Bad Home Inspection Recourse? (100k in repairs)

Tax, SDIRAs & Cost Segregation
7yFollow

Bad Home Inspection Recourse? (100k in repairs)

Jeffrey Bradbury
Real Estate Investor · Newtonville, MA · Member since 2014 · 22 posts · 6 votes

Hello All,

I picked up a property about a year and a half ago. I had a home inspection that missed some big structural issues. Repairs estimates are between 60k-100k. I’ve reached out to his liability insurance very early on and they ran me in circles for over a year and now they have just stopped responding. The last message they sent me was one claiming that they were going to send out someone to look at things, but that was a few months ago.

I’m struggling to find anyone in the Southborough, MA area who is willing to even look at the case. The few that I’ve spoken with tell me that it’s unlikely that they could win this type of suit – this is without even looking at anything. If this was a few grand I wouldn’t bother, but this is a lot of money for me.

Have you ever had to go after a home inspector? Any advice at all? Do you have an attorney you have used or could recommend?

Thanks In advance! 

1Reply
20 views

Most Popular Reply

Carl FischerPro Member
Rental Property Investor · Ambler, PA · Member since 2015 · 2k+ posts · 1k+ votes
7y

@Jeffrey Bradbury

What issues were missed? Were they visible? How did you find the structural problems? Why did it take a year and a half? Were the problems hidden? Was the inspector an engineer? Did his contract limit his liability to the cost of the inspection? Did you checkout the inspector credentials? Did you just take the inspector the realtor gave you? Etc?

Ask another engineer inspector to give you an opinion on what was done and what should have been done then make your decision as what to do. 

[email protected]215-283-2868
5Reply
See this reply in the discussion

25 Replies

Jump to latestLatest
  • Carl FischerPro Member
    Rental Property Investor · Ambler, PA · Member since 2015 · 2k+ posts · 1k+ votes
    7y

    @Jeffrey Bradbury

    What issues were missed? Were they visible? How did you find the structural problems? Why did it take a year and a half? Were the problems hidden? Was the inspector an engineer? Did his contract limit his liability to the cost of the inspection? Did you checkout the inspector credentials? Did you just take the inspector the realtor gave you? Etc?

    Ask another engineer inspector to give you an opinion on what was done and what should have been done then make your decision as what to do. 

    [email protected]215-283-2868
    5Reply
  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    7y

    First, if it took you a year and a half to find them, they were likely hidden.

    More importantly, most inspection contracts limit their liability to the amount of your fee.  It certainly excludes defects which are not visible without opening up walls, floors, etc.

    What Exactly is the structural problem and could it have been seen with just observation?

    Details would help.

    1Reply
  • James Mc Ree
    Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 934 votes
    7y

    The inspector agreements I've seen basically say the inspector is just someone looking at the property with no special knowledge, may miss important issues and he's not liable for that.  They disclaim everything.  Check your agreement.

    It probably depends on how obvious the problems are.  Something clearly visible walking through the rooms probably gives you a case.  Something visible only after crawling through a crawl space the inspector didn't go into might not be the inspector's liability.

    3Reply
  • Jeffrey Bradbury
    OP
    Real Estate Investor · Newtonville, MA · Member since 2014 · 22 posts · 6 votes
    7y

    @Carl Fischer

    What issues were missed? I’ve had a few contractors come in and without prompting them they were able to quickly point out all the issues that I noticed and then some.

    There are a number of issues and some of the most visible and obvious to me in hindsight were:

    Sagging floors and ceilings.

    Cracking on joists and beams.

    Sagging in a large double door entrance with cracking on the drywall above it.

    The main floor clearly arching over the pain beam that supports the house with clear separation between the hardwood.

    It didn’t take people who knew what they were doing long to tell me how much work I had ahead of me. I also brought out and architect to determine how to best tackle the problem.

    Were they visible? Very, some were event pointed out to him during the inspection and we were told they were nothing to worry about and they never made it into his report. Unfortunately, they ended up being part of a much bigger problem.

    How did you find the structural problems? I started looking into fixing the items that I was told were minor only to be told that they were in no way minor.

    Why did it take a year and a half? I reached out to the inspector and got the run around there. I then reached out to the insurance company and there were a lot of unreturned phone calls, emails, etc. I started reaching out early, but I didn’t rush the process because I wasn’t sure what the process was. I foolishly assumed that the insurance company was going to work with me and hoped I could avoid getting a lawyer involved. They pointed me to their internal lawyer and once he found out it was a big fix he then pointed me to an external law firm that handles these claims for them.

    I could write a book about my foolishness in trusting people here…

    Were the problems hidden? Many of them were visible.

    Was the inspector an engineer? Did his contract limit his liability to the cost of the inspection? Did you checkout the inspector credentials? Did you just take the inspector the realtor gave you? Etc?

    I took the inspector that the real estate agent recommended. From what I can have seen he is a legitimate home inspector with liability insurance. I have almost all of the paperwork together and there isn’t anything that I’ve seen that limits his liability. I know he was not happy because he has a $5k deductible.

