Question 1

When you initially draft a pre-inspection contract, who should you have review it before you begin to use it with clients?
A)Attorney
B)Insurance agent
C)Neither
D)Both

Accepted Answer

When you initially draft a pre-inspection contract, you should have both an attorney and your insurance agent review it before you begin to use it with clients. An attorney will review it to make sure you are not violating any laws and are sufficiently protected against liability concerns. Your insurance agent may suggest language to include that further limits your liability.

Question 2

While conducting an inspection, you notice a problem with the furnace but forget to include it in the inspection report. After purchasing the home, your client files a complaint against you. Which type of insurance protects you in this situation?
A)General liability insurance
B)Errors and omissions insurance
C)Homeowners insurance
D)Property insurance

Accepted Answer

While conducting an inspection, you notice a problem with the furnace but forget to include it in the inspection report. After purchasing the home, your client files a complaint against you. The type of insurance that protects you in this situation is errors and omissions. When you forgot to include the problem in the report, you "omitted" the information. That omission affected your client's ability to make an informed decision about purchasing the home.

Question 3

Is it true or false that you do not need to include the inspection fee in the pre-inspection contract if you charge a flat fee for all inspections you perform?
A)It is true if your fees are listed in your brochure.
B)It is true if your fees are posted on your website.
C)It is false regardless of where you include information about your fees.
D)It is false unless you verbally shared your fees with the client.

Accepted Answer

It is false that you do not need to include the inspection fee in the pre-inspection contract if you charge a flat fee for all inspections you perform. It is false regardless of where you include information about your fees. You can post fees on your website or list fees in your brochure. However, you still need to include them in your contract if you want to get paid and protect yourself against potential lawsuits.

Question 4

Home inspectors need to understand the Standards of Practice. What is the purpose of these Standards?
A)To provide detailed guidance to inspectors
B)To establish minimum inspection guidelines
C)To create uniform inspection and reporting outcomes
D)All of the above

Accepted Answer

Home inspectors need to understand the Standards of Practice. The Standards' purpose includes all of the above. By following these Standards, you agree to meet minimum inspection requirements. The Standards provide guidance on what is required of inspectors as well as exclusions. Clients are able to have reasonable expectations of receiving comparable inspection outcomes from any inspector who abides by these Standards.

Question 5

Upon conclusion of the inspection, your client wants your opinion on whether or not you would purchase the home. How do you respond to your client?
A)"The home is in great shape - I would make an offer today."
B)"It is not appropriate for me to recommend purchasing or not purchasing the home."
C)"I believe I could find a better home for the amount of money the seller wants."
D)"The home is a disaster - I would start looking for another property today."

Accepted Answer

Upon conclusion of the inspection, your client wants your opinion on whether or not you would purchase the home. You respond to your client by saying, "It is not appropriate for me to recommend purchasing or not purchasing the home." You want to be careful about providing any type of advice to your client that can be construed as a recommendation to purchase a home. This type of action on your part exposes you to liability claims from clients.

Question 6

A real estate agent asks you to inspect a home. She offers to double your fee if the home inspection report is favorable. You should respond by:
A)Reporting her to the proper authorities for trying to bribe you
B)Agreeing to her request and scheduling the inspection immediately
C)Declining her offer on the grounds that it violates ethical standards
D)Telling her to never call you again unless she is willing to triple your fee

Accepted Answer

A real estate agent asks you to inspect a home. She offers to double your fee if the home inspection report is favorable. You should respond by declining her offer on the grounds that it violates ethical standards. These standards are established to help home inspectors in such situations. Home inspectors should never enter into any sort of contingency arrangements in which compensation is tied to inspection outcomes.

Question 7

Your client is the prospective buyer of a home. The seller offers to pay you the same fee for the same inspection. How should you handle this situation?
A)Accept the offer and provide inspection reports to your client and the seller.
B)Accept the offer but only provide an inspection report to your client.
C)Do not accept the offer but still provide an inspection report to the seller.
D)Do not accept the offer and only provide an inspection report to your client.

Accepted Answer

Your client is the prospective buyer of a home. The seller offers to pay you the same fee for the same inspection. You do not accept the offer and only provide an inspection report to your client. It is not ethical to accept compensation from multiple parties in a situation like the one described. There is no way to avoid the appearance of a conflict of interest if you accept money from the seller once you have already received compensation from your client.

Question 8

You have a relationship with a real estate agent who offers to refer additional clients your way if your findings for a particular site are favorable to the prospective buyer. How do you handle this offer?
A)You thank the real estate agent and agree to the terms.
B)You tell the real estate agent that accepting the offer would not be ethical.
C)You report the real estate agent to the authorities for breaking the law.
D)You notify all parties and appropriate authorities of the offer.

