Question 1

A home inspection contract or agreement must include which of the following elements?
A)Limits of the inspection
B)Dispute resolution process
C)General exclusions
D)Scope of the inspection
E)All of the above

Accepted Answer

A home inspection contract or agreement must include all of the above elements. Each element is intended to provide information to the client in terms of what to expect from the home inspector. All information in the contract or agreement also serves to legally protect the home inspector against claims of poor performance. By including each of the elements, expectations should be clear for all parties.

Question 2

After delivering the inspection report to the client, you receive a call from the seller who wants a copy of the report. How do you handle this situation?
A)You discuss your findings over the phone and mail a copy of the report to him.
B)You discuss your findings over the phone but do not mail a copy of the report to him.
C)You discuss nothing with him over the phone but mail a copy of the report to him.
D)You discuss nothing with him over the phone and do not mail a copy of the report to him.

Accepted Answer

After delivering the inspection report to the client, you receive a call from the seller who wants a copy of the report. You should not discuss anything with him over the phone or mail a copy of the report to him. The inspection report belongs only to the individual who paid for the home inspection - the client. The seller, real estate agent, or other third parties have no right to the inspection report unless authorized by the client. If the client wants the report shared with another party, it is recommended the inspector remain neutral and have the client be responsible for the use of the report.

Question 3

A real estate agent contacts you and proposes a partnership so she can include your home inspection services in her marketing materials. In accordance with professional standards and the code of ethics for home inspectors, you
A)Thank her and send her your home inspection services description to include in brochures.
B)Thank her and offer to reciprocate by including her services in your business promotions.
C)Thank her but refuse because you do not want to compromise your integrity.
D)Thank her but refuse because you already have an established marketing plan.

Accepted Answer

In accordance with professional standards and the code of ethics for home inspectors, you thank her but refuse because you do not want to compromise your integrity. Home inspectors must remain impartial and have no interest in the outcome of inspections. A partnership with a real estate agent is a conflict of interest because the real estate agent wants to sell homes in order to get a commission. Similar direct or indirect relationships are a clear violation of the ethical practices required of home inspectors.

Question 4

Home inspectors are not required to test for mold or identify mold that is found during an inspection as stated under which section of the home inspection agreement?
A)General exclusions
B)Terms and conditions
C)Scope of the inspection
D)Limits of the inspection

Accepted Answer

Home inspectors are not required to test for mold or identify mold that is found during an inspection as is stated under the general exclusions section of the home inspection agreement. The scope of inspection details everything that is included in the inspection while the general exclusions list what is not included. By listing the types of inspecting or testing the home inspector will not conduct, the inspector is protected against claims of omissions.

Question 5

A client can file a dispute related to the home inspection agreement for which of the following reasons?
A)Breach of contract
B)Negligence
C)Deliberate misrepresentation
D)All of the above
E)None of the above

Accepted Answer

A client can file a dispute related to the home inspection agreement for all of the above reasons. A breach of contract may occur if the client believes the agreement, in whole or part, is not honored by the home inspection. The client may file a dispute claiming negligence or misrepresentation if an apparent problem was left out of the inspection report. Any type of misconduct or appearance of unethical behavior on the part of the inspector can result in a dispute.

Question 6

A home inspector may test for which of the following?
A)Mold
B)Radon
C)Animal infestation
D)Insect infestation
E)None of the above

Accepted Answer

A home inspector may test for radon gas. As long as the home inspector is an approved radon gas tester, it is permissible to include that test in the home inspection. Home inspectors typically charge an additional fee for this service. The service and fee would be included in the home inspection agreement. Clients do not have to purchase this optional testing service.

Question 7

During an inspection, you notice a ceiling fan does not work when the switch is turned on. Which of the following actions should you take?
A)Determine the cause of the problem.
B)Recommend an electrician who can repair the problem.
C)Make the repair yourself and bill the client.
D)Note the problem in the inspection report.

Accepted Answer

When you notice a ceiling fan does not work when the switch is turned on during an inspection, you should note the problem in the inspection report. Home inspectors are not required to determine the cause of technical problems. Under no circumstances should a home inspector recommend a specific repair technician to clients. Making any type of repair during an inspection is not only a violation of standard practices but illegal, because the homeowner has not authorized such repairs.

Question 8

When reviewing home inspection findings with a client, which of the following actions should you avoid?
A)Suggesting specific repairs or improvements
B)Recommending to the client to buy or sell the property
C)Sharing your opinion about the property's value
D)All of the above

Accepted Answer

When reviewing home inspection findings with a client, you should avoid all of the above actions. To prevent legal claims and disputes, home inspectors should never provide suggestions for specific repairs or improvements. Recommendations to buy or sell a particular property can result in legal action if the client follows your recommendation and loses money. Home inspectors are not appraisers so providing information on property valuation is not appropriate.

