I do listing inspections although not as many with the REO market we have today. I wish all of my inspections were listing inspections. If I were to miss any item that a second inspector found the only harm to me is my ego and reputation. Newbee’s should never do listing inspections as the second inspector could well make you look bad. Look bad and you make the agents black list.

I have no liability to the buyer or seller for any item missed, if that item is disclosed by any source before the removal of contingency or the close of escrow including the second inspector. The seller cannot not get an award or judgment under this scenario because the seller has sustained no loss; it is a condition that is pre-existed prior to my visit.

If I and the second inspector both missed the same item my liability is reduced by the joint and several liability/contributory negligence liability that all parties share in the transaction including the seller and all agents involved.

I use a special listing inspection agreement that states to any potential buyers that it is for the sole and exclusive use of the original client and for an additional fee of one half the original fee I will sit down with the buyer and discuss the findings in my original report. I will not reinspect defective items in my original report. I will only perform a full inspection for the buyer at the original full fee and I refer them and exclude repaired items as stated below.

The standard California Real Estate (RPA-CA) contract has a provision in the contract that I abide by and quote:

Reinspection's are only performed on items not accessible at the time of original inspection or that were unable to be inspected due to utilities not turned on. Should repairs be necessary we suggest they be performed by appropriate persons and that work complies with applicable Law, including governmental permit, inspection, and approval requirements. Buyer should obtain from seller receipts for Repairs performed by others, a written statement indicating the date of Repairs performed by Seller and provide Copies of receipts and statements of seller prior to final verification of condition. (Ref: Residential Purchase Agreement Form RPA-CA, page 4 item 10.)