Agent Sued for Hiring Unlicensed Home Inspector

By Lisa Scoble posted 15 days ago

  

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The Situation
 
A real estate agent was hired to represent a buyer in the purchase of a multi-million dollar home. Numerous structural and material defects were found following the purchase of the property. The buyer demanded the agent pay for the repairs.

 

The Problem
The agent recommended a local home inspector to inspect the home.

 

The Mistake
The agent didn’t provide a list of licensed home inspectors for the buyer to pick from, and the one he recommended wasn’t licensed


The Result

Most of the damages incurred were related to construction defects, but the agent incurred high legal costs defending this matter. The buyer stated they would have never purchased the property if the construction and material defects were found during a proper home inspection.

 

Prevention
Always provide a list of licensed professionals/home inspectors for a buyer to utilize. Some states are now requiring an agent to recommend licensed home inspectors. If the buyer forgoes these inspections, document in writing and obtain a waiver. In this case, the agent never gave the buyer an option.

 

This article was produced in conjunction with XL Catlin and is not to be taken as legal advice.

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Comments

10 days ago

Thank you for this helpful reminder to always offer a choose of vendors to our clients.