Contractor Offering HI Services Waiving Fee for Repair Work

Originally Posted By: sramos
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I just lost a job to a contractor in my area that is offering to do a large project with three parcels and six units on 51 acres. I bid the inspection at $800, which I thought was low. I received word from my prospect that she decided to go with another home inspector that is also a general contractor for $650 and he would credit the inspection fee if she gave him the repair work.


I know this violates California Law under the business and professions code. This contractors name does not appear on ASHI, CREIA, or NACHI's listings. I informed my client that it is an unfair business practice to do repair work on home's that an inspector inspects for 12 months. She is going to check with her partner and get back to me- she is an attorney, by the way.

What recourse do I have against this contractor?


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Steven Ramos
EnviroVue Home Inspection
866-541-2883

Originally Posted By: jstevens
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by my guess you dont have any recourse .if he is lic for gen.contractor .but if he is lic. for hi and you need a lic. where you are at then i assume you have a complaint to file with the st. lic boardjust my 2 cents and a third icon_biggrin.gif


Originally Posted By: jpeck
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As a licensed GC, they may be able to get around the HI licensing because, as a GC, he needs to make estimates anyway, and that is what he is doing.


Now, IF she DOES NOT give him the repair work, and she pays him for the INSPECTION, THEN he is likely in violation of the HI licensing law.

Unless he is smart and bills her 'for the estimates'. That would be hard to enforce when he is a licensed GC.


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Jerry Peck
South Florida

Originally Posted By: kmcmahon
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In the courts eyes, if it walks like a duck and talks like a duck, then it’s probably a duck. Money doesn’t have to exchange hands for it to be legal and considered a Home Inspection. If he’s performing a Home inspection, then he’s considering himself a home inspector and by California law bars him from performing repairs. I’d report him if it were me and I had proof.



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Originally Posted By: jpope
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Quote:
7197. It is an unfair business practice for a home inspector, a company that employs the inspector, or a company that is controlled by a company that also has a financial interest in a company employing a home inspector, to do any of the following: (a) To perform or offer to perform, for an additional fee, any repairs to a structure on which the inspector, or the inspector's company, has prepared a home inspection report in the past 12 months.



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Jeff Pope
JPI Home Inspection Service
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(661) 212-0738

Originally Posted By: kmcmahon
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Well, there goes my defense…glad I don’t live in CA! icon_wink.gif Here in WI it’s written in a way so you can’t circumvent the system like that.



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Originally Posted By: kmcmahon
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Actually, rereading the blurb Jeff quoted, it says you cannot offer to repair for an additional fee…it says nothing about performing an inspection for a fee…soooo, I guess it is illegal unless you do the repairs for free!!!



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Originally Posted By: jpope
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This blurb was “striken” and no longer applies to the bill. In fact, the entire bill no longer applies to Home Inspectors.


http://www.leginfo.ca.gov/pub/bill/sen/sb_0001-0050/sb_31_bill_20040311_amended_asm.html


--
Jeff Pope
JPI Home Inspection Service
"At JPI, we'll help you look better"
(661) 212-0738

Originally Posted By: John Harrison
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This brings up a question for me.


As a home inspector if you have friends in other fields of contruction, can you recommend their services to the home owner.

Lets say you have a friend who owns a plumbing company, a friend who owns a roofing company, and the home needs futher evaluation by one or the other.

Then would it be ethical or leagal to recieve a referal fee from your friend if the homeowner uses them for the job, and vise versa


Originally Posted By: kmcmahon
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I would say it’s unethical, not to mention illegal in some states.


You can refer them, but you cannot benefit from it.



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