B.C. Information Bulletin:

Local Inspection Issues Canadian Home Inspectors
1

](http://consumerprotectionbc.us5.list-manage2.com/track/click?u=acda4235cd25a7066075b7c55&id=2ffc27654a&e=a0ff3e7291)

                               **UNDERSTANDING THE      NEW HOME INSPECTION RULES**
                      

                               Information Bulletin: The policy for home inspector      insurance requirements. 


                        This      communication is one in a series, leading up to September 1, 2016, when      changes to the laws for home inspectors come into effect. We are sending      you this information to help you prepare for those changes.  Please      visit www.homeinspectionrightsbc.ca      ](http://consumerprotectionbc.us5.list-manage.com/track/click?u=acda4235cd25a7066075b7c55&id=d5b08cb2e9&e=a0ff3e7291)regularly for updates. 
    
  **Policy on insurance requirements**

  With the      changes to the *[FONT=Arial]Home      Inspector Licensing Regulation*, comes clarification to the      requirements for home inspectors to have and maintain professional      liability (E&O) insurance and comprehensive general liability (CGL)      insurance. 
   
  Consumer Protection BC has developed a policy on Home Inspector      Insurance Requirements](http://consumerprotectionbc.us5.list-manage1.com/track/click?u=acda4235cd25a7066075b7c55&id=2bdcf001d8&e=a0ff3e7291), which sets out the specific insurance      requirements that all licensed home inspectors must meet.       Compliance with this policy will be enforced as of **October 31, 2016**.       This means we have given a two month window of time to allow for all      licensed home inspectors to ensure they have obtain the necessary      insurance that meets the criteria outlined in the policy.
   
  Please note that a broader review of home inspector insurance      requirements will take place over the coming months. This review will      include consultation with industry stakeholders and insurance providers      to ensure the current insurance requirements meet industry needs.       As a result of this review, which is set to be completed by the end of      this year, potential revisions to the insurance requirements may be      implemented, effective March 31, 2017. [/FONT]
  **
  Questions?**

  We      understand that it can be difficult to understand all the implications of      a change to the law. To help our stakeholders in understanding the      changes happening on September 1, 2016, we have created a comprehensive Home Inspection Legislation      Guide](http://consumerprotectionbc.us5.list-manage.com/track/click?u=acda4235cd25a7066075b7c55&id=093aca3403&e=a0ff3e7291). This guide is meant to be a reference point for home      inspectors on some of the highlights in the revised *[FONT=Arial]Regulation *that come      into force on September 1, 2016. Please note that the Home Inspection      Legislation Guide is not intended to provide legal advice and is by no      means an exhaustive review of all the legislative provisions affecting      home inspectors in BC.
   
  If you have questions about the new rules or about our processes or      policies, we are happy to help you.  Please contact us at      1-888-564-9963 or [operations@consumerprotectionbc.ca](http://javascript<b></b>:_e(%7B%7D,'cvml','operations@consumerprotectionbc.ca');). 
  
  The "Law Change Updates" [page](http://consumerprotectionbc.us5.list-manage2.com/track/click?u=acda4235cd25a7066075b7c55&id=23e2dab3ea&e=a0ff3e7291) on our      website also provides a variety of information. Please continue to visit [www.homeinspectionrightsbc.ca](http://consumerprotectionbc.us5.list-manage1.com/track/click?u=acda4235cd25a7066075b7c55&id=dab2dddaaf&e=a0ff3e7291)      for updates on the changes to the law which come into effect on September      1, 2016.
  
