Home Inspection Service Protecting You With Contracts and Agreements in San Diego

(CREIA) CALIFORNIA REAL ESTATE INSPECTION ASSOCIATION

STANDARD RESIDENTIAL INSPECTION AGREEMENT

THIS IS INTENDED TO BE A LEGALLY BINDING CONTRACT,PLEASE READ IT CAREFULLY

SCOPE OF THE INSPECTION: The real estate inspection to be performed for Client is a survey and basic operation of the systems and components of a building which can be reached, entered, or viewed without difficulty, moving obstructions, or requiring any action which may result in damage to the property or personal injury to the Inspector. The purpose of the inspection is to provide the Client with information regarding the general condition of the building(s).

Inspector will prepare and provide Client a written report for the sole use and benefit of Client. The written report shall document any material defects discovered in the building’s systems and components which, in the opinion of the Inspector, are safety hazards, are not functioning properly, or appear to be at the ends of their service lives.

The inspection shall be performed in accordance with the Standards of Practice of the California Real Estate Inspection Association (CREIA^SM), attached hereto and incorporated herein by reference, and is limited to those items specified herein.

CLIENT’S DUTY: Client agrees to read the entire written report when it is received and promptly call Inspector with any questions or concerns regarding the inspection or the written report. The written report shall be the final and exclusive findings of Inspector.

Client acknowledges that Inspector is a generalist and that further investigation of a reported condition by an appropriate specialist may provide additional information which can affect Client’s purchase decision. Client agrees to obtain further evaluation of reported conditions before removing any investigation contingency and prior to the close of the transaction.

In the event Client becomes aware of a reportable condition which was not reported by Inspector, Client agrees to promptly notify Inspector and allow Inspector and/or Inspector’s designated representative(s) to inspect said condition(s) prior to making any repair, alteration, or replacement. Client agrees that any failure to so notify Inspector and allow inspection is a material breach of this Agreement.

ENVIRONMENTAL CONDITIONS: Client agrees what is being contracted for is a building inspection and not an environmental evaluation. The inspection is not intended to detect, identify, or disclose any health or environmental conditions regarding this building or property, including, but not limited to: the presence of asbestos, radon, lead, urea-formaldehyde, fungi, molds, mildew, PCBs, or other toxic, reactive, combustible, or corrosive contaminants, materials, or substances in the water, air, soil, or building materials. The Inspector is not liable for injury, health risks, or damage caused or contributed to by these conditions.

GENERAL PROVISIONS: The written report is not a substitute for any transferor’s or agent’s disclosure that may be required by law, or a substitute for Client’s independent duty to reasonably evaluate the property prior to the close of the transaction. This inspection Agreement, the real estate inspection, and the written report do not constitute a home warranty, guarantee, or insurance policy of any kind whatsoever.

No legal action or proceeding of any kind, including those sounding in tort or contract, can be commenced against Inspector/Inspection Company or its officers, agents, or employees more than one year from the date Client discovers, or

through the exercise of reasonable diligence should have discovered, the cause of action. In no event shall the time for commencement of a legal action or proceeding exceed two years from the date of the subject inspection. THIS TIME PERIOD IS SHORTER THAN OTHERWISE PROVIDED BY LAW.

This Agreement shall be binding upon and inure to the benefit of the parties hereto and their heirs, successors, and assigns.

This Agreement constitutes the entire integrated agreement between the parties hereto pertaining to the subject matter hereof and may be modified only by a written agreement signed by all of the parties hereto. No oral agreements, understandings, or representations shall change, modify, or amend any part of this Agreement.

Each party signing this Agreement warrants and represents that he/she has the full capacity and authority to execute this Agreement on behalf of the named party. If this Agreement is executed on behalf of Client by any third party, the person executing this Agreement expressly represents to Inspector that he/she has the full and complete authority to execute this Agreement on Client’s behalf and to fully and completely bind Client to all of the terms, conditions, limitations, exceptions, and exclusions of this Agreement.

