LIMITATIONS AND EXCLUSIONS TO THE INSPECTION AGREEMENT:

Any person who accepts, uses or relies on the Inspection Report for any purpose whatsoever, agrees to and accepts all of the limitations and exclusions of this Agreement.

Customer and Firm (Firm also includes any and all individual inspectors who perform the contracted for inspections as an employee or independent contractor of the Firm) agree to the following limitations and exclusions.

The following inspection services will be performed at the Subject Property:

1.  Firm will perform a visual non -invasive, non destructive, non-engineering inspection only of the readily accessible areas and conditions of the Subject Property existing at the time of inspection and provide Customer with a written or computer inspection report (the "Inspection Report:")  identifying MATERIAL DEFECTS. The inspections performed by the Firm are based upon the personal opinion of the inspector.  MATERIAL DEFECTS is defined as follows:  " A problem with a residential real property or any portions of it that would have a significant adverse impact on the value of the property or that involves an unreasonable risk to people on the property.  The fact that a structural element, system or subsystem is near, at or beyond the end of it's normal useful life is not by itself a "MATERIAL DEFECT".  NO APPLIANCES ARE TESTED.  The Customer is encouraged to participate in the visual inspection process and accepts full responsibility for the consequences of electing not to do so such as incomplete information being available to the inspector. The Customers participation shall be at the Customer's own risk for injuries, falls, property damage or other loss or damage of any kind.

2.  Customer understands and agrees that the firm and it's inspectors shall be guided by the Standards of Practice of the Canadian Association of Home & Property Inspectors (BC) a copy of which is attached hereto as Schedule "A: and initialed by the Customer.  The Customer understands and agrees that the inspections performed by the Firm may identify some of the risks associated with purchasing home but cannot reduce or eliminate those risks.  The condition of the subject property may change, or the equipment inspected and reported on may be altered or changed.  Therefore, the Customer shall carefully re-inspect the Subject Property and all equipment prior to closing.  There are no representations or warranties on condition or quality of appliances.

3.  Customer understands and agrees that the following are specifically excluded from this inspection agreement and the inspection report:  structures detached from the Subject Property, presence or absence of rodents, termites, other wood destroying insects, and other insects or damage caused by rodents, termites, other wood destroying insects ad other insects, mold and/or mildew and /or dry rot, indoor or outdoor air quality, interior of chimneys, radon gas, lead paint, underground tanks, underground oil tanks, wells, septicand  other sewage disposal systems, feline urine and/or other wastes, asbestos, formaldehyde and other pollutants and toxic chemicals, water quality and adequacy, swimming pools, smoke alarms or other alarm equipment, central vacuum systems, tennis courts, playground equipment, central heating, heat exchange units and solar heating or cooling systems, household appliances and an recall notices or warnings on any structural component , system, subsystem, component, or appliance.  Inspection of the foregoing items and substances should be performed, detected and evaluated by other specialists of Customer's choice and hire. Please feel free to ask any questions.  Weather conditions may limit the extent of the inspection process.  The Customer expressly releases and waives any claim it may have against the Firm for omissions or inaccuracies in the Inspection Report as a result of weather conditions existing at the time of inspection.

4. Firm cannot and does not look behind drywall, panelling, wall papering, under carpeting or other floor covering, above drop ceilings, or other areas which may be blocked or impeded by furniture, personal items or other structures.  Inaccessible, non-visible, difficult to reach, latent, or concealed defects or problems are excluded from the Inspection Agreement and the Inspection Report.  While it is rare, some homeowners purposefully conceal damage or defects in the Subject Property.  This type of concealment is particularly difficult to detect in a visual inspection and is excluded from the scope of the Inspection Report.

5. Customer agrees and understands that if Firm or any of it's agents, employees, sub-contractors, officers, shareholders or directors (collectively "Firm") are found liable for any loss or damage due to negligence or failure to perform obligations in this agreement, including the improper or negligent performance of the inspection or the improper or negligent reporting of conditions of the subject property, Firm's maximum liability shall be limited to the fee paid to Firm for the inspection, and this liability shall be exclusive.  This limitation of liability specifically covers liability for :  damaged property, loss of use of the property, lost profits, consequential damages, special damages, incidental damages and governmental fines and charges, punitive damages, attorneys fees and court costs. Firm's inspection and the inspection report are in no way to be considered as a guarantee or warranty or insurance policy, expressed or implied, regarding the present or future condition of the Subject Property.  Any and all warranties, express and implied, are expressly excluded by this agreement. Customer acknowledges that conditions of the Subject Property on the date of the Inspection may change and require subsequent repair or replacement. No appliances are tested or warranted.  Additional important limitations and exclusions of this inspection agreement are set forth in the remainder of this Contract. Please read all pages carefully.

6. This Inspection agreement and the inspection report are intended only for the Customer's benefit.  Therefore, the Customer agrees to protect, indemnify, defend and release the Firm and it's employees, agents and subcontractors from liability against all third party claims or losses (including costs and all legal fees) brought against Firm which relate to this Inspection Agreement, the Inspection or the Inspection Report.  This indemnification covers, without limitation, claims brought by any person or entity not a party to this Inspection Agreement, claims brought by Customers Insurer, claims brought by real estate agents or brokers, claims brought by the sellers of the subject property, including cross claims for contribution and indemnification.  It also includes claims arising under contract, warranty, or negligence..

7. Customer guarantees Firm the right to examine the subject matter and area of claim prior to any remedial measures or repairs.  If Customer repairs or replaces the subject matter of any claim before providing Firm with an opportunity to inspect it, then Customer waives any and all claims or causes of action whatsoever against the Firm.

8. This agreement represents the entire agreement between the Firm and Customer. No change or modification shall be enforceable against either party unless such change or modification is in writing and signed by both parties.  This Inspection Agreement inures to benefit of , and is enforceable by, Firm's subcontractors, employees, agents, successors, affiliated entities, and assigns.  If any provision of the Inspection Agreement is found to be invalid or unenforceable, such a finding shall not affect any other part of this Inspection Agreement.

9. The person signing this Agreement as "Customer" warrants and represents to Firm that he/she/it is expressly authorized to sign this Inspection Agreement by the other spouse, if applicable, or by the person or entity purchasing the Subject Property, if applicable.

10. If the Inspection Agreement provides any repair estimates, then Customer understands and agrees that those estimates should not be considered as a bid to perform repairs.  Customer further agrees to Release and Hold the Firm harmless against any estimates which may understate or overstate the actual cost of repair, even if due to the negligence of the Firm.

11. The Customer acknowledges and agrees that the time limit for commencement of legal proceedings by the Customer against the Firm for damages suffered by the Customer as a result of alleged negligence or breach of contract by the inspector shall be not later than one (1) year from the date of the inspection report herein before described.  From and after the expiry of one (1) year from the date of said inspection report any claim of the Customer against the inspector and or the inspectors employees, agents, and servants arising from or in relation to this contract and or the services provided hereunder shall expire and cease to exist for all purposes and the Customer's right to commence proceedings against the Inspector  and or the inspectors employees, agents and servants shall thereupon be barred and cease to exist for all purposes.

12. The Customer and the Firm hereby agree that all disputes arising in relation to the inspection and Inspection Report shall be referred to and resolved by binding arbitration pursuant to the Commercial Arbitration Act of British Columbia as amended from time to time.  In the event that the Customer makes any claims for damages or otherwise against the Firm and such claims are unsuccessful, then the Customer shall indemnify the Firm for all legal fees, arbitration's fees, legal expenses and costs of whatsoever nature incurred by the Firm in defending the claims.

Customer confirms that he/she has read and agreed to the terms, conditions, limitations and exclusions found on all pages of this Inspection Agreement.  I understand that I have the right to have an Attorney of my choice review this Inspection Agreement before I sign it.  I understand that if I do not agree with any of the terms, condition limitations and exclusions of this Inspection Agreement I do not have to sign it.  Rather, I may negotiate with the Firm or hire another Firm to perform the Inspection.

NOTE: CUSTOMER IS AWARE THIS REPORT DOES NOT CONSTITUTE A WARRANTY OR GUARANTY OF ANY KIND AND ACCEPTS THE CAHPI STANDARDS ATTACHED TO THIS REPORT

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Customers Signature

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Firm Representative Signature

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