  Thank you.
  Consumer Protection BC
    [/FONT]
                         **[READ OUR HOME INSPECTION        LEGISLATION GUIDE](http://consumerprotectionbc.us5.list-manage.com/track/click?u=acda4235cd25a7066075b7c55&id=925012deb3&e=a0ff3e7291)**

](http://consumerprotectionbc.us5.list-manage.com/track/click?u=acda4235cd25a7066075b7c55&id=364ff3ee28&e=a0ff3e7291)

  ***[FONT=Arial]About Consumer      Protection BC***
  *Consumer Protection BC      is the regulator of a variety of business sectors and specific consumer      transactions in the province. Our mandate is to license and inspect our      regulated businesses, respond to consumer inquiries, investigate alleged      violations of consumer protection laws, classify all general release      motion pictures and provide information so consumers can self-assess the      fairness of a transaction. Our vision is a province where all citizens of      BC are empowered in their transactions as a result of rigorous and      consistent business compliance and through the provision of      solution-based information. For more information about our organization,      please visit our corporate website at www.consumerprotectionbc.ca](http://consumerprotectionbc.us5.list-manage.com/track/click?u=acda4235cd25a7066075b7c55&id=59d14271bd&e=a0ff3e7291) or      read our [2015 Annual Report](http://consumerprotectionbc.us5.list-manage.com/track/click?u=acda4235cd25a7066075b7c55&id=6fc55764e6&e=a0ff3e7291).*[/FONT]
                      
                 **Have a Question for    Consumer Protection BC?**

       

              **Visit our website **[FONT=Arial]www.consumerprotectionbc.ca**](http://consumerprotectionbc.us5.list-manage2.com/track/click?u=acda4235cd25a7066075b7c55&id=5877b457b0&e=a0ff3e7291)[/FONT]**

Write to Us

    **[info@consumerprotectionbc.ca](http://javascript<b></b>:_e(%7B%7D,'cvml','info@consumerprotectionbc.ca');)**
    **PO Box 9244        Victoria BC V8W 9J2**
                       
                                           **Call Us**

   **  **
2

Interesting.Unless I misread it, there is no mention of what deductible they must have. If the deductible was large enough, it could bankrupt the inspector.
Would the consumer still be “protected” if the inspector couldn’t pay the deductible…or would the insurance co. get left holding the bag?

3

My concern about the BC regulation is the open-ended liability for home Inspectors. A home inspector in BC has no protection even from a statute of limitations. It appears to be open-season on B.C. home inspectors.

Duck!!

4

I wonder could BC inspectors end up with Zero Insurance .

To:

Good morning, HIAMember,

We appreciate thatyou are concerned about the recent CPBC directive regarding compliance in BC ofour Legal Benefits Plan. You can be confident that the Home InspectorsAssociation will meet this criteria and continue to look after your needs.

We’ve spoken withlawyers, insurers and other resources who have helped with a plan to resolvethe issue. Do not worry; you can be assured that you will nothave a problem with your coverage.

Thank you for youramazing response with early membership and LBP renewals this year, as well asregistrations for our September meeting.

We’ll continue tokeep you informed. Don’t hesitate to call me if you have anyquestions at all.

Warmest regards,

Helene

Helene Barton | ExecutiveDirector

**Home Inspectors Association BC **

**Advancing Professional Home & PropertyInspections **** **

5-3304 Appaloosa RdKelowna BC V1V 2W5

1.800.610.5665 or 250.491.3979 [htbarton@hiabc.ca](javascript:_e(%7B%7D,‘cvml’,‘htbarton@hiabc.ca’):wink:

5

Insurance availability will become an issue in BC

6

If there is unlimited time on the liability, and inspectors have to maintain coverage after they retire to comply with the requirements, (or face bankruptcy) then the Inspection profession has effectively been dealt a death blow by the Government of BC with these changes.

It seems apparent that another knee jerk reaction from the regulators in B.C. have swung the pendulum so far in the opposite direction to the original regulations, it may take a long time for it to stop swinging.

One can only trust that here in Ontario, with the help of a cohesive effort from all the elements of our profession we get it right first time. We certainly have some examples from B.C., Alberta and Quebec to show us how not to do it.

