Before you ask who pays for a home inspection in New York, ask whom the inspection is for. The state’s licensing law defines the client as the person who engages the inspector, and it makes the inspector’s duty run to that person and no one else (Real Property Law §444-b and §444-g). In a typical purchase that person is the buyer, which is why the buyer usually pays. But a seller who orders an inspection before listing is a client too, and the reasoning changes with each role.
We are Inspecwise, a New York State–licensed, InterNACHI-certified home inspection business based in South Ozone Park, Queens. This guide sticks to what the statute and the Department of State’s rules say, marks everything else as practice, and prints no fees: what an inspection costs is written into the agreement you sign, and that agreement is where most of the answer to this question lives.
Who pays for a home inspection: the short answer by role
The rules we checked say who the inspector works for and what the agreement must contain. How the roles line up in a real New York sale is below, with the rule behind each row. “Usually” in the middle column means practice, not law.
| Who | What they usually do | What the verified rules say |
|---|---|---|
| Buyer | Hires the inspector within the inspection period in the contract and pays the inspector. | The person who engages the inspector is the “client.” The inspector’s duty runs to the client, and the report is confidential to the client. |
| Seller | Lets the buyer’s inspector in. Sometimes orders a pre-listing inspection first. | A seller who engages an inspector is the client for that inspection. Nothing in the Property Condition Disclosure Act requires a seller to inspect. |
| Lender | Orders its own appraisal and decides what else the loan program needs. | The Attorney General tells buyers not to rely on the lender’s appraisal as an inspection. An inspector may not pay lenders for referrals. |
| Buyer’s attorney | Reviews the contract and its inspection clause, then negotiates after the report. | The Attorney General advises using your own attorney, not one provided by the seller or lender. An inspector is not required to determine whether you should buy. |
| Real estate agents | Schedule access and often suggest inspectors. | An inspector may not pay a commission, referral fee or kickback to the seller or to either side’s agent. |
| Anyone else who offers to pay | A relative, or an agent covering the visit. | An inspector may take pay from more than one interested party only if the circumstances are disclosed to the client and all interested parties agree. |
The state’s rule: the client is whoever engages the inspector
The statute’s definition is short. A “client” is “any person who engages or seeks to engage the services of a home inspector for the purpose of obtaining inspection of and written report” on a residential building (Real Property Law §444-b). The same law says “the duty of every home inspector shall be to the client” (§444-g), and the Code of Ethics adds that inspectors must avoid conflicts of interest and activities that compromise their objectivity (19 NYCRR 197-4.7). Four practical consequences follow.
- The report is written for the client. It “shall be deemed confidential and shall not be disclosed without the express consent of the client.” A seller, an agent or a lender who wants a copy needs the client’s consent, not just an interest in the sale.
- The fee cannot ride on the outcome. An inspector may not agree to an inspection for which pay depends on the report’s conclusions, on pre-set findings or on the closing of the sale.
- Referrals cannot be bought. An inspector may not give a commission, referral fee or kickback to the seller or to either side’s agent, and may not compensate lenders or brokers for a place on a preferred list.
- Conflicts come first. Before accepting an assignment, the inspector must disclose all known or potential conflicts of interest to the potential client.
None of this tells you who must write the check. It tells you what the check buys: an inspector whose duty is to the person named as client. That is why it matters which name goes on the agreement, and why checking the inspector’s license comes before the booking, not after.
What the inspection agreement must say before anyone pays
New York does not leave the paperwork to habit. Before performing an inspection, the inspector must give the client a written pre-inspection agreement that “clearly and fully describes the scope of service to be provided and the cost associated with that service” (19 NYCRR 197-4.2). Two clauses are mandatory and must be printed in type no smaller than six point. The first says home inspectors “may only report on readily accessible and observed conditions as outlined in this pre-inspection agreement,” and that they are not permitted to provide engineering or architectural services. The second records the client’s consent to let the inspector tell the owner or occupants about an immediate threat to health or safety. The inspector must also discuss the scope with the client and perform only the services the client authorized.
Those few sentences are the legal minimum for the agreement. Everything else in it is the inspector’s own wording, so read it as a contract. These are practice points, not requirements:
- Who is named as the client? If two buyers are on the contract, are both named? The report goes to the client, so the name decides who gets it without asking.
- Who owes the money, and when? The agreement states the cost, so do not rely on a phone call. Look for the due date and the accepted payment method.
- What is in the scope and what is not? Radon and pests are outside a licensed home inspection by statute, so an inspector who offers either one is offering a separate service. Our guide to what a New York home inspection includes sets out the line.
- Who else may receive the report? Your attorney, your agent and your lender will each ask. The agreement should say how you authorize that.
- What happens if the visit cannot be finished? A blocked panel or a locked basement can end the visit early. Our guide on how to prepare for a home inspection covers the access side.
When the buyer pays: the usual path in a New York purchase
So who pays for a home inspection when the buyer is the one hiring? In a typical purchase the buyer hires the inspector during the inspection period in the contract of sale. The Attorney General’s tips for first-time buyers describe the protection to look for: negotiate a contract provision giving “the right to get an inspection by someone of your choosing and to cancel the contract if you are not satisfied with the inspection” (New York Attorney General, Tips for first-time home buyers). The same page says to have your own attorney review the contract and warns that “it is not a good idea to use an attorney provided by the seller or the lender.” The deadline, the cancellation terms and what happens to a deposit are contract terms, so they are your attorney’s to explain. Our guide to the home inspection contingency goes through the common structure.
The buyer’s cost does not end with one visit. Each of these is its own service, with its own provider and its own agreement:
- Radon testing and wood-destroying insect inspections. The statute says a home inspection “shall not include an inspection for radon or pests.” Whoever orders either test pays the provider. See our guide to which add-on tests you need.
- A sewer scope, an oil tank search or a water test. The Standards of Practice do not require inspectors to observe underground drainage or underground storage tanks, or to evaluate whether a water supply is potable, so a buyer who wants any of them checked hires a provider for it.
- A structural engineer. The Attorney General’s tips also say to choose a licensed engineer or architect for the inspection. A licensed home inspector is not one, and the agreement says so in its mandatory wording. Which professional fits your building is the question in our guide to home inspector vs structural engineer.
If you are buying a co-op or condo
In a co-op or condominium the buyer’s inspection covers the unit and what can be seen of the shared areas around it. The Standards say an inspector is not required to inspect any condominium common component or system, or to evaluate condominium reserve accounts (19 NYCRR 197-5.16). Questions about the building’s roof, boiler and reserves are answered by the building’s own documents, and where there is an offering plan, the Attorney General “highly recommends” that a prospective purchaser read the entire plan and consult an attorney before signing a purchase agreement. If the building’s condition is your concern, the building-level review is a separate job with a separate payer. Our guide to co-op inspections in Queens and Brooklyn covers how the pieces fit.
When the seller pays: pre-listing inspections
A seller who orders an inspection before listing is the client, and the answer to who pays for a home inspection moves to the seller’s side along with everything else above. The report is confidential to the seller, who decides whether any buyer, agent or attorney sees it. The inspector’s duty runs to the seller, not to a future buyer. A buyer handed that report is reading something written for someone else, and the buyer’s own inspection is the one the inspector owes to the buyer.
Three further points matter to a seller who pays. First, the Property Condition Disclosure Act says nothing in it requires a seller “to undertake or provide for any investigation or inspection” of the property (Real Property Law §462(3)), so a pre-listing inspection is a choice. Second, the statement a seller signs is based on the seller’s actual knowledge, and a seller who learns something that makes a delivered statement materially inaccurate must deliver a revised one as soon as practicable (§464). What a pre-listing report adds to the seller’s knowledge, and when, is a question for the seller’s attorney. Our guide to the New York property condition disclosure explains the statement itself. Third, an inspector may not, for an additional fee, repair or replace components in a building the inspector reported on before the close of escrow, except components outside the Standards. So the inspector who found a problem may not offer to fix it for an additional fee before escrow closes, and a seller who wants repairs hires a separate contractor.
Sellers weighing this choice will find the local picture in our pre-listing inspection page for Queens and, for a different angle, in the older post on seller home inspections in New York. Whether to be present on the day is a separate question, answered in our guide on whether the seller should be at the home inspection.
What a lender pays for, requires or only looks at
In a typical purchase the lender is not the client of the buyer’s inspection. It orders an appraisal for its own use, and the Attorney General warns buyers: “Do not rely on the appraisal that is provided by the lender.” An appraisal estimates value for the loan. An inspection reports the condition of the systems an inspector can see. Our guide to home inspection vs appraisal sets them side by side.
Whether a lender asks for any report beyond the appraisal depends on the loan program and the property, so the loan officer and your attorney are the people to ask. Our guide on whether a home inspection is required for a mortgage covers the question in detail, and the older post on FHA loans covers one program. One lender requirement you can verify without a loan officer is flood insurance. The state’s disclosure form notes that homes in the Special Flood Hazard Area with mortgages from federally regulated or insured lenders are required to obtain and maintain flood insurance (Department of State form DOS-1614-f, Rev. 01/24). That is a recurring cost that follows the loan, so in a flood-prone area, ask about flood maps before you commit, not after the inspection. See buying in a flood zone in New York City and Long Island.
Two more points about lenders and the inspection. A lender does not get the report by right: it is confidential to the client. And an inspector may not pay a lender, a broker or any party with a stake in closing for referrals or a place on a recommended list, so a lender’s list should not be a paid placement. You may still choose your own inspector from outside it.
What the buyer’s attorney handles, and what the inspector leaves to the attorney
The inspector reports on conditions. The attorney handles what to do about them. The Standards say an inspector is not required to determine the advisability of purchase, the methods, materials or costs of corrections, or the remaining life of any system (19 NYCRR 197-5.16), and the Code of Ethics bars an inspector from determining whether a house complies with regulations, codes, laws or ordinances (19 NYCRR 197-4.4). So the questions that follow a report fall to different people:
| Question after the report | Who answers it |
|---|---|
| What is wrong, and what could not be seen? | The inspector: the report must list the systems observed and, for any major item not observed, the reason. |
| How much will it cost to fix? | Contractors and licensed trades you ask for quotes. The Standards do not require the inspector to give costs. |
| Is this structural problem serious? | A licensed structural engineer, if the report points to one. |
| Did the addition or the basement apartment have permits? | The building department’s records and your attorney. |
| Who pays for the fix, or does the price change? | You and the seller, through your attorneys, under the contract. |
| Should I still buy? | You, with your attorney. The inspector does not decide it. |
A report records conditions; it does not itself decide what gets repaired, credited or left alone. That is negotiated under the contract. Our older post on which fixes are mandatory after a home inspection covers the common cases, and the written home inspection report guide explains what the document looks like.
Questions to settle before you book
- Whose name goes on the agreement as the client, and does everyone who needs the report appear on it?
- What does the agreement say the visit includes and excludes, and which add-on tests are separate services?
- When is payment due, and does the agreement say what happens if the visit cannot be completed?
- Will anyone other than the client pay or contribute, and has the inspector disclosed any conflict?
- Who will see the report, and how do I authorize my attorney, my agent or my lender to receive it?
- What is the inspection deadline in my contract, and has my attorney confirmed it?
- Is this a one- to four-family house or a co-op or condo unit, and who handles the building-level questions?
More questions for the inspector are in our list of questions to ask a home inspector.
Does the seller pay for the buyer’s home inspection in New York?
Usually not: the buyer who hires the inspector is the client and pays for the inspection, and any contribution from the seller is a negotiated matter for the attorneys. If anyone other than the client pays the inspector, the Code of Ethics requires the inspector to disclose known or potential conflicts of interest to the client before accepting the assignment. Ask for that in writing.
Who pays for a home inspection if the sale falls through?
The agreement sets the terms for the visit, and the statute bars an inspector from agreeing to an inspection for which pay is contingent on the closing of the sale or on the report’s conclusions (Real Property Law §444-g(4)(d)). Read the cancellation terms in the agreement before you sign, and ask your attorney about the contract’s own inspection clause.
Can my real estate agent pay for or choose my inspector?
An agent can recommend one, but an inspector may not pay the agent or the seller a commission, referral fee or kickback for the referral. If an agent offers to cover the cost, ask the inspector how the conflict-of-interest rules apply, because the inspector’s duty runs to you as the client.
Does my lender get a copy of the inspection report?
Not by right. The report is confidential and cannot be disclosed without the client’s express consent. If your lender or attorney asks for a copy, you decide, so check how the agreement lets you authorize that.
Who pays for the radon test or the termite inspection?
Whoever orders them pays the provider, because they are separate services. The licensing statute says a home inspection does not include an inspection for radon or pests. Our guide to which add-on tests you need explains how to decide.
Who pays for repairs after a New York home inspection?
That is a negotiation, not something the inspection decides. The report records conditions, and the contract and the parties’ attorneys settle whether a seller repairs, credits or declines. Ask your attorney how your contract treats it.
Can I rely on the seller’s pre-listing report instead of hiring my own inspector?
You can read it, but it was written for the seller, and the inspector’s duty runs to the seller as the client. Your own inspection is the one the inspector owes to you, with an agreement that names you.
Booking an inspection with Inspecwise
If you are the buyer, you would be the client on our agreement. New York requires every licensed inspector to put the scope and cost in writing before the visit, so ask for the agreement when you call and read it first.
We inspect in the five boroughs, Nassau, Suffolk and Westchester, and elsewhere on request, and we can talk through your questions in English, Urdu, Punjabi or Hindi.
Prefer to talk first? Call 718-925-7071.