Thread: Inspector problems and no E and O insurance

After purchasing over 20 houses I have a serious inspector issue. Previously I've had great inspectors and their input has been invaluable. I purchased a home in a state I've never purchsed in. The inspector came in a list from the selling realtor who is with a highly reputable firm. I selected the inspector from list, at random, as I did not now anyone in the state. I was willing to incur all minor repairs - inspection was to determine larger issues that I would not see. It turns out the fireplace foundation was sinking and was supported by thee 1x3" boards. One chimney apparently burned in a fire and it ends in the attic leaving 2 fireplaces with no chimney. The major fire - charred beams in attic was not disclosed, but clearly evident.... and these are jsut a few of the issues. I have now contacted the inspector and he does not have E&O insurance is is pleading poverty.

I only saw the property twice briefly and relied on the inspection to clarify any issues requring construction. No only were the problems not listed the inspector went out of his way to affirm the property was exactly as the listing described.

Any thoughts out there besides suing inspector, realtor, seller, etc? As a business person I'm no more interested in getting into a law suit than the inspector would be. Thanks in advance for your ideas. Jen

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You cannot get blood out of a turnip. Do you believe the inspector willfully intended to harm you ? If E&O was a requirement of yours, it was your responsability to verify. You can sue anyone, anytime for anything in this country. Insurance coverages play no part in that right. Chase your inspector into oblivion or move on.

Gary - I doubt he 'intended' me harm, yet his lack of thououghness DID create harm - about $30K worth of harm. I imagine he is a nice man. Yet he was hired to inspect and report accurately - that's what he is paid to do. He failed at it miserably.

What state was the inspected house in? There may be a board in which you can file a complaint. Not that it would recover losses but it might get the inspector to recognize his responsibilities better.

This is a good case as why to be skeptical about choosing a realtor referred inspector. Google search to find your own inspector is a better idea.

What is the limit of a claim in small claims court in Ky. ? You wont be able to recover all your money but you will get the attention of the inspector. i would also think about action agait]st the home owner for not disclosing the problems and of course send a letter to the agent and their broker.

Questions:

1. Did you review and agree to contractual terms prior to inspection?
2. Did the inspector have free and clear access to the areas in question?
3. If so, were the faults clearly visible?
4. Where you in attendance?
5. Did the report disclose any limitations access wise to the area or other limitations to a visual readily accessible areas?
6. Did the inspector belong to any home inspector association? If so which one?

Hi Jennifer,

Sorry to hear of your troubles. Just wondering Why? these issues were not disclosed.

If the Realtor knew or should have known, as well as the seller this is where I would direct my Attorneys attention.

Contact the state if there is licensing in that "other" state.
There may be a recovery fund even if the inspector has no insurance.
This is the case in Texas.
Of course to make a claim, you must prevail in a law suit. To prevail in a law suit you must abide by the inspection agreement, if any, which you signed.
This usually means, among other things, contacting the inspector as soon as a defect is discovered and before it is repaired.

Sometimes the inspector was prevented from entering an attic, etc. due to blocked access, etc. which should have been noted in the report.

But...

Sometimes you hire a slug who should be drummed out of business.

Originally Posted by Billy Stephens

Hi Jennifer,

Sorry to hear of your troubles. Just wondering Why? these issues were not disclosed.

If the Realtor knew or should have known, as well as the seller this is where I would direct my Attorneys attention.

Good point Billy.

Almost all states require a sellers disclosure which could open the door for recovery of losses from the seller and/or realtor if proper disclosures were not provided.

As others have said, it depends on what State the home is in and if you have any recourse through that states licensing board. 35 states license home inspectors to some degree.

Billy brought up a good point about the real estate agent. That is how you located this inspector and if the agent feels that inspector is good enough to put them on a list then that agent should also insure that that inspector has the proper insurance coverages.

Keep in mind that E&O insurance is not to protect the consumer but rather to protect the inspector. Most inspectors do not have deep pockets and lawsuits are seldom successful for anyone other than the attorneys.

If they plead ignorance get an Insurance Clue Report for the property. This will show any Insurance claims ( fire ) or other wise.

Best,
Billy

On the surface and to my thinking, the diligence of the Realtor is not in question, the person hiring the inspector must ensure they do their due diligence by ensuring the inspector is qualified, experienced, insured. Particularly if the agent is required to provide a list of inspectors.

The equation would likely change if the Realtor was asked who specifically on the list is the inspector to go with.

It seems to me that the rest of you guys are trying to release the inspector of any liability and blame it all on everyone *except* the inspector.

We do not know enough information to lay blame *on any single party*, so short of that, the *blame* might be equally shared by all.

For all we know, the inspector was in cahoots with the agent - OR - for all we know, the area was intentionally blocked and the inspector could not see it.

For all we know, the agent was in cahoots with the seller - OR - for all we know, the seller said nothing was wrong and the agent took the sellers word for it. *That in and of itself* raises red flags.

For all we know ... we simply do not know enough to make an intelligent argument for who's responsibility it is or was.