7

I wonder what is happeningwith the CSA standards … Roy

Hi everyone,

Delighted to let youknow that our Scope of Inspection is ready and attached here for you. This replaces the current CAHPI Standard of Practice and is referenced in yournew contract.

I’ve added it to themembers area under HIA Forms and it is also available for your clients on thehome page of www.hiabc.ca. If you would like printed copies, please let our office know. We willoffer your first 50 copies in color, 3 hole punched and stapled if you prefer,for Free. We can deliver to you at the September 24thmeeting or otherwise charge mailing costs only.

No changes to yourreporting systems should be needed. We can no longer limit inspection ofgarage and/or carport to attached only so we’ve changed the Scope underExterior section to read: primary garage or carport attached ordetached

We did our best tomake this an easy transition for you because apparently CPBC will issue a newmandatory Scope of Inspection some time in 2017 – that’s when reporting systemswill probably need to be brought up to date. For this new Scope weaccessed mainly the ASHI standards we used prior to the 2012 CAHPI SoP.

On another subject,we have had a few claims on missed hidden oil tanks this past year. TheLBP Committee urges you to add to all your reports: “Be aware that thereis a high possibility of a buried oil tank in any pre 1970 dwelling.”

Many thanks,
Helene

Helene Barton | ExecutiveDirector

**Home Inspectors Association BC **
**Advancing Professional Home & PropertyInspections **** **
5-3304 Appaloosa RdKelowna BC V1V 2W5
1.800.610.5665 or 250.491.3979 [htbarton@hiabc.ca](javascript:_e(%7B%7D,‘cvml’,‘htbarton@hiabc.ca’):wink:

http://hiabc.ca/wp-content/uploads/2011/09/HIA-Scope-of-Inspection-2016.pdf
**1 **
**HOME INSPECTORSASSOCIATION BC **
**SCOPE OF INSPECTION 2016 **
The purpose of this Scope ofInspection is to establish a minimum, uniform standard for Home InspectorsAssociation BC home and property inspector members.
This Scope of Practice of homeinspection identifies the range of services and activities that the licensedmembers of this profession are educated and legally required to provide. Thedocument describes the professional activities and areas of professionalpractice. The Scope of Practice defines the minimum standard of practice forall HIA home inspections in British Columbia. The scope of work of anindividual home inspector must meet the requirements outlined in this documentbut may include additional inspection services where the home inspector isqualified and / or has special knowledge.
The scope of the homeinspector’s review of a home is a contractual matter, therefore, any additionalservices provided to the client beyond the Scope of Practice, must becommunicated through a contractual agreement with the client.
The working premise of thisdocument is that licensed home inspectors will demonstrate minimum, entry levelcompetencies and will conduct their work competently in a variety of homeinspection environments. The practice requirements represent the expectationsof a “typical” not an “expert” home inspector. A specialist may be hired toprovide additional analysis and opinion of adverse conditions or defectsidentified, beyond this Scope of Practice.
A home inspection is a limited,non-invasive, visual examination of the current condition of a residentialbuilding. A home inspection is designed to report observed deficiencies withinspecific systems and components of a home. A home inspection provides adescription of the condition of the home based on observation of the visibleand apparent condition of the structure and components at the time of the homeinspection. A home inspection does not guarantee future condition, efficiency,or life expectancy of systems or components. It is not an inspection to verify compliancewith any applicable building codes, municipal bylaws or other regulations. Ahome inspection will not reveal every problem that exists or could ever existand is not a technically exhaustive inspection.
**HOME INSPECTORS ASSOCIATIONBC **
**CODE OF ETHICS **
Honesty, justice, and courtesyform a moral philosophy which, associated with mutual interest among people,constitutes the foundation of ethics. The members should recognize such astandard, not in passive observance, but as a set of dynamic principles guidingtheir conduct. It is their duty to practice the profession according to thiscode of ethics.
As the keystone of professionalconduct is integrity, the Members will discharge their duties with fidelity tothe public, their clients, and with fairness and impartiality to all. Theyshould uphold the honor and dignity of their profession and avoid associationwith any enterprise of questionable character, or apparent conflict ofinterest.

