Your Pre-Inspection Agreement:Signatures

Why does the client have to sign your pre–inspection agreement before the inspection?

Signatures matter. They provide evidence that the signers agreed to the terms of the contract. When facing claims, signatures may be all you have to prove that your clients knew (or should have known) what was and wasn’t covered during your home inspection. Without signatures signifying consent and agreement, it’s just your word against your clients’.

But it’s more than just a matter of who signs the dotted line. It also matters when they sign.

There are two primary reasons why a pre-inspection agreement for home inspectors should be signed prior to the inspection: to provide more protection against claims and to preserve insurance coverage.

To protect against claims

Industry trends reveal that home inspection contracts signed after the inspection are less likely to hold up in court. In our experience, few courts will enforce an inspection agreement that imposes restrictions on a client without the client’s awareness or consent. In other words, a client agreement or contract can only limit a client’s ability to sue if both parties agree before the inspection.

For example, if you want to include a limitation of liability or arbitration clause in your home inspector contract, both you and your client must sign the home inspection agreement form before the inspection starts. A signature beforehand signals mutual agreement.

Additionally, if a client signs your pre-inspection agreement after the inspection, an attorney could argue that, since the inspection had already begun, the client was forced to sign without fully reviewing or understanding the terms. A court considers your agreement unfair to the client, they could throw out parts of your contract or discard your contract altogether.

To preserve insurance coverage

Because your pre-inspection agreement is your first line of defense, insurance carriers want it properly executed before the inspection. You’ve likely seen this on your insurance applications when they’ve asked: “Do you obtain a signed pre-inspection agreement prior to commencing each inspection from all of your clients?” They want the answer to be a resounding yes.

Without a signed agreement, defending a claim becomes difficult—if not impossible. No contract means no boundaries, meaning the clients can expect or demand almost anything. That kind of open-ended liability can make an inspector uninsurable and, subsequently, put them out of business.

Since it’s so difficult to limit liability without a contract, most carriers won’t cover claims arising from inspections lacking a signed pre-inspection agreement. Clients signing before you release their report doesn’t cut it. The inspection signature needs to happen before you start the inspection. That keeps you compliant with your insurance policy and eligible for coverage.

Want an even better understanding of why contracts need to be signed ahead of time? Read two case studies that illustrate why the timing matters.

How to get it signed—no matter what (Yes, e-signatures work too!)

As important as signed pre-inspection agreements are, some inspectors run into obstacles: last-minute appointments, out-of-state buyers, contract-wary clients, and hesitant realtors. But with the right systems in place, you can get a signed pre-inspection agreement every time.

Here are some methods to get your contract signed prior to starting the inspection no matter what.

Give your clients plenty of time.

From the first phone call, Travis McFarran of True Measure Home Inspections, LLC in Florida sets expectations: Clients must sign the agreement online before the inspection.

He explains the agreement’s purpose and importance during scheduling, then follows up with an email containing a copy of the agreement. Clients continue to receive automated reminders via email and text to sign their pre-inspection agreements until two hours before the inspection.

Get agent support.

John Maldonado of WIN Home Inspection Tracy, LLC in California encourages real estate agents to be proactive, framing the online contract signing process as a helpful service.

“I train my agents,” Maldonado said. “I explain why it’s easy for them and for the client. A lot of times, they don’t want to [encourage our clients to electronically sign before the inspection]. But after they do it, they realize how easy it is, and they don’t want to do it any other way.”

Thanks to agent support, Maldonado often receives the digitally-signed contract and payment a week before the inspection.

Obtain electronic signatures.

Many inspectors use digital signature software to simplify signing. Clients can type their name, draw it with a mouse, or select a signature style—all of which legally count as e-signatures for property inspection forms. Most platforms authenticate the signer and provide tamper-evident certificates, including timestamps and IP addresses.

You may be wondering: Do electronic signatures hold up in court? Is a digital signature legally valid for a pre-inspection agreement?

Here in the United States, the Electronic Signatures in Global and National Commerce (ESIGN) Act and the Uniform Electronic Transactions Act (UETA) make electronic contract signing just as legally binding and enforceable as ink-and-paper signatures.

However, not all insurance companies recognize digitally signed contracts as legitimate forms of consent. To verify that your insurer allows e-signatures, check how your insurance policy defines “inspection agreement” in the Definitions section. If it’s not clear, ask your provider if they accept pre-inspection agreements utilizing online document signing services.

Tom Rees of A Closer Look Home Inspection in Utah has found that using digital signatures leads to better risk management and more informed clients.

“They’ll get the inspection agreement, read it, and call me. They’ll say, ‘I didn’t realize you don’t inspect for code.’ And I explain that I’m not a code inspector [and what that means],” Rees said.

Popular tools like Inspection Support Network (ISN), DocuSign, and Adobe Sign make it easy for clients to sign agreements online. Choose what works best for your business.

Bring a copy to your inspection.

If inspection day arrives and your client still hasn’t signed, have a paper version on hand. Maldonado keeps printed copies as a backup.

“I carry copies of all of my papers in the event of something like that happening,” Maldonado said. “I’ve never used them, but for any situations that can develop, I want to be ready.”

We recommend printed copies of your pre-inspection agreement as a fallback—not a primary means of obtaining signatures. And remember: You must obtain the inspection signature before starting—not after you’ve been on the roof or started checking the windows. Before means prior to inspecting, photographing, or commenting on the house. So don’t start without your signatures.

If you don’t have a signature, reschedule.

What if your client doesn’t sign ahead of time and isn’t there at the start of your inspection? What happens if a client refuses to sign the agreement before you start?

Our advice: reschedule. Letting your contracts go unsigned—or signed after the inspection starts—isn’t worth the cost.

For an even longer list of ideas on how to get your home inspection contract signed prior to every inspection, check out these 12 ideas from your fellow home inspectors.

Manage your risk against potential claims.

Most inspectors understand the need for client agreement contracts. But are you getting your pre-inspection agreement signed 100 percent of the time—before the inspection? If not, you risk losing your insurance coverage  and facing costly legal battles.

Make the “pre” in pre-inspection agreement a priority. Ensure every client knows how to sign an agreement and why it’s important, and give them ample time to do so prior to the inspection. Getting your agreements signed before every inspection is one of the most important steps in managing your liability and protecting your business.

Want your home inspection contract to have even more of an impact? By utilizing our model inspection agreement, you can have more effective, streamlined, and cost-effective claims handling. Find out how our state-specific pre-inspection agreement templates can protect you better.

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A version of this article was published in the ASHI Reporter in September 2020. See how this story appears in print below.

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