COMMERCIAL INSPECTION AGREEMENT (“AGREEMENT”)
(NOTE: THIS AGREEMENT CONTAINS LIMITATIONS ON THE COMPANY’S LIABILITY)
Name of Client: ______________________________________________________________ (“Client”)
Subject Property: _____________________________________________________________ (“Property”)
Inspection Fee: $____________ (“Inspection Fee”) Date of Agreement: _________________.
Additional Services: _____________________________________________________________________.
Intending to be legally bound, Client and ARMCO Inspections LLC (“ARMCO”), agree as follows:
1. ARMCO will perform a Property Condition Assessment (PCA) of the Subject Property as described above
and provide the Client a written Property Condition Report (PCR). The PCA scope for the "Subject Property"
will defined by the ASTM E2018-99 Standard or by an agreement specifically written for the project described
above as the “Subject Property” and attached to this contract. Additional services may be added beyond the
above defined PCA scope as may be agreed to by the Client and ARMCO.
2. The Inspection Fee is due and payable by Client to ARMCO within 10 days of Client receipt of the
completed Property Condition Report (PCR) and is not contingent on a real estate closing or any other Client
transaction. If ARMCO institutes legal proceedings to collect the Inspection Fee more than sixty (60) days after
the date the Inspection began, Client will pay ARMCO’s costs of collection including attorney fees and
expenses and court costs.
3. The PCR is for Client’s personal use only. It is not transferable and may not be relied upon by third parties.
Client will not disclose the PCR or any of its contents to any person except as reasonably necessary for use in
Client’s transaction and then expressly only for such purpose. Client will indemnify and hold harmless
ARMCO with respect to any and all loss, cost or liability, including attorney fees, resulting from disclosure of
the PCR by Client and/or unauthorized reliance on the PCR by persons other than Client.
4. Client will not rely on any oral statements made by ARMCO personnel prior or subsequent to the issuance of
5. THE PCR IS NOT A WARRANTY OF THE PROPERTY’S MERCHANTABILITY OR OF ITS FITNESS
FOR A PARTICULAR PURPOSE. ANY AND ALL IMPLIED WARRANTIES ARE EXPRESSLY
6. As may be necessary, Client will engage at Client’s sole expense appropriate specialists, contractors, or
consultants to investigate any condition or comment noted in the PCR.
7. Client will notify ARMCO of any alleged failure to accurately report any condition at the Property in writing
by certified mail within five (5) days of its discovery and will give ARMCO a reasonable opportunity to re-
inspect the condition prior to repair or other modification affecting the condition, emergency repairs excepted.
8. Client’s failure to comply with Paragraphs 6 and 7 as to any condition shall constitute a waiver and bar of
any and all claims against ARMCO for failure to accurately report such condition.
9. Client assumes the risk of all matters beyond the scope of the limited visual PCA and understands that the
PCA is not technically exhaustive and may not discover important defective conditions. Any recommendations
ARMCO may make regarding further investigation of matters outside the scope of the PCA are made as a
courtesy only and neither expand the scope of the PCA nor imply that other matters outside the scope of the
PCA do not also need investigation.
Client understands that the following are examples of things that are NOT included in the PCA site review or
the PCR unless part of the PCA Scope of Work (Note: Certain additional matters may require a separate signed
agreement for inspection or testing at an additional cost to Client by ARMCO or by a licensed specialist or
contractor, as appropriate):
A. Any area or thing that is not exposed to view, or is inaccessible because of soil, walls, floors, carpets,
ceilings, furnishings, etc. or requiring destructive testing or disassembly, adequacy, efficiency, survey issues, or
any other thing not specifically excluded by an addendum to this Agreement.
B. Structural stability, geological stability or soil condition, child safety issues, synthetic stucco issues,
presence or absence of termites or other wood destroying organisms or pests or vermin, air or water quality
issues, or environmental hazards including asbestos, radon, formaldehyde, mold, fungi, lead, buried fuel storage
tanks or electromagnetic radiation.
C. Circuit breakers in the “off” position, HVAC systems not “on” or capable of being turned on using normal
operating controls, any appliance with a pilot light that is not lit, air conditioning systems if outside temperature
is 65 degrees Fahrenheit or less, heat pump systems in heat mode if outside temperature is more than 65 degrees
Fahrenheit (or vice versa), solar heating systems, fireplace insert flue connections, electronic air cleaners, or
condition of furnace heat exchangers.
D. Interior spas, saunas, whirlpools, private water systems, septic tanks or drain fields, water softener, purifier,
or filtration systems, solar water heating systems or outside irrigation systems.
E. Tenant Property or moving anything (freestanding appliances, refrigeration units, security systems and
alarms, intercoms, telephone, television or internet cables, satellite systems, entertainment systems, oven clocks,
timers or self-clean features, central vacuum systems, lightening arrestors, radio-controlled devices, automatic
gates, carbon monoxide detectors, or timing devices for: lights, furnace thermostats, hot water heaters, irrigation
systems or other systems or components.
10. Except for proceedings to collect the Inspection Fee, any unresolved disputes between ARMCO and the
Client will be submitted for binding arbitration to Construction Arbitration & Mediation Services, 4822
Albemarle Road, Suite 209, Charlotte, NC 28205 Telephone (704) 566-1888. If Client pursues a claim for
alleged error, omission, or deficiency and does not prevail, Client will pay all arbitration and/or court costs,
ARMCO’s attorney fees and expenses, and all other costs incurred by ARMCO in the defense of the claim.
11. In the absence of gross negligence or intentional wrongdoing on the part of ARMCO, damages against
ARMCO in connection with the Inspection or Report shall be limited to the amount of the Inspection Fee.
12. This Agreement shall be governed by North Carolina law. If an arbitrator or court declares any provision
of this Agreement void, voidable or unenforceable, the remaining provisions shall remain in full force and
effect. This Agreement represents the entire agreement between the parties. No oral agreements,
understandings or representations shall modify this Agreement and no change or modification shall be
enforceable against a party unless such changes or modifications are in writing and signed or initialed by such
party. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their heirs,
personal representatives, successors and assigns.
IN WITNESS WHEREOF, ARMCO and Client have signed this Agreement as of the date above written.
By: ______________________________ By: ______________________________