  1. The member will express anopinion only when it is based on practical experience and honest conviction.
  2. The member will always act ingood faith toward each client.
  3. The member will not discloseany information concerning the results of the inspection without the approvalof the clients or their representatives.
  4. The member will not acceptcompensation, financial or otherwise, from more than one interested party forthe same service without the consent of all interested parties.
  5. The member will not acceptnor offer commissions or allowances, directly or indirectly, from other partiesdealing with their client in connection with work for which the member isresponsible.
  6. The member will promptlydisclose to his or her client any interest in a business which may affect theclient. The member will not allow an interest in any business to affect thequality of the results of their inspection work which they may be called uponto perform. The inspection work may not be used as a vehicle by the inspectorto deliberately obtain work in another field.
  7. An inspector shall make everyeffort to uphold, maintain, and improve the professional integrity, reputation,and practice of the home inspection profession. He or she will report all suchrelevant information, including violations of this Code by other members, tothe Association for possible remedial action.
  8. No member shall be activelyengaged as a broker or agent in the sale, purchase or listing of Real Estate.
  9. The Inspectors shall notrepair any condition found during an inspection or give cost estimates.
    Use of this HIA Scope ofInspection does not guarantee that the Inspector is a member of Home InspectorsAssociation BC.
    To confirm membership, visit www.hiabc.ca
8

I find it fascinating that 1,500 Ontario homeinspectors could possibly be creating such havoc with the provincial realestate market.
Yet at the same time buyers pay thousands over list price andand thousands more in missed and undisclosed defects by not having aninspection congrats in the first place. Home inspectors are being made thescape goats for buyes, realtors and vendors with licensing.
Frankly, I’m notsure buyers need consumer protection given their stupidity .

9

1,500 home inspectors who generally don’t advertise in the press.
74,000 realtors who spend millions in press advertising.

Who do you think the press listens to?

10

Which reminds me of years ago when I first got into this business, how I was denied by the local newspaper from advertising in the same section of the advertisements for realtors. I complained and got know where, since I was told the Realtors ruled based on advertising $$$$$$$.

11

Been there done that . I had a client who wanted me to do his inspection .
He was leaving to go to Germany he said to me I have told my agent to let you in to do the inspection .
I called the agent and he said no way only XX XXXX inspector does my sales . This was many years ago no way to get in touch with my client so we lost the inspection .
I think the agents today are still controlling many of the inspections .

12

Not many inspections( if any) are being done with the bidding wars going on.

A home across the street from me was listed at 699K
It sold in one weekend for 940K More that 30 offers were presented…not one with conditions of any kind!

Cheers

13

Business sure has changed since I retired .
I made much more doing an inspection 6 Years ago the what many are getting today.
I can see why so many in Ontario are no longer doing inspections.

14

Doug, the current market is tip the whole real-estate world upside down. I know a few appraisers, and they can’t keep up with the changes. Properties are selling for 20-30% more than they are appraised at. Either the bank stumps up the difference for the mortgage, or people are getting into serious hot water with their finances.

We only need a 1-2% shift upwards in interest rates and the whole house of cards will come down.

With a higher interest, people won’t be able to afford the mortgages, they’ll go upside down and have to sell. This will increase the inventory and drive the prices down. We are already seeing homes in the negative for most of Canada. It’s only Vancouver and Toronto & the GTHA that are in positive territory.

Things could go very pear shaped, very quickly. Not a great time to be buying homes.

15

Sounds as if the Canadian Real Estate bubble is about to burst!

16

I’m afraid that we may be on the verge of what the US experienced about decade ago. Home purchasing in an inflated market and over leveraging finances helped in causing that problem.

Hopefully smart Canadians can avoid that financial money trap.

Maybe I’m wrong…but just saying…

17

Just talked to Skip and he says it looks like many purchasers are not getting an Inspection.
He also said some of the agents are pushing not getting an inspection .
Some Inspectors are trying to get more inspections by charging $250.00 for an inspection .
Our area homes are still reasonable to buy .

18

I see Carson Dunlop is now writing home Inspectors insurance

                               **IMPORTANT UPDATE FOR B.C. INSPECTORS** 
                                                                                             **Consumer Protection BC and Insurance information for B.C.      Home Inspectors**
  
  The BC Government recently outlined new requirements](http://r20.rs6.net/tn.jsp?f=001gwB3RMhfKbmzYci4RbphPS3qduiB-nLewxOOi9KSk3RlVFtxYwaaHipI1u8kv6il2BuFv9IE5mtuHmoxKVX--CgDtIXwW5Z-qUQf0BYUNHJoduMCJmU3456Jpw5T5Ay36P1Bv3OoxC_YgJg305RuOwbu-3fcwm0bzvoDRc0jm28OG-hMuItXgUzCtdsPGBZFVQ1lgiuVvlATd0kYODc7tgyIsyS7hljyF6PkrwEOy6TlrDw-Qdz7Ssr5nLSaHDFM_6EcUV-dC7AM24VlRpDB6nLLdy8APn51vwPvmeWCF-a5g7HnqcoUvQagDVfRxQ-IPcUwQ7WP9VjVL0eNi16yubenvryFeYls&c=lHcmB-jPG776un0S53d_TPppNkcCRkpDcnyuTelcTsv5_OLULjDuMw==&ch=IoQ_83oe5as-VYKA6GrGGKK7UJ0ThU1U5JAnlfO24jMnMXEhWPjVng==)      for Home inspectors that will come into effect September 1, 2016.
  
  While Consumer Protection BC does not provide legal advice      they have commented on general provisions.  
   
  To simplify the life of BC inspectors, here is an overview      of the key requirements and how to implement them in Horizon (Click link      below).
  
  How contracts and reports are      affected...](http://r20.rs6.net/tn.jsp?f=001gwB3RMhfKbmzYci4RbphPS3qduiB-nLewxOOi9KSk3RlVFtxYwaaHk3xSBydl7hVwTC7MSP6AiZ6G7KGSNmZHHldbKMwppUDnGEm5re-6QUpqJE0NBWNZyO_59cORshmkgW9p3EJFHchp7C4NhF4D40Uryxa_K1XOskdwk-4ZNpndTOLuDWakEX4Q9jSBW2pV8RsYWesHUg8hnXgsa6JtCsWlpLugcTlEjFHQoU4TLV4eLQevEWScpXSA55d8K9O4AqQW_RKyAnopr7vwktEixTTnP0AO5J1nPn0ey-rQR4=&c=lHcmB-jPG776un0S53d_TPppNkcCRkpDcnyuTelcTsv5_OLULjDuMw==&ch=IoQ_83oe5as-VYKA6GrGGKK7UJ0ThU1U5JAnlfO24jMnMXEhWPjVng==)


  This is a private Facebook      group](http://r20.rs6.net/tn.jsp?f=001gwB3RMhfKbmzYci4RbphPS3qduiB-nLewxOOi9KSk3RlVFtxYwaaHqP5zMQWgHssArWZ0UxjnGqUSfgE3RlngTfQIUPGwVrA4QzuuFfnKfqoldJ99Q9eTXEWrGuH2HmU4sD6t3pBQx6nOqsgxFw963QYQva_tzmOCH2KKDgk0l1UCh6hfB2PX5iqtQRALpeMdr3ifMOlGNt5IJhYhBClsg==&c=lHcmB-jPG776un0S53d_TPppNkcCRkpDcnyuTelcTsv5_OLULjDuMw==&ch=IoQ_83oe5as-VYKA6GrGGKK7UJ0ThU1U5JAnlfO24jMnMXEhWPjVng==) for Horizon inspectors only. Connect with Ariel or myself on Facebook and let us      know, we'll add you to the group. You must be connected to one or both of      us first.
  Connect with John](http://r20.rs6.net/tn.jsp?f=001gwB3RMhfKbmzYci4RbphPS3qduiB-nLewxOOi9KSk3RlVFtxYwaaHqP5zMQWgHssiuTAyIbPWSVwpjmjdJr_TgnjX6V1ZRXMoMYrdMHu2MgEHb2dqQEVeYbRQlyG9bSVhNduojfDCrBsPk7I_yAna7mRVpFtEle3-EjQxdZejB1zYUZuAlGeLOw9yXNDdjIT&c=lHcmB-jPG776un0S53d_TPppNkcCRkpDcnyuTelcTsv5_OLULjDuMw==&ch=IoQ_83oe5as-VYKA6GrGGKK7UJ0ThU1U5JAnlfO24jMnMXEhWPjVng==) | Connect      with [Ariel](http://r20.rs6.net/tn.jsp?f=001gwB3RMhfKbmzYci4RbphPS3qduiB-nLewxOOi9KSk3RlVFtxYwaaHqP5zMQWgHss8KlDcGzIZ47mzuRscLCI-zw2Od1VvQq87qHDE2jEw58PN0D1GfueP3bL54alcuptd_rHH5KDivr--Ls_4F_cxYmg1g6B7BEtQSUm8KFH0f84xrgRoveYpZewNGpypw1B&c=lHcmB-jPG776un0S53d_TPppNkcCRkpDcnyuTelcTsv5_OLULjDuMw==&ch=IoQ_83oe5as-VYKA6GrGGKK7UJ0ThU1U5JAnlfO24jMnMXEhWPjVng==)
               
                                                


                                    
                         
  **Does your      insurance cover new mandated changes?**
  Carson Dunlop has joined forces with EasyInsure and Liberty      Mutual to offer a superior quality Errors and Omissions program for home      inspectors with preferred pricing for our partners. Premiums start at      $2,100 including E&O and General liability.  
   
  Deductable options and      Quotes...](http://r20.rs6.net/tn.jsp?f=001gwB3RMhfKbmzYci4RbphPS3qduiB-nLewxOOi9KSk3RlVFtxYwaaHqP5zMQWgHssGg5clKD25FPYPGs3X15L9xfU2Bvm5fhQQ3pqXJazYlkbd1rMbro-MuB3B8MffUmqpgRGHP0ZgWpsArZWEnki19GQkPQswOUvMeZ_Z4D5QBWDBM43QjQ-L9LafeegJqYu0oHairhMlhDcyia3FWabjg==&c=lHcmB-jPG776un0S53d_TPppNkcCRkpDcnyuTelcTsv5_OLULjDuMw==&ch=IoQ_83oe5as-VYKA6GrGGKK7UJ0ThU1U5JAnlfO24jMnMXEhWPjVng==)
  An EasyInsure representative may reach out by phone or email      to discuss your needs." 
  Available throughout Canada except Quebec and Territories.
  
  
  Regards,
  The HORIZON Team

19

In Alberta we are also not allowed to limit our liability either in the PIA or in the body of the report. It is almost scary doing an inspection because they can come after you for almost anything.
As for the economy and house sales, homes are being sold for about 10-15% less than they were a year ago in my area. We also have a huge surplus of homes.
Generally the surplus in my area runs about 150 single family homes at any given time. As of right now we have 426 homes on the market and hard;y anything moving.
I used to average about 25 inspections a month with my peak times around 35-40. In August I did 14 inspections. A far cry from the 35 I did last year.

20

Thanks Greg I just can not see to see any advantage with Licensing in Ontario .

How can 1500~ inspectors pay the cost of this Licensing.

Many are in the same problem as you not enough inspections .

You are one of a few who post your information .