To All, If called to do a home inspection for a friend I would fail to complete a written contract identifying the terms and pricing of the inspection to be completed that day because in my mind “how can you go wrong when your helping out a friend”
That being said the inspector would do a standard four point inspection and view more area’s than required by a four point, when completed the inspector will share the information found with the client and explain all of the findings and will then send the report via e-mail to the client within 24 hours.
The inspector was smart to only add pictures and comments related to the four point inspection conducted on that day,after sending and receiving the payment the client called the inspector at his home and wanted more information included in the report, including some drywall that was observed and relayed to the client that the drywall could possibly have water damage from a possible roof leak.
The inspector failed to nail down in writing a contract identifying the scope of the job before performing any home inspection, but to the inspectors credit he/she did not waver from the original four point inspection and add more details that where not included in the inspection.
That being said I hope that we all learn from this and just remember that sometimes a friends friend is not always the ideal customer’s… Ron
Prior to becoming a home inspector, I was a licensed and insured general contractor. Today, I still hold my state issued contractors license. It would be a conflict of interest for me to use my inspection business as a way to generate referrals for my construction business. Per InterNACHI’s Code of Ethcis, I cannot perform repairs on any structure I inspect for 12 months from the inspection date.
Code of Ethics Essay:
This would be a violation of my InterNACHI code of ethics, not to mention the law.
While conducting a thorough home inspection, I noticed that there was substantial damage regarding the roof. It was a standard 3-tab asphalt shingle roof with several tabs ripped off, creased due to many years of wind damage, and sagging areas due to water damaged decking. Upon further inspection, I found that at least a total of 50 square feet of insulation in the attic had mildew and fungus growth. After submitting my report to the real estate agent, he offered me $1000 to rewrite the report and leave out the roof and insulation damage. I immediately refused his offer and reported the indiscretion.
The realtor who contacted me for the home inspection mentioned a possible fault in the roof. They assured me it should not be a problem. After my inspection I thought it necessary to report the problem. The realtor offers me 200 dollars to ignore the problem roof and not report it.
Code of ethics essay:
If a real estate company asks me for a monetary kickback, or if I offered them a monetary kickback for referring home inspection services, this would be a violation of NACHI’s Code of Ethics.
Home Inspections Example
Conflict of interest or violation of the Code of Ethics that may arise as a home inspector.
Thank for reading my essay, but I must say the reason am perusing this career is because I had a home inspection recently for insurance coverage. A home inspection is very important its helps the home owner get coverage for their family that protects their lives. The home inspection may reduce to value of the home; the inspectors most have no any conflicts of interest.
Example: you may be asked to make corrections to the home that you inspected.
Upon arriving at home I notice the owner is on the roof of the house that I am about to inspect. I slowly get out my car but watching as I go. I gather my ladder gloves a camera tape measure and my inspection bag. I make sure my ID is in place; I put on my Internachi shirt and gather my I pad. I approach the property the suspect owner comes down from the ladder. He approaches me I id myself my Company with all credentials. He ask where would I like to start, I explained my brand would like to inspect the roof first. I inspect the roof completely. The owner comes to me and turns to the road and ask, I need your help I explained that’s why am here. He says no I really need your help, I was planning to get my roof repaired its still leaking and may be unsafe in the south corner. I will give you $100 to report that my roof is safe and repaired. I explained to him my code of ethics and personal up bringing and honor. I must report what I see, I will not take any bribes and be dishonesty to the state of Florida, my company, Internachi accreditations honor and respect. Please do not approach me again in this matter or I must vacate the property. He then asked if $100 is too low, I start to pack up my gear, he apologies and ask me to please complete to inspections with all I see and know. I thank him for letter me do my job the correct way it will benefit all with the truth. I did my inspection.
Real estate agents will often give out a list of “known” home inspectors that are not listed in alphabetical order and will often point out that the top five or so have been “great” home inspectors for previous clients. Some of those so called great home inspectors have received payment form real estate agents or inspectors have given gift cards as a “thank you” for the referral. I talked to a few agents and this was the info that I got.
A good example of a “Conflict Of Interest” for an inspector would be if the inspector were to perform a routine inspection for some perspective home owners and the real estate agent accompanying the clients offered to recommend the inspectors services to his/her clients for a fee or portion of the profit. Word of mouth is acceptable, but not in a way in which either party is compensated for it.
This is a hypothetical scenario that occurred to me. If this should happen in real time, how would one best handle a situation like this.
A real estate agent has just made contact with you and asked if you can perform an inspection on an older home. The real estate agent wants to sell the home at a certain price so that she can earn a higher commission. She has asked you to do a simple inspection; one that does not cover all of the systems, and components of the home. But you have been trained to do a thorough and complete inspection to reveal a complete and true condition of the home for the buyer. She is willing to pay your asking fee if you submit a basic report; one that does not cover all the systems of the home. You are in a position to accept or decline this offer. In addition to your training as a home inspector, you have also been trained to maintain ethical standards when doing business with the public. Should you violate those standards for a quick buck? There will be other opportunities to do business with other agents and clients. It is not worth getting into trouble by the buyer who bought the house and later finds out the damages and risk factors the home has, and decides to file a lawsuit against the real estate agent and you for turning in a bad report. An old cliché “penny wise but pound foolish” Maintaining high standards and ethical practices in itself has much higher value that the fees you earn.
