Does a homeowner have recourse when a licensed inspector misses home defects?
August 3, 2011 10:14 AM Subscribe
We had a licensed home inspector who missed several fairly significant issues with our house. Is there any recourse in cases like this?
We purchased our house a little over two years ago from a flipper. It's a 1920's era home, so we're prepared for the little cracks, dings and failure of equipment that come with an older home. The problem is that there are things that we think should have been caught as part of the inspection that were not (or were totally blown off by the inspectors) that are starting to add up.
1. On the day that we did the inspection, I pointed out that water was dripping from the inside of one of the window sills at the front of the house. The inspector went outside and took a look at it and the roof and essentially told us that there is no problem and it was probably just that we were having a strong rain that day (true). It was included as a closing clause that the owner would have someone look at it and it would be repaired. Cut to about 2 months after we moved in when the leak started again, leading to damage of the window trim, ceiling and wall. We tried to get the repair covered by the home warrantee that was part of our purchase, but they blamed faulty installation of the roof and would not cover the repair. We paid to replace shingles and do some other patching and cleaned up the damage ourselves. Now about a year later a bigger and more problematic leak has developed in an ajacent room. All are related to incorrectly installed flashing and holes that were apparently due to scaffolding they had used as part of the construction/painting of our house. I'm perfectly willing to cover the costs of a worn out roof, but damage to something like flashing that two separate and independent workmen (one a roofer and one a plumber) have said was due to recent installation and construction seems like something an inspector should have caught, right?
2. We have just been informed by a technician who came to repair our AC, that the problem is actually in our circuit breaker. At least one switch is not correct for the breaker box, but more worrying to the technician was that he thinks that there may be wiring issues with the whole panel. Again, we know that the flipper did wiring upgrades to the house, and that these were inspected while we were there with them. This is the issue I'm more worried about, since ist's a fire hazard and because it's going to be costly to fix.
I know that there was some sort of legal disclaimer written into the contract we signed with the inspector, but I'm wondering if there is any recourse for these fairly important and fairly obvious things being missed. I'm not talking about suing them for everything they're worth, but more like a partial refund of the cost of the inspection.
I'll probably contact our realtor (who recommended them) about this, just to let her know that they did miss some not subtle things. I'll also probably post a review to sites like Angie's List/Yelp with this information. Am I being unreasonable in doing so?
We purchased our house a little over two years ago from a flipper. It's a 1920's era home, so we're prepared for the little cracks, dings and failure of equipment that come with an older home. The problem is that there are things that we think should have been caught as part of the inspection that were not (or were totally blown off by the inspectors) that are starting to add up.
1. On the day that we did the inspection, I pointed out that water was dripping from the inside of one of the window sills at the front of the house. The inspector went outside and took a look at it and the roof and essentially told us that there is no problem and it was probably just that we were having a strong rain that day (true). It was included as a closing clause that the owner would have someone look at it and it would be repaired. Cut to about 2 months after we moved in when the leak started again, leading to damage of the window trim, ceiling and wall. We tried to get the repair covered by the home warrantee that was part of our purchase, but they blamed faulty installation of the roof and would not cover the repair. We paid to replace shingles and do some other patching and cleaned up the damage ourselves. Now about a year later a bigger and more problematic leak has developed in an ajacent room. All are related to incorrectly installed flashing and holes that were apparently due to scaffolding they had used as part of the construction/painting of our house. I'm perfectly willing to cover the costs of a worn out roof, but damage to something like flashing that two separate and independent workmen (one a roofer and one a plumber) have said was due to recent installation and construction seems like something an inspector should have caught, right?
2. We have just been informed by a technician who came to repair our AC, that the problem is actually in our circuit breaker. At least one switch is not correct for the breaker box, but more worrying to the technician was that he thinks that there may be wiring issues with the whole panel. Again, we know that the flipper did wiring upgrades to the house, and that these were inspected while we were there with them. This is the issue I'm more worried about, since ist's a fire hazard and because it's going to be costly to fix.
I know that there was some sort of legal disclaimer written into the contract we signed with the inspector, but I'm wondering if there is any recourse for these fairly important and fairly obvious things being missed. I'm not talking about suing them for everything they're worth, but more like a partial refund of the cost of the inspection.
I'll probably contact our realtor (who recommended them) about this, just to let her know that they did miss some not subtle things. I'll also probably post a review to sites like Angie's List/Yelp with this information. Am I being unreasonable in doing so?
Best answer: At the risk of being boring, this is a question of two possible negligence claims. Talk to your realtor, but also if you can get a free 30 minute consultation with a lawyer then you should do so.
REMEMBER WHEN I SAY THIS THAT I AM NOT YOUR LAWYER.
Claim 1 (flashing etc): The previous owner entered a contractual obligation to have this repaired. Expect the inspector to claim that any possible damage was caused by the lack of repair by the seller of the property, and the negligence was on the part of the seller. Expect the owner to claim that this wider fix could not have been reasonably expected to have been included in the repairs.
Damages you should be claiming include repair costs, time spent on the case, disruption to your daily lives etc. Don't forget to bill for your letters like the bank do.
