ASHI gets regulation change that makes EVERYONE the home inspector's client.

(Nick Gromicko, CMI) #1

This was pushed through by the President of the ASHI chapter in Texas. Horrible for our industry.

: Texas Register](http://texreg.sos.state.tx.us/public/regviewer$ext.RegPage?sl=R&app=1&p_dir=&p_rloc=355808&p_tloc=&p_ploc=&pg=1&p_reg=355808&ti=22&pt=23&ch=535&rl=201&issue=08/31/2018&z_chk=)

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(Larry Kage, CMI) #2

I just don’t get why, for goodness sake. :shock:

Horrible for our industry is what I see, too.

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(Steve Taylor, CMI) #3

So what do you think this actually means?

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(Emmanuel J. Scanlan, TREC# 7593) #4

If you are speaking about the definition of a “client” this has been a long standing TREC position and all they did was clarify it by defining it. TREC regulates and control licensed Inspectors working for buyers and sellers of real estate. It was generally felt by Inspectors that they are only buyers and sellers when an offer contract is in place. However that does not cover a buyer who might have approval to perform an inspection prior to a contract. It also does not cover a seller who might have an inspection performed prior to signing a listing contract with a RE Broker.

All TREC has done with this definition is to ensure these situations are included under the rules and laws covering licensed Inspectors. This is done by saying that if a person even thinks about buying or selling and they hire a licensed Inspector then the Inspector must follow at least the minimum requirements of their licensing.

BTW this is in the preamble for our promulgated reporting form required for these inspections. I have bold an important part.

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(Larry Kage, CMI) #5

Thanks, Manny…I’m glad I don’t inspect in Texas. :roll:

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(John Cahill, TREC 855) #6

I listened to the tape again. This topic was proposed by Brian Murphy. I do not know what groups he belongs to. He was not at the meetings.

The Inspector Committee and staff were all over the page discussing this. The Rule causes many questions because it does not explain much of what was discussed by the Inspector Committee and staff.

Comments were made, and the new Rule seems to indicate, that the client may not be the person named on the report or the contract. The new Rule can mean if InterNACHI name is on the report it does not mean they are a buyer and seller and the inspector’s responsibility is to someone else. This conflicts with what Manny bolded above regarding “name on the report”.

The purpose of the meeting was to STOP InterNACHI. It is very clear on the tape. STOP InterNACHI. The Federal Trade Commission should be contacted. FTC interceded and stopped TREC back in 2006 regarding Broker rules. It is excessive regulation of commerce and not occupational licensing. It is intended to prevent me from offering my services to a wider market. It restrains my trade.

The TREC lawyer said, "the buyer and seller can disclose the report to others but that the inspector is responsible only to the party (parties?) of the transaction (she used the word privity). This causes several questions regarding “the transaction”.

There are other problems however I will present them later.

I do not know if this pushed by ASHI but Bud Rozell had only a small role. I would say, Brian Murphy asked the question and the inspector committee and especially staff pushed this.

There are ways around this; it’s not ironclad.

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(John Cahill, TREC 855) #7

Someone said, “This is done by saying that if a person even thinks about buying or selling and they hire a licensed Inspector then the Inspector must follow at least the minimum requirements of their licensing.”

TREC does not and cannot regulate what the public does. I think Texas will frown on TREC preventing a person who knows construction and provides consulting services from working. Many people do it now including foundation repair surveyors. Heck, a buyer can hire me to review an inspectors report and provide my opinion on their work. TREC does not regulate that.

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(Chuck Evans, CMI TREC 7657) #8

It excludes InterNACHI from being the client unless InterNACHI is either the buyer, prospective buyer or seller of the property. It may, by implication, indicate that any consumer of an InterNACHI sponsored/funded inspection report, may be considered the inspector’s client by TREC, even though they have no direct relationship with the inspector.

As a business owner, I want to be able to choose and know, exactly, who my clients are.

More TREC bureaucrats run amok.

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(Emmanuel J. Scanlan, TREC# 7593) #9

John you’re losing your reading comprehension skills. Nobody stated that TREC regulates what the public does and that sentence of mine doesn’t even come close to stating that. You full well know that but instead are playing the current games we see in other arenas of late in attempting to twist the meaning of wording around to fit your ideology. You’re better than that and should realize it! :roll:

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(John Cahill, TREC 855) #10

Governor Abbott agrees with me . . . or I with him. Sunset is meeting at this time. He is appointing new Commissioners soon and the insanity of the words is what it is all about.

I met with Sunset and told them that occupational licensing should vet new inspectors only then do nothing. No education management, no CEU, no form, no Standard, no Enforcement, no mandatory E&O (maybe mandatory General). All consumer complaints should be referred to the civil dispute resolution system where a breach of contract is judged by a jury. Sounds like California!

TREC home inspection should apply only to executed contracts pending closing. Inspectors should be able to sell alternative “non-TREC” services to anyone at any time.

