Common use of LIMITATIONS OF THE INSPECTION Clause in Contracts

LIMITATIONS OF THE INSPECTION. The Inspection is not a technically exhaustive study of the Property, is limited to a single non-invasive visual only inspection of the readily accessible features and components of the Property at a particular point in time, and the Inspector cannot offer an expert opinion regarding engineering, compliance with building codes, local bylaws, building efficiency or the cost of any specific repair or improvement. The Inspection and Report is completed within a limited time frame and is subject to all of the limitations contained in this Agreement and in the Standards of Practice attached to the Agreement. Based on these limitations, all of which are understood by the client, it is further understood by the client as to why a low fee is charged for the Inspection and Report in comparison to the value of the Property. The Inspection and Report do not constitute a guarantee, warranty or insurance policy pertaining to the Property. The condition of certain readily accessible features and components of the Property, provided they are capable of being inspected pursuant to a single non-invasive visual only inspection, will be randomly sampled by the Inspector. Examples include window/door operation, hardware and screens, electrical receptacles, switches and lights, cabinets, countertops, mounts and functions, insulation thickness, mortar, masonry, paint and caulking integrity and roof covering materials. Assumptions may be made based on the random sample inspected by the Inspector. Some problems may not exist, be obvious, or capable of discovery by the Inspector due to the aforementioned limitations at the time of the Inspection, or may only be apparent under certain conditions. The Inspection is based on observations at the time of a single visit and is subject to the conditions and limitations present at that time. The limitations that an Inspector may face include, but are not limited to: time restrictions, defects concealed by occupants’ possessions, snow cover on roofs and other surfaces, vegetation, gravel, decks, solar panels, decks covered with carpet or membrane, new paint or other finishes, partially restricted or not readily accessible areas and components (such as: building paper, house wraps, flashings, window flanges, wall cavities), systems that have been secured or winterized, restrictive weather and/or temperature conditions, etc. If any utilities are not on at the time of the Inspection, such as water, electricity and gas, we cannot turn them on. We will also be unable to fully assess all systems since utilities may affect more than one system within the Property. The Inspection is not able to positively determine or confirm the presence of environmental hazards or concerns including, but not limited to asbestos, mould or fungus. In the event that the Report or the Inspector advises the Client of a potential environmental concern, or the Client has any reason to suspect that there may be an environmental concern, it is recommended that the Client retain the services of an environmental specialist. Continued on page 3 Continued from page 2 The Company makes no representation, warranty or guarantee on the future life of systems and items inspected. The Inspection will not determine whether the Property complies with the building code or local bylaws or the suitability of the Property for any use. The Inspection and Report is also subject to the stated limitations in the Agreement, the Report, and the Standards of Practice. Due to the inherent limitations of the Inspection, the Client should be aware that there will be some deficiencies in the Property that are not identified in the Report including, without limitation, some of the exempted items referred to under the heading “SCOPE OF THE INSPECTION” and in the Standards of Practice attached to this Agreement. The Company recommends anticipating and budgeting annually for 1% - 3% of the value of the Property for maintenance items and unforeseen repairs. In the event that:

LIMITATIONS OF THE INSPECTION. The Inspection is not a technically exhaustive study of the Property, is limited to a single non-invasive visual only inspection of the readily accessible features and components of the Property at a particular point in time, and the Inspector cannot offer an expert opinion regarding engineering, compliance with building codes, local bylaws, building efficiency or the cost of any specific repair or improvement. The Inspection and Report is completed within a limited time frame and is subject to all of the limitations contained in this Agreement and in the Standards of Practice attached to the Agreement. Based on these limitations, all of which are understood by the client, it is further understood by the client as to why a low fee is charged for the Inspection and Report in comparison to the value of the Property. The Inspection and Report do not constitute a guarantee, warranty or insurance policy pertaining to the Property. The condition of certain readily accessible features and components of the Property, provided they are capable of being inspected pursuant to a single non-invasive visual only inspection, will be randomly sampled by the Inspector. Examples include window/door operation, hardware and screens, electrical receptacles, switches and lights, cabinets, countertops, mounts and functions, insulation thickness, mortar, masonry, paint and caulking integrity and roof covering materials. Assumptions may be made based on the random sample inspected by the Inspector. Some problems may not exist, be obvious, or capable of discovery by the Inspector due to the aforementioned limitations at the time of the Inspection, or may only be apparent under certain conditions. The Inspection is based on observations at the time of a single visit and is subject to the conditions and limitations present at that time. The limitations that an Inspector may face include, but are not limited to: time restrictions, defects concealed by occupants’ possessions, snow cover on roofs and other surfaces, vegetation, gravel, decks, solar panels, decks covered with carpet or membrane, new paint or other finishes, partially restricted or not readily accessible areas and components (such as: building paper, house wraps, flashings, window flanges, wall cavities), systems that have been secured or winterized, restrictive weather and/or temperature conditions, etc. If any utilities are not on at the time of the Inspection, such as water, electricity and gas, we cannot turn them on. We will also be unable to fully assess all systems since utilities may affect more than one system within the Property. The Inspection is not able to positively determine or confirm the presence of environmental hazards or concerns including, but not limited to asbestos, mould or fungus. In the event that the Report or the Inspector advises the Client of a potential environmental concern, or the Client has any reason to suspect that there may be an environmental concern, it is recommended that the Client retain the services of an environmental specialist. Continued on page 3 Continued from page 2 The Company makes no representation, warranty or guarantee on the future life of systems and items inspected. The Inspection will not determine whether the Property complies with the building code or local bylaws or the suitability of the Property for any use. The Inspection and Report is also subject to the stated limitations in the Agreement, the Report, and the Standards of Practice. Due to the inherent limitations of the Inspection, the Client should be aware that there will be some deficiencies in the Property that are not identified in the Report including, without limitation, some of the exempted items referred to under the heading “SCOPE OF THE INSPECTION” and in the Standards of Practice attached to this Agreement. The Company recommends anticipating and budgeting annually for 1% - 3% of the value of the Property for maintenance items and unforeseen repairs. In the event that: