Stack 3: Help & Protection · 4 min read
Packing notes
- A professional inspector must be licensed by the state; a real estate inspector works under a professional inspector’s supervision.
- Inspectors may not do repairs on homes they inspect or act as the agent in the deal.
- Schedule the inspection early in the option period so you have time to act on it.
A home inspection is the closest look most buyers ever get at a house before it is theirs. In Texas, inspectors are licensed by the state, and the standard purchase contract gives you a window, the option period, to inspect and decide. Used well, the two together protect you from expensive surprises. Used late, the report may arrive after your right to walk away has already run out.
Who can inspect
Chapter 1102 of the Texas Occupations Code sets up three inspector licenses. A professional inspector may work independently. A real estate inspector may act for a buyer or seller only while under the indirect supervision of a professional inspector. An apprentice inspector works under direct supervision, which the law defines as being instructed and controlled by a professional or real estate inspector who is physically present at the inspection.
| License | What the law allows |
|---|---|
| Professional inspector | May inspect for a buyer or seller on their own license |
| Real estate inspector | May inspect under the indirect supervision of a professional inspector |
| Apprentice inspector | Works under direct, on-site supervision |
Inspector licenses are issued under this chapter by the Texas Real Estate Commission, so ask for the license number and check it with TREC before you hire.
Rules that protect you
- Insurance: under Section 1102.1141 an inspector must carry professional liability insurance of at least $100,000 per occurrence and $100,000 a year in total, or a bond or other security accepted by the commission.
- No predetermined results: an inspector may not take a job whose fee depends on reporting a specific condition or findings the inspector does not know to be true.
- No conflicting roles: an inspector may not act in the same transaction as the broker or sales agent, or as an undisclosed principal.
- No repairs: an inspector may not perform or agree to perform repairs or maintenance in connection with an inspection under an earnest money contract.
The last rule is worth remembering. An inspector who offers to fix what they found on the same deal is breaking state law, and the incentive problem is obvious.
The option period
The TREC resale contract lets you buy an option period by paying the seller an option fee. TREC explains that during that period you have the unrestricted right to terminate the contract for any reason by written notice. The fee must reach the escrow agent within three days of the contract’s effective date, or the right to terminate is lost.
TREC also stresses that Texas has no automatic cooling-off period for home purchases, so the option period is usually your main exit if the inspection finds something serious.
Tip: Book the inspector before you sign the contract, or the day you sign. Option periods are often short, and you need time for the inspection, any follow-up from a specialist and a decision.
What to do with the report
- Read the whole report, not just the summary, and ask the inspector about anything unclear.
- Separate safety and major system issues from routine maintenance.
- Get estimates for large items, such as the roof, foundation, electrical panel or air conditioning.
- Decide: ask for repairs, a price reduction or a credit, accept the home as it is, or terminate within the option period.
If you and the seller agree on repairs or a price change, put it in writing. TREC describes the option period as the time a buyer can use to inspect the property and negotiate an amendment to the contract for any necessary repairs found by the inspection.
Compare with the seller’s disclosure
Texas sellers of a single-family home must give you a written disclosure of the property’s condition under Section 5.008 of the Property Code, completed to the best of the seller’s belief and knowledge. Lay it next to the inspection report. Where the inspector finds something the seller did not mention, ask about it before the option period ends.
If the disclosure never arrived
The law sets a deadline for the seller’s notice: it must be delivered on or before the effective date of the contract. If you sign a contract without receiving it, Section 5.008 lets you terminate the contract for any reason within seven days after you receive the notice. The notice form itself asks the seller about items an inspector may also flag, including previous water penetration into a structure from a natural flood event, present flood insurance coverage and whether the property sits in a 100-year or 500-year floodplain.
Specialists
A general inspection is broad, not deep. If the report flags a possible problem with the foundation, the roof, the sewer line or signs of past water, ask for a specialist’s opinion within the option period. In flood-prone parts of Austin, read Flood Zones and Home Buying in Austin: Maps, Atlas 14 and Insurance Timing as well. For the order of the whole purchase, see Buying a Home in Austin, Step by Step: From First Budget to Keys.