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

MEDIATION: The parties to this Agreement agree to attend, in good faith, mediation with a retired judge or lawyer with at least 5 years of mediation experience before any lawsuit is filed. All notices of mediation must be served in writing by return receipt requested allowing 30 days for response. If no response is forthcoming the moving party may then demand binding arbitration under the terms and provisions set forth below.

ARBITRATION: Any dispute concerning the interpretation or enforcement of this Agreement, the inspection, the inspection report, or any other dispute arising out of this relationship, shall be resolved between the parties by binding arbitration conducted in accordance with California Law, except that the parties shall select an arbitrator who is familiar with the real estate profession. The parties agree that they shall be entitled to discovery procedures within the discretion of the arbitrator. The arbitrator shall manage and hear the case applying the laws of the State of California to 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. Any disputes are to be arbitrated by:

Judicial Arbitration and Mediation Service (JAMS^®)

Client acknowledges having read and understood all the terms, conditions, and limitations of this Agreement and voluntarily agrees to be bound thereby and to pay the fee(s) listed here.

Client:________________________________________________________________________________________________________

Date: _______________________________

RESIDENTIAL STANDARDS OF PRACTICE – FOUR OR FEWER UNITS
Part I. Definitions and Scope

These Standards of Practice provide guidelines for a real estate inspection and define certain terms relating to these inspections. Italicized words in these Standards are defined in Part IV, Glossary of Terms.

A. A real estate inspection is a survey and basic operation of the systems and components of a building which can be reached, entered, or viewed without difficulty, moving obstructions, or requiring any action which may result in damage to the property or personal injury to the Inspector. The purpose of the inspection is to provide the Client with information regarding the general condition of the building(s). Cosmetic and aesthetic conditions shall not be considered.

B. A real estate inspection report provides written documentation of material defects discovered in the inspected building ’s systems and components which, in the opinion of the Inspector, are safety hazards, are not functioning properly, or appear to be at the ends of their service lives. The report may include the Inspector’s recommendations for correction or further evaluation.

C. Inspections performed in accordance with these Standards of Practice are not technicaly exhaustive and shall apply to the primary building and its associated primary parking structure.

Part II. Standards of Practice

A real estate inspection includes the readily accessible systems and components or a representative number of multiple similar components listed in SECTIONS 1 through 9 subject to the limitations, exceptions, and exclusions in Part III.

SECTION 1 – Foundation, Basement, and Under-floor Areas

A. Items to be inspected:

1. Foundation system

2. Floor framing system

3. Under-floor ventilation

4. Foundation anchoring and cripple wall bracing

5. Wood separation from soil

6. Insulation

B. The Inspector is not required to:

1. Determine size, spacing, location, or adequacy of foundation bolting/ bracing components or reinforcing systems

2. Determine the composition or energy rating of insulation materials

SECTION 2 – Exterior

A. Items to be inspected:

1. Surface grade directly adjacent to the buildings

2. Doors and windows

3. Attached decks, porches, patios, balconies, stairways, and their enclosures

4. Wall cladding and trim

5. Portions of walkways and driveways that are adjacent to the buildings

B. The Inspector is not required to:

1. Inspect door or window screens, shutters, awnings, or security bars

2. Inspect fences or gates or operate automated door or gate openers or their safety devices

3. Use a ladder to inspect systems or components

SECTION 3 – Roof Covering

A. Items to be inspected:

1. Covering

2. Drainage

3. Flashings

4. Penetrations

5. SkylightsB. The Inspector is not required to:

1. Walk on the roof surface if in the opinion of the Inspector there is risk of damage or a hazard to the Inspector

2. Warrant or certify that roof systems, coverings, or components are free from leakage

SECTION 4 – Attic Areas and Roof Framing

A. Items to be inspected:

1. Framing

2. Ventilation

3. Insulation

B. The Inspector is not required to:

1. Inspect mechanical attic ventilation systems or components

2. Determine the composition or energy rating of insulation materials

SECTION 5 – Plumbing

A. Items to be inspected:

1. Water supply piping

2. Drain, waste, and vent piping

3. Faucets and fixtures

4. Fuel gas piping

5. Water heaters

6. Functional flow and functional drainage

B. The Inspector is not required to:

1. Fill any fixture with water or inspect overflow drains or drain-stops, or evaluate backflow devices, waste ejectors, sump pumps, or drain line cleanouts

