KRS 411.276: Written notice of claim required -- Offer to remedy or settle -- Acceptance

or rejection of offer -- Tolling of statute of limitations.

(1) In every deficient home inspection or home inspection report action brought against

a home inspector, the claim ant shall serve written notice of claim on the home

inspector. The notice of claim shall state that the claimant asserts a deficient home

inspection or home inspection report claim against the home inspector and shall

describe the claim in reasonable detai l sufficient to determine the general nature of

the deficiency.

(2) Within twenty-one (21) days after service of the notice of claim, the home inspector

shall serve a written response on the claimant by registered mail or personal service.

The written response shall:

(a) Propose to inspect the residence that is the subject of the claim and to

complete the inspection within a specified time frame. The proposal shall

include the statement that the home inspector shall, based on the inspection,

offer to remedy the defect, compromise by payment, or dispute the claim;

(b) Offer to compromise and settle the claim by monetary payment without

inspection; or

(c) State that the home inspector disputes the claim.

(3) (a) If the home inspector disputes the claim or does not respond to the claimant's

notice of claim within the time stated in subsection (2) of this section, then the

claimant may bring an action against the home inspector for the claim

described in the notice of claim without further notice.

(b) If the claimant rejects the inspection proposal or the settlement offer made by

the home inspector pursuant to subsection (2) of this section, then the claimant

shall serve written notice of the claimant's rejection on the home inspector.

After service of the rejecti on, the claimant may bring an action against the

home inspector for the deficient home inspection or home inspection report

claim described in the notice of claim. If the home inspector has not received

from the claimant, within thirty (30) days after the claimant's receipt of the

home inspector's response, either an acceptance or a rejection of the inspection

proposal or settlement offer, then at any time thereafter the home inspector

may terminate the proposal or offer by serving written notice to the cla imant,

and the claimant may thereafter bring an action against the home inspector for

the deficient home inspection or home inspection report claim described in the

notice of claim.

(4) (a) If the claimant elects to allow the home inspector to inspect in a ccordance

with the home inspector's proposal pursuant to subsection (2)(a) of this

section, then the claimant shall provide the home inspector reasonable access

to the claimant's home during normal working hours to inspect the premises.

(b) Within fourteen (14) days following completion of the inspection, the home

inspector shall serve on the claimant:

1. A written offer to remedy the defect at no cost to the claimant, including

a report of the scope of the inspection, the findings and results of the

inspection, a description of the remedy necessary to cure the defect

described in the claim, and a timetable for the completion of this

remedy;

2. A written offer to compromise and settle the claim by monetary payment

pursuant to subsection (2)(b) of this section; or

3. A written statement that the home inspector will not proceed further to

remedy the defect.

The claimant shall have the right to accept or reject the proposed remedy, or

the monetary offer to settle the claim.

(c) If the home inspector does not proceed further to remedy the defect within the

agreed timetable, or if the home inspector fails to comply with the provisions

of paragraph (b) of this subsection, then the claimant may bring an action

against the home inspec tor for the claim described in the notice of claim

without further notice.

(d) If the claimant rejects the offer made by the home inspector pursuant to

paragraph (b)1. or 2. of this subsection to either remedy the defect or to

compromise and settle the claim by monetary payment, then the claimant shall

serve written notice of the claimant's rejection on the home inspector. After

service of the rejection notice, the claimant may bring an action against the

home inspector for the deficient home inspection or home inspection report

claim described in the notice of claim. If the home inspector has not received

from the claimant, within thirty (30) days after the claimant's receipt of the

home inspector's response, either an acceptance or a rejection of the offer

made pursuant to paragraph (b)1. or 2. of this subsection, then at any time

thereafter the home inspector may terminate the offer by serving written notice

to the claimant.

(5) (a) Any claimant accepting the offer of a home inspector to remedy the defect

pursuant to subsection (4)(b)1. of this section shall do so by serving the home

inspector with a written notice of acceptance within a reasonable time period

after receipt of the offer, and no later than thirty (30) days after receipt of the

offer. The claimant shall provide the home inspector reasonable access to the

claimant's home during normal working hours to perform and complete the

remedy by the timetable stated in the offer.

(b) The claimant and home inspector may, by written mutual agreement, alter the

extent of remedy or the timetable, including but not limited to repair of

additional defects.

(6) If a claimant files a complaint, counterclaim, or cross -claim prior to meeting the

requirements of this section, then the court may issue an order holdin g the action in

abeyance until the parties comply with this section.

(7) Nothing in this section may be construed to prevent a claimant from commencing

an action on the deficient home inspection or home inspection report claim

described in the notice of cl aim if the home inspector fails to perform the remedy

agreed upon or fails to perform by the timetable agreed upon pursuant to subsection

(2)(a) or (5) of this section.

(8) The service of an amended notice of claim shall relate back to the original notice of

claim for purposes of tolling statutes of limitations and repose.