional fee which shall also be set forth in writing:

A. Formulating an opinion as to compliance with manufacturer's specifications and/or installation guidelines, manufacturers' specifications, building codes, ordinances, regulations, covenants or any and all restrictions running with the land;

B. Obtaining, reviewing or formulating an opinion as to permits, governmental limitations, Building & Safety (documents, conditions, or "controlled area), districts specially designated for its geological properties (examples include but are not limited to flood control, gas-methane district, etc.) , contractors plans/drawings, legal or real estate documents/limitations, etc.;

C. Geotechnical, engineering, structural, architectural, geological, hydrological, land surveying geological or regionally specified zones or soils-related examinations;

D. Examination of conditions related to animals, rodents, insects, wood-destroying insects, organisms, mold, fungus, and mildew, water intrusion (or its origin), toxic substances (lead, asbestos, etc.), environmental hazards/conditions, floods or damage resulting there from.;

E. Adequacy, efficiency, durability, or remaining useful life, costs to repair, replace or operate, fair market value, marketability, quality, or advisability of purchase of the property or any component therein;

F. Dismantling of any system, structure, or component, or perform any intrusive or destructive examination, test or analysis;

G. Examining or evaluating fire-resistive qualities of any system, structure, component of the building or security systems/protection;

H. Systems, structures, or components, of the building which may or may not be permanently installed, including security bars, locks, security devices, alarms, or related security devices, etc..

I. Systems, structures, or components not specifically identified in the written inspection report;

J. Common areas, or systems, structures, or components thereof, including, but not limited to, those of a common interest development as defined under the laws of the State of California.

K. Examining or evaluating the acoustical or other nuisance characteristics of any system, structure, or component of a building, complex, adjoining properties, or neighborhood;

L. Operating or evaluating low voltage electrical, antennas, security systems, cable or satellite television, telephone, remote controls, radio controls, timers, intercoms, computers, photo-electric, motion sensing, garden/outdoor lighting, or other such similar non-primary electrical power devices, components, or systems.

M Fountains and water systems of all designs and structure are not included in this inspection.

N. Your home inspector has not been retained to and will not determine property lines, boundaries, fences, hedges, walls, and other natural or constructed barriers for their "accuracy or correctness. If the client should have any concerns as to "property boundaries" a licensed surveyor should be retained by the client to investigate this issue.

EXHAUSTIVE INSPECTION: The purchaser/client has the option of a thorough/exhaustive inspection of the property. This thorough/exhaustive inspection covers all issues relating to the property excluded by the general inspection. For instance a thorough investigation of the home includes permits, construction, analysis of all systems with demonstrative testing by use of outside experts that may include experts from all specialized trades (including but not limited to electrical, construction, plumbing, soils, geological, building and safety; oil and gas; architectures, etc.). All additional expert examinations are in addition to the cost of this inspector. The cost to the client for the inspector (alone) for an exhaustive inspection is $150.00 per hour. It is generally our experience that this "exhaustive inspection" even in the most straight forward properties without the additional expenses of other experts costs between $1,000 to $5,000 or higher depending on the size of the home, appurtenances thereto and other related issues. Acceptance of agree without opting for exhaustive inspection assumes client's desire to proceed without this option.

RECITALS

REAL ESTATE DISCLOSURE: This report is not a substitute for the disclosures (seller and agents) as required by this "State", nor is it a substitute for the real estate disclosure statement. Please consult with your professional Realtor as to any questions you may have on any real estate document. The understanding or implications of what may or may not be contained in a real estate document is outside the scope of this inspection agreement.

CONFIDENTIALITY: This real estate inspection report is confidential. By initialing herein you are authorizing this inspector to release this confidential report to your realtor. The client hereby agrees in authorizing the tender of this report to the realtor said client will indemnify, defend and hold harmless the inspector from any action or cause of action that may be brought against said inspector due to the tender of this report to persons other then the client.

SEVERABILITY: Should any provision of this contract be held by a court of competent jurisdiction to be either invalid or unenforceable, the remaining provisions of this contract shall remain in full force and effect, unimpaired by the court's holding.

MEDIATION: The parties to this agreement agree that this mediation clause is a material part of this home inspection contract. The client is under an affirmative duty to advise the home inspector immediately upon discovering any defect that was not disclosed during the escrow. Notice of same must be sent return receipt request. The home inspector has the right to inspect said "alleged" defect before any notice of mediation is given. If resolution of same is not possible and the client believes the home inspector is culpable the client must prepare and send return receipt request a notice and demand for mediation allowing the home inspector 30 days to respond before instituting litigation whether in the form of a law suit or demand for binding arbitration. If the client fails to perform said required acts the client forfeits any right to prevailing party contractual attorney fees.

BINDING ARBITRATION: Any dispute concerning the interpretation of this agreement or arising from this inspection and report shall be resolved between the parties by voluntarily submitting this matter to binding arbitration conducted in accordance with the rules of Superior Court Arbitration program of each county. The arbitrator must be knowledgeable of the Standards of Practice of the home inspection industry at the time of the appointment

APPLICATION OF CALIFORNIA_LAW: The parties hereto shall be entitled to all discovery rights and legal motions as provided in the Code of Civil Procedure for the "State" where the inspection was made. The arbitrator shall follow the law of that "State" for 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.

GENERAL PROVISIONS: This inspection contract and report do not constitute a home warranty, guarantee, or insurance policy of any kind whatsoever. The real estate inspection and inspection report are not a substitute disclosure for real estate transactions which may be required by law. The maximum damages are limited to 3 times the cost of the inspection or a maximum of $1000.00. In the event of a claim, the Client will allow the Inspection Company to inspect the claim prior to any repairs or waive the right to make the claim. Client agrees not to disturb or repair or have repaired anything which may constitute evidence relating to the complaint, except in the case of an emergency.

PRESUMPTION: If no legal action or proceeding of any kind, including those sounding in tort or contract, are commenced against inspector/inspection company within one (1) year after the date of the subject inspection it is presumed that no act of negligence or in breach of contract has arisen. Time is expressly of the essence herein. This time period is shorter than otherwise provided by law. This agreement shall be binding upon and insure to the benefit of the parties hereto and their heirs, successors and assigns.

FULL AND COMPLETE AGREEMENT: This agreement constitutes the entire integrated agreement and must be modified in writing signed by the parties to modify the above. Client has read and understands all of the terms, conditions and limitations of this contract and voluntarily agrees to be bound thereby and agrees to pay the fee listed below.

I, the client, acknowledge and I have read, understand, and agree to all of the terms, conditions and limitations of this agreement and agree to pay the fee as agreed.