Laying blame on the buyer for using the agents list of inspectors is *usually* fairly accurate as most inspectors who are good *are not on* any agents list - but that is not true of all agents and all inspectors on those lists, I am sure that several good inspectors here are on some agents list somewhere. Heck, even I was on the list of a few agents when I was inspecting - those agents had one name on their list. Those few agents were true buyers agents, I had one in the Miami area, one in the Boca Raton area, and one in the Palm Beach area - worked for me. If the buyer did not call me, or did not use me because I charged 'too much' for them, it was their loss, not mine, and the agent would wash their hands of the inspection and tell their clients that, and sometimes I would get a call and go inspect the house because they didn't like their first inspector's report (the client got to pay twice for their inspection) no skin off my back.

No, I was not a deal killer - I did find more than my share of houses which had committed suicide and I served as the medical examiner doing the autopsy ...

Jen,
You have found out that the buyer needs to have their own Buyer's Agent and an aggressive one that will act in your best interests without being compromised with any connection to the sellers brokerage. Also that the inspector should not have any connections to either brokerage. If you use one from a supplied broker list, have the broker guarantee the inspection.

Would you use an attorney from the list offered by the insurance company that you might have action against?

Your first action should be with an attorney familiar in claims against the seller. The initial question would be about disclosure by the seller and their realtor.

Then it is a question if the inspector had access to inspect the problem areas. Most Standards of Practice by either state or organization create a minimum level that the inspection should have covered and what and why an area is not inspected. By example, if the inspector does not have free access (without obstruction) to the attic then they have an out for not inspecting. Though they should note the reason for not inspecting.

If you do have legal cause for action, go for it. Brokerage, agents and home inspector it will be a shotgun approach in the beginning. Worst case is small claims court judgement.

No, I was not a deal killer - I did find more than my share of houses which had committed suicide and I served as the medical examiner doing the autopsy ...

Originally Posted by Jennifer Lee

Gary - I doubt he 'intended' me harm, yet his lack of thououghness DID create harm - about $30K worth of harm. I imagine he is a nice man. Yet he was hired to inspect and report accurately - that's what he is paid to do. He failed at it miserably.

Sorry Jennifer. I am not defending the inspector at all. Just trying to help you with the pain by suggesting moving on may be your best option. Small claims court is very inexpensive and should get you a judgement for whatever their jurisdictional maximum is, ( $ 5K to 10K typically ). A judgement, however, does not garuntee payment. A lawyer may find liability elsewhere in the food chain that may have pockets, but they like to get paid as well. It's a gamble. I am an advocate of moving on because living in the past can at times be even more painful.

Originally Posted by Garry Blankenship

Sorry Jennifer. I am not defending the inspector at all. Just trying to help you with the pain by suggesting moving on may be your best option. Small claims court is very inexpensive and should get you a judgement for whatever their jurisdictional maximum is, ( $ 5K to 10K typically ). A judgement, however, does not garuntee payment. A lawyer may find liability elsewhere in the food chain that may have pockets, but they like to get paid as well. It's a gamble. I am an advocate of moving on because living in the past can at times be even more painful.

Jennifer,

What Garry says is quite true. When I am contacted I relate to my potential client that it might take $10,000-$15,000 in expert witness fees, plus another $20,000 or more, sometimes much more, for the attorney to take the case and provide what you need to make the case 'winnable' - and that if the damages are not even close to that much money, does it make sense to proceed?

Would you spend $1 on a lottery ticket with a 1:14 million chance for a $1 million payoff ? Sure, why not, what's $1 anyway.

Would you spend $15,000 on a lottery ticket with a 50% chance of winning $20,000 or losing the $15,000? Not me.

There is no excuse for negligence of that magnitude, and if the access was blocked, it should be reported that the attic was not inspected.
Yes, the seller is also at fault for failing to disclose the fire damage.
What you want is your money back. The inspector should at the very least refund the fee.
Poverty is no excuse for keeping the fee. Put him out of business.
Talk to several lawyers and find one that will take this on.

Due process includes hearing the other side of the story. Lets not throw the inspector under the bus based on one side.

Many more facts are required.

This went from holding the inspector harmless ...

Originally Posted by Jerry Peck

It seems to me that the rest of you guys are trying to release the inspector of any liability and blame it all on everyone *except* the inspector.

We do not know enough information to lay blame *on any single party*, so short of that, the *blame* might be equally shared by all.

.
.

For all we know ... we simply do not know enough to make an intelligent argument for who's responsibility it is or was.

To condemning the inspector ...

Originally Posted by John Kogel

There is no excuse for negligence of that magnitude, and if the access was blocked, it should be reported that the attic was not inspected.
Yes, the seller is also at fault for failing to disclose the fire damage.
What you want is your money back. The inspector should at the very least refund the fee.
Poverty is no excuse for keeping the fee. Put him out of business.
Talk to several lawyers and find one that will take this on.

To we do not have sufficient information (which is where I came in, so I will now exit stage left, as they say and leave it with Raymond)

Originally Posted by Raymond Wand

Due process includes hearing the other side of the story. Lets not throw the inspector under the bus based on one side.

