Company Response
11/22/2021
This communication is being made to amicably resolve a disputed claim, and nothing in this letter should be construed as an admission of any liability on the part of sai.
It is my understanding that after taking possession of the property, you "went in the crawl space to see what needed to be done to repair the sump pump (since it was not working at the time)" and "discovered that many areas of the rim joists and floorboards had significant signs of rot, mold, and mildew." You submitted quotes for the removal and repair of 140 linear feet of rimboard, as well stucco removal and replacement as needed for the repair of the crawl space.
Sai provided a professional residential home inspection at the property. Home inspections are a regulated professional service in illinois. The scope of the inspection is defined and limited by the standards, limitations, exceptions and exclusions as contained in the home inspector license act, 225 ilcs 441/1-1, et seq., The standards of practice contained in 68 ill. Adm. Code
1410.200 ("standards") and the home inspection agreement you signed. Pursuant to the standards, a home inspection is "the examination and evaluation of the exterior and interior components of residential real property, which includes the inspection of any 2 or more of the following components of residential real property in connection with or to facilitate the sale, lease, or other conveyance of, or the proposed sale, lease or other conveyance of, residential real property: (1) heating, ventilation, and air conditioning system; (2) plumbing system; (3) electrical system; (4) structural composition; (5) foundation; (6) roof; (7) masonry structure; or (8) any other residential real property component as established by rule." 68 ill. Adm. Code 1410.10. A home inspector is required to "observe readily visible and accessible installedsystems and components listed as part of a home inspection, unless the system or component is limited and/or excluded under the signed written agreement with the client." 68 ill. Adm. Code 1410.200(c). Readily accessible is defined in the standards as "available for visual inspection without requiring moving of personal property, dismantling, destructive measures, or any action that will likely involve risk to persons or property." 68 ill. Adm. Code 1410.200(a)(15). Domicile is required to report on any significantly deficient systems or components identified
during the home inspection. 68 ill. Adm. Code 1410.200(e)(2). Significantly deficient is defined in the standards as "unsafe or not functioning." 68 ill. Adm. Code 1410.200(a)(21).
SAI did inspect the readily accessible portions of the crawlspace and reported the following conditions:
• No active visible seepage at time of inspection
• Damp, suggest improving ventilation
• Insulation starting to fall down
• Pump was not connected to drain pipe as discussed
Beyond the sump pump not being properly connected, there were no other visible signs of a significantly deficient condition in the crawl space. Home Inspectors are not required to identify and report on the presence of mold and other hazardous substances.
You removed insulation around the rim joists in the crawlspace and discovered evidence of wood rot and moisture damage. SAI went back to the property sand confirmed these conditions would not have been visible at time of the inspection.
Even assuming there was a deviation from the Standards, the Home Inspection Agreement contains the following paragraph related to claims against SAI:
4. INSPECTOR assumes no liability for the cost of repair or replacement of unreported defects or deficiencies either current or arising in the future. CLIENT acknowledges that the liability of INSPECTOR, its agents and/or employees, for claims or damages, costs of defense or suit, attorney's fees and expenses arising out of or related to the INSPECTOR'S negligence or breach of any obligation under this Agreement, including errors and omissions in the inspection or the report, shall be limited to liquidated damages in an amount NO GREATER THAN THE FEE PAID to the INSPECTOR, and this liability shall be exclusive. CLIENT waives any claim for consequential, exemplary, special or incidental damages or for the loss of the use of the
home/building. The parties acknowledge that the liquidated damages are not intended as a penalty but are intended (i) to reflect the fact that actual damages may be difficult and impractical to ascertain; (ii) to allocate risk among the INSPECTOR and CLIENT; and (iii) to enable the INSPECTOR to perform the inspection at the stated fee.
By operation, the above clause caps any available recovery from SAI related to the inspection services to the "cost of the inspection," which was $395.00. Although SAI denies any and all liability regarding the issues identified in your communications, I am authorized to offer the amount of $395.00 in full and final settlement of any claims related to the inspection.
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