2. Inspect or evaluate water temperature balancing devices, temperature fluctuation, time to obtain hot water, water circulation, or solar heating

systems or components

3. Inspect whirlpool baths, steam showers, or sauna systems or

components

4. Inspect fuel tanks or determine if the fuel gas system is free of leaks

5. Inspect wells or water treatment systems

SECTION 6 – Electrical

A. Items to be inspected:

1. Service equipment

2. Electrical panels

3. Circuit wiring

4. Switches, receptacles, outlets, and lighting fixtures

B. The Inspector is not required to:

1. Operate circuit breakers or circuit interrupters

2. Remove cover plates

3. Inspect de-icing systems or components

4. Inspect private or emergency electrical supply systems or components SECTION 7 – Heating and Cooling

A. Items to be inspected:

1. Heating equipment

2. Central cooling equipment

3. Energy source and connections

4. Combustion air and exhaust vent systems

5. Condensate drainage

6. Conditioned air distribution systems

B. The Inspector is not required to:

1. Inspect heat exchangers or electric heating elements

2. Inspect non-central air conditioning units or evaporative coolers

3. Inspect radiant, solar, hydronic, or geothermal systems or components

4. Determine volume, uniformity, temperature, airflow, balance, or leakage

of any air distribution system

5. Inspect electronic air filtering or humidity control systems or

components

SECTION 8 – Fireplaces and Chimneys

A. Items to be inspected:

1. Chimney exterior

2. Spark arrestor

3. Firebox

4. Damper

5. Hearth extension

B. The Inspector is not required to:

1. Inspect chimney interiors

2. Inspect fireplace inserts, seals, or gaskets

3. Operate any fireplace or determine if a fireplace can be safely used

SECTION 9 – Building Interior

A. Items to be inspected:

1. Walls, ceilings, and floors

2. Doors and windows

3. Stairways, handrails, and guardrails

4. Permanently installed cabinets

5. Permanently installed cook-tops, mechanical range vents, ovens, dishwashers, and food waste disposers

6. Absence of smoke alarms

7. Vehicle doors and openers

B. The Inspector is not required to:

1. Inspect window, door, or floor coverings

2. Determine whether a building is secure from unauthorized entry

3. Operate or test smoke alarms or vehicle door safety devices

4. Use a ladder to inspect systems or components

Part III. Limitations, Exceptions, and Exclusions

A. The following are excluded from a real estate inspection:

1. Systems or components of a building, or portions thereof, which are not readily accessible, not permanently instaled, or not inspected due to circumstances beyond the control of the Inspector or which the Client has agreed or specified are not to be inspected

2. Site improvements or amenities, including, but not limited to; accessory buildings, fences, planters, landscaping, irrigation, swimming pools, spas, ponds, waterfalls, fountains or their components or accessories

3. Auxiliary features of appliances beyond the appliance ’s basic function

4. Systems or components, or portions thereof, which are under ground, under water, or where the Inspector must come into contact with water

5. Common areas as defined in California Civil Code section 1351, et seq., and any dwelling unit systems or components located in common areas

6. Determining compliance with manufacturers’ installation guidelines or specifications, building codes, accessibility standards, conservation or energy standards, regulations, ordinances, covenants, or other restrictions

7. Determining adequacy, efficiency, suitability, quality, age, or remaining life of any building, system, or component, or marketability or advisability of purchase

8. Structural, architectural, geological, environmental, hydrological, land surveying, or soils-related examinations

9. Acoustical or other nuisance characteristics of any system or component of a building, complex, adjoining property, or neighborhood

10.Conditions related to animals, insects, or other organisms, including fungus and mold, and any hazardous, illegal, or controlled substance, or the damage or health risks arising there from

11.Risks associated with events or conditions of nature including, but not limited to; geological, seismic, wildfire, and flood

12.Water testing any building, system, or component or determine leakage in shower pans, pools, spas, or any body of water

13.Determining the integrity of hermetic seals at multi-pane glazing 14.Differentiating between original construction or subsequent additions or modifications

