Question 1

You learn that another inspector is working with a real estate broker to illegally speed up the purchase of vacant homes. As an independent contractor, you know it is impossible for a single inspector to conduct the number of inspections reportedly completed in the identified time period. What should you do with this information?
A)Do nothing since it is none of your business.
B)Report your suspicions to the American Society of Home Inspectors (ASHI).
C)Contact local authorities about your suspicions.
D)Notify the inspector and the real estate broker that you are aware of their scheme.

Accepted Answer

You learn that another inspector is working with a real estate broker to illegally speed up the purchasing of vacant homes. As an independent contractor, you know it is impossible for a single inspector to conduct the number of inspections reportedly completed in the identified time period. You should report your suspicions to the American Society of Home Inspectors (ASHI). The inspector is clearly violating the Standards of Practice as well as the code of ethics for home inspectors. The Society will provide guidance for making a report to your local authorities.

Question 2

What do you need to tell your client about the inspection fee?
A)Inspection fees increase every few months.
B)You charge for travel costs in addition to the inspection fee.
C)You offer the lowest inspection fees in your community.
D)Inspection fees are set per visit to a home.

Accepted Answer

You need to tell your client that inspection fees are set per visit to a home. It is important your client knows upfront that if a follow-up to an initial inspection is required, an additional fee will be assessed. Always provide complete information to clients regarding your fees before they make the decision to hire you to conduct an inspection.

Question 3

What is the best way to collect the inspection fee from clients?
A)Over the phone, at the time they schedule the inspection
B)Online, at the time they schedule the inspection
C)In person, right before you begin the inspection
D)In person, upon conclusion of the inspection
E)Either C or D

Accepted Answer

The best way to collect the inspection fee from clients is either C or D. Collecting the fee in person means you do not have to get personal information from clients to process payments. You reduce your liability when you do not take payments over the phone or online. And you do not have worry about refunds if the inspection is cancelled. Another benefit of collecting payments in person is that more than likely a real estate agent will be present to witness the transaction.

Question 4

Which of the four elements is NOT associated with a claim of negligence against a home inspector?
A)Breach
B)Impunity
C)Duty
D)Causation

Accepted Answer

The element that is not associated with a claim of negligence against a home inspector is impunity. To prove negligence, a client must show that a particular action was required and the home inspector had a duty to the client to perform such action. If that is established, the client then must show that the inspector did not perform the action or breached his duty. It is then necessary for the client to prove that the breach of duty is the cause of the damages incurred.

Question 5

A home inspection is part of which of the following processes?
A)Due diligence
B)Discovery
C)Disclosure
D)Declaration

Accepted Answer

A home inspection is part of the due diligence process. Buyers have the responsibility of making sure a home is what they expect before finalizing its purchase. Just as a buyer would make sure there are no unpaid taxes they would assume if they buy a home, they want to be confident the home is safe and will not become an immediate financial drain upon finalization of the purchase agreement.

Quiz 3: Business Operations

What do you need to tell your client about the inspection fee?

What is the best way to collect the inspection fee from clients?

Which of the four elements is NOT associated with a claim of negligence against a home inspector?

A home inspection is part of which of the following processes?