Question 9

While inspecting the electrical system, you forget to close the door on the breaker box located in the basement. During an overnight storm, water gets in and short-circuits the electrical system, which requires repairs because it is an older home. Which type of insurance is used to cover the damages?
A)General liability
B)Professional liability
C)Errors and omissions
D)General warranty

Accepted Answer

General liability insurance covers the damages. Home inspection general liability insurance provides coverage for the direct, as well as indirect actions, of a home inspector. Although you did not intend to cause property damage, your inaction (not closing the breaker box) resulted in property damage that the homeowner must repair. If your inaction had also resulted in bodily injury (e.g., electrocution), damages would still be covered under general liability insurance.

Question 10

Which of the following individuals is NOT a good candidate for home inspectors to establish a strategic partnership with?
A)Insurance agent
B)Real estate attorney
C)Home renovator
D)Carpet cleaning company

Accepted Answer

A home renovator is not a good candidate for home inspectors to establish a strategic partnership with. There is too much possibility for conflict of interest if an inspector partners with a home renovator. An insurance agent, real estate attorney, and carpet cleaning company have no vested interest in the outcome of a housing inspection.

Question 11

It is acceptable to partner with a real estate agent under certain circumstances. Which of the following circumstances is NOT acceptable?
A)Paying a finder's fee
B)Paying the agent's commission if deal falls through
C)Paying no marketing fees
D)All of the above

Accepted Answer

It is acceptable to partner with a real estate agent under certain circumstances, but not under any of the above. Home inspectors should pay a finder's fee to a real estate agent for referrals. It is unethical to offer to pay the agent's commission if the client does not buy the home because of the inspection report. It is a conflict of interest to accept free advertising from real estate agents who may want you to provide "good" inspection reports in exchange for the marketing opportunities.

Question 12

While performing an inspection of the basement, it appears there is not sufficient insulation between the wood stairs and piping from the furnace. You cannot adequately determine if this poses a potential fire hazard throughout the home unless walls are removed. What do you tell the client?
A)"It appears there is not sufficient insulation between the wood stairs and piping from the furnace."
B)"It appears there is not sufficient insulation between the wood stairs and piping from the furnace. I believe the lack of insulation poses a fire hazard."
C)"It appears there is not sufficient insulation between the wood stairs and piping from the furnace. Walls will need to be removed to determine if this poses a potential fire hazard."
D)"It appears there is not sufficient insulation between the wood stairs and piping from the furnace. You should not purchase this home."

Accepted Answer

While performing an inspection of the basement, it appears there is not sufficient insulation between the wood stairs and piping from the furnace. You cannot adequately determine if this poses a potential fire hazard throughout the home unless walls are removed. You should tell the client that "It appears there is not sufficient insulation between the wood stairs and piping from the furnace. Walls will need to be removed to determine if this poses a potential fire hazard." It is your responsibility to provide as much information as possible so the client can make an informed decision. However, you should not overstep your bounds by making a guess or judgment that you cannot back up with facts.

Question 13

When you first meet with a client, you should NOT disclose which of the following?
A)That you have errors and omissions insurance
B)That you have an inspection contract they must sign
C)That you will provide a final written inspection report
D)That you will not be conducting a "technically exhaustive" inspection

Accepted Answer

When you first meet with a client, you should not disclose that you have errors and omissions insurance. Your insurance is your business and not up for public scrutiny. It is possible that you might experience an increase in complaints if clients are aware of such coverage. Clients may be more willing to blame you for problems in the home after they purchase it since you have insurance.

Question 14

There are several purposes of a home inspection contract. Which is the PRIMARY purpose of the contract?
A)To provide protection for the home inspector and minimize liability
B)To provide information to your client regarding what you will and will not be inspecting
C)To provide details about the property being inspected
D)To provide documentation of the intended inspection

Accepted Answer

There are several purposes of a home inspection contract. The primary purpose of the contract is to provide information to your client regarding what you will and will not be inspecting. The client needs to understand that you will only be inspecting observable and accessible components of the home. If additional inspections are needed, it is up to them to hire professionals with the required expertise.

Question 15

As a housing inspector, you do not want people wandering around while you are reviewing the property. Should the client be present during the home inspection?
A)No, it is not necessary for the client to be present.
B)Only if the client wants to be present
C)Yes, the client should always be present.
D)Only if the homeowner permits the client to be present

Accepted Answer

As a housing inspector, you do not want people wandering around while you are reviewing property. However, the client should always be present during the home inspection. It is not necessary they walk right next to you throughout the inspection. In fact, they can remain outside while you inspect the interior.

