ALLSPEC
PROPERTY INSPECTION AGREEMENT

Pursuant to this Property Inspection Agreement (this “Agreement”), in consideration for the inspection fee paid, ALLSPEC (the “Inspector”) agrees to conduct an inspection of the Property for the purpose of informing the Client of major deficiencies in the condition of the property and of certain improvements located on the Property described above. The written report produced by the Inspector regarding the Property is the confidential property of the Inspector and Client and shall not be copied, reproduced, used by, transferred to, or relied upon by any other third party, person or company, without both the Inspector’s and Client’s prior written consent.

1. SCOPE AND PURPOSE OF INSPECTION.

a. Inspector will conduct a visual inspection of the Property only. Inspections are done in accordance with Texas Real Estate Commission (TREC) Standards of Practice, are visual, and are not technically exhaustive. The Inspector will not dismantle, bore, pry, or otherwise invade any physical structure or mechanism. This is not a Building Code Inspection, title examination, nor a Bylaw compliance inspection. The Inspector does not offer an opinion as to the advisability or inadvisability of the purchase of the property, its value or its potential use. The purpose of this one-time inspection is to identify and disclose visually observable major deficiencies of the inspected systems and items at the time of the inspection only. The inspection fee is based on a single visit to the property; additional fees may be charged for any subsequent visits required by the Client. At any time within thirty (30) days after delivery thereof to Client and without any liability to Client, Inspector reserves the right to change, modify or amend the report to correct or supplement the same due to later review of field notes, repairs or discovery of inadvertent omissions. If the Inspector is called upon to prepare for litigation or give testimony as a result of the inspection, additional fees shall be charged at the Inspector’s then current hourly rate for any time spent, including, but not limited to, research, consultation, additional inspection time, preparation of reports, travel, time waiting to testify, and court appearances.

b. The Client will receive a written report of Inspector’s observations of the accessible features of the Property. Subject to the terms and conditions stated herein, the inspection includes the visual examination of the home’s exterior including roof and chimney, structure, electrical, heating and cooling systems, insulation, plumbing, and interior including floors, walls, ceiling and windows; it is a reasonable effort to disclose the condition of the house based on a visual inspections. Additionally, Inspector will functionally operate major built-in appliances. The Client acknowledges that the Inspector will not observe every square inch of the Property and therefore the Inspector could fail to see a defect. Conditions beyond the scope of the inspection will not be identified. No engineering services are offered. It is the Client’s sole responsibility to ensure that all utilities are turned on, all breakers turned on, water and fuel valves open, all pilot lights are lit, and that all rooms, crawl spaces, attics and panel boxes are open and accessible prior to the inspection.

c. The following items are not covered in the scope of the inspection: Any area that is not exposed to view, is concealed, or is inaccessible because of soil, walls, wall coverings, floors, floor coverings, ceilings, insulation, furnishings, stored items, built-in cabinets or shelves, etc., or those areas/items that have been excluded by the TREC standards, as well as detached buildings, fences and gates, landscaping, elevators, lifts, dumbwaiters, media equipment, central vacuum systems, telephone equipment, security equipment, intercoms, water treatment devices, thermostatic or time clock controls, radiant heat systems, solar heating systems, furnace heat exchangers, alarm systems, draperies, blinds, shutters, hardware, formica, marble, tile floors, wall coverings, air conditioning systems when outside temperature is below sixty (60) degrees, refrigerant and condensate leaks, drains, sprinkler systems in automatic mode or when outside temperature is below thirty-two (32) degrees, landscape lighting, sewer lines, septic systems, water wells, solar heating systems, water conditioning systems, pools, spas, and low voltage lighting. Inspector will not conduct geological tests. Inspector examines a representative sample of components that are identical and numerous, such as electrical outlets, bricks, shingles, windows, etc., and does not examine every single one of these identical items, therefore, some detectable deficiencies may go unreported. The inspection and report do not address, and are not intended to address, code and regulation compliance (all code references are for educational purposes only), the possible presence of or danger from asbestos, radon gas, lead paint, urea formaldehyde, soil contamination, microwave radiation, electromagnetic fields, microbiological organisms and other indoor and outdoor substances, mold, mildew, underground storage tanks, proximity to toxic wastes, zoning ordinances, flood plain location, geological stability of soils, wood destroying insects, rodents, dry rot, fungus, or household pests. Client is urged to contact a competent specialist if information, identification, or testing of the above is desired. Many homes have excessive moisture issues that might lead to mold growth, but the ability to detect the presence of mold is beyond the scope of this inspection. If you are concerned about the presence of mold, you are strongly urged to consult with a qualified professional microbiologist or mold inspector prior to purchasing the Property. Inspector is not required to inspect areas which may contain, in Inspector’s sole discretion, materials hazardous to the health and/or safety of the Inspector’s personnel.