15.Reviewing information from any third-party, including but not limited to; product defects, recalls, or similar notices

16.Specifying repairs/replacement procedures or estimating cost to correct 17.Communication, computer, security, or low-voltage systems and remote, timer, sensor, or similarly controlled systems or components

18.Fire extinguishing and suppression systems and components or determining fire resistive qualities of materials or assemblies

19.Elevators, lifts, and dumbwaiters

20.Lighting pilot lights or activating or operating any system, component, or appliance that is shut down, unsafe to operate, or does not respond to normal user controls

21.Operating shutoff valves or shutting down any system or component 22.Dismantling any system, structure, or component or removing access panels other than those provided for homeowner maintenance

B. The Inspector may, at his or her discretion:

1. Inspect any building, system, component, appliance, or improvement not included or otherwise excluded by these Standards of Practice. Any such inspection shall comply with all other provisions of these Standards.

2. Include photographs in the written report or take photographs for Inspector’s reference without inclusion in the written report. Photographs may not be used in lieu of written documentation.

Part IV. Glossary of Terms

*NOTE: All definitions apply to derivatives of these terms when italicized in the text.

Appliance: An item such as an oven, dishwasher, heater, etc. which performs a specific function

Building: The subject of the inspection and its primary parking structure Component: A part of a system, appliance, fixture, or device

Condition: Conspicuous state of being

Determine: Arrive at an opinion or conclusion pursuant to a real estate

inspection

Device: A component designed to perform a particular task or function Fixture: A plumbing or electrical component with a fixed position and function Function: The normal and characteristic purpose or action of a system,

component, or device

Functional Drainage: The ability to empty a plumbing fixture in a reasonable time

Functional Flow: The flow of the water supply at the highest and farthest fixture from the building supply shutoff valve when another fixture is used simultaneously

Inspect: Refer to Part I, “Definition and Scope”, Paragraph A

Inspector: One who performs a real estate inspection

Normal User Control: Switch or other device that activates a system or component and is provided for use by an occupant of a building

Operate: Cause a system, appliance, fixture, or device to function using normal user controls

Permanently Installed: Fixed in place, e.g. screwed, bolted, nailed, or glued Primary Building: A building that an Inspector has agreed to inspect

Primary Parking structure: A building for the purpose of vehicle storage

associated with the primary building

Readily Accessible: Can be reached, entered, or viewed without difficulty, moving obstructions, or requiring any action which may harm persons or property

Real Estate Inspection: Refer to Part I, “Definitions and Scope”, Paragraph A Representative Number: Example, an average of one component per area

for multiple similar components such as windows, doors, and electrical

outlets

Safety Hazard: A condition that could result in significant physical injury

Shut Down: Disconnected or turned off in a way so as not to respond to normal

user controls

System: An assemblage of various components designed to function as a whole Technically Exhaustive: Examination beyond the scope of a real estate

inspection, which may require disassembly, specialized knowledge, special

equipment, measuring, calculating, quantifying, testing, exploratory

probing, research, or analysis

THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA REAL ESTATE INSPECTION ASSOCIATION (CREIA^SM). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ADEQUACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. IF YOU DESIRE LEGAL ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. USE OF THIS FORM DOES NOT GUARANTEE THAT THE USER IS A QUALIFIED INSPECTOR MEMBER OF CREIA^SM. TO LOCATE A QUALIFIED CREIA^SM INSPECTOR CALL 800/388-8443 OR VISIT WWW.CREIA.ORG © 2006 CREIA^SM All Rights Reserved. CREIA^SM IS A PUBLICBENEFIT, NONPROFIT ORGANIZATION. rev:04.06

AMERICAN DREAM PROPERTY INSPECTION SERVICE

MOLD INSPECTION AND TESTING AGREEMENT

THIS IS INTENDED TO BE A LEGALLY BINDING CONTRACT,PLEASE READ IT CAREFULLY

Project Name: T.B.D. Project Type/Code: IAQ Survey

Agreement Date: T.B.D.

Client name: T.B.D.

Client mailing address: SAME

Client phone: T.B.D.

