Hooray!!! Pennsylvania... another state passing legislation to outlaw scumbag NAHI.

General Inspection Topics Legislation, Licensing, Ethics & Legal Issues
1

I am pleased to announce that Pennsylvania has joined the many other states that already have laws on the books outlawing scumbag NAHI’s unconscionable ethics.

The following proposed legislation, if enacted, would prohibit scumbag NAHI members from bribing REALTORs and/or working to correct defects they find on their own inspections. Yes… in case you didn’t know… it’s hard to believe, but scumbag NAHI permits its members to work to correct defects they find on their OWN inspections.

This 4 page letter from scumbag NAHI: http://www.nachi.org/the_lady_doth_p…h_methinks.htm

This from the proposed legislation prohibiting them:

*20060S1364B2158 - 18 - *

*1 the employer of a home inspector shall be deemed to be an unfair 2 or deceptive act or practice as defined by section **2(4)(i) 3 through (xxi) of the Unfair Trade Practices and Consumer 4 Protection Law: **5 (1) Performing or offering to perform for an additional 6 fee any repairs to a structure with respect to which the home 7 inspector, the employer of the home inspector or such other 8 business or person has prepared a home inspection report **9 within the preceding 12 months, except that this paragraph 10 shall not apply to remediation for radon or wood destroying 11 insects. 12 (2) Inspecting for a fee any property in which the home 13 inspector, the employer of the home inspector or such other 14 business or person has any financial interest or any interest 15 in the transfer of the property, including, without 16 limitation, engaging in a pay-to-play scheme whereunder the 17 home inspector receives a direct or indirect consideration 18 for receiving services leads towards providing home 19 inspection services, or receipt of a commission as an agent, 20 unless the financial interest or interest in the transfer of 21 the property is disclosed in writing to the buyer before the 22 home inspection is performed and the buyer signs an 23 acknowledgment of receipt of the disclosure. 24 (3) Offering or delivering any commission, referral fee 25 or kickback to the seller of the inspected property or to an 26 agent for either or both of the seller and the buyer for the 27 referral of any business to the home inspector, the employer 28 of the home inspector or such other business or person. 29 (4) Accepting an engagement to perform a home inspection 30 or to prepare a home inspection report in which the 20060S1364B2158 - 19 - 1 employment itself or the fee payable for the inspection is 2 contingent upon the conclusions in the report, preestablished 3 or prescribed findings or the closing of the transaction. 4 (5) Participation, by any real estate broker or agent, 5 directly or indirectly, in a pay-to-play scheme in which the 6 home inspector receives a direct or indirect consideration 7 for receiving service that leads towards providing home 8 inspection services. *

http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=HTM&sessYr=2005&sessInd=0&billBody=S&billTyp=B&billnbr=1364&pn=2158

The legislation outlaws both inspectors and real estate brokers/agents from participating in any pay-to-play schemes (preferred vendor relationships) and even defines them by statute:

“Preferred provider relationship.” A referral service offered by a real estate company, mortgage company, law firm, individual agent, attorney or other similar entity or individual when a licensee is recommended over other licensees in exchange for any direct or indirect consideration therefore, including, without limitation, the payment of a fee, or where in consideration of a licensee advertising produced by or for a person in consideration for recommendations or referrals to undertake home inspections.

Please join me in supporting the enactment of Pennsylvania’s new “Bye bye scumbag NAHI” legislation.

2

Read scumbag NAHI letter, but make sure you don’t fall off your chair:

http://www.nachi.org/documents/The_lady_doth_protest__too_much,__methinks.pdf

3

Hey lady, the kitchen faucet is leaking, but your in luck…
cause it just so happens, I have a new one on my truck!

While I’m at it I can plow your driveway.

Mr. Haney

4

Hee hee… :smiley: :smiley: :smiley:

Buyer: Hey Mr. NAHI inspector, how is my furnace?

NAHI inspector: I haven’t inspected your furnace yet but if I have a new one on the truck that will work, your furnace is shot.

5

Buyer: Hey Mr. NAHI inspector, that is totally unethical. Why did my real estate agent recommend an unethical inspector?

NAHI inspector: Because I paid her to.

Buyer: There should be a law!

Well, in PA there might be one soon.

6

Nick,

Reread the proposed Legislation.

Call me with your questions…

7

“Deprive the consumer of choice” the yellow pages are full of qualified trades people!!

8

Hi Nick:
Do you know when they are going to vote on this PA legislation and do you think it is likely to pass?

9

As most of you know I belong to, train and teach for all of the major associations (NACHI, ASHI & NAHI). Having done this for 28 years, I’ve seen a whole lot of home inspectors all over in various regulated states and in the 1st association I ever joined that have sideline businesses such as termite treatment companies, radon mitigation companies, warranty companies, property management and maintenance, mold clean-up and removal companies. Most are set up as 2nd party corporations, etc.

Its the wifes company, the brother-in-laws company, the kids company or just a different corporation period. Maybe in my immediate area the NAHI guys are just not motivated to do it - BUT - I don’t see them doing this. By their COE if it was agreeable with and disclosed to all parties they could.

Just because you can doesn’t mean you would or even do.