You are on an inspection and the seller approaches you with a problem with the house. The seller offers to purchase unnecessary ancillary services to not notice water damage in the attic. The repairs have been made, however, there is some water damage that has not been addressed properly. Accepting disclosed or undisclosed financial compensation to falsify documents is a clear violation of the code of ethics.
Becoming a home inspector was very challenging for me since I had limited time to study for State Exam. After I finally pass I though I was done with the hardest part but I was wrong. Dealing with clients and or realtor that want a report to say what they considered will not jeopardy their contracts is even harder to deal with.
I went to inspect a house where the front glass window was broken and the client want me to ignore it and leave out of the inspection since according to them the handyman was on the way to replace the glass. I explain that I could not do so, I had to include it and when they are done replacing it I could come back and take new pictures with complete replacement.
When doing a home inspection one should perform the inspection fully and completely to the best of their training and knowledge regardless of the customer or real estate agent. However when put in situations where there is a personal relationship with the client or the real estate agent there may be temptation or even out right requests to over look certain aspects for the better of the real estate agent as to not ruin a deal, or on the client end so that a bank may approve the loan assuming no damage to the home. These are the types of situations that should be avoided and that are definately a conflict of interest because it is not in the best interest of the client, the inspector, the lender, the industry, or the real estate agent. These kinds of transactions are shady and could result in a lawsuit.
Code of Ethics Essay:
If while marketing my new inspection business to realtors I was asked to provide something in return for a referral, I would explain that in return for the referral their client would get a professional, well done inspection at a fair price and that they would get a satisfied customer. I would also explain the anything more than that would be in violation of the code of ethics that I abide by. If that realtor would not be satisfied then it would show me that they are not someone I want to do business with and I would move on.
A local real estate agent offers to use my services exclusively if I agree to pay them a referral fee. I explain to the agent this is considered to be an unethical practice. After explaining to the agent that their client would be receiving an unbiased informative report on the subject property in which they can use to make an informed decision regarding the purchase, the agent still wants the referral fee the offer is refused based on the INACHI Code of Ethics.
I see you have written up that the asphalt roofing needs to be replaced, and you know how expensive that could be. To me the roof looks to be fine and the potential home buyer doesn’t have any extra money for repairs. I would take off that the roof needs replacement so they can get this house since this I feel is their best option for a house. If I tell them that it needs to be replaced their going to decline the purchase. I have been going house after house with them, and everything we seen needs something done, and they can’t afford it. If you could do this for me I’ll make sure that I use you for all my inspection needs from here on out.
And one occasion we inspected a home for a buyer or the seller was somebody that we knew. Not knowing that at the time we perform the inspection but had we known the fee would not have been worth the conflict of interest and we would’ve turned it down. Similar situations have occurred over the years, and in every case we informed the buyer and turn down the work due to a potential conflict of interest.
On 5-14-16 I was finishing up inspecting a home that the buyer could not be present and the Real Estate Agent who was representing the Client was very insistent that she had to make this sale and that her job was on the line. She went on to say she would make it worth my while on future inspections if I overlook items that could possible kill the deal. I instructed the Agent that I was bound by a Code of Ethics and Standard of Practices along with Personnel believe that I could not overlook something that may lead to jeopardizing the Clients Safety, or Health Hazard and or a possible Fire along with any other major deficiency noted that would lead to unknown deferred Cost for the Client… I explained I felt uneasy with her comment and would report what I seen regardless of future business.
Code of Ethics Essay: As a previously licensed general contractor, operating out of the same geographical area where I am know providing home inspections, I have multiple contacts in the trades, and know many of these firms on a personal, friendly level. After noticing, and noting, inadequate structural support in the crawlspace during an inspection I subsequently contact a foundation repair contractor I have worked with previously and provide them with the clients contact information and a detailed analysis of the problem I noted within the crawlspace. All of this is done as a “free lead” to my contractor friend and without the knowledge or consent of the client. This action is a clear violation of the Code of Ethics Standards as in “The InterNACHI member shall not release any information about the inspection or the client to a third party unless doing so is necessary to protect the safety of others, to comply with a law or statute”.
I am performing an inspection where I noted the deck railing and deck boards were in need of desperate repair. After concluding my home inspection I also included the information to contact my General Contracting company to perform the client’s deck repairs.
A client has contracted me to provide a home inspection. She informs me that she really likes the house, but doesn’t want to pay the asking price. She says she is willing to pay me a cash bonus if I paint a less than pretty image of this property by listing issues where they do not exist. She tells me the home owner is disabled and so issues in the attic would be great, as the owner could not climb up and verify. By accepting this payment and fabricating my report, I would be committing a blatant violation of InterNACHI’s Code of Ethics and if discovered, could risk criminal action for fraud.