Real estate agents continue to control a large number of referrals. No amount of regulation will solve that for those who rely on it . . whether it be bad or good for them.

Manny, when I referenced your comment it was to demonstrate how you interpret it one way and TREC the other. I got your point. J

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(John Cahill, TREC 855) #11

We are on the same page. I and others are working on getting that exact interpretation now and have the ear of a lot of people with the power to cause change.

I look forward to the day when ALL I do is InterNACHI inspections for Nicks new and innovative plan. It’s for someone who is not a buyer or seller.

A TREC meeting tape has a TREC lawyer stating that all buyers and sellers might refer to an inspection but only the party to the executed contract has privity. I will work on formalizing that segregation.

Climb on

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(Emmanuel J. Scanlan, TREC# 7593) #12

Comments, observations, and questions in blue above.

What you appear to be championing is altogether unlicensed inspections?

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(John Cahill, TREC 855) #13

YES.

That’s how the majority of the nation does it now. Some of the best inspectors I know are in non-regulated or minimally regulated States. Rules do not make good inspectors. Various trade associations make good inspectors. InterNACHI has incredible education and support. Active participants excel in public protection.

Here are several great articles on the perils of occupational regulation.

Back to the main point of the thread. The topic was introduced to TREC by Brian Murphy when he objected to InterNACHI listing inspection ideas. Staff and the inspector committee ran with it. TREC staff wants control of all inspectors. The IAC discussions were restraint of trade or protectionism based. The Commissioners are so overwhelmed with 600-page agendas they really don’t understand what is going on. They simply voted the way TREC General Counsel advised when she said: “the Inspector Committee recommends and staff agrees”. Heck TREC staff even authors the motion for the Commissioner to read!

The definition of “client” is a topic that will continue. One thing for sure, I don’t always agree with what TREC staff tells me and I am willing to make it very public. They LOVE me. I am their job security. They are always cooperative and respond quickly to my questions.

In ending, yes, very significantly deregulate. I know some disagree and I am fine with that.

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(Nolan Kienitz) #14

John,

And, after your many meetings … do you think there is any snowball’s chance in hades of the Sunset Commission pulling the inspectors out of TREC?

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(John Cahill, TREC 855) #15

More like a snowballs chance on a random Texas February day. Winning might be nothing more than making them earn their power. The elections will affect the odds. If Abbott gets re-elected he can cause great change with upcoming Commissioner appointments. The best thing inspectors can do is be very visible, especially at the Govenors office.

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(Nick Gromicko, CMI) #16

The person who came up with some wild conspiracy theory about me personally and then wrote a 2-page letter about me and sent it to TREC was Brian Murphy. His letter caused TREC to take drastic steps that make it harder for me to reimburse my own InterNACHI members for seller inspections by changing the definition of the word “client.” If anyone has a copy of the actual letter, please email it to me at gromicko@msn.com . Your anonymity will be protected, I only want the letter.

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(John Cahill, TREC 855) #17

Page 32 at this link. Look right; Second option of meeting materials PDF. 01-22-2018 Meeting Materials. pdf

I have known Brian for 20 plus years. We share a passion for home inspection although we do not see eye to eye on regulation. If his facts are wrong I suspect he will amend his document.

I would rather see you put your energy, money, and lawyer into the next Texas legislative session. Governor Abbott is waging war on over-regulation of occupations and the time has never been better to accomplish that. You can only imagine the “deep state” the Governor faces however he has some strong cards. He appoints the new TREC Commissioners and he can certainly put someone on the Board that shares his view.

The new definition has weaknesses and I will share those with you privately. Let’s take this experience and use it to our advantage at the legislature. Brians letter and TREC’s actions will verify the extent of protectionism and regulation of commerce that exists in Texas. If we help Texas inspection we could also be inadvertently helping many other Texas occupational licensees.

I am not proposing deregulation but rather very significant reductions thereof. Verify education and testing then defer everything else to commerce and the courts. TREC should get out of the “education approval and enforcement” business. How they regulate real estate agents is of no concern to me.

John

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(Nick Gromicko, CMI) #18

I’ve looked and don’t see the letter. Are you saying you can see it? Can you just give me the link directly to the letter?

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(Nick Gromicko, CMI) #19

I think I found it:

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(Nick Gromicko, CMI) #20

InterNACHI has mounds of data pouring in with the online agreement system and the Buy Back Guarantee and the FetchReport upload feature and we’ve never released any of it in 21 years. InterNACHI’s monster website has 28 million unique visitors and we’ve never sold so much as a banner ad (unlike Jiffy Lube, I mean ADSHI, which has become one big website full of stupid advertisements. See homepage screenshot attached. Yes, that’s their HOMEpage. LOL.

We could have more than doubled the number of home inspections our industry performs, almost overnight as well as landing full-price seller inspections for our industry. But thanks to ASHI’s Brian Murphy, we’re back to drawing board.

ASHI members are just so stupid. When I see the ASHI logo, I immediately think 'idiot"… or Jiffy Lube.

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