Can You Fail a Home Inspection

Can you fail a home inspection? Do you issue a pass or fail at the end of a home inspection?

 

Both questions we hear routinely. Let’s provide some clarity on that and explain the process.

 

Can you fail a home inspection? No. Do you issue a pass or fail? No. Why? A home inspectors job is not to issue a pass / fail. A home inspector will go through the home following the standards of practice. The inspector issues a report that will state the deficiencies that he pointed out in the home and systems. No “failure” is given by JLC Home Inspections.

 

So what do you get at the end? You will receive information about the home in the form of a report and you can then take that information and continue the process.

 

Whether you are a buyer or seller, no matter, the inspection cannot fail at this level. Remember, every transaction in real estate is different. You may be purchasing the home As Is. You may be purchasing it to renovate it. You may be purchasing it to move right in. You may be selling it As is.

 

As the buyer, you will receive the report first. What you will receive on the report will state things such as: inspected, not inspected, not present, repair or replace.

 

The legend on the inspection report will explain to you in further detail and can be viewed here. You take that report, speak with your real estate professionals and then issue a repair/request list normally to the seller.

 

As the seller, you may obtain a copy once the buyers professionals have reviewed it. You’ll then see what the inspector pointed out that may need to be addressed. As the seller, you have the opportunity to fix the requested items from the buyer, offer a credit or do nothing.

 

Note, there isn’t any pass/fail for the home inspection. This is a neutral 3rd party inspection that provides information. Can you see deficiencies as a failure? That depends on the situation and the expectations of all parties involved. But will the seller be forced to fix things because it “failed” and you can’t then take occupancy? At the home inspector level, for a general home inspection, no.

 

However, what about that township or lender? For example, FHA and VA send inspectors in order to back the loan. They may state that certain things need to be addressed, yes.

 

So, When is the term can you fail an inspection relevant? Your township inspection for issuing a certificate of occupancy if it is required, which is a separate part of the transaction. Also, at the State level where they can pass / fail you for your fire safety items (fire extinguisher, smoke detectors, carbon monoxide detectors). Those inspections are a pass/fail. Your lender as well depending on your loan program. At the home inspection level? No.

 

Explanations for report:
Inspected (IN): I visually observed the item, component or unit and if no other comments were made then it appeared to be functioning as intended allowing for normal wear and tear.

 

Not Inspected (NI) I did not inspect this item, component or unit and made no representations of whether or not it was functioning as intended and will state a reason for not being inspected.

 

Not Present (NP) This item, component or unit is not in this home or building.

 

Repair or Replace (RR) This item, component or unit is not functioning as intended, or needs further inspection by a qualified contractor. Items, components or units that can be repaired to satisfactory condition may not need replacement.