The address of the property is:

Fee for the home inspection is $_____   INSPECTOR acknowledges receiving a deposit of $__n/a__ from CLIENT.

THIS AGREEMENT made on ___ by and between _                                            Tim Larsen_______________ (Hereinafter "INSPECTOR") and the undersigned (hereinafter "CLIENT"), collectively referred to herein as "the parties." The Parties Understand and Voluntarily Agree as follows:

1. INSPECTOR agrees to perform a visual inspection of the home/building and to provide CLIENT with a written inspection report identifying the defects that INSPECTOR both observed and deemed material. INSPECTOR may offer comments as a courtesy, but these comments will not comprise the bargained-for report. The report is only supplementary to the seller's disclosure.

2. Unless otherwise inconsistent with this Agreement or not possible, INSPECTOR agrees to perform the inspection in accordance to the current Standards of Practice of the National Association of Certified Home Inspectors posted at http://www.nachi.org/sop.htm. CLIENT understands that these standards contain certain limitations, exceptions, and exclusions.

3. The inspection and report are performed and prepared for the use of CLIENT, who gives INSPECTOR permission to discuss observations with real estate agents, owners, repairpersons, and other interested parties. INSPECTOR accepts no responsibility for use or misinterpretation by third parties. INSPECTOR'S inspection of the property and the accompanying report are in no way intended to be a guarantee or warranty, express or implied, regarding the future use, operability, habitability or suitability of the home/building or its components. Any and all warranties, express or implied, including warranties of merchantability and fitness for a particular purpose, are expressly excluded by this Agreement.

4. INSPECTOR assumes no liability for the cost of repair or replacement of unreported defects or deficiencies either current or arising in the future. CLIENT acknowledges that the liability of INSPECTOR, its agents, employees, for claims or damages, costs of defense or suit, attorney's fees and expenses and payments arising out of or related to the INSPECTOR'S negligence or breach of any obligation under this Agreement, including errors and omissions in the inspection or the report, shall be limited to liquidated damages in an amount equal to the fee paid to the INSPECTOR, and this liability shall be exclusive. CLIENT waives any claim for consequential, exemplary, special or incidental damages or for the loss of the use of the home/building even if the CLIENT has been advised of the possibility of such damages. The parties acknowledge that the liquidated damages are not intended as a penalty but are intended (i) to reflect the fact that actual damages may be difficult and impractical to ascertain; (ii) to allocate risk among the INSPECTOR and CLIENT; and (iii) to enable the INSPECTOR to perform the inspection at the stated fee.

5. INSPECTOR does not perform engineering, architectural, plumbing, or any other job function requiring an occupational license in the jurisdiction where the inspection is taking place, unless the inspector holds a valid occupational license, in which case he/she may inform the CLIENT that he/she is so licensed, and is therefore qualified to go beyond this basic home inspection, and for additional fee, perform additional inspections beyond those within the scope of the basic home inspection. Any agreement for such additional inspections shall be in a separate writing or noted here:                                          ________________________________________________________________________________.

6) PLEASE NOTE: THIS PROPERTY IS IN A COMMON INTEREST DEVELOPMENT
The property being inspected is a town home or condominium and certain aspects of a general inspection may not be applicable. For instance, this home may be a 2nd floor unit therefore a Foundation inspection would not be performed and attic space may be in a unit above; thus inaccessible to your inspector. Typical common areas that may not be inspected include foundation, roof, exterior walls, pavements, parking, pool(s), yard irrigation and other items that may be the responsibility of the homeowner's association. These may be so noted in the report as to presence but no statement of performance or further inspection is included as part of this inspection.

COMMON COMPONENTS & COMMON AREAS
Inspectors do not test, analyze, inspect, or offer an opinion on the condition or function of areas or structural components common to more than one unit, systems serving more than one unit, or areas which typically are under the jurisdiction of a homeowners' association, including, but not limited to, structure exterior (including decks, balconies, porches, patios, and parking structures), roof, chimney, foundation, fences, and utility service entries. Some areas or systems may or may not be under the jurisdiction of the association (garage, water heater, laundry, etc.). Homeowners' associations sometimes have qualified personnel who can assist Client with many areas of concern, sometimes at little or no cost. We recommend always consulting with homeowners' association prior to commencing any work whatsoever.

BEFORE THE END OF YOUR INSPECTION CONTINGENCY PERIOD, I RECOMMEND
1. Walking property to determine if homeowners' association is maintaining structures and property in a condition satisfactory to Client;
2. Having qualified homeowners' association personnel inspect all common area structural systems and mechanical components servicing this condominium, particularly, but not limited to, foundation, structure exterior, roof, and chimney with supporting written documentation;
3. Acquiring homeowners' association public records, minutes, bylaws, budget, etc., to help determine any consistent problems with common area grounds or components;
4. Checking with homeowners' association concerning Client's responsibility and any non-recurring fees, dues, or assessments, which might be forthcoming.

Maintenance of the communal areas, systems, and components is typically the responsibility of a Homeowners Association or similar. Inspection of these areas is considered beyond the scope of this inspection. Furthermore, as the parameters of this unit, common areas, and exclusive use common areas, can only be determined by review of the Association's "Covenants, Conditions, and Restrictions, again beyond the scope of this inspection, any comments that may pertain to said areas, have been made as a courtesy only, and should be addressed via the current owner of the Association. Correction of common area deficiencies will be at the discretion of the Association. LTS Home Inspections, LLC. shall not be responsible for erroneous comments or omissions concerning deficiencies involving communal areas, systems, or components. We recommend obtaining and reviewing a copy of the Association OPERATING BUDGET.
A properly prepared budget will include a RESERVE STUDY. An independent third party should base the reserve study upon an on-site condition evaluation. The study should provide information regarding the useful and remaining life expectancies, and replacement costs, of the major systems and components that the Association is obligated to repair, replace, restore, or maintain. Most reserve studies or budgets will also include a statement of the available funds as a percentage of the necessary funds "percent funded". It is also important to verify that the Association has adopted a sound funding strategy to cover future reserve expenses. Additional information should be obtained from the Association with regards to their knowledge of any: construction defects; disaster damage; the extent of repairs involving said defects or damage; and pending claims or litigation involving the Association. Furthermore, copies of prior board minutes should be obtained for review.

7. In the event of a claim against INSPECTOR, CLIENT agrees to supply INSPECTOR with the following: (1) Written notification of adverse conditions within 14 days of discovery, and (2) Access to the premises. Failure to comply with the above conditions will release INSPECTOR and its agents from any and all obligations or liability of any kind.

7a. The parties agree that any dispute, controversy, interpretation or claim including claims for, but not limited to, breach of contract, any form of negligence, fraud, or misinterpretation arising out of, from or related to the inspection or inspection report shall be submitted first to Mediation to be followed by final and Binding Arbitration, if necessary, as conducted by Construction Dispute Resolution Services, LLC or Resolute Systems, Inc., utilizing their respective Rules and Procedures. If the dispute is submitted to Binding Arbitration, the decision of the Arbitrator appointed there under shall be final and binding and the enforcement of the Arbitration Award may be entered in any court of competent jurisdiction.

7b. NOTICE: YOU AND WE WOULD HAVE A RIGHT OR OPPORTUNITY TO LITGATE DISPUTES THROUGH A COURT AND HAVE A JUDGE OR JURY DECIDE THE DISPUTES BUT HAVE AGREED INSTEAD TO RESOLVE DISPUTES THROUGH MEDIATION AND BINDING ARBITRATION.

8. The parties agree that any litigation arising out of this Agreement shall be filed only in the Court having jurisdiction in the County in which the INSPECTOR has its principal place of business. In the event that CLIENT fails to prove any adverse claims against INSPECTOR in a court of law, CLIENT agrees to pay all legal costs, expenses and fees of INSPECTOR in defending said claims.

9. If any court declares any provision of this Agreement invalid or unenforceable, the remaining provisions will remain in effect. This Agreement represents the entire agreement between the parties. All prior communications are merged into this Agreement, and there are no terms or conditions other than those set forth herein. No statement or promise of INSPECTOR or its agents shall be binding unless reduced to writing and signed by INSPECTOR. No change or modification shall be enforceable against any party unless such change or modification is in writing and signed by the parties. This Agreement shall be binding upon and enforceable by the parties and their heirs, executors, administrators, successors and assignees. CLIENT shall have no cause of action against INSPECTOR after one year from the date of the inspection.

10. Payment of the fee to INSPECTOR (less any deposit noted above) is due upon completion of the on-site inspection. The CLIENT agrees to pay all legal and time expenses incurred in collecting due payments, including attorney's fees, if any. If CLIENT is a corporation, LLC, or similar entity, the person signing this Agreement on behalf of such entity does personally guaranty payment of the fee by the entity.

11. If Client requests a re-inspection, the re-inspection is also subject to all the terms and conditions set forth in this agreement.

12. HOLD HARMLESS AGREEMENT: CLIENT agrees to hold any and all real estate agents involved in the purchase of the property to be inspected harmless and keep them exonerated from all loss, damage, liability or expense occasioned or claims by reason of acts or neglects of the INSPECTOR or his employees or visitors or of independent contractors engaged or paid by INSPECTOR for the purpose of inspecting the subject home.

13. This agreement is not transferable or assignable.

CLIENT HAS CAREFULLY READ THE FOREGOING, AGREES TO IT, AND ACKNOWLEDGES RECEIPT OF A COPY OF THIS AGREEMENT.