Accepted Answer

You have a relationship with a real estate agent who offers to refer additional clients your way if your findings for a particular site are favorable to the prospective buyer.You handle this offer by telling the real estate agent that accepting the offer would not be ethical. It is important you avoid any perception of conflict of interest. It is unethical to accept any type of compensation, including referrals, from anyone who has a vested interest in the home you are inspecting.

Question 9

How long are you required to wait before you can be paid to make repairs on a home you previously inspected?
A)Three months
B)Six months
C)Nine months
D)12 months

Accepted Answer

You are required to wait 12 months before you can be paid to make repairs on a home you previously inspected. This is in accordance with the Standards of Practice established by the American Society of Home Inspectors and similar organizations. That year between inspection and repair helps alleviate any real or perceived conflict of interest.

Question 10

Although you have passed the National Home Inspector Examination and are a licensed inspector, you have limited experience with certain types of furnaces. How should this influence your actions during an inspection?
A)Since you are licensed, you need to act as though you are an expert in furnaces.
B)Given that you are licensed, you should know about every type of furnace.
C)Even though you are licensed, you should be honest and inform your client.
D)Because you are licensed, you can get an expert to inspect the furnace.

Accepted Answer

Although you have passed the National Home Inspector Examination and are a licensed inspector, you have limited experience with certain types of furnaces. This should influence your actions during an inspection. Even though you are licensed, you should be honest and inform your client. If you cannot say with certainty that a furnace is operating properly, then reflect that in your findings. You are obligated to be genuine in every aspect of the inspection process and not inflate your experience or expertise.

Question 11

While conducting an inspection, you notice the roof is missing several shingles. Is it okay to tell your client that the roofing needs to be replaced?
A)No, you would be overstating the condition of the roof.
B)No, you should only state the roofing has been compromised.
C)Yes, you can recommend replacing the roof.
D)Yes, you can recommend replacing the roof as long as refer your client to a good contractor.

Accepted Answer

While conducting an inspection, you notice the roof is missing several shingles. It is not okay to tell your client that the roofing needs to be replaced because you would be overstating the condition of the roof. It is unethical to exaggerate the condition of a component or system. You are obligated to be honest when describing conditions and recommending ways to correct deficiencies.

Question 12

The real estate agent working with your client asks to see the inspection report. What is your response?
A)You respond by giving her a copy of the report.
B)You respond by getting permission from your client first.
C)You respond by ignoring her request altogether.
D)You respond by providing a verbal summary of your report.

Accepted Answer

The real estate agent working with your client asks to see the inspection report.You respond by getting permission from your client first. It is only acceptable to disclose inspection outcomes to other parties after getting your client to sign a release stating you can share the report with those parties. Sharing inspection results under any other circumstances is unethical.

Question 13

Which of the following statements should you NOT include when marketing your services?
A)"Contact me for a free consultation."
B)"I am a licensed home inspector."
C)"Get affordable inspections here."
D)"Ask me about free inspection services."

Accepted Answer

The statement that you should not include when marketing your services is "ask me about free inspection services." Home inspectors do not provide inspections free of charge, and it is unlikely you would either. If you include that statement in your marketing materials, you must be willing to actually offer free inspections, otherwise you are engaging in deceptive marketing practices.

Question 14

Is it true or false that you should not inspect any component or system that is not specifically included in the Standards of Practice for home inspectors?
A)It is true because your insurance company will not protect you if something happens.
B)It is true because there is no reason to go above and beyond what is expected.
C)It is false because the Standards of Practice simply establish the minimum requirements.
D)It is false because you can earn more money by inspecting more components and systems.

Accepted Answer

It is false that you should not inspect any component or system that is not specifically included in the Standards of Practice for home inspectors. It is false because the Standards of Practice simply establish the minimum requirements. The purpose of the Standards is to provide basic goals that all home inspectors achieve when conducting an inspection. These Standards ensure that clients can get comparable inspections regardless of who is performing the inspection.

Question 15

The buyer and seller offer to split the inspection fee. Can you accept payment from both parties in this situation?
A)No, this is against the law.
B)No, this is a conflict of interest.
C)Yes, this is acceptable as long as the split is 50/50.
D)Yes, this is acceptable as long as both parties agree upfront.

Accepted Answer

The buyer and seller offer to split the inspection fee. You can accept payment from both parties in this situation as long as both parties agree upfront. You will need to keep both parties informed of findings since they both are your clients. Each party gets a copy of the inspection report.