Claim 2 (wiring): If the wiring is unsafe, it is quite possibly something that was the duty of the inspector to inform you of. You need to check local statute law, the rules of the professional body that the inspector belongs to, and local case law. It will almost certainly be hard for the inspector to claim that this was not negligent to fail to detect if he is also responsible for the electrical inspection. None the less, the inspector (or his/her insurance company) will claim the fault was non-obvious, at least at first.
From the above, it should be obvious that you need to take statements from the workmen about the damage for both claims, take photographs, then talk to a lawyer and get an opinion. If you can get one on contingency, you probably have a good case. Remember that the inspector/insurance company may offer you a settlement before any court date to avoid legal costs, and use that - the US isn't loser pays, so if you have a lawyer on contingency and they do not it's fairly low risk for you.
All that being said, I AM NOT YOUR LAWYER. YOU NEED TO TALK TO A LAWYER IN YOUR STATE.
posted by jaduncan at 10:28 AM on August 3, 2011 [1 favorite]
REMEMBER WHEN I SAY THIS THAT I AM NOT YOUR LAWYER.
Claim 1 (flashing etc): The previous owner entered a contractual obligation to have this repaired. Expect the inspector to claim that any possible damage was caused by the lack of repair by the seller of the property, and the negligence was on the part of the seller. Expect the owner to claim that this wider fix could not have been reasonably expected to have been included in the repairs.
Damages you should be claiming include repair costs, time spent on the case, disruption to your daily lives etc. Don't forget to bill for your letters like the bank do.
Claim 2 (wiring): If the wiring is unsafe, it is quite possibly something that was the duty of the inspector to inform you of. You need to check local statute law, the rules of the professional body that the inspector belongs to, and local case law. It will almost certainly be hard for the inspector to claim that this was not negligent to fail to detect if he is also responsible for the electrical inspection. None the less, the inspector (or his/her insurance company) will claim the fault was non-obvious, at least at first.
From the above, it should be obvious that you need to take statements from the workmen about the damage for both claims, take photographs, then talk to a lawyer and get an opinion. If you can get one on contingency, you probably have a good case. Remember that the inspector/insurance company may offer you a settlement before any court date to avoid legal costs, and use that - the US isn't loser pays, so if you have a lawyer on contingency and they do not it's fairly low risk for you.
All that being said, I AM NOT YOUR LAWYER. YOU NEED TO TALK TO A LAWYER IN YOUR STATE.
posted by jaduncan at 10:28 AM on August 3, 2011 [1 favorite]
Best answer: You'd need to talk to a lawyer, but the odds are against you.
For future searchers who find this thread:
Your realtor has a vested interest in you believing your house is perfect and wonderful and you will close and s/he will get paid.
ALWAYS USE AN INSPECTOR OF YOUR OWN CHOOSING. Ask friends, check Yelp, throw dice, but do not use the inspector your realtor recommends. No matter how much you like the realtor. It's a conflict of interest.
posted by Lyn Never at 10:34 AM on August 3, 2011 [7 favorites]
For future searchers who find this thread:
Your realtor has a vested interest in you believing your house is perfect and wonderful and you will close and s/he will get paid.
ALWAYS USE AN INSPECTOR OF YOUR OWN CHOOSING. Ask friends, check Yelp, throw dice, but do not use the inspector your realtor recommends. No matter how much you like the realtor. It's a conflict of interest.
posted by Lyn Never at 10:34 AM on August 3, 2011 [7 favorites]
Oh, and if you can hire another inspector as an expert witness to come around and give an opinion on what should or shouldn't have been caught in the original inspection that would be just dandy for your court case.
posted by jaduncan at 10:36 AM on August 3, 2011
posted by jaduncan at 10:36 AM on August 3, 2011
Did you pull the building permits on the house before you bought it? Were the wiring upgrades permitted? If so they're up to code. If not, get an electrician out to look at them. An A/C technician is no more of an electrician than your average inspector.
posted by IanMorr at 10:38 AM on August 3, 2011 [2 favorites]
posted by IanMorr at 10:38 AM on August 3, 2011 [2 favorites]
If you read the contract with the inspector, there is usually a lot of legalease that says no matter how badly they screw up, their only liability to you is the cost you paid for the inspection.
So, yeah, if you complain, best result if you can get the cost of the inspection back.
posted by k5.user at 10:47 AM on August 3, 2011
So, yeah, if you complain, best result if you can get the cost of the inspection back.
posted by k5.user at 10:47 AM on August 3, 2011
Seconding k5.user. After several tradesmen over the years commented on the exposed vent pipe in the yard and the abandoned supply line coming into the basement, we finally had OUR BURIED OIL TANK IN THE YARD removed. Several thousand dollars and the inspector's warranty had expired so we got bupkus from him for missing this.