Client email: T.B.D.

Realtor name: T.B.D.

Address of property to be inspected: T.B.D.

San Diego County

hereinafter called Subject Property, which the client represents to have been originally

constructed on or about: T.B.D. and approximately T.B.D. square feet.

Inspection and testing date: T.B.D.

Inspection and Testing Fee: $ 300.00 (includes 2 samples), additional samples over 2, are

charged at $100.00 each.

Report and Inspection fee (includes 2 samples): $ 300.00

Additional samples (If needed): 1 samples@ $100.00 each $ 100.00

Other Fees: $

Total T.B.D.

Paid By:

Check #: Card # (last 4 digits): Other:

THIS AGREEMENT, made and entered into on the Agreement date indicated above, by and

between the above named Client and the undersigned, hereinafter referred to as American Dream.

American Dream will provide the following services to the Client:

(1) Visually inspect the subject property to check for the water damage and mold infestation. In

doing such visual inspection, American Dream will use where the inspector

believes appropriate a hidden moisture meter.

The client will pay for all of the above services at the time of the inspection.

(2)

(2) Take up to 2 mold tests [including laboratory analysis] at the Subject property. Each test over 2

[including laboratory analysis] shall be $100.00 each.

(3) Provide a written report of American Dreams' visual inspection observations and

explanation of laboratory test results

The cost for items (1) and (3) shall be $ 300.00. The cost of item (2) shall be calculated at the time

of inspection.

The inspection and testing shall be performed in accordance with the Standards of Practice of the

Certified Mold Inspectors and Contractors Institute.

The inspection is not a Building Code Inspection, title examination, home inspection for problems

other than water and mold, or a by-law compliance inspection. American Dream does not

offer an opinion as to: (a) the advisability or inadvisability of the purchase, sale or repair or

replacement of the property or its components such as, but not limited to, appliances, carpeting,

heating, ventilating, and air conditioning equipment and ducts; (b) the property’s value; or (c) the

property’s potential use.

The inspection and Testing fee, and any report based on the inspection and testing conducted, is

based on a single visit to the property. Additional fees may be charged for any subsequent visits

required by the Client. If American Dream is called upon to prepare for litigation or give

testimony as a result of the Inspection and Testing, additional fees shall be charged at American

Dreams' then current fees for any time spent, including, but not limited to, research,

consultation, additional inspection and testing time, additional mold laboratory test fees, preparation

of reports, travel, time waiting to testify and court appearances or depositions.

The inspection and testing report is based on the condition of the Subject Property existing and

apparent on the precise time and exact date of the inspection. Not all conditions may be apparent on

the inspection and testing date due to weather conditions, inoperable systems, inaccessibility of areas

of the Subject Property, or for other reasons. The Client understands and agrees that American

Dreams' inspection and testing can report only: (1) water and mold problems in existence on

the date of the inspection and testing: and (2) water and mold problems physically present in the

precise and exact Subject Property locations that are actually inspected and tested. Air tests can only

report the presence of mold spores in the individual heating, ventilating, and air conditioning ducts

in which air tests or swab samples are taken. American Dreams' hidden moisture meter can

only detect wet conditions three-fourths of an inch into building materials tested, and only in

locations actually tested by American Dream.

American Dream cannot report on areas or locations in the building that have not been

specifically inspected and tested.

Inspector is not responsible or liable for the non-discovery of any water damage, water problems, or

mold contamination or mold problems, or other conditions of the Subject Property, or any other

problems, which may occur or may become evident after the inspection and testing time and date.

Inspector is not an insurer nor guarantor against water problems, mold problems, or other defects in

the Subject Property and improvements, systems, or components inspected. Inspector makes no

warranty, express or implied, as to the fitness for use or condition of the systems or components

inspected. Inspector assumes no responsibility for the cost of repairing any water problems, mold

problems, or any other future failures or repairs.

Inspector and its employees are limited in liability to the fee paid for the inspection and testing

services and report in the event that Client or any third party claims that Inspector is in any way

liable for negligently performing the inspection or testing, or in preparing the Inspection and Testing

Report, or for any other reason or claim that Inspector has not fully satisfied all its obligations

hereunder. Client hereby agrees to indemnify, defend and hold harmless Inspector if any third party

brings a claim against Inspector relating to the inspection and testing, or Inspection and Testing

Report.

