Southern Home Inspection LLC Contract Agreement (must be signed prior to inspection)
RESIDENTIAL INSPECTION AGREEMENT
NOTE – THIS IS A LEGAL CONTRACT THAT DETAILS THE RIGHTS AND OBLIGATIONS OF THE
PARTIES. PLEASE READ ALL PAGES CAREFULLY
This Agreement is between Southern Home Inspection LLC and the client that electronically signs the Agreement below.
The property address and the fee is stated in the email that provided the link to sign this Agreement.

SCOPE OF SERVICES PROVIDED

SCOPE OF THE INSPECTION: A home inspection is a noninvasive, visual observation and operation of the
accessible systems and components of real property, including buildings and other improvements. Its
purpose is a) to identify conditions that, in the professional opinion of the Inspector, are significantly
deficient or b) to identify systems and components that are at the end of their service lives.
The Inspection is strictly limited to the examination of readily accessible, installed systems and
components of homes by using normal operating controls and opening readily operable access panels,
where applicable, of the following components of the Property: structure, foundation, exterior, roof,
attic, major mechanical systems (heating, air conditioning, electrical, and plumbing), built-in appliances,
and interior (floors, ceilings, walls, windows, and doors). All components will be inspected pursuant to
the Standards of Practice set forth for Home Inspectors by the Alabama Building Commission as
contained in the Alabama Administrative Code 170-X-25-.01. Where multiple instances of the same
component exist, a representative number shall be inspected. The observations of conditions are limited
to those areas of the home 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. Any additional services outside the list of components in this contract or in those rules
must be specifically agreed to in writing between the Inspector and the Client.
The Inspector will prepare and provide the Client with a written report for the sole use and benefit of
the Client. The written report shall document any significantly deficient condition in the Property’s
systems and components. A significantly deficient condition is a condition that, in the reasonable
judgement of the Inspector, is not functioning properly or is judged to be a significant risk of personal
injury during normal, day-to-day use. However, the fact that a system or component is near, at, or
beyond the end of its normal service life is not, in itself, a deficiency in the system or component.

Nothing in the report and no opinion of the Inspector should be construed as advice to the Client to
purchase, or not to purchase, the Property, or serve as a prediction of future conditions or the value of
the Property. Further, any descriptions of deficiencies of the Property should not be interpreted as
estimates for the costs of repairs to any system or component of the Property.
CLIENT'S DUTY: The Client understands and accepts that the Inspection and report, in accordance with
this Agreement, are intended to reduce, but cannot eliminate, uncertainty regarding the condition of
the Property. The Client is responsible for reviewing the permit history and for researching any legal
actions or insurance claims involving the Property.
The Client agrees to read the entire written report when it is received and to promptly contact the
Inspector with any questions or concerns regarding the Inspection or written report. The written report
shall be the exclusive findings of the Inspector. Verbal representations not recorded within the
Inspection report are not part of the Inspection.
The Client acknowledges that the Inspector is a generalist and that further investigation of a reported
condition by an appropriate specialist may provide additional information on the condition of the
Property. Should the Inspector's report reveal any additional conditions that require further
investigation or repair, the Client agrees that any further evaluation, inspection, and repair work needs
to be provided by competent and qualified professionals who are licensed and/or certified to perform
the work.
In the event the Client becomes aware of a reportable condition not contained in the written inspection
report, the Client agrees to promptly notify the Inspector and allow the Inspector and/or the Inspector's
designated representative(s) to inspect said condition(s) prior to making any repair, alteration, or
replacement. If the Client fails to so notify the Inspector and fails to allow an additional inspection, then
any costs of such repairs, alterations or replacements will be entirely at the Client’s cost without
recourse against the Inspector.
LATENT DEFECTS: The Client agrees that the Inspection is not a technically exhaustive investigation or
evaluation of every aspect of the Property. The Client acknowledges and agrees that the Inspection and
the written report will not reveal every existing deficiency and future condition affecting the Property.
The Inspector is not responsible for the non-discovery of any latent defects of the Property or any
problems that may occur or become evident after the date of the Inspection. Latent defects of the
Property include, but are not limited to: cracking, leaking, surface dislocations, or landslides resulting
from, without limitation to, water leaks, land subsidence, or other geological problems. The Inspector is
not responsible for any defects that may manifest themselves in the future, any structural failures that
may occur in the future, or damages that result from future repairs.
COMPLIANCE WITH BUILDING CODES: Consistent with the scope of the Inspection, as provided in this
Agreement, the Inspector will identify items that may present a health or safety issue. However, the
Inspector will not provide an opinion on compliance with any particular building code.
INSURABILITY: The Client understands that the Inspection will not determine the insurability of the
Property. Insurance companies have different underwriting criteria, and the Inspector cannot be
expected to determine how a particular system or component may affect insurability.
ENVIRONMENTAL AND HEALTH CONDITIONS: The Client agrees that the Inspection is not intended to
detect, identify, or disclose any health or environmental conditions regarding the Property, including,
but not limited to the presence of: asbestos, radon, lead, or urea-formaldehyde; wood destroying