Many more facts are required.

Does anyone have a bus and some old hemp rope for a hangin?

Originally Posted by Jerry Peck

It seems to me that the rest of you guys are trying to release the inspector of any liability and blame it all on everyone *except* the inspector.

The liability is mostly on the inspector from what was described. What she is asking (and what has been answered) is what to do if the inspector has no insurance.
The answer is sue the Realtor and seller. The Realtor has insurance and the seller has her money.

An HI isn't a "deal killer", just the eulogist (upon occasion).

I believe home sellers lie on real estate disclosure statements every day in every state of this country. I've spent a few bucks in legal fees, trying to track down compensation from a few of the scoundrels. Never came out ahead.

Lawyers on both sides always win.

Thank you all for your input. I will check with the State regarding Inspectors. I am not a novice in buying properties and inspector had access to every inch of the house if he chose to look. Community is rather small so list of inspectors would be fairly small, whether it came from a realtor or not - but I do now wonder if they have a relationship of some kind.... though in small communities EVERYONE has some connection, it seems. I understand seller disclosure issues, and indeed they do have money (mine).

Again, thanks to all. Jen

Thank you all for your input. I will check with the State regarding Inspectors. I am not a novice in buying properties and inspector had access to every inch of the house if he chose to look. Community is rather small so list of inspectors would be fairly small, whether it came from a realtor or not - but I do now wonder if they have a relationship of some kind.... though in small communities EVERYONE has some connection, it seems. I understand seller disclosure issues, and indeed they do have money (mine).

Again, thanks to all. Jen

Originally Posted by Raymond Wand

Due process includes hearing the other side of the story. Lets not throw the inspector under the bus based on one side.

Many more facts are required.

I thought it was quite clear, based on the info provided in the post.

What is the excuse for visible fire damage and a missing chimney flue going unreported?

Then to respond that he owns nothing and can't be sued all smacks of slimy practice. Unprofessional practice hurts us all thru negative publicity.

Info from the post is an allegation only. Anyone can make unsubstantiated claims.

This is the problem and it happens all the time in law suits one side feels they have been taken advantage of and files a suit. It goes to court and in some cases the trier of fact rules in favour of the plaintiff and other times the trier of fact rules in favour of the defendant.

Buyers Are Liars & Sellers Are Too!: The Truth About Buying or Selling Your Home: Richard Courtney: 9780743281577: Amazon.com: Books

Originally Posted by Jennifer Lee;210988

[B

The inspector came in a list from the selling realtor[/B] who is with a highly reputable firm.

The inspector came in a list from the selling realtor who is with a highly reputable firm.

No only were the problems not listed the inspector went out of his way to affirm the property was exactly as the listing described.

No only were the problems not listed the inspector went out of his way to affirm the property was exactly as the listing described.

Any thoughts out there besides suing inspector, realtor, seller, etc?

I have a thouht. Sue all three and then look in the mirror after reading double quotes above and say to yourself


I will never make such a stupid mistake in my life ever again.

No reputable inspector would ever make such as

the inspector went out of his way to affirm the property was exactly as the listing described.

Period!!!!! No ifs ands or buts about it. Even if the property actual did appear to be as listed or disclosed.

If what you are saying is completely the facts then sue all three of the bastards.

Number one rule in buying a home. Always have it inspected and always find your own inspector or one that others you know have used and have had no ill affects from.


Even though I do get a small handful of Realtors that refer me I will tell you point blank, never ever use an inspector that any Realtor involved in the sale of a home referred.

The only ones that refer me I absolutely never even talk to them. I never see them. I never visit their offices or solicet them. They want to be as seperated completely unless pushed by a client for a ferral for inspectors. Even the ones that do refer me refer me in a list of the minimum or three and there is no fingure ponting or guiding as in....this one here seems to be used the most from this office!!!!!!

Just saying

A business person that bought many a home and you are using an out of state listing agents referral for an inspector.

You need to sue yourself. Oh wait. You already did and bought the farm. So to speak.

Originally Posted by Ted Menelly

I have a thouht.

Just saying

.

Yeah ! Well Who ask ya?
*how you been Ted?

Originally Posted by Billy Stephens

Yeah ! Well Who ask ya?
*how you been Ted?

Very good. Thanks for asking. Have not been on in a while. Working, (thank goodness for a relatively busy year) also busy with a new hobby of building water cooled computers and just enjoying things.

You????

Originally Posted by Ted Menelly

Very good.

You????

* excited New Grand Daughter in 7 weeks.

ted

another contradiction in yet another thread--i take referrals-but don't. take them or or refuse them and stop saying others are wrong when you have wronged--wishy washy

say what
cvf

Originally Posted by Billy Stephens

* excited New Grand Daughter in 7 weeks.

Are you gonna have a hill billy pahty

Congrats

Originally Posted by Ted Menelly

Are you gonna have a hill billy pahty

Congrats

Your Just Jealous Ted !