California Home Inspections

• California law describes a home inspection as a noninvasive examination of a property's condition, in exchange for a fee, for the purpose of a property transfer. The inspection should assess the property's mechanical, electrical, plumbing and structural condition for material defects. The home's style or decorative touches are not considered part of the property's condition; only the components that affect the home's safety and habitability are relevant.
  
  

When Problems Occur

• The California law also states that there is a statute of limitations regarding the amount of time that a home inspector can be held accountable for failing to disclose a home's material defect on the property condition report. Simply put, if a material defect is found in within four years from the date of the inspection, then the home inspector is liable for damages. The California law does not specify how the damages are remedied by the inspector.
  
  

Substitute Disclosure

• In 2001, section 7195 was adjusted to reflect updated home inspector rules. Beginning in 2001, buyers can ask for inspectors to report on a home's energy efficiency. The update also includes a statement that relieves agents and sellers of liability by bringing in a substitute inspector to provide an opinion on their area of expertise, thereby bypassing the home inspector report.
  
  

Repairs, Kickbacks and Referral Fees

• The legislation also prohibits home inspectors from performing repairs on an inspected home within 12 months of the inspection date. In addition, home inspectors are prohibited from taking a payment from an interested party that may appear to affect the property condition report, or to accept a referral fee from a real estate agent. Home inspectors who violate these rules may be subject to penalties established by their employers, or may find themselves the subject of a lawsuit.