Question 1

Why do home inspectors require vehicle insurance that is separate from their personal car insurance?

Accepted Answer

A) Most personal policies do not cover damages that occur when you use your car for business. 
B) Most business policies provide better coverage options than personal policies. 
C) It is an easier way to track costs associated with your home inspection business. 
D) It is just sound business practice to have more than one policy.

Question 2

The real estate agent working with your client asks to see the inspection report. What is your response?

Accepted Answer

A) You respond by giving her a copy of the report. 
B) You respond by getting permission from your client first. 
C) You respond by ignoring her request altogether. 
D) You respond by providing a verbal summary of your report.

Question 3

What do you need to tell your client about the inspection fee?

Accepted Answer

A) Inspection fees increase every few months. 
B) You charge for travel costs in addition to the inspection fee. 
C) You offer the lowest inspection fees in your community. 
D) Inspection fees are set per visit to a home.

Question 4

With so many players involved in a home inspection, it can be confusing to know where to place your loyalties. The home inspector has the greatest responsibility to which entity?

Accepted Answer

A) The seller 
B) The buyer 
C) The real estate agent 
D) The home

Question 5

While conducting an inspection, you notice that the furnace needs to be repaired. Your client asks about the costs of the needed repairs. Which of the following responses is appropriate?

Accepted Answer

A) Call a contractor you know to get a quick estimate. 
B) Give the client an estimate based on your experience. 
C) Explain to the client you cannot give estimates for repairs you will not be making. 
D) Tell the client that you cannot give estimates until you research the cost of parts.

Question 6

A client can file a dispute related to the home inspection agreement for which of the following reasons?

Accepted Answer

A) Breach of contract 
B) Negligence 
C) Deliberate misrepresentation 
D) All of the above 
E) None of the above

Question 7

Home inspectors should not build relationships with which of the following types of technician?

Accepted Answer

A) Plumber 
B) Electrician 
C) HVAC specialist 
D) All of the above

Question 8

While inspecting the electrical system, you forget to close the door on the breaker box located in the basement. During an overnight storm, water gets in and short-circuits the electrical system, which requires repairs because it is an older home. Which type of insurance is used to cover the damages?

Accepted Answer

A) General liability 
B) Professional liability 
C) Errors and omissions 
D) General warranty

Question 9

When you initially draft a pre-inspection contract, who should you have review it before you begin to use it with clients?

Accepted Answer

A) Attorney 
B) Insurance agent 
C) Neither 
D) Both

Question 10

When resolving complaints that involve refunds of inspection fees or other compensation, what action should you always take when dealing with clients?

Accepted Answer

A) Have clients sign a release 
B) Refer clients to your insurance agent 
C) Ignore complaints from clients 
D) Offer to conduct another inspection

Question 11

After delivering the inspection report to the client, you receive a call from the seller who wants a copy of the report. How do you handle this situation?

Accepted Answer

A) You discuss your findings over the phone and mail a copy of the report to him. 
B) You discuss your findings over the phone but do not mail a copy of the report to him. 
C) You discuss nothing with him over the phone but mail a copy of the report to him. 
D) You discuss nothing with him over the phone and do not mail a copy of the report to him.

Question 12

Which of the following individuals is NOT a good candidate for home inspectors to establish a strategic partnership with?

Accepted Answer

A) Insurance agent 
B) Real estate attorney 
C) Home renovator 
D) Carpet cleaning company

Question 13

Home inspectors need to understand the Standards of Practice. What is the purpose of these Standards?

Accepted Answer

A) To provide detailed guidance to inspectors 
B) To establish minimum inspection guidelines 
C) To create uniform inspection and reporting outcomes 
D) All of the above

Question 14

Home inspectors are not required to test for mold or identify mold that is found during an inspection as stated under which section of the home inspection agreement?

Accepted Answer

A) General exclusions 
B) Terms and conditions 
C) Scope of the inspection 
D) Limits of the inspection

Question 15

What is the best way to collect the inspection fee from clients?

Accepted Answer

A) Over the phone, at the time they schedule the inspection 
B) Online, at the time they schedule the inspection 
C) In person, right before you begin the inspection 
D) In person, upon conclusion of the inspection 
E) Either C or D

Question 16

Which of the following actions is an example of your fiduciary responsibilities?

Accepted Answer

A) Acting in accordance with industry ethical standards 
B) Avoiding real and apparent conflicts of interest 
C) Making sure all transactions are legal 
D) All of the above

Question 17

Which of the following should be included in your pre-inspection contract?

Accepted Answer

A) Insurance policy number 
B) ASHI certification number 
C) Property phone number 
D) Complaint hotline number

Question 18

Which of the following is the most common type of business structure for home inspectors?

Accepted Answer

A) Sole proprietorship 
B) Limited liability corporation 
C) Limited liability partnership 
D) Corporation

Question 19

Attending a seminar for first-time homebuyers is a good idea for several reasons. Which of the following is NOT a reason to attend such a seminar?

Accepted Answer

A) You can introduce yourself to prospective buyers. 
B) You can establish business relationships with real estate agents. 
C) You can network with home improvement contractors. 
D) You can meet real estate bankers.

Question 20

A popular real estate agent contacts you and offers to include you on a "recommended services list" she gives to her clients. While there is no charge to be included on the list, she asks that you simply tell your friends and family members about her real estate services. What do you tell her?

Accepted Answer

A) "Thanks! That would be great, and I am happy to send business your way." 
B) "Thanks, but I do not know anyone in the market for a home." 
C) "No thanks. I prefer to do my own marketing and recruitment of clients." 
D) "No thanks. It would be unethical of me to enter into such a relationship."

Exam 3: Business Operations