How to Present Deficiencies Without Legal Risk

In building inspection, every word matters. An inspection report is a legal document that can be used against you in litigation. I've seen experienced inspectors sued for $150,000 simply because they wrote "the roof is at the end of its life" instead of "cracked and curled asphalt shingles observed during visual inspection."

Differentiating Observation, Hypothesis, and Recommendation

Confusion between these three types of statements is the leading cause of lawsuits against inspectors. Understanding this distinction is fundamental to your protection.

An observation describes what you have directly observed with your senses or instruments. It is factual, measurable, verifiable.

• Example: "Visible moisture at basement ceiling, area measuring 24 inches x 16 inches, surface temperature 4°F below ambient temperature."

A hypothesis proposes a possible explanation for an observation, based on your experience.

• Example: "The observed moisture could originate from water infiltration, a ventilation problem, or condensation."

A recommendation indicates the action to be taken to clarify or correct the situation.

Phrasing to Minimize Ambiguity

The winning structure: Observation + Risk + Action. This method protects you while adequately informing your client.

Example 1 - Electrical

• ❌ Risky: "The electrical panel is dangerous"

• ✅ Safe: "FPE Stab-Lok electrical panel observed. This panel type has documented failure risks according to utility companies. Recommendation: Have evaluated and replaced by a licensed electrician."

Risky Phrasing to Avoid

Here are 10 deadly phrases I've seen in inspection reports involved in lawsuits:

1. "Everything is code compliant" → Instead say: "No apparent non-compliance with Building Code observed during visual inspection."

2. "The structure is solid" → Say: "No visible signs of structural failure observed at accessible elements."

3. "There is no mold" → Say: "No suspicious stains or odors observed during visual inspection. Mold may exist in non-accessible areas."

4. "I guarantee that..." → NEVER. You guarantee nothing. You observe, document, and recommend.

Role of Photos and Disclaimers in Risk Management

Photos are your best insurance. Systematically photograph every deficiency mentioned, conditions at time of inspection, and inaccessible areas.

Pro tip: Include a tape measure or reference object in your photos of cracks to document exact dimensions.

How Pre-Built Templates Provide Protection

A good report template is reviewed by lawyers and contains legally tested phrasing. Modern digital tools allow generating reports with pre-validated phrasing and complete traceability.

Conclusion: Pre-Send Checklist

Before sending your report, verify these 7 points:

✅ Factual observations only

✅ Hypotheses clearly identified as such

✅ Recommendations direct to specialists

✅ Photos documenting each deficiency

✅ Complete limitations section

✅ No guarantee words

Respect your limits, document rigorously, and you'll minimize lawsuit risk. To understand legal risks you face and how to protect yourself with clear contracts, consult our complete guides.