Changes to the member code of ethics

A significant change to the member Code of Ethics will be announced shortly. Specifically, Section 7 is revamped.

Changes to the COE will affect anyone participating in any program where client data is provided to third parties. This is not limited to a single vendor or single product or service.

The key term in the revised COE is “consideration”. Consideration is the sole critical component in any enforceable contract. Absent of consideration, contracts are virtually unenforceable. Ask any attorney. Don’t take my word for it. Although compensation and consideration sound familiar, consideration is quite broad. It includes barter, exchange, rebate, incentives, etc.

Unlike the Pledge which states that an inspector will never accept compensation or consideration in exchange for client information, the COE does not. This is fine, and appropriate. The purpose ot the COE changes is not to limit the iinspector’s marketing opportunities, but to simply disclose their existence, where the data is going (precisely), what it is being used for, and disclose the compensation or consideration.

For instance, if you are giving something worth $50 that you have actually PAID for out of pocket, there is no need to disclose this. If you receive the item worth $50 (or $1) from a third party in exchange for client data, it must be disclosed.

Also, it required the clients expressed written consent. This means an opt-out may not suffice. Expressed written consent is an acknowledgement of an offer. An initial in the contract margin next to the clause will likely be okay.

Ask an attorney if there are questions. Provide him/her the COE section which applies (Section 7).

Do not take my word for this or the word of any interested party for that matter.

Steer your own boat, but understand the channel markers.

The COE changes will NOT affect your ability to participate in ANY third party program which is contingent upon client data,

It will NOT affect your ability to make money. It simply clarifies how the programs work, where the data is going, and what the consideration is. It also reveals the existence of a relationship between the inspector and the third party.

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Are you lying now?

Somebody is.

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If you were paying attention it has already been said that Nick himself will announce the COE changes.

I’ll wait.

thank you.

You should as always should STFU

Nathan is correct, so long as all criteria is met within the changes to the COE.

The inspector is required to disclose who the data is going to and for what purpose, disclose any consideration in exchange for the “free” offer received from the third party, and get the clients expressed written consent for each deal.

Simple. I’m glad Nathan agrees.

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Once again, Nate is mis-stating facts.

In fact, NACHI will require signature on THEIR form.

Each deal will require a separate form.

It wont matter what Nathan has an inspector put into his contract

Can we all just wait until the revised COE announced by Nick?

It’s obvious that a particular vendor wishes to spin.

It only adds to the confusion.

What is a product based service? You sell products?


If there’s “no consideration” how does an inspector qualify to offer some of your services such as recall check and 90 day warranty for Free?

What predetermined factors separate an inspector that is able to acquire these products from you for free from one that pays you money for them?

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He doesn’t get it for free, the client trades their info for it. Only difference is that one inspector chooses to pay out of pocket, while the other informs the client how they can trade their info and get it free.

Someone is dragging this out way too far. and working on making a arse of themselves.

Change this while your at it…
My state (Florida ) Allows is a me as a licensed contractor to preform work on places I have inspected , but the COE #11 does not .
Which is another bunch of crap .
The COE is a farce IMO.
If this farce is designed to limit me (and it is) and the way I handle my business I will quit NACHI on the next renewal .Yep !
It doesn’t mean that much to me…Nope !
Just because a few have a gripe with one vendor doesn’t require a rewriting of anything.
Leave it alone and get a life.

Who in the heck gives anyone the right to dictate to me or another member how or what I can do in my own business.
I will run it as I see fit regardless what the COE dictates .

11)The InterNACHI member shall not perform or offer to perform, for an additional fee, any repairs or associated services to the structure for which the member or member’s company has prepared a home inspection report for a period of 12 months. This provision shall not include services to components and/or systems that are not included in the InterNACHI Standards of Practice.

Florida Statues 468.8319 Prohibitions; penalties.—

(1) A person may not:
(a) Effective July 1, 2011, practice or offer to practice home inspection services unless the person has complied with the provisions of this part.
(b) Effective July 1, 2011, use the name or title “certified home inspector,” “registered home inspector,” “licensed home inspector,” “home inspector,” “professional home inspector,” or any combination thereof unless the person has complied with the provisions of this part.
© Present as his or her own the license of another.
(d) Knowingly give false or forged evidence to the department or an employee thereof.
(e) Use or attempt to use a license that has been suspended or revoked.
(f) Perform or offer to perform any repairs to a home on which the inspector or the inspector’s company has prepared a home inspection report. This paragraph does not apply to:
1. A home warranty company that is affiliated with or retains a home inspector to perform repairs pursuant to a claim made under a home warranty contract.
2. A certified contractor who is classified in s. 489.105(3) as a Division I contractor. However, the department may adopt rules requiring that, if such contractor performs the home inspection and offers to perform the repairs, the contract for repairs provided to the homeowner discloses that he or she has the right to request competitive bids.
(g) Inspect any property in which the inspector or the inspector’s company has any financial or transfer interest.
(h) Offer or deliver any compensation, inducement, or reward to any broker or agent therefor for the referral of the owner of the inspected property to the inspector or the inspection company.
(i) Accept an engagement to make an omission or prepare a report in which the inspection itself, or the fee payable for the inspection, is contingent upon either the conclusions in the report, preestablished findings, or the close of escrow.
(2) Any person who is found to be in violation of any provision of this section commits a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083.
(3) This section does not apply to unlicensed activity as described in paragraph (1)(a), paragraph (1)(b), or s. 455.228 that occurs before July 1, 2011.
History.—s. 2, ch. 2007-235; s. 20, ch. 2010-106; s. 12, ch. 2010-176.

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Thanks for explaining that Nathan.