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Buyer Beware: Home Inspection Liability Limitations

Buyer beware!

The South Carolina Supreme Court recently ruled that a limitation of liability of a home inspection service, which overlooked some defects in a house for sale, was legal. The buyer of the house contracted with a home inspection service to examine the home for defects and necessary repairs before purchase. The home inspection service presented the buyer with a preprinted contract. The contract limited the liability of the inspection service for overlooked defects to the amount of the fee paid by the buyer for the service (usually a few hundred dollars) even though the overlooked defects may have cost thousands of dollars to remedy. The Supreme Court ruled that the limit on liability was legal.

If you, a family member, or friend anticipate contracting with such a home inspection service or other providers, be sure to read the fine print before signing. Make sure you retain a copy of the contract for your records.

And, if you need assistance studying contract language or in counseling for other possible remedies in the event a liability limit might apply, contact Barrow Law Firm.