Any additional consulting which requires depositions or other legal appearances will be billed, in

addition to inspection and sampling fees, at the consultation rates (per our price list). Please contact

our office for details.

This agreement is governed by the laws and jurisdiction of the State of California. Any controversy

or claim between the parties hereto, arising directly or indirectly out of, connected with, or relating

to the interpretation of the Agreement, the scope of services, the actual inspection and testing

services rendered by American Dream, the inspection and testing report provided to the

Client by American Dream, or any other matters of any kind involving any act or omission

performed under this Agreement, or promises, representations, or negotiations concerning duties of

American Dream hereunder, shall be submitted to arbitration accordance with the applicable

rules of the American Arbitration Association. The parties shall mutually appoint an arbitrator who

is knowledgeable and familiar with the mold inspection and mold testing industry. Judgment on any

decision shall be binding on all parties. Secondary or consequential damages are specifically

excluded.

In the event that any dispute arises out of the Inspection, Testing, or Report, and proceedings are

commenced by the Client, if the Client is unsuccessful in maintaining the claim in arbitration or

elsewhere, then the Client shall be liable to American Dream for all charges, expenses, costs

and legal fees incurred by American Dream on a complete indemnity basis, including a

reasonable investigating, research, preparation for, and attendance at arbitration or court hearings

and examinations.

Any claims must be presented to American Dream in hand by certified U.S. mail or suitable

proof of delivery within one (1) year from the date of Inspection. Inspector shall have no liability for

any claims presented one (1) year after the date of inspection and testing.

Client guarantees Inspector a right to examine the subject matter and area of any claim and offer a

resolution prior to Client’s performance of remedial measures (except in the event of an emergency,

or to protect for personal safety, or to reduce or avoid damage to property). This is a condition

precedent to Client’s claim.

The client hereby agrees that if it should cancel any scheduled inspection less than twenty four (24)

hours in advance of the scheduled inspection it agrees to a cancellation fee of $100.00. If the client

does reschedule the inspection the cancellation fee shall be credited to that inspection.

This Agreement and the documents referred to herein constitute the entire Agreement between

the parties hereto, and supersede any and all prior representations, discussions, or agreements,

whether written or oral.

No amendment, change, or variance from this Agreement shall be binding on either party unless

mutually agreed to, in writing, and signed by the parties hereto. If any provision of this Agreement is

held invalid of unenforceable by any court of final jurisdiction, it is the intent of the parties that all

other provisions of this Agreement be construed to remain fully valid, enforceable, and binding on

the parties.

THE INSPECTION, TESTING, AND INSPECTION AND TESTING REPORT DO NOT

CONSTITUTE A WARRANTY, GUARANTEE OR INSURANCE POLICY OF ANY KIND.

There are no warranties, guarantees or insurance available or provided by American Dream.

Having read and fully understanding this Agreement, I (we) hereby authorize the inspection and

testing of the Subject Property.

_______________________________ Date: ________________________

Client Signature

AMERICAN DREAM PROPERTY INSPECTION SERVICE

ESCROW BILLING CONTRACT

THIS IS INTENDED TO BE A LEGALLY BINDING CONTRACT,PLEASE READ IT CAREFULLY

Client acknowledges that they have read and understand all the terms, conditions and limitations of this contract and voluntarily agrees to be bound thereby and agrees to pay the fee listed according to the following terms:
Client authorizes payment to be made from funds on deposit with the escrow company at the close of escrow, and further agrees that funds will not be removed from the escrow account without payment for this inspection. If the property does not close, and the escrow company fails to release payment to American Dream, or if the account is 45 days old or older. The credit card that is imprinted at the time of inspection shall be charged for the inspection fees.

CLIENT SIGNATURE:___________________________________________

PHONE:___________________________________________

ADDRESS:_________________________________________

DATE:_____________________________________________

Call us today! 1-877-247-3732 or (619) 517-3029. Property Inspection Service