10

In many small towns and rural areas it is typical and necessary for people to wear many different hats. Fire Chief/Police Chief/Head of EMS. Another example is the guy who runs the town’s sewage treatment plant, runs the towns water treatment plant, fixes potholes in the road, and may also be the building inspector. There may not be enough work to support a private inspector on the income he could get by inspecting alone. Often times, the inspector became the inspector because he was the guy in the town “who fixes stuff”. His reputation in the community as “the guy who fixes stuff” is the primary reason why people call him to look at a home they are thinking of buying. Why would it be considered unethical if the relationships are clearly disclosed? And why call people who do this, or association’s that allow it, “scumbags”? Also as Dan pointed out, just because an association allows this relationship to occur in their COE does not mean that everyone in that association does it. It also does not mean that the person would take advantage of their client/customer. In the small town, the guy who took advantage of people would gain a reputation that put him out of work. It’s in his own best interests to take care of the people who are paying him.

Just for the record I am not a member of any association at the moment, but will probably soon join one.

11

Agreed, as home inspection work grinds to a halt in many states more & more home inspectors will turn to other occupations to help get them through this slow period, they should be allowed the leeway to live up to their family responsibilities while maintaining their standing within the community as home inspectors without being disparaged by their home inspection association.

12

I am not sure that we have not mixed the apples with the oranges in this discussion, reading from some of the posts.

Our COE does not prohibit home inspectors from being contractors.

It simply states that a home inspector may not perform work on a home that he inspects for 12 months. This eliminates the possibility and the appearance of impropriety.

It does not restrict him from inspecting a home he had previously worked on or forever keep him from performing work on property he inspects. Has this “window” of restraint actually proven to significantly effect anyone’s ability to make a living?

13

[quote=bchew]
because an association allows this relationship to occur in their COE does not mean that everyone in that association does it. [/quopte]

If an association allows any of its members to do it is one too many.

14

I guess we’re just more unethical than other groups like say dentists, termite contractors, radon mitigators, lead paint abatement companies, etc.

I cut my teeth on the COE of “Don’t repair what you inspect” and have no desire to **BUT, **if disclosed and all parties have no issues with it - its their decision not yours or mine AND if disclosed its not unethical.

I try to imagine calling the HVAC service guy out to check my A/C and having him say : “Dan, your unit is low on freon but due to our National HVAC ethics I can’t service your unit for 12 months, you need to call someone else to do that”. OR, going to a dentist who tells me I have 2 cavities (hence the extreme pain), BUT due to the National dental ethics he can’t fill my cavities for 12 months, and I’d need to go someone else to get that done.

Think about this stuff - During a real estate transfer the termite guy says you need a treatment. Some people use him, others call 2-3 other termite companies for a 2nd opinion or a 2nd price. During a real estate transfer the chimney sweep says your chimney flue is cracked and needs repair. Some people use him, others call 2-3 other chimney sweeps for a 2nd opinion or a 2nd price. Are these groups **UNETHICAL. **I personally don’t think so AND more importantly most consumers, lenders, realtors, etc don’t either.

Is ASHI unethical for not informing the public or new inspectors of their “Preferred Vendor” arrangement and referral fees with ITA or Carson & Dunlaps home study course. How about for years the EBPHI & NHIE being set up and fed by ASHI members dues dollars - undisclosed & unethical???

Bottom line is we’re losing sight of reality on some of this stuff.

15

I think that the COE should be amended slightly. In our state we are not allowed to do work on a property we inspect for a period of 2 years with specific exceptions.

(A home inspector may not)
“Performed, or agreed to perform, for compensation any repairs, maintenance or improvements on any property less than 2 years after he or she conducts a home inspection, without the written consent of the property owner given before the home inspection occurred.”

Surely if the property owner has no beef with it, what is the problem? The absolutism and engraved in stone wording of the clause in our COE is slightly overreaching. I propose it be amended slightly to include a similar provision. It just doesn’t pass the test as “unethical” if the appropriate parties are in agreement.

16

Calling in an HVAC guy to inspect an A/C unit is very different than calling in a home inspector to do a home inspction and then offer to repair the A/C because he happens to be an HVAC guy too.

As in my other post I will say that if the property owner is aware that you are an HVAC guy to and agrees (in advance of the inspection) that you could do (if the price is right) repairs on the unit. In small towns where many hats are worn, it shouldn’t be a problem getting approval in advance, unless you have a bad reputation.

17

[quote=dnice]
Calling in an HVAC guy to inspect an A/C unit is very different than calling in a home inspector to do a home inspction and then offer to repair the A/C because he happens to be an HVAC guy too.

[quote]

The one positive aspect in regards to the COE is that it keeps the “handymen” out of the inspection profession.

18

A lot of handymen do substandard work and work on things they are not qualified to work on. I have met a number of “handymen” who are fully qualified contractors who prefer to work alone (most of the time) and don’t want the headaches of payrolls and managing crews, etc. They enjoy moving from one small project to another.

Some of them are more qualified to be home inspectors than a lot of home inspectors I have met and they may be drawn to become home inspectors because of lower physical demands.

19

First off Nick you need to get your facts straight before posting this.
Nahi allows members to repair items if… they first tell the client they have a company doing contracting. The client then can either decide to use or not use the inspector. ( of course if they do use the inspector they are idiots)
Secondly, if it is within a state that does not allow this to occur it is then illegal for it to happen. Read the COE you will see where it states ,if state laws allow it. Pa does not allow it therefore it is not allowed by NAHI either.
If you would quit trying to boast your organization up so much, you could get your head out of the clouds and realize this.
Now I am not here to bash or argue with anyone so don’t gang up on me as I see has happened many times before to those who attempt to tell the truth here about other oganizations.
I am tired of you bashing others to get ahead with your org.
I would consider joining years back if it had not been for your constant bad mouthing others. Chill out a bit and attempt to get along with others for once and be a bit more hospitable and mayb e others will be the same to you.

20

We are ahead of all of the rest.