We did make sure to inform the person who recommended him to us of his incompetence.
posted by stupidsexyFlanders at 11:00 AM on August 3, 2011
We did make sure to inform the person who recommended him to us of his incompetence.
posted by stupidsexyFlanders at 11:00 AM on August 3, 2011
"At least one switch is not correct for the breaker box, but more worrying to the technician was that he thinks that there may be wiring issues with the whole panel. Again, we know that the flipper did wiring upgrades to the house, and that these were inspected while we were there with them. This is the issue I'm more worried about, since ist's a fire hazard and because it's going to be costly to fix. "
Check the report your inspector gave you. Inspectors usually include some thing to the effect of "Electrical system does not meet current code. Advise hiring electrician to verify safety" if there is even the slightest irregularity. If your report includes weasel language and you didn't hire an electrician you'll probably be out of luck.
posted by Mitheral at 11:29 AM on August 3, 2011
Check the report your inspector gave you. Inspectors usually include some thing to the effect of "Electrical system does not meet current code. Advise hiring electrician to verify safety" if there is even the slightest irregularity. If your report includes weasel language and you didn't hire an electrician you'll probably be out of luck.
posted by Mitheral at 11:29 AM on August 3, 2011
The compensation is probably limited to the amount you paid them. My BiL got a bad inspection and I think he ended up paying for some repairs -- and he only ever got the cost of the inspection service back.
Despite their popularity, I find these guys to be pretty scammy, because there's really no scructure to their industry other than some state-specific paperwork.
posted by wenestvedt at 11:52 AM on August 3, 2011
Despite their popularity, I find these guys to be pretty scammy, because there's really no scructure to their industry other than some state-specific paperwork.
posted by wenestvedt at 11:52 AM on August 3, 2011
Response by poster: Thanks for all the input so far. This is helpful. We are in Maryland if that makes any difference.
posted by goggie at 12:08 PM on August 3, 2011
posted by goggie at 12:08 PM on August 3, 2011
Best answer: Having gone part-way down this road -- I want to throw out that one thing to consider is how much you enjoy dealing with the stress that dealing with a lawyer [et cetera] will create. You have an old house, it's going to be a bit of a money pit, that's going to tie up time and finances no matter what; think carefully about how much your time and emotional well-being is worth. If you do speak with an attorney and he or she is enthusiastic about pursuing it, great; go home and sleep on that, and consider how worth the hassle it all is. I opted not to go after my crap inspector or sleazy seller, and am somewhat poorer for it, but it did mean that my house was not such a locus of stress.
Do get a real electrician in, and do mention the bum referral when you are Yelp/etc reviewing the estate agent as well.
posted by kmennie at 12:27 PM on August 3, 2011 [3 favorites]
Do get a real electrician in, and do mention the bum referral when you are Yelp/etc reviewing the estate agent as well.
posted by kmennie at 12:27 PM on August 3, 2011 [3 favorites]
Falwless - Yes, that's precisely the point of Holmes Inspection and other similar TV shows. Buyer Beware. The inspector isn't responsible for anything he sees or doesn't see. (I could go off on another rant about why I don't think that everyone is intended to be a homeowner, especially if they haven't educated themselves ahead of time or sought out a knowledgeable friend or family member to guide them in which inspections to get and how to handle the sale...)
posted by SpecialK at 2:35 PM on August 3, 2011 [1 favorite]
Ask friends, check Yelp, throw dice, but do not use the inspector your realtor recommends. No matter how much you like the realtor.The only corollary that I have to this is that you can use the same inspector your realtor suggests if you were already going to use that inspector. That happened to me. I will add that you should pay your inspector by check the day of the inspection.
posted by SpecialK at 2:35 PM on August 3, 2011 [1 favorite]
This is anecdotal and possibly only applicable in Michigan, but I remember my boss buying a $350,000 home in West Bloomfield in the early 1990s and paying an independent inspector (who was so knoweledgable in his trade that he was later hired by the Detroit Free Press to write a weekly column about home buying) a hefty fee before he signed the final papers. The inspector had given the house a clean bill of health, but about two months after Boss moved in his basement flooded after a heavy rain and the sump pump turned out to be not operational. These were things the inspector either missed or did not make note of. Boss initiated a lawsuit against the inspector (and Boss had deep pockets and a very good attorney) but ultimately got nowhere due to this legal loophole or that. I never understood the details, but somehow the inspector was protected from fault.
posted by Oriole Adams at 3:23 PM on August 3, 2011
posted by Oriole Adams at 3:23 PM on August 3, 2011
Response by poster: Thanks again, all. We did ask for recommendations for the inspector from the realtor and from other friends who had made recent purchases, but did also research the company (and several others) before contracting with them. They were paid on the day of the inspection and we were present for the whole thing, along with our realtor, who was actually asking questions and pointing out concerns right along with us (I really don't fault her in this, she was very helpful and guided us beautifully through several other snags with our mortgage broker). I'm not sure it's worth pursuing this with an attorney. We have a licensed (and highly recommended) electrician coming in to evaluate the situation and I guess we'll go from there.
posted by goggie at 5:28 PM on August 3, 2011
posted by goggie at 5:28 PM on August 3, 2011
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posted by griseus at 10:18 AM on August 3, 2011 [1 favorite]