Can I Sue a Home Inspector?

Selling a house can be stressful enough with issues caused by the inspection popping up during the closing. Whether you have a good case depends on what the home inspector did and how it caused you harm. You can choose to go to a small claims court, where your compensation is limited to your state’s damages cap. There’s also the option of filing a lawsuit with a local court.

Certified home inspectors are hired by home buyers to inspect a house for defects before purchase. Buyers want to purchase a house in good repair without needing to spend additional money fixing hidden damage and defects. Sellers want to sell their house without having to rebuild the house from the ground up. Home inspectors sometimes tell both parties things they don’t want to hear before the sale closes.

Buyers can sue a home inspector if they can show that both of the following apply:

• Breached their contract or were negligent in their inspection
• The buyer suffered monetary damages as a result of the breach or negligence

Just because a home had unreported defects does not mean the inspector failed in their duties. There are many reasons why a home may have unnoticed defects. Before suing a home inspector, consider talking to a local real estate attorney. An attorney familiar with your state’s laws can review the inspection report to determine if you have a claim. If you do, they can guide you through the legal process of seeking compensation for any losses related to the inspection. 

Before You Sue Your Home Inspector

As a homebuyer, you want your home inspector to find all the flaws and defects in a house before you spend your money. It’s a common first reaction for buyers to blame the inspector for not warning them about hidden damage in a house.

If you’re the seller, you hope the sale and closing go off without a hitch. It’s tempting to blame an overzealous inspector for pointing out every possible dent and ding in the house, scaring a buyer before the sale is complete.

Before filing a negligence lawsuit, take a few minutes to review this list and decide whether proceeding with legal action is in your best interests. You may want to consult an attorney to see if what you believe is negligence is just a misunderstanding on your part, the other party’s part, or the inspector’s.

An attorney can advise you whether your case is strong enough to bring to court. You may have a legitimate claim that is more amenable to mediation or other negotiation efforts.

Review the Inspection Report

The inspection report is often long (50 pages or more), detailing everything the inspector observed and documented while on the property. Many of these reports are checklists that allow the inspector to indicate whether all seemed normal or to note any observed issues. They might also include:

• Photos, written documentation, or video of any damage
• Brands and ages of utilities, the roof, smoke detectors, gutters, appliances, etc.

If you have other notes, such as emails or texts from discussions with the inspector that contradict the findings or the scope of the inspection, they can support your case.

In general, a home inspector looks for:

• Structural issues, such as cracked or damaged floors, water damage to walls and ceilings, sagging roofs, and broken gutters
• Plumbing leaks, broken fixtures, or insufficient water pressure
• Unsafe or noncompliant electrical wiring and outlets
• HVAC systems as required by law
• Insulation, interior ventilation, presence and functionality of smoke detectors, safety of stairs, presence of handrails, and structural integrity of balconies
• Signs of pest infestation, if required by state law

Inspectors can only inspect areas of the property that are accessible and visible during the appointment. They cannot move furniture, open locked doors, or look behind paneling. Lack of access to some areas, such as attics and crawl spaces, is not uncommon.

If there is a plumbing leak behind a wall with no visible signs of water damage, the inspector will likely not detect it, and the report will not mention it. Sometimes, weather or other conditions alter what is visible and accessible.

Unless the home inspection contract specifically states it, your inspection will not include, and the inspector is not required to check or test for:

• Lead paint, asbestos, or mold: These are separate tests that require licensed or certified inspectors, which your inspector may or may not have
• Pest testing: Termites and other subterranean insects also require separate testing
• Certain situational factors: Tests for structural soundness, geological issues, or special weather features like tornado-proof walls
• Underground: Septic tank, wells, and other subsurface features

Inspectors will not comment on material defects or cosmetic choices, such as the quality of flooring or uneven stair treads, unless they pose a safety hazard. A proper report should include a section explaining any areas that were not inspected, the reasons for not inspecting these areas, and provide a recommendation for a return visit if necessary.

Home inspection reports are not pass/fail tests. A qualified inspector will not tell you whether to buy the home or not. The report only informs you of the existing defects and what needs to be repaired.

Review the Home Inspector’s Liability Waiver

You probably signed a separate liability waiver when you hired the home inspector. The contract may have contained a home inspection liability clause. A liability waiver states that the inspection is not:

• A warranty that the home is safe or in good condition
• An insurance policy on the home’s roof, leaks, or mechanical breakdowns
• A guarantee that nothing will go wrong with the home
• A complete list of the repairs you need to make
• A list of patent or known defects for materials or utilities
• All-encompassing (any areas or conditions not within the home inspection‘s scope will be spelled out in the contract and again in the report)

You may also find clauses in the contract that:

• Require arbitration or mediation instead of going to court
• Limit the compensation you can win in a court case (although some states do not permit contracts to place caps on certain kinds of damages, so these clauses may be unenforceable)
• Require you to keep the report private
• Release the home inspector from responsibility for future home failures or repairs
• “Indemnify and hold harmless” the inspector or their company
• Exculpatory clauses specifically limit the inspector’s liability, so the absence of these clauses may make your case easier to prove.