    Ask another engineer inspector to give you an opinion on what was done and what should have been done then make your decision as what to do.

    I’ve spoken with other inspectors, contractors, and had a structural engineer on site and they all claim that the problems were visible and should have been caught. I’m already roughly $2000 deep in fees and will be taking this to court. I’m struggling to find someone who works in this area of law and/or has any confidence that these types of cases can be won.

    My problem is that the insurance company is not responding to me anymore and I can’t find an attorney.

    0Reply
  • Jeffrey Bradbury
    OP
    Real Estate Investor · Newtonville, MA · Member since 2014 · 22 posts · 6 votes
    7y

    @Wayne Brooks

    It didn’t take a year and a half to find them. I have been running in circles with the process and insurance company for that long. They were clear problems very early on.

    There are a number of issues and some of the most visible and obvious in hindsight were:

    Sagging floors and ceilings.

    Cracking on joists and beams.

    Sagging in a large double door entrance with cracking on the drywall above it.

    The main floor clearly arching over the pain beam that supports the house with clear separation between the hardwood. 

    0Reply
  • Jeffrey Bradbury
    OP
    Real Estate Investor · Newtonville, MA · Member since 2014 · 22 posts · 6 votes
    7y

    @James Mc Ree

    Many of the problems were visible enough for my wife and I to notice (with our new home buyer blinders on) and ask about. Anyone who I’ve bought out to look at them claims that there are obvious. It was negligence on his part. And in hindsight stupidity on mine.

    This was not an investment property and my wife and I had our new home buyer goggles on. We relied on the home inspector to do a good job. 

    0Reply
  • Mike McCarthy
    Investor · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    7y

    @Jeffrey Bradbury it sounds to me like that's definitely a case for their E&O. Though they disclaim everything in the contract, there's still an expectation of completeness.

    I’d say talk to a lawyer, but I guess it tells you something that none of them want to pursue this. It seems to me like it would be an uphill battle, but in my (non-legal) opinion, a worthwhile one.

    I think you need a lawyer to make the insurance company move. They can ignore you, but not a properly filed suit.

    Good luck!

    0Reply
  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    7y

    Well, there is no insurance here......insurance doesn’t cover structural/construction issues occurring over time, and certainly not preexisting ones.

    0Reply
  • Jeffrey Bradbury
    OP
    Real Estate Investor · Newtonville, MA · Member since 2014 · 22 posts · 6 votes
    7y

    @Wayne Brooks

    I'm talking about his liability insurance. 

    0Reply
  • Jeffrey Bradbury
    OP
    Real Estate Investor · Newtonville, MA · Member since 2014 · 22 posts · 6 votes
    7y

    @Mike McCarthy

    Yeah, you and I are on the same page. It’s definitely worth perusing… now I just need to find an attorney. 

    0Reply
  • Jared W SmithBusiness Member
    Architect · Westchester County, NY · Member since 2018 · 681 posts · 476 votes
    7y

    @Jeffrey Bradbury I am sure there's a statute of limitations and you sitting around for a year and half going back and forth is likely purposeful. After 2-3 months of no answers you should have lawyered up and went after them firmly with representation. Google or look into your local bar association and get started asap. I hope you have all your documentation readily available, detailed and time stamped. You will have to prove the conditions you stated were present at the time of purchase and didn't come about after 6 months, 1 year or just last week. 

    Hindsight is 20/20 however, if you were skeptical, you should have hired another inspector for a second opinion. What's another $200-$400 in the larger scheme of things.  

    Architect Owl PLLC521 Reviews
    WebsiteView Page
    2Reply
  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    7y

    @Jeffrey Bradbury. I just had an inspection and was reading the agreement they make you sign and it clearly states they limit their liability which means you likely have no recourse as others have said

    1Reply
  • Dennis M.
    Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    7y

    did you really need an inspector to tell you that you having sagging floors ? I’m wondering Why would you go through with the sale when Stevie wonder at night with sunglasses on could see there were issues going on . A lot of times Sagging floors are not a difficult fix neither are joist problems . You need jacks support posts and sister joists added . Not rocket science . I think you have no case and didn’t practice due diligence so now you have buyers remorse . You might as well forget going after the inspector . For one it’s been too long , for another they have like no accountability or liability on these 2 hour inspections . If it’s local * You should learn to go look yourself . The average person can be educated to inspect a house themselves and probably 9 times out of 10 do a better job .

    2Reply
  • Frank Wong
    Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
    7y
    Originally posted by @Caleb Heimsoth:

    @Jeffrey Bradbury. I just had an inspection and was reading the agreement they make you sign and it clearly states they limit their liability which means you likely have no recourse as others have said

     Boom Right here by Caleb. 

    General home inspector is not a structural engineer they cannot properly assess the home's foundation and reveal the issues that you have.   There are usually many visual indicators about a house that are small warning signs of structural issues, cracks in walls, cracks in the external foundation, sagging floors, the slope of the lot, water damage dry rot etc.

    0Reply
  • Pat L.
    Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    7y

    A young family member (pharmacist) bought a home & used a 'home inspector' recommended by the RE Agent. Bottom line was $65k in repairs that they had to have done. They paid an attorney to attempt to recover E&O, damages etc but lost. His wife just about had a breakdown, so after 36 months they sold it taking a $60k loss on the original purchase price. At no time did he bother to ask any of us in the family who have many years of REI & construction experience to look at the property before the impulsive purchase???

    5Reply
  • Carl FischerPro Member
    Rental Property Investor · Ambler, PA · Member since 2015 · 2k+ posts · 1k+ votes
    7y

    @jeffery Bradbury 

    Thank you for sharing your misfortune as others can hopefully learn from the process and the discussion. Good luck on whatever road you choose.  

    [email protected]215-283-2868
    0Reply
  • Don Gouge
    Johnson City, TN · Member since 2017 · 209 posts · 367 votes
    7y

    This brings up a bigger concept of personal responsibility and making an attempt to educate yourself. There are incompetent quacks in any profession. We can't be an expert in everything but we have a responsibility to ourselves to have a rudimentary knowledge of any subject that can have a major impact upon our lives. Prisons are full innocent people that are there because of an attorney's incompetence. Cemeteries are full of doctors' incompetent actions. Even when you are relying upon a professional, you need to trust your own common sense and gut feelings. As time goes on I become more and more amazed at the shocking level of incompetence that is present in many professions. 

    4Reply
  • Lee Bell
    Real Estate Appraiser · Isabella lake, CA · Member since 2018 · 628 posts · 491 votes
    7y

    @Pat L.

    I imagine he will never hear the end of it. lol.

    0Reply
  • Erick Miller
    Flipper/Rehabber · Mentor, OH · Member since 2016 · 14 posts · 4 votes
    7y

    @Jeffrey Bradbury

    How old is the home?

    I am an inspector and I believe we all limit our liability to the cost of the inspection

    Negligence is not disclaimed but can be hard to prove

    0Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    7y

    @Pat L.

    Of course he couldn't ask you! He has a doctorate in pharmacy! He's the smartest person in the room!

    2Reply
  • Pat L.
    Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    7y

    @Jim K. you nailed it. 

    It was amazing meeting him for the first time. He asked me to show him a property that we had just rehabbed. So he knew the level of work we were capable of. 

    On the drive there he unloaded about his wife of three weeks having just revealed she had $75k in student loans that she had NOT made payments on since graduating 3 years earlier. I asked him if he had looked past her very hot appearance & did his due diligence & had insisted on full disclosure before the nuptials. He then complained that she could not even get a cell phone or a vehicle loan because her credit was shot. Plus he had $225k in student loans. 

    Things are very different from our days of no debt, no credit cards, no checking accounts just cash & a vehicle that was older than yourself & a degree you studied for before the days of the internet, GOOGLE & calculators were not allowed in exams only slide rules.

    1Reply
  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    7y

    There are a number of issues and some of the most visible and obvious to me in hindsight were:

    Sagging floors and ceilings.

    Cracking on joists and beams.

    Sagging in a large double door entrance with cracking on the drywall above it.

    The main floor clearly arching over the pain beam that supports the house with clear separation between the hardwood.

    @Jeffrey Bradbury   And you saw this and it didnt concern you ? When something doesnt look quite right , it usually isnt . I have to place more of the blame on the buyer for not getting another opinion . Most home inspectors have NO experience in construction , they take a course , pass a test and they are a home inspector .  

    0Reply
  • Jeffrey Bradbury
    OP
    Real Estate Investor · Newtonville, MA · Member since 2014 · 22 posts · 6 votes
    7y

    Wow, this question took a turn for the worse... to answer the question that keeps getting asked.  Yes, I was concerned and did ask him to look into it further.  He looked at what I was concerned with and I trusted his professional opinion.   I made a mistake in trusting him and he made a mistakes in his inspection.  My hope in coming here was that someone would have some useful advice for dealing with the situation that I'm dealing with now.   ...it's pretty clear that things should have been handled differently. 

    0Reply
  • Jeffrey Bradbury
    OP
    Real Estate Investor · Newtonville, MA · Member since 2014 · 22 posts · 6 votes
    6y

    I wanted to update this post now that I've settled on this issue. I can't give much detail, but I can say that everything worked out great in the end. I also wanted to give a little advice for anyone in this type of situation.

    1. Bring in a second inspector, contractor, engineer, etc. and document everything (get quotes).

    2. Open a claim with the insurance company and stay on top of it.

    3. Don't give up. It took almost two years and a lot of emails, phone calls, etc. get me to this point. I almost gave up a few times because I couldn't find any good advice and I ran into a lot of negativity.

    4. If you know you're in the right, fight for yourself and don't be afraid to push back if it's not going the way you want it to.

    I know this is vague, but there isn't much more to it than that. It's my opinion that mistakes are made and this is why people carry insurance.

    Thank you for all for your responses to my post.

    0Reply
  • John Mocker
    Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
    6y
    Jeffrey, Its sounds like you feel the Insurance Company is not dealing with you in an appropriate way. You may get things jump started if you contact the State Insurance department. You may be able to open a complaint there.
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free