organisms, fungi, molds, mildew, feces, urine, vermin, pests, or any animal or insect; drywall that may
have been manufactured with contaminated materials (including carbon disulfide, carbonyl sulfide and
hydrogen sulfide), polychlorinated biphenyls (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.
If the Client wishes to have an inspection for any specific health or environmental condition, that must
be covered by a separate addendum to this Agreement.
In addition to the above limitations on the scope of services, the Inspection will not include any
engineering or architectural analysis. The report will not offer any opinion about the adequacy of the
structural systems and components of the Property.
RE-INSPECTION OF COMPONENTS: In the event that the Inspector is asked by the Client to re-inspect a
component or condition that has been repaired, the Inspector’s scope of re-inspection will be limited to
the components or conditions identified. The Inspector will not be responsible for any changed
conditions in other components or conditions since the date of the original Inspection. Any re-inspection
of repaired components or conditions will not determine if the repair is adequate, proper, or compliant
with current building codes. Any re-inspection will only determine if visually identifiable deficiencies still
exist.

LIMITATION OF LIABILITY

THE FOLLOWING CLAUSE LIMITS THE LIABILITY OF THE INSPECTOR – PLEASE READ CAREFULLY
THE CLIENT AGREES AND UNDERSTANDS THAT THE INSPECTOR IS NOT AN INSURER AND IS NOT
WARRANTING OR GUARANTEEING THE ADEQUACY, PERFORMANCE, OR LIFE EXPECTANCY OF ANY
STRUCTURE, ITEM, COMPONENT, OR SYSTEM OF THE PROPERTY. THE CLIENT FURTHER AGREES THAT, IF
THE INSPECTOR OR ANY OF THE INSPECTOR’S AGENTS, EMPLOYEES, SUBCONTRACTORS, OFFICERS, OR
SHAREHOLDERS ARE FOUND LIABLE FOR ANY LOSS OR DAMAGE DUE TO NEGLIGENCE OR THE FAILURE
TO PERFORM THE INSPECTOR’S OBLIGATIONS IN THIS AGREEMENT, INCLUDING THE IMPROPER OR
NEGLIGENT PERFORMANCE OF THE INSPECTION OR THE IMPROPER OR NEGLIGENT REPORTING OF
CONDITIONS OF THE PROPERTY, THE INSPECTOR’S MAXIMUM LIABILITY SHALL BE LIMITED TO TWICE
THE AMOUNT OF THE PAID INSPECTION FEE. THIS LIMITATION SHALL NOT APPLY TO ANY DAMAGES
SPECIFICALLY ALLOWED BY STATUTE.
THIS LIMITATION OF LIABILITY SPECIFICALLY COVERS LIABILITY FOR: DAMAGED PROPERTY, LOSS OF USE
OF THE PROPERTY, LOST PROFITS, CONSEQUENTIAL DAMAGES, SPECIAL DAMAGES, INCIDENTAL
DAMAGES, GOVERNMENTAL FINES AND CHARGES, PUNITIVE DAMAGES, ATTORNEY’S FEES, AND COURT
COSTS.
AT THE CLIENT’S OPTION, A COMPREHENSIVE INSPECTION WITHOUT LIMITATION OF LIABILITY IS
AVAILABLE. A COMPREHENSIVE INSPECTION INCLUDES A CONTRACTOR, ENGINEER, AND ARCHITECT
REVIEWING THE PROPERTY FOR A MINIMUM FEE OF $2,500 (REQUIRES QUOTE). A COMPREHENSIVE
INSPECTION REQUIRES A SEPARATE CONTRACT.
THIS LIMITATION OF LIABILITY SHALL NOT APPLY TO ANY DAMAGES CAUSED BY THE GROSS NEGLIGENCE
OF THE INSPECTOR IN THE PERFORMANCE OF THE INSPECTOR’S OBLIGATIONS IN THIS AGREEMENT.

