Revision to NACHI COE - Item 6

This evening, Nick approved a recommendation made by the ESOP Committee to prohibit NACHI members from paying money to real estate agents, brokers, or offices for individual referrals or to be included on lists provided to their clients.

The new language can be found in Item 6 of the COE.

ASHI has similar language that is scheduled to take effect on 10/14. Our change has already been incorporated into the new code.

Language is also being considered for the SOP that would mandate compliance with the COE, much as the COE already has language requiring compliance with the SOP.

No paid referrals at all? Or only no paid referrals to the aforementioned parties?

Nice job ESOP:D

The language prohibits only paying for referrals (or to be placed on “lists” - written or electronic, BTW) from real estate agents, brokers and their offices.

Thats is good addition, it’s a state law here.

Now, it’s a NACHI law (and next week, an ASHI law) everywhere.:wink:

Time to let the agents get their money from selling houses instead of home inspectors.

Three cheers for the home inspection industry!

That rule sure as hell won’t stop the crooks.

It is pretty clean. In simple terms, you can do the Brinks deal but only if you disclose it because Brinks doesn’t have a financial interest in the sale of the home, but you can’t do a side deal with the agent even if you disclose it because she has a financial interest in the sale of the home. And no preferred vendor lists at all.

No rule ever does. One must always be given an incentive to comply…

Hopefully, the positive incentive will be enough. The major players have now said “enough”. Home inspectors can now tell the agencies that their requests for money in order to be referred violates state laws and national ethic codes.

Finding a name of an inspector on one of these lists…tomorrow…will have a whole new connotation.:wink:

My congrats to the committee and to ASHI. Now if we can just get NAHI up to speed: the entire industry will be unified on these issues.

Finding a realtor who admits will be even harder…:wink:

The way I look at is this…

If Realtors can be so void of a concience that they
would pick only the “patty cake” inspectors to be
on their favorite list… thats bad.

But… NO…

Realtors can (without guilt) also tell the “patty cake”
inspectors to PAY THEM to be on their list… thats really

Then it takes the inspection industry to finally move in
the direction of reminding the Realtor industry… “Hey
guys, this is against moral ethics and the against the law”.

So now that the Realtor industry has been put on notice,
the new method of doing things will go back to the old
methods that was once in place… they will keep the
favorite “patty cake” list of inspectors in secret.

Why don’t they just hang a sign in front of the Realtors
door that says:


Noitice I said “INSPECTORS” too… it stinks everywhere.

I’m glad NACHI is giving a heads up on this issue.

Good move Nick! Thank’s…

Do you think this will thin the ranks a little? Put everyone on a more level playing field?

I think it’s an excellent move that will lend credibility to the organization.

This is an issue in my local area. Many times, I have been approached by REALTOR to either pay them or to receive payment for referrals. The policy of my company is NOT to engage with any REALTOR or company that requires kick backs. We work for our clients and we get paid by our clients to provide a professional service. HOMEINSPECTORUSA, LLC policy is ZERO tolerance when conducting an inspection. We report the facts! The success of my company is based on our strict policy and adherence to our code of ethics.

Nick, this new direction should be related to all Real estate companies in the country. We are part of the real estate decision making process; we do not work for the Realtor, period! :stuck_out_tongue: :stuck_out_tongue: :stuck_out_tongue:


I assume that Coldwell Banker and some Re/Max offices will be notified. It would help if the NAR adopted it as well.

I get calls, 2-3 a week, from varios offices that want me to pay to be in their “book”. Would this