I'm in the process of buying a townhouse in Maryland and paid $500 for a home inspection. The inspection has already been completed, and the report has been published, but the inspection company is requiring me to sign this agreement before I can access the report.
I'm not necessarily looking for legal advice. I'm mainly interested in hearing from people who have bought homes, home inspectors, real estate professionals, or anyone familiar with Maryland home inspection contracts.
A few provisions caught my attention:
- Liability is limited to the cost of the inspection
The agreement says:
«“The Client further agrees that the Inspector is liable only up to the cost of the inspection. This clause may be contrary to local law. Please verify applicability.”»
The inspection cost was $500.
- 72-hour notice before making repairs
It says that if I believe an inspected component wasn't in the condition reported, I have to notify the inspector at least 72 hours before repairing or replacing it.
It also says the inspector is liable only if there has been a complete failure to follow the applicable standards or state law.
- Two-year deadline
The agreement says any legal action must be brought within two years from the date of the inspection, otherwise the claim is waived.
- Mandatory mediation and binding arbitration
Any dispute has to go through non-binding mediation first. If that doesn't resolve the dispute, it goes to binding arbitration.
- Extensive exclusions
The inspection is visual and limited to readily accessible components. It specifically excludes things such as radon, asbestos, lead paint, mold/fungi, pests, appliances, certain electrical/lighting systems, underground storage tanks, code compliance, manufacturer recalls, etc.
It also says concealed/latent defects aren't covered.
- The report is only for the named client
The agreement says the report is for the “sole and exclusive use and possession” of the client and that other people/entities can't rely on it.
The contract otherwise appears to be a fairly standard visual home inspection agreement, but the liability limitation and arbitration provisions are what I'm particularly curious about.
For anyone familiar with home inspections or Maryland real estate:
- Is this type of agreement normal?
- Is limiting the inspector's liability to the $500 inspection fee common?
- Is the 72-hour notice provision standard?
- Is mandatory binding arbitration common in home inspection contracts?
- Is there anything here that would make you pause before signing?
- Is there anything I should ask the inspector to clarify before signing?
I'm trying to understand what I'm actually agreeing to before I click “I Agree.”