Question 16

Home inspectors should not build relationships with which of the following types of technician?
A)Plumber
B)Electrician
C)HVAC specialist
D)All of the above

Accepted Answer

Home inspectors should not build relationships with any of the above types of technicians. To avoid appearances of conflict of interest, you should never recommend a specific technician to clients. It is, however, permissible to recommend a type of expert that can help a client address deficiencies found during an inspection.

Question 17

Why do home inspectors require vehicle insurance that is separate from their personal car insurance?
A)Most personal policies do not cover damages that occur when you use your car for business.
B)Most business policies provide better coverage options than personal policies.
C)It is an easier way to track costs associated with your home inspection business.
D)It is just sound business practice to have more than one policy.

Accepted Answer

Home inspectors require vehicle insurance that is separate from their personal car insurance because most personal policies do not cover damages that occur when you use your car for business. The only way to have your insurance company pay for the needed repairs is to have a policy that covers you during business activities. Home inspectors who are self-employed need this extra insurance protection.

Question 18

Which of the following actions is an example of your fiduciary responsibilities?
A)Acting in accordance with industry ethical standards
B)Avoiding real and apparent conflicts of interest
C)Making sure all transactions are legal
D)All of the above

Accepted Answer

All of the above are examples of your fiduciary responsibilities. Fiduciary responsibility involves being accountable for the rights or property of another person. As a home inspector, you have a fiduciary responsibility to your clients, to property owners, and to the home inspection industry. By taking the actions described above, you are able to meet your fiduciary responsibilities.

Question 19

Which of the following statements is true about home inspectors?
A)Home inspectors are legally required to offer guarantees.
B)Home inspectors are legally required to offer warranties.
C)Home inspectors are legally required to offer guarantees and warranties.
D)Home inspectors are not legally required to offer guarantees or warranties.

Accepted Answer

Home inspectors are not legally required to offer guarantees or warranties. Since home inspectors generally do not perform technically exhaustive inspections, it is not in their best interest to offer guarantees. With standard inspections, you are only required to inspect visible and accessible components and systems.

Question 20

Which of the following descriptions is BEST representative of contractual responsibility?
A)Identification of who is responsible for what during the home inspection
B)Identification of the individual conducting the home inspection
C)Identification of the individual who contracted the home inspection
D)Identification of the individual who owns the property being inspected

Accepted Answer

The description that is best representative of contractual responsibility is identification of who is responsible for what during the home inspection. By detailing what you will and will not do during the inspection, your contractual responsibility is further defined. The contract should indicate that the client's role is to pay your fee.

Quiz 3: Business Operations

When you initially draft a pre-inspection contract, who should you have review it before you begin to use it with clients?

While conducting an inspection, you notice a problem with the furnace but forget to include it in the inspection report. After purchasing the home, your client files a complaint against you. Which type of insurance protects you in this situation?

Is it true or false that you do not need to include the inspection fee in the pre-inspection contract if you charge a flat fee for all inspections you perform?

Home inspectors need to understand the Standards of Practice. What is the purpose of these Standards?

Upon conclusion of the inspection, your client wants your opinion on whether or not you would purchase the home. How do you respond to your client?

A real estate agent asks you to inspect a home. She offers to double your fee if the home inspection report is favorable. You should respond by:

Your client is the prospective buyer of a home. The seller offers to pay you the same fee for the same inspection. How should you handle this situation?

You have a relationship with a real estate agent who offers to refer additional clients your way if your findings for a particular site are favorable to the prospective buyer. How do you handle this offer?

How long are you required to wait before you can be paid to make repairs on a home you previously inspected?

Although you have passed the National Home Inspector Examination and are a licensed inspector, you have limited experience with certain types of furnaces. How should this influence your actions during an inspection?

While conducting an inspection, you notice the roof is missing several shingles. Is it okay to tell your client that the roofing needs to be replaced?

The real estate agent working with your client asks to see the inspection report. What is your response?

Which of the following statements should you NOT include when marketing your services?

Is it true or false that you should not inspect any component or system that is not specifically included in the Standards of Practice for home inspectors?

The buyer and seller offer to split the inspection fee. Can you accept payment from both parties in this situation?

Home inspectors should not build relationships with which of the following types of technician?

Why do home inspectors require vehicle insurance that is separate from their personal car insurance?

Which of the following actions is an example of your fiduciary responsibilities?

Which of the following statements is true about home inspectors?

Which of the following descriptions is BEST representative of contractual responsibility?