home inspection 750-819

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

"Ask me about free inspection services."

While performing an inspection of the basement, it appears there is not sufficient insulation between the wood stairs and piping from the furnace. You cannot adequately determine if this poses a potential fire hazard throughout the home unless walls are removed. what do you tell the client?

"It appears there is not sufficient insulation between the wood stairs and piping from the furnace. Walls will need to be removed to determine if this poses a potential fire hazard."

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?

"It is not appropriate for me to recommend purchasing or not purchasing the home."

A popular real estate agent contacts you and offers to include you on a "recommended services list" she gives to her clients. While there is no charge to be included on the list, she asks that you simply tell your friends and family members about her real estate agency. How should you respond?

"No thanks. It would be unethical of me to enter into such a relationship."

Home inspectors should be prepared to have which of the following documents before conducting their first inspection?

-General liability insurance -Home inspector license -General business license

Why might it be viewed as misleading to market yourself as the "best" home inspector in your community?

-It can confuse clients who might believe the designation is based on certification scores. -It is impossible to make that claim without knowing every inspector in the community. -It suggests there has been some type of formal evaluation of all inspectors.

It is acceptable to partner with a real estate agent under certain circumstances. Which of the following circumstances is NOT acceptable?

-Paying a finder's fee -Paying the agent's commission if the deal falls through -Paying no marketing fees

When reviewing home inspection findings with a client, which of the following actions should you avoid?

-Suggesting specific repairs or improvements -Recommending to the client to buy or sell the property -Sharing your opinion about the property's value

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?

No, you would be overstating the condition of the roof.

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

In person, right before you begin the inspection In person, upon conclusion of the inspection

During an inspection, you notice a ceiling fan does not work when the switch is turned on. Which of the following actions should you take?

Note the problem in the inspection report.

Which of the following activities should home inspectors engage in to build their reputations?

Participate in continuing education

A home inspector may test for which of the following?

Radon

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

12 months

When you get to the home that is to be inspected, you realize it is your cousin's home. What do you do?

Inform your client of the situation and refund their money.

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

Inspection fees are set per visit to a home.

Which of the following statements is the most important one you need to make sure your client understands?

Inspections determine the condition of the home on a particular day.

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

Acting in accordance with industry ethical standards Avoiding real and apparent conflicts of interest Making sure all transactions are legal

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?

It is false because the Standards of Practice simply establish the minimum requirements.

You learn that another inspector is working with a real estate broker to speed up the purchase of vacant homes. What should you do?

Report your suspicions to the American Society of Home Inspectors (ASHI).

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?

It is false regardless of where you include information about your fees.

What is a good rule of thumb when it comes to scheduling inspections?

Allow 2-3 hours per inspection

There are times when you may need to return to a property for a follow-up inspection. What is required of you during a re-inspection?

An update of the inspection report

Why is it important to have a business plan even if you are an independent contractor?

Because you need to manage expenses and revenue

It is not uncommon for clients to have complaints about inspections, especially after they have purchased a home and realized the cost of certain repairs. If you get a complaint from a client, how should you handle it?

Call the client to discuss the matter.

Your pre-inspection contract clearly states that you are only conducting a standard inspection and details all exclusions and limitations. Several months after purchasing the home, your client sues you because of a defect that was not included on your report.

Clients can sue you any time for any reason, but it does not mean you are liable for damages.

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?

Even though you are licensed, you should be honest and inform your client.

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?

Do not accept the offer and only provide an inspection report to your client.

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

Due diligence

How should you respond if a client asks about your professional objectivity?

Explain that you have no vested interest in the inspection outcomes.

While conducting an inspection, you notice that the furnace needs to be repaired. Your client asks about the costs of the needed repairs. Which of the following responses is appropriate?

Explain to the client you cannot give estimates for repairs you will not be making.

Which of the following statements is true about home inspectors?

Home inspectors are not legally required to offer guarantees and warranties.

Which of the following individuals is NOT a good candidate for home inspectors to establish a strategic partnership with?

Home renovator

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

Most personal policies do not cover damages that occur when you use your car for business.

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

Identification of who is responsible for what during the home inspection

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

Impunity

You are interested in buying a home when a client contacts you to inspect that exact home for them. How should you handle this situation?

Turn down the client and suggest they get another inspector.

Which of the following is the most common type of business structure for home inspectors?

Sole proprietorship

When you first meet with a client, you should NOT disclose which of the following?

That you have errors and omissions insurance

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.

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

-Attorney -Insurance agent

A client can file a dispute related to the home inspection agreement for which of the following reasons?

-Breach of contract -Negligence -Deliberate misrepresentation

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

-To provide detailed guidance to inspectors -To establish minimum inspection guidelines -To create uniform inspection and reporting outcomes

Which of the following should be included in your pre-inspection contract?

ASHI certification number

After accepting compensation from your client, the seller approaches you and offers you $100 to "soft sell" deficiencies you identify during the inspection. What is the appropriate response to this situation?

Decline the offer and suggest your client get a technically exhaustive inspection.

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?

Errors and omissions insurance

While inspecting the electrical system, you forget to close the door on the breaker box located in the basement. During an overnight storm, water gets in and short-circuits the electrical system, which requires repairs because it is an older home. Which type of insurance covers this issue"?

General liability

When resolving complaints that involve refunds of inspection fees or other compensation, what action should you always take when dealing with clients?

Have clients sign a release

Many states and municipalities allow home inspectors to offer ancillary services in conjunction with the home inspection. Which of the following examples is NOT a recommended service?

Lawn care services

Your client asks for the name of a good pest control specialist. You want to recommend your brother, who is well known and has an excellent reputation in the community. What is the BEST way to refer your client to your brother?

Make the recommendation but disclose you relationship to the specialist.

Which of the following acronyms does NOT represent a leading industry association that home inspectors should join?

NLIHC

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

Plumber Electrician HVAC specialist

With so many players involved in a home inspection, it can be confusing to know where to place your loyalties. The home inspector has the greatest responsibility to which entity?

The home

There are many reasons to join industry associations. Which is the BEST reason for home inspectors to join industry associations?

To gain credibility

There are several purposes of a home inspection contract. Which is the PRIMARY purpose of the contract?

To provide information to your client regarding what you will and will not be inspecting

As a housing inspector, you do not want people wandering around while you are reviewing the property. Should the client be present during the home inspection?

Yes, the client should always be present.

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

Yes, this is acceptable as long as both parties agree upfront.

Your best friend is a remodeling contractor. The two of you agree to refer clients to one another for a $25 referral fee. Which of the following statements is true about this situation?

You are violating ethical and professional standards.

Attending a seminar for first-time homebuyers is a good idea for several reasons. Which of the following is NOT a reason to attend such a seminar?

You can network with home improvement contractors.

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

You respond by getting permission from your client first.

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?

You tell the real estate agent that accepting the offer would not be ethical.