Can anyone tell me what states prohibit inspectors from offering to correct defects they themselves find during an inspection?
In an email argument I’m having with a NAHI member, he tells me that there are no states that prohibit inspectors from offering to make repairs and that I’m *full of crap *when I say that it is generally prohibited.
Can anyone tell me if they know of any state laws or licensing board rules that specifically prohibit it, and where I can find the written rule? A national reporter is asking for it.
Lets take the reverse track to start with. Logically there would have to be a state regulation in place regarding home inspectors for this to be able to be dictated or controlled in either way. That immediately leaves out about 1/2 of all the states. Next go to the states that do have regulation and some do address that but some don’t address that. Some also say something along the lines of you can’t do it unless you disclose to all parties …
Then lets get down to reality. I started off in ASHI 23 years ago and they for one always said their members didn’t do that - BS. For over 20 yrs I’ve known many of their inspectors that have large repair, remodeling, maintenance, warranty or other related ventures as a 2nd business - BUT - its set up as a separate corporation, or the wifes business, or the kids business, etc. Kind of like the EBPHI and the NHIE - lets call it a neutral, separate entity **BUT **lets incorporate it ourselves, put our people in place to run it, feed it with our members dues dollars - then call it a 3rd party entity.
Bottom line, if you stop and think about - it its done all the time even in regulated states where its said that doing it is not proper. Therefore rather than trying to fool everybody into thinking that it doesn’t exist - let it be a business decision by all parties involved.
R4-30-301.01. Home Inspector Rules of Professional Conduct
A. To the extent applicable, a certified home inspector shall conduct a home inspection in accordance with the “Standards of Professional Practice” adopted by the Arizona Chapter of the American Society of Home Inspectors, Inc. on January 1, 2002, the provisions of which are incorporated by reference and on file with the Office of the Secretary of State. This rule does not include any later amendments or editions of the incorporated matter. Copies of these standards are available at the office of the Board of Technical Registration. B. A Certified Home Inspector shall not:
Pay or receive, directly or indirectly, in full or in part, a commission or compensation as a referral or finder’s fee;
Perform, or offer to perform, for an additional fee, any repairs to a structure that has been inspected by that inspector or the inspector’s firm for a period of twenty-four months following the inspection; or
Be accompanied by more than four home inspector candidates while conducting any parallel home inspection.
Historical Note
New Section made by emergency rulemaking at 8 A.A.R. 1102, effective February 19, 2002 for 180 days (Supp. 02-1). Emergency rulemaking amended and renewed for an additional 180 days under A.R.S. § 41-1026(D) at 8 A.A.R. 3842, effective August 14, 2002 (Supp. 02-3). Emergency expired; new Section made by final rulemaking at 9 A.A.R. 791, effective February 12, 2003 (Supp. 03-1).
Dan writes “Bottom line, if you stop and think about - it its done all the time even in regulated states where its said that doing it is not proper. Therefore rather than trying to fool everybody into thinking that it doesn’t exist - let it be a business decision by all parties involved.”
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So should I get off my high horse on this subject and let it go? Maybe it isn’t anything I can fix.
As far as number 4, certain state laws as well as the NACHI COE prohibits it. There are contractors who consider home inspection as their sideline and who will not give up their more lucrative contracting businesses. Forcing this issue is equivalent to forcing them out. Is this what you want to do?
Our COE prohibits it, as I said, and individual complaints can be addressed when they arise. NACHI has set the standard and will enforce it, when complaints come to light. Going above and beyond that may be the equivalent of throwing the baby out with the bathwater.
With out re-visiting the proposed NH leg. I believe it will not allow HI or related parties ie: wifes business etc. to perform any work on defects found within 1 year. I am all for it, but I would rather not have any legislation.
*535.220 e.6 - An inspector shall not accept employment to repair, replace, maintain or **upgrade systems or components of property covered by the Standards of Practice under this Subchapter on which the inspector has performed *an inspection under a real estate contract, lease, or exchange of real property within 12 months of the date of the inspection.
That rule has been in place for quite a while here but was recently revised to include the “12 month” requirement. Up until August it simply said no repairs until after closing (or words to that effect). Stick to your position.
**§ 444-g. Duty of care of home inspectors.
**1. Every home inspector shall comply with the provisions of this article, and the rules, regulations and standards adopted pursuant thereto. The duty of every home inspector shall be to the client.
2. Every home inspector shall display his or her license number and status as a licensed home inspector on every home inspection report and in all advertising. Upon request of any client or interested party to a real estate transaction, every home inspector shall provide such proof of licensure pursuant to this article as shall be issued by the secretary for such purpose.
3. No later than five business days after the completion of a home inspection on behalf of a client, each home inspector shall provide such client with a written report of the findings of such inspection. The home inspection shall clearly identify in the written report which systems and components of the residential building were observed. Every such written report and the information contained therein shall be deemed confidential and shall not be disclosed without the express consent of the client; provided, however, that department representatives, conducting an investigation or other official business for the purpose of enforcing this article, shall have access to such reports and the information contained therein.
**4. No home inspector shall:
(a) perform or offer to perform, for any additional fee, any repair, improvement or replacement of any component or system in a residential building for which such inspector, or partner thereof shall have prepared a home inspection report prior to the close of escrow. This paragraph shall not include repairs to components and systems not included in the standards of practice adopted pursuant to this article;
**
I hope this information helps. NYS prohibits it in the Licensing Law Section 444g
(b) Prohibited acts --Any of the following acts engaged in
by a home inspector, an employer of a home inspector or another business or person that controls or has a financial interest in the employer of a home inspector shall be deemed to be an unfair or deceptive act or practice as defined by section 2(4)(i)through (xxi) of the Unfair Trade Practices and Consumer Protection Law:
Performing or offering to perform for an additional fee any repairs to a structure with respect to which the home inspector, the employer of the home inspector or such other business or person has prepared a home inspection report within the preceding 12 months, except that this paragraph shall not apply to remediation for radon or wood destroying insects.
(j) No person shall perform repair or maintenance work, or receive compensation either directly or indirectly from a company regularly engaged in home repair work, on a property having four or fewer dwelling units that the home inspector inspected within one (1) year from the date of the inspection.
SECTION 9. (a) The commissioner may take disciplinary action against a licensee or
applicant, deny an application for a license, assess a civil penalty of up to one thousand
dollars ($1,000) per violation, or may suspend, revoke, or refuse to issue or renew a
license when a licensee performs or attempts to perform any of the following acts:
(1) Accepting or offering commissions or allowances, directly or indirectly,
from or to parties other than the client, unless fully disclosed to the client in
writing;
(2) Performing or offering to perform repair or maintenance work on a
property the licensee has inspected in the preceding twelve (12) months;
(3) Using a home inspection with the intention to obtain work in another
field or profession;
(4) Accepting compensation, financial or otherwise, from more than one
(1) interested party for the same service without the consent of all interested
parties;
(5) Failing to disclose to the client any financial interest or any relationship
which may affect the client’s interest;
(a) 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:
(1) 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.
(i) 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.
BTW Nick…you see each of the above posts attempts to clarify which states prohibit the act in question but none of those posters comment on the NAHI guy’s assertion that you “are full of crap”. That may or may not be true and is a topic for a totally different thread I think.