Question 16

It is not uncommon for clients to have complaints about inspections, especially after they have purchased a home and realized the cost of certain repairs. If you get a complaint from a client, how should you handle it?
A)Call the client to discuss the matter.
B)Send a written response to the client.
C)Offer to refund their money.
D)Do nothing and hope the complaint will go away.

Accepted Answer

It is not uncommon for clients to have complaints about inspections, especially after they have purchased a home and realized the cost of certain repairs. If you get a complaint from a client, you should handle it by calling the client to discuss the matter. You may get a letter from your client's attorney. Even in that situation, it is best to make direct communication with the client.

Question 17

With so many players involved in a home inspection, it can be confusing to know where to place your loyalties. The home inspector has the greatest responsibility to which entity?
A)The seller
B)The buyer
C)The real estate agent
D)The home

Accepted Answer

With so many players involved in a home inspection, it can be confusing to know where to place your loyalties. The home inspector has the greatest responsibility to the home. You are not trying to make the seller look good or encourage the buyer to purchase the home. You have no responsibility to the real estate agent at all. Your goal is to provide as much information as possible about the home to your client.

Question 18

There are times when you may need to return to a property for a follow-up inspection. What is required of you during a re-inspection?
A)A final recommendation for the client
B)A complete walk-through similar to an initial inspection
C)An update of the inspection report
D)None of the above

Accepted Answer

There are times when you may need to return to a property for a follow-up inspection. During a re-inspection, you are required to update the inspection report. Unless stipulated in the inspection contract, you are not required to do a complete inspection of the home. Rather, you need to evaluate any changes the homeowner has made since the initial inspection. Home inspectors should not recommend that clients buy or not buy properties.

Question 19

When resolving complaints that involve refunds of inspection fees or other compensation, what action should you always take when dealing with clients?
A)Have clients sign a release
B)Refer clients to your insurance agent
C)Ignore complaints from clients
D)Offer to conduct another inspection

Accepted Answer

When resolving complaints that involve refunds of inspection fees or other compensation, you should always have clients sign a release. The release essentially prevents a client from coming back to you for additional compensation. This is common when it is unclear who is responsible for the problem the client is experiencing.

Question 20

Attending a seminar for first-time homebuyers is a good idea for several reasons. Which of the following is NOT a reason to attend such a seminar?
A)You can introduce yourself to prospective buyers.
B)You can establish business relationships with real estate agents.
C)You can network with home improvement contractors.
D)You can meet real estate bankers.

Accepted Answer

Attending a seminar for first-time homebuyers is a good idea for several reasons. Networking with home improvement contractors is not a reason to attend a seminar. It is unlikely contractors will attend homebuyer seminars. Even if they do, you should not establish formal relationships with them in your capacity as a housing inspector.

Quiz 3: Business Operations

A home inspection contract or agreement must include which of the following elements?

After delivering the inspection report to the client, you receive a call from the seller who wants a copy of the report. How do you handle this situation?

A real estate agent contacts you and proposes a partnership so she can include your home inspection services in her marketing materials. In accordance with professional standards and the code of ethics for home inspectors, you

Home inspectors are not required to test for mold or identify mold that is found during an inspection as stated under which section of the home inspection agreement?

A client can file a dispute related to the home inspection agreement for which of the following reasons?

A home inspector may test for which of the following?

During an inspection, you notice a ceiling fan does not work when the switch is turned on. Which of the following actions should you take?

When reviewing home inspection findings with a client, which of the following actions should you avoid?

Which of the following individuals is NOT a good candidate for home inspectors to establish a strategic partnership with?

It is acceptable to partner with a real estate agent under certain circumstances. Which of the following circumstances is NOT acceptable?

While performing an inspection of the basement, it appears there is not sufficient insulation between the wood stairs and piping from the furnace. You cannot adequately determine if this poses a potential fire hazard throughout the home unless walls are removed. What do you tell the client?

When you first meet with a client, you should NOT disclose which of the following?

There are several purposes of a home inspection contract. Which is the PRIMARY purpose of the contract?

As a housing inspector, you do not want people wandering around while you are reviewing the property. Should the client be present during the home inspection?

It is not uncommon for clients to have complaints about inspections, especially after they have purchased a home and realized the cost of certain repairs. If you get a complaint from a client, how should you handle it?

With so many players involved in a home inspection, it can be confusing to know where to place your loyalties. The home inspector has the greatest responsibility to which entity?

There are times when you may need to return to a property for a follow-up inspection. What is required of you during a re-inspection?

When resolving complaints that involve refunds of inspection fees or other compensation, what action should you always take when dealing with clients?

Attending a seminar for first-time homebuyers is a good idea for several reasons. Which of the following is NOT a reason to attend such a seminar?