The inspection of a North Vancouver house has led to a B.C. Supreme Court decision that could have MAJOR IMPLICATIONS FOR HOME INSPECTORS.

The B.C. Supreme Court has ordered a home inspector to pay nearly $200,000 in compensation to a North Vancouver couple for a faulty home inspection he performed.

The court found that Imre Toth of Aldergrove was negligent because he failed to inspect the entire home, and should have advised the couple to hire a structural engineer before they bought the $1.1-million house in September 2006.

Toth's estimate of $20,000 to repair the house was less than one-tenth of the actual cost of $212,000.

The couple signed an agreement with Toth that limited the inspector's liability to the cost of his service, which was $450.

But the judge found that Toth did not give the couple sufficient time to read the contract and did not do enough to highlight the clause limiting his liability.

The court ordered Toth to pay the $192,000 difference between his estimate and the final repair bill.

Another Vancouver-area home inspector not connected to the case said he has never heard of a judgment that big, and hopes it leads to tougher regulations for the inspection industry.

"The average inspector is only there for three hours or less," said Sean Wiens. "I'm of the view, and I don't represent the majority, by far, that a good inspection is a full day."

Salgado v. Toth 2009 BCSC 1515[/[/ Date: 20091109 Docket: S073646 Registry: Vancouver
http://www.courts.gov.bc.ca/jdb-txt/SC/09/15/2009BCSC1515.htm

Important Notice: [i]This information is provided as basic educational information by the author and is not a substitute for the dvice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information .

Do your Canadian Inspectors typically carry E&O? E&O with Limits Coverage high enough to cover this Judgment?

I know many here who don't, nor do they always carry Workers' Compensation.

Vermont I am not certain, but I believe that currently most Canadian jurisdiction do not require home inspectors to be licenced inspectors or to carry error & omission insurance, but that some home inspection franchises and association offer insurance to their affiliates and members, and that some home inspectors rely solely upon a disclaimer in their contracts that they are only liable to the extent of their inspection fee.


Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information .

It's interesting how so much money can be put at risk, and trust placed upon, such an unregulated profession. I am somewhat glad to hear that you've not moved ahead of us in this area. I frequently listen to Montreal Building Inspectors on the Radio talking about how much they are needed to protect the Royal Subjects from the terribly Canadian Real Estate Agents; but they never discuss their Licensing practices or minimum requirements for Insurance Coverages of different types. I was thinking that if any government would take the opportunity to create a new bureaucracy, Quebec would have done it. There must be some major resistance.

Here in Vermont, anyone can Hang out a Shingle advertising that they are a Building Inspector. It's up to the Hiring Public to ascertain what their qualifications are, or should be. As a Broker, I'm always pleased when the Buyer engages an Inspector; but if they're not covered in any way, it's really a false sence of security. When push comes to shove, the Buyer is coming after whoever can serve as a target in the Firing Zone.

$200,000 sounds like a lot (even if it is Canadian) in this particular instance. I once had a Building Inspector who was sued for failing to draw attention to a rusting Heat Exchanger in a Forced Hot Air Furnace. No one was asphyxiated or died; but it still cost him a bundle. He said that with the Settlement, Legal Expenses, and Lost Earnings, it wiped out more than DOUBLE EVERY PENNY he made performing Building Inspections over a twelve (12) year period. He doesn't do building Inspections anymore . . . . for anyone.

Tongue in cheek, I'd recommend him to be Vermont's 1st Building Inspection Commissioner . . . . were he to live so long.

I've had an inspection last LESS than 1 hour! He was recommended by my buyer's parents, so I didn't interfere, but we were in and out in 1 hour.

Although I'm not sure what could take a full day for an inspection either?