California Home Inspections and How to Negotiate Repairs

A California home inspection is a visual, non-invasive look at a home's structure and its electrical, plumbing and mechanical systems, done by an inspector you hire while your investigation contingency is open. State law says its purpose is to find material defects: conditions that significantly affect value, desirability, habitability or safety, not style or cosmetics.

It does not open walls, scope the sewer line, diagnose why a crack formed or test for mold. That is why Orange County buyers commonly pair it with a separate wood-destroying pest report and call in specialists wherever the report recommends further evaluation.

Then you decide whether to ask the seller for repairs, a credit, a lower price or nothing. The seller does not have to agree, but until you remove the contingency in your contract, you can still cancel under it.

What California law says about home inspectors

California does not issue a state license for general home inspectors. Business and Professions Code sections 7195 through 7199 define a home inspector simply as any individual who performs a home inspection, then set rules:

An inspector who is not also a licensed general contractor, pest control operator, architect or registered engineer must use the care a reasonably prudent home inspector would exercise.
Inspectors who are not registered engineers cannot perform engineering analysis, and no inspector may give an opinion of value.
An inspector's company generally cannot offer paid repairs on a home it inspected in the past 12 months, pay owners or agents for referrals, or take a fee that depends on the findings or the close of escrow.
Contract terms waiving the inspector's duty or limiting liability to the inspection fee are invalid, and a legal claim over a report must be brought within four years of the inspection.

So vet inspectors yourself: ask about experience, insurance and their standard of practice, and read a sample report. Memberships in groups such as CREIA, ASHI or InterNACHI are private credentials. Specialists are licensed: pest inspectors by the Structural Pest Control Board, and roofers, plumbers, electricians and HVAC and pool contractors by the Contractors State License Board (CSLB). Both boards offer online license checks.

What a general inspection covers and leaves out

The inspector examines the visible, accessible parts of the roof, exterior, foundation, attic, electrical panel, plumbing, water heater, heating and cooling, fireplaces and interior, and runs systems with their normal controls. California adds requirements: with a pool or spa, the report must identify which of the seven drowning prevention safety features listed in state law are present and say if there are fewer than two. If the inspector sees yellow corrugated stainless steel gas tubing, the report must say only a licensed electrical contractor can determine whether it is properly bonded and grounded.

Many inspectors follow ASHI's or InterNACHI's standard of practice. InterNACHI's states that an inspection is not technically exhaustive and will not identify concealed defects. It does not require the inspector to:

Determine remaining life, the cause of a condition or code compliance.
Report on mold, pests, radon, asbestos or lead paint, or inspect underground items.
Walk the roof, inspect inside chimney flues or furnace heat exchangers, or remove the electrical panel cover.
Estimate repair costs or inspect common areas of multi-unit buildings.

Specialist inspections Orange County buyers commonly add

Treat every "further evaluation" note as a task with a deadline: specialists must visit and report back before your contingency period ends. Fees depend on the home and scope, so ask for quotes when you book.

Wood-destroying pest report

The "termite report" is a separate inspection by a licensed Branch 3 inspector working for a company registered with the Structural Pest Control Board. It covers wood-destroying pests and organisms such as termites and wood-decay fungus. The company has up to 10 business days from the start of the inspection to deliver the report, so order it early. Findings are separated into:

Section 1: visible evidence of active infestation or infection, or conditions resulting from it.
Section 2: conditions likely to lead to infestation where no visible evidence was found, such as earth-to-wood contact, cellulose debris, faulty grade or controllable moisture.
Further inspection: areas the inspector could not access, such as floors under coverings.

State law says Section 2 conditions cannot be required to be corrected before the company issues its certification, one reason negotiations often center on Section 1. Every report notes that recommendations may vary between companies and that you have a right to a second opinion. Your contract sets who pays, and some lenders require a pest certification before funding. The board's online search shows whether a pest inspection was completed on the address within the last two years.

Sewer lateral video inspection

The sewer lateral, the private pipe carrying wastewater from the house toward the public sewer, is underground and outside a general inspection. A plumber runs a camera through it to look for roots, cracks, separated joints and low spots. If one company does both your home inspection and the sewer inspection and offers to make sewer repairs, state law requires a written disclosure first, including your right to a second opinion. Ask the city or sewer district where the owner's responsibility ends.