Sellers May Intentionally or Accidentally Conceal Defects

Most states have strict laws requiring home sellers to disclose all major issues and known defects to buyers and home inspectors. That does not mean they always do so. They may hide known defects during the home inspection or intentionally prevent access to areas where there are problems.

An inspector can only report defects in areas they can see or have access to during the visit. If the homeowner deliberately hid or failed to mention certain areas, the inspector may not have been able to inspect them.

It is also possible that issues may have been unknown to the homeowner and not visible to a home inspection. Leaking sinks or plumbing should be noticed by a home inspector, and sellers should provide access to open pipes or drains. However, it is possible that mold could develop behind a wall and be invisible to the owner and a standard inspection. In that case, there would be no deception and no fault on the part of the inspector.

When To Sue Your Home Inspector

State laws outline the standard of care a professional must provide a paying client. Residential real estate regulations also protect customers from poor standards of practice or intentionally incorrect home inspection reports.

You may want to have a different home inspector review the report. Another home inspector may review the report for a nominal fee, or may do so if your attorney requests it. Asking for a second opinion before filing a lawsuit can help strengthen your claim if the other inspector agrees with you. If you’ve considered the above factors and believe you have a case against your home inspector, you should consult a real estate attorney and review the next steps in your claim.

In general, you have three reasons, or “causes of action,” to sue a home inspector. Let’s take a look at each one.

Professional Negligence

Professional negligence claims often provide the strongest cases against a home inspector. To prove any negligence claim, a plaintiff must show that the defendant:

• Had a duty or responsibility to the plaintiff
• Failed (breached) that duty
• The breach was the cause of the plaintiff’s harm
• The plaintiff suffered an actual injury because of the breach

You must suffer actual physical or monetary damage in a negligence case. You cannot sue for cosmetic issues or because something “might” occur in the future if the inspector did not notice it.

Professionals, such as home inspectors, are held to a higher standard of conduct than the average person. An average person must exercise the same level of care that a reasonable person would use in a similar situation. Professionals must use the standard of care expected from someone with their level of training and experience.

If an inspector falls below this level of professionalism, that’s professional negligence. Examples of how a home inspector might be negligent include:

• The inspector hid or changed something in the house or report (exaggeration or downplaying an issue could be considered negligent)
• There were property defects that were within the scope of the inspection, visible, and accessible, but not included in the report
• The inspection was rushed, not thorough, or skipped important areas of the property

Breach of Contract

As mentioned above, the home inspection contract outlines everything the inspector should do during the property inspection. Failing to comply with all terms of the contract constitutes a breach of contract. This may include:

• The contract included a provision for repairs, but the inspector did not follow through on them
• The inspector did hire a contractor, but the problem became worse after the repair
• The contract included a provision for special testing, which the inspector did not complete (these are common breaches)

Fraud or Misrepresentation

Fraud is uncommon for a home inspector’s report. If an inspector is properly licensed and certified, they should charge a proper inspection fee and carry out the inspection under legal conditions. However, a fraud or misrepresentation claim may arise if:

• The inspector falsely claimed to be licensed as a mold or asbestos inspector
• You have evidence that the inspector was colluding with the homeowner

Your attorney can advise you about filing a fraud charge, since other agencies may be involved in such a claim.

Your Legal Options

If you and your attorney decide you have a cause of action against the home inspector, you have a number of legal alternatives. Your decision depends on the nature of the defect and your actual losses or “damages.” Things to consider when deciding on your legal options include:

Court vs. Arbitration

Your contract may determine what type of legal action you can file against your home inspector. Some contracts require alternative dispute resolution (ADR). ADR is often referred to as binding arbitration, an informal hearing with an arbitrator or neutral decision-maker. Mediation is a guided negotiation with a neutral third party.

Court options depend on the value of your claim.

• Small claims courts are limited to low-value claims. A local attorney will be familiar with the court’s capped limit. You can also inquire at a courthouse yourself. Small claims courts are good if your dispute is for a small sum and you don’t feel you need an attorney.
• If your case is complex or involves damages greater than the statutory amount for small claims, you’ll need to file in civil court. It’s a good idea to seek legal advice if pursuing a claim in civil court.

Court and binding arbitration both result in a judge making a decision based on evidence. Mediation is helpful if you and the inspector agree on the basic facts and need assistance in resolving the dispute, such as determining who is responsible for paying for repairs.

Get Legal Advice From a Real Estate Law Attorney

If you feel a home inspection report is inaccurate or that the inspector hid things on purpose, you might have a strong lawsuit. For legal advice, consult with your real estate agent and a real estate law attorney in your area. 

Your attorney will want to see all relevant documentation, including the inspection report, photos, and any communication with the inspector. With this information, they can help you understand your legal options and determine whether pursuing legal action is worthwhile in terms of time and resources.

Keep in mind that statutes of limitations set time limits for filing lawsuits, which vary by state. An attorney can advise you on the deadline that applies to your situation.