RESOLUTION OF DISPUTES

Any controversy or claim arising out of or relating to this Agreement shall be resolved through Small
Claims Court (or similar court of limited monetary jurisdiction) in the jurisdiction applicable to this
Agreement. In the event that the amount in dispute exceeds the jurisdiction of the applicable Small
Claims Court, the dispute shall be settled by binding arbitration administered by Construction Dispute
Resolution Services, or if unavailable, Resolute Systems, before a single arbitrator using its Commercial
Arbitration Rules. The arbitrator shall have at least three years of knowledge and experience in the
home inspection industry or similar knowledge and experience in construction. Each party agrees to pay
its own costs of arbitration.
Any legal action or proceeding shall be brought in the County in which the Property is located.

ENFORCEMENT FEES AND COSTS

Any party failing to follow the RESOLUTION OF DISPUTES process identified above, shall be liable for all
fees and costs associated with compelling or enforcing compliance with the RESOLUTION OF DISPUTES
process.

TIME TO INITIATE ACTION

Any action regarding or arising from the condition of the Property and the Inspection and/or the written
report must be filed and initiated by the Client no later than one (1) year following the date of the
Inspection. Otherwise, the claim will be barred. If the matter is in arbitration, the arbitrator will be
bound by the terms of this paragraph as a limitation on the arbitrator's ability to render an award in
favor of the Client.

NO WARRANTIES OR GUARANTEES

The Inspection and the written report are not intended, nor shall they be used or treated by the Client
or anyone else, as a guarantee or warranty expressed or implied, regarding the adequacy, performance,
or condition of any aspect of the Property. The Client acknowledges and agrees that the Inspector is not
an insurer of any inspected or non-inspected conditions of the Property.
RELIANCE BY THIRD PARTIES

The Client agrees and understands that the Inspection report provided to the Client under this
Agreement is solely for the Client’s exclusive use in evaluating the physical condition of the property. No
representation is made by the Inspector as to the value of the Property.
If anyone other than the Client relies upon the inspection report, that person agrees to be bound by all
of the terms and conditions in this Agreement.

ENTIRE AGREEMENT AND SEVERABILITY OF PROVISIONS

This Agreement contains the entire Agreement between the Client and the Inspector. This document
supersedes any and all representations, both oral and written, among the parties. This Agreement may
be modified, altered, or amended only in writing and having been signed by both the parties. Any
provision of this Agreement which proves to be invalid, void, or illegal shall in no way affect, impair, or
invalidate any other provision of this Agreement, and all such other provisions shall remain in full force
and effect.

You may not assign this Agreement. If there is more than one Client, you are signing on behalf of all of
them and you represent that you are authorized to do so for all Clients and/or intended beneficiaries.
The provisions of this Agreement will be binding upon any party that takes title to the Property with
the Client or claims title to the Property through the Client.

Client: (Agreement will be emailed to client when inspection is scheduled and must be electronically signed prior to inspection)

Inspector:
Jerry Kelly
HI-4023