TOPIC: Deposit made for Inspections

I am sorry for always being a wet blanket on this topic, but I am fresh off of settling a lawsuit with a greedy customer from three years ago in my home improvement days. It was for "Technical Violations" of the Consumer Fraud Act. So when a topic comes up about taking a deposit and not refunding it due to a cancellation, I get scared. I am all for locking a job up however I can but two things I know I will be asking my Attorney are: 1. Does this open up new regulations I need to be aware of under the CFA? 2. Can the client get their deposit back be contacting the credit card company? I may be an alarmist, but you cannot imagine how awful the CFA is to a business owner until you have suffered its wrath.  >

I agree. It seems the easiest way would be to collect their info and not charge the deposit until the cancellation within 48 hours is done. You could also call it a cancellation fee rather than a deposit which might work better legally.

I'll bet some inspectors have already added "No Deposit" required to their websites.  Remember guys, don't make it more difficult for the client or agent to enlist your services.  Asking for a deposit might be the deciding point between using you or your competition.

When I started in 1985 all inspections had to be billed through escrow.  No one and I mean no one would pay up front.  After having thousands of dollars in invoices sitting in cancelled escrows, I gradually made the transition to "Pay at time of Inspection".  I lost many a job making that transition...

That's a good point as well. And I agree it could definitely have that affect. This is just brainstorming for those who are getting a ton of these a month.

Understood...

Communicate with the prospective client.  Let them know why you can't take an order unless they've got an accepted offer in writing.  Further advise that if they cancel within 24 hours or whatever that it will cause you loss of revenue as you most likely won't be able to fill the cancellation on short notice.  I always advise the client I'll inspect whatever is available at time of inspection.  If the agent can't get us in or the utilities aren't on, I'll inspect what I can, but a re-inspection fee will apply to complete the job. 

Follow up your phone communication with an email.  You'll get your point across without causing the client to consider using another inspector who is not charging the deposit fee...

Agreed.  And on the email, suggest that the client look up something on your website.  That gives them a chance to become familiar with you and your product.

Agreed.  And on the email, suggest that the client look up something on your website.  That gives them a chance to become familiar with you and your product.

Great point Jay. I ALWAYS follow up with an e-mail to the client and theeir agent confirming. And don't ask for the confirmation, just state when it is. And by all means, point them to your website. Maybe they didn't want a radon test, or other extra that you provide. If you direct them to your site, they may read something and decide they that extra also.