Home Inspector Agreements, Ethics & Liability Practice Questions
Agreements, Ethics & Liability makes up 5 of every 50 questions on a Tigertest Home Inspector practice test. Here are 10 of the 20 questions on it, each with the answer and the reason.
Updated by the Tigertest team. Based on the EBPHI content outline for the National Home Inspector Examination. Original questions; 50 per test, weighted like the real 200-question exam. Not affiliated with EBPHI.
1. A pre-inspection agreement should be signed:
- A.Within 30 days afterward
- B.Before the inspection begins
- C.When the report is delivered
- D.After payment has cleared
Answer: B. The client agrees to the scope and terms before work starts, ideally with time to read them. Signing afterward weakens the agreement.
2. The main purpose of a pre-inspection agreement is to:
- A.Waive all inspector liability
- B.Bind the seller to repairs
- C.Guarantee the home's condition
- D.Define the scope and duties
Answer: D. The agreement defines what will and will not be inspected and the rights and responsibilities of inspector and client.
3. Which item is typically part of a pre-inspection agreement?
- A.Exclusions and limitations
- B.The mortgage interest rate
- C.The home's appraised value
- D.The seller's disclosure form
Answer: A. Typical elements include scope, exclusions and limitations, limits of liability, dispute resolution and the fee.
4. A clause that sends disputes to a neutral decision maker instead of a court is:
- A.An indemnity clause
- B.A severability clause
- C.An arbitration clause
- D.A hold harmless clause
Answer: C. Arbitration replaces a lawsuit with a binding decision by a neutral arbitrator. Severability keeps the rest of a contract valid if one part fails.
5. A clause that caps the inspector's financial exposure at the inspection fee is a:
- A.Force majeure clause
- B.Arbitration clause
- C.Limitation of liability
- D.Severability clause
Answer: C. A limitation of liability clause sets the most the inspector would owe. Whether a court enforces it depends on the jurisdiction.
6. Which practice creates a conflict of interest for a home inspector?
- A.Offering to repair defects found
- B.Using a written pre-inspection agreement
- C.Photographing defects
- D.Carrying E&O insurance
Answer: A. An inspector who profits from repairs has a reason to find or inflate defects, so offering repairs on homes inspected undermines objectivity.
7. A real estate agent offers the inspector a fee for every client referred. Accepting is a problem because it:
- A.Breaks the arbitration clause
- B.Lowers the inspection fee
- C.Makes reports longer
- D.Gives a stake in the sale
Answer: D. Payments from a party who profits from the sale give the inspector a reason to soften findings, a conflict with the client's interest.
8. An inspector is asked to inspect a home in which they hold an ownership interest. They should:
- A.Keep it out of the report
- B.Disclose it or decline the job
- C.Inspect it at no charge
- D.Have the seller approve it
Answer: B. An interest in the property is a conflict. It must be disclosed to the client, and many would decline the inspection.
9. Errors and omissions insurance mainly covers claims that an inspector:
- A.Crashed a vehicle while driving to a job
- B.Missed or misreported a defect
- C.Damaged a fixture on site
- D.Was hurt on the job
Answer: B. E&O covers professional mistakes in the inspection or report. Property damage and injuries fall under other policies.
10. General liability insurance mainly covers claims that an inspector:
- A.Wrote an unclear or incomplete report
- B.Delivered the report late
- C.Missed a roof defect
- D.Damaged property during a visit
Answer: D. General liability covers bodily injury and property damage on site, such as a ceiling damaged by a dropped ladder.
Practice all 20 agreements, ethics & liability questions, and the rest of the 200-question bank, in the free Home Inspector training sets. Questions you miss come back until you have mastered them.
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