INSPECTION AGREEMENT with ARBITRATION CLAUSE

AAA Home Inspections LLC      Web Site: www.aaa-inspect.com

Name of Client:    Inspection Fee:   $40.00 / Hour

Inspection Address:    Inspection Date:

AN AGREEMENT, entered into on (Today's Date:)  between the above named (Client) and AAA Home Inspections LLC (the Company).  The Client will receive a Full Report (all systems), or, will receive a Partial Report (limited systems), which will identify deficiencies for the purpose of assisting the client:

A.   To decide if the quality of the house, as priced, meets their expectations.

B.   To negotiate with the seller in regard to necessary repairs.

C.   To understand any ongoing issues that are discovered in the house. 

INSPECTION & DUTIES  The Company agrees to conduct a limited visual inspection of the Property in accord with the Standards of Practice of the American Society of Home Inspectors (ASHI), viewable at www.ashi.org, and will report the findings in accord with the Client’s needs. The Client agrees to read the entire Inspection Report when received and to promptly call the Company with any questions or concerns regarding the Inspection or Inspection Report.  The Client also agrees that if the Company recommends further evaluation of a condition (or deficiency), that the Client will do so before the end of any inspection contingency and real estate closing. 

LIMITATIONS & EXCLUSIONS  The Client agrees that the following list of items and deficiencies will NOT be part of the Inspection:  termites, wood destroying insects, rodents, septic tanks & drain fields, private water wells, swimming pools, hot tubs, low voltage systems, irrigation systems, sewage grinder pumps, marine docks, furnace heat exchangers, seismic safety, security systems, latent or concealed defects, compliance with building codes, soil stability, engineering services, radon (unless requested), lead, asbestos, formaldehyde, Chinese drywall, PCBs, mold, odors, noise, water or air quality, toxic or flammable chemicals, electro-magnetic fields, underground storage tanks, yard hazards, and any other limitations and exclusions listed in the ASHI Standards of Practice, viewable at www.ashi.org.

DISCLAIMER OF WARRANTY  The Client agrees that the Inspection and Inspection Report do not constitute a/an: (1) guarantee, (2) warranty of merchantability or fitness for a particular purpose, or (3) insurance policy of any kind in regard to, but not limited to, such items as roof leaks, wet basements, wet crawlspaces, termite damage, mechanical breakdowns, or structural inadequacies, AND, is not a substitute for the Tennessee Residential Property Condition Disclosure. 

NOTICE & STATUTE OF LIMITATIONS  The Client agrees that any claim for breach of contract be made in writing within ten (10) business days of discovery, AND that the Company be allowed to re-inspect the claimed discrepancy before any alterations or modifications, AND that any legal action be brought within one (1) year from the date of the Inspection, AND that failure by the Client in regard to these requirements constitute a waiver of all claims.

LIQUIDATED DAMAGES – LIMITED LIABILITY CLAUSE  The Client agrees that if the Company is actually in breach of contract, that the Company’s liability for any claim is limited to FOUR TIMES the fee paid for the services (if permitted by state law), and that the Company will be released from any additional liability based on contract, tort, or any other legal theory.

GOVERNING LAW & SEVERABILITY  The Client understands that this agreement shall be governed by Tennessee state law, and that if a portion of this agreement is found to be invalid or unenforceable by any court or arbitrator the remaining terms shall remain in force between the parties.

ENTIRE AGREEMENT & MODIFICATION  This Agreement constitutes the entire agreement between the parties, and supersedes any prior agreements, whether written or oral.  Any variance must be agreed to in writing and signed by both parties.

ALTERNATIVE DISPUTE RESOLUTION – ARBITRATION CLAUSE  The Client agrees that any dispute or claim against the Company shall be submitted to Mediation-Arbitration, according to the rules of the American Arbitration Association, www.adr.org, with an entry of judgment.  The Client understands that they are forfeiting the right to trial by court, and have agreed to resolve disputes by Med-Arb.  See AAA Real Estate Industry Arbitration RULES at www.adr.org/sp.asp?id=22011. 

Agree to Arbitration Clause - Client's Initials:    (Initials Required in Tennessee)

     By checking here   you Authorize the Distribution of the Report to involved Realtors, Sellers, and Contractors.

     List of Systems, If a Partial Report is Requested (Or Additional Services - Such as Radon Monitoring): 

I hereby Authorize the Inspection of this Property having Read and Understood this Agreement:

Your Full Name + Your E-Mail:  

Your Mailing Address + Contact Phone:   

Authorization by The Inspector:   James F. Wells Jr    AAA Home Inspections LLC

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