2. NO WARRANTIES OR GUARANTIES.

CLIENT IS HEREBY NOTIFIED THAT THE INSPECTOR HAS NOT MADE, DOES NOT MAKE, AND HEREBY DISCLAIMS ANY WARRANTIES OR GUARANTEES, EXPRESSED OR IMPLIED, REGARDING THE ADEQUACY, PERFORMANCE, OR CONDITION OF ANY STRUCTURE, ITEM, COMPONENT, OR SYSTEM INSPECTED, SPECIFICALLY INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF FITNESS, MERCHANTABILITY, HABITABILITY, AND GOOD AND WORKMANLIKE CONDUCT.

a. This inspection is not intended to be technically exhaustive, nor is it considered to be a guarantee or warranty, expressed or implied, regarding the conditions of the property, items and systems inspected, and it should not be relied on as such. This Inspection Report is based on the condition of the Property existing and apparent as of the time and date of the inspection. Not all conditions may be apparent on the inspection date due to weather conditions, inoperable systems, inaccessibility of areas of the Property, etc. A defect that was apparent on any date prior to the inspection date may not be apparent on the inspection date.

b. Warranties are available through third-party providers if warranties are desired. The fee for this inspection does not include any such warranties, and none are offered or available through the Inspector. The Inspector shall not be held responsible or liable for any repairs or replacements with regard to the Property or the systems, components, or contents therein. Since the inspection procedure is visual only and is not intended or designed to be diagnostically or technically exhaustive, an inherent risk remains that undiscovered problems exist or that future problems will develop. Client acknowledges that the Inspector is not an insurer and it is not the intent or purpose of this inspection procedure to provide client with a risk free purchase or usage of the Property.

3. LIMITATION OF LIABILITY.

CLIENT AGREES, TO THE FULLEST EXTENT PROVIDED BY LAW, THAT CLIENT’S SOLE AND EXCLUSIVE REMEDY FOR ANY AND ALL LOSSES OR DAMAGES SUSTAINED BY CLIENT RELATING TO THIS AGREEMENT OR THE INSPECTION OR REPORT PROVIDED PURSUANT HERETO, INCLUDING ATTORNEYS’ FEES AND COSTS AND EXPERT WITNESS FEES AND COSTS, IS LIMITED SO THAT THE TOTAL AGGREGATE LIABILITY OF THE INSPECTOR (OR INSPECTOR’S EMPLOYEES OR ASSIGNEES) SHALL NOT EXCEED THE AMOUNT OF THE FEE PAID BY CLIENT TO INSPECTOR FOR THE INSPECTION AND REPORT.

As the inspection is primarily a visual inspection, it is not possible to eliminate all risks involved in the purchase and/or ownership of the Property. This limitation shall apply regardless of the cause or the legal theory pled or asserted specifically including, but not limited to, negligence and shall control the amount of any award against the Inspector. Unless Inspector is found to be grossly negligent, Inspector shall have no liability with respect to Inspector’s obligations under this Agreement or otherwise for consequential, exemplary, special, incidental, or punitive damages even if Inspector has been advised of the possibility of such damages.

4. NOTIFICATION OF DISPUTES REQUIRED AND ARBITRATION OF DISPUTES. Client shall notify Inspector in writing of any controversy or claim related to this Agreement, the inspection or the inspection report within six (6) months after the date of the inspection, and all disputes not submitted to Inspector within such time shall be deemed waived by Client, and Client hereby releases, acquits, and forever discharges Inspector from such claims, and all related causes of action and damages, not submitted to Inspector within said six (6) month period. In order to provide Inspector with an opportunity to investigate and resolve any such claim, Client shall not commence any arbitration or other legal proceeding relating to such claim for a period of thirty (30) days after Inspector’s receipt of written notice of the claim. If, with respect to a controversy or claim related to this Agreement, the inspection or the inspection report, Client and Inspector are unable to reach a mutually satisfactory resolution within said thirty (30) day period, such dispute shall be settled by binding arbitration administered by the American Arbitration Association under its construction industry arbitration rules; provided, however, that if such claim is made by Client, Client shall satisfy the requirements of Sections 5 and 6 hereof prior to submitting such claim to arbitration. Only TREC licensed real estate inspectors will be eligible to serve as the arbitrator. Judgment upon the award rendered by an arbitrator may be entered in any court having jurisdiction thereof. In any arbitration or other legal action in which the Inspector is the prevailing party or is not found liable, Inspector shall recover from Client any attorney’s fees and costs incurred by Inspector in defense of the proceeding.

5. INSPECTOR’S RIGHT TO EXAMINE. The Inspector shall have the right to examine the subject matter and area of any claim or potential claim against the Inspector arising from this Agreement and the right to offer a resolution prior to Client's performance of any remedial measures (except in the event of an emergency, or to protect for personal safety, or to reduce or avoid damage to property). The right of examination herein is a condition precedent to the commencement of any claim by the Client against the Inspector for any reason including negligence or breach of any term hereof. The Client shall not file or commence any claim against the Inspector in any jurisdiction until the Client has notified the Inspector of the complaint and made reasonable efforts to afford the Inspector an opportunity to complete such examination. Failure to allow such examination, except in the event of emergency, shall constitute a waiver of any and all claims against Inspector.

6. CERTIFICATE OF MERIT. Client shall make no claim, including without limitation any claim of professional negligence, against Inspector unless Client has first provided Inspector with a written certification executed by an independent Texas Licensed Professional Real Estate Inspector currently practicing in the field of residential inspections in the Texas area for homebuyers. The certification shall: a) contain the name and license number of the certifier; b) specify the acts or omissions of the Inspector that the certifier contends are not in conformance with the standard of care for a Licensed Real Estate Inspector performing a home inspection under similar circumstances; and c) state in detail the basis for the certifier’s opinion that such acts or omissions do not conform to the standard of care. This certificate shall be provided to the Inspector not less than thirty (30) days prior to the presentation of any claim, or the institution of any arbitration or legal proceeding by Client. This certificate of merit requirement will take precedence over any existing state law in force at the time of the claim or demand for arbitration.

7. INDEMNITY.

CLIENT AGREES TO INDEMNIFY, DEFEND, AND HOLD HARMLESS INSPECTOR, ITS PARTNERS, OFFICERS, EMPLOYEES, ATTORNEYS, AND AGENTS, AND TO DEFEND ANY ACTION BROUGHT AGAINST ANY SUCH PARTIES, WITH RESPECT TO ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION, DEBTS OR LIABILITIES, INCLUDING REASONABLE ATTORNEYS' FEES, ARISING OUT OF OR RELATING TO THIS AGREEMENT, WHETHER OR NOT RESULTING FROM THE NEGLIGENCE OF ANY PARTY SO INDEMNIFIED, UNLESS CAUSED BY THE GROSSLY NEGLIGENT ACTIONS OR INTENTIONAL MISCONDUCT OF INSPECTOR.

8. MISCELLANEOUS.

Any particular concern of Client regarding the Property shall be brought to the attention of the Inspector before the inspection begins. All written comments by the Inspector shall supersede oral comments. The inspection report is valid for the date and time of the inspection only. Re-inspections charges will apply for any additional trips to the Property. This Agreement and the documents referred to herein constitute the entire Agreement between the parties, and supersede any and all prior representations, discussions, or agreements, whether written or oral. This Agreement shall not be amended by either party unless mutually agreed to, in writing, and signed by the parties hereto. If any provision of this Agreement is held invalid or unenforceable by any court of final jurisdiction, it is the intent of the parties that all other provisions of this Agreement be construed to remain fully valid, enforceable, and binding on the parties. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, legal representatives, successors and assigns where permitted by this Agreement. This Agreement may not be assigned by Client without Inspector’s prior written consent. To the extent that the inspection report issued by the Inspector conflicts with the terms of this Agreement, the terms of this Agreement shall control. This Agreement shall be included as an addendum to the inspection report issued by the Inspector related to the Property. Any notice which is required or desired under this Agreement shall be given in writing and may be sent by personal delivery or by mail (either a. United States mail, postage prepaid, or b. Federal Express or similar generally recognized overnight carrier), addressed as follows (subject to the right to designate a different address by notice similarly given): if to Inspector, ALLSPEC, if to Client, to the address set forth below. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. Venue for any dispute arising in connection herewith shall be in Jefferson County, Texas.

*If a joint purchase, or if Property is jointly owned by Client, Client represents he/she has the authority to act on behalf of all parties.