Roof, chimney and structure

A general inspector may view the roof from the ground or the eaves. A licensed C-39 roofing contractor can get on it, price repairs and in some cases issue a roof certification, a written statement that the roof is free of leaks and should perform for a stated term. A chimney specialist can run a camera through the flue to check the liner. For cracks, sloping floors or signs of movement, expect a referral to a licensed engineer. For a one-to-four-unit, light-frame home built before 1960, you generally must receive the state's Homeowner's Guide to Earthquake Safety, and the seller must disclose known weaknesses such as missing foundation anchor bolts or unbraced cripple walls.

HVAC, pool, electrical and mold

Heating and cooling: inspectors run the equipment but are not required to judge capacity or remaining life. A licensed C-20 contractor can evaluate older systems.
Pool and spa: beyond the required safety-feature check, a pool specialist or licensed C-53 contractor can evaluate equipment, surfaces and possible leaks.
Electrical panels in older homes: inspectors often flag outdated panels, missing grounding and amateur wiring. Have a licensed C-10 electrical contractor evaluate and quote the work.
Mold: standard inspections do not test for it. The U.S. EPA says that in most cases, if visible mold growth is present, sampling is unnecessary. Find and fix the moisture source first.

Condos: what an inspection cannot see

In a condo, your inspector focuses on your unit. InterNACHI's standard excludes common areas of multi-unit buildings, so elements the association may maintain, such as the roof, exterior walls and shared plumbing, get little attention. Responsibility depends on the CC&Rs, so review the association's budget, reserve study and minutes for planned projects, leaks and special assessments. Our Orange County condo buying guide covers that review.

Turning findings into a repair request

Sort every item with your agent:

Safety: exposed wiring, gas concerns, pool barrier gaps, missing smoke alarms or an unbraced water heater. Sellers generally must certify in writing that water heaters are braced and smoke detector requirements are met.
Major systems and water: roof, foundation, sewer lateral, active leaks, heating and cooling, electrical panels and Section 1 pest work.
Maintenance and cosmetic: worn caulking, minor drips and dated fixtures. These rarely belong in a request.

Lead with the first two groups; a short, well-supported list is easier to accept than a remodel plan. Expect the seller to see your reports, since standard contract terms call for buyers to share copies.

Repairs, a credit or a price reduction

C.A.R.'s Request for Repair form lets you ask for repairs before the final verification of condition, Section 1 or Section 2 pest work, a credit at closing, a lower price, or a combination.

Repairs: the seller picks the contractor and controls quality. Ask for licensed contractors and permits where required.
A credit: you control the work after closing, but your lender must know about it, loan programs cap seller contributions, and credits generally go toward closing costs rather than your down payment. Ask your loan officer first.
A price reduction: lowers your price and loan amount but leaves you paying for the repair.

Back requests with bids

A licensed contractor's written bid carries more weight than a line copied from a report. The CSLB recommends at least three written bids on the same scope of work, not automatically choosing the lowest, and checking the license before hiring.

What sellers often decline

The seller has no obligation to respond or agree. In our experience, sellers resist cosmetic items, conditions disclosed before your offer, Section 2 items and upgrades to older systems that still work, and are more receptive to safety issues, active leaks, Section 1 work and lender-required items. If the seller declines or counters, you can accept, negotiate or cancel while your contingency remains. Read response forms carefully: on C.A.R.'s forms, accepting a seller's agreement can also remove contingencies and release the seller and brokers from claims about the disclosed conditions. This is general information, not legal advice; for contract questions, talk with a California real estate attorney.

Verify the work before closing

The final verification of condition is not a contingency; it confirms the home's condition and that agreed repairs were completed. Before it, ask for invoices, paid receipts and permits. For pest work, ask for the company's notice of work completed and not completed and its certification. If the pest company gave a repair bid, it must reinspect on request, within four months of the original inspection, for no more than its original inspection price.

How Remark Homes helps

We help you book the right inspections early, read every report with you, line up bids and write a focused repair request. See our step-by-step guide to buying a home in California and our home buying services, then start your buyer representation agreement online or contact us.

Frequently asked questions

Do home inspectors need a license in California?

No. California has no state license for general home inspectors; state law sets a standard of care and conflict-of-interest rules instead.

Is a termite inspection part of the home inspection?

No. The wood-destroying pest report is a separate inspection by a company registered with the Structural Pest Control Board.

Does the seller have to fix what the inspection finds?

Generally no. Under standard California contract terms, the home is sold in its present condition, subject to your right to inspect. If you cannot agree, you can proceed or cancel under your contingency.

California Home Inspections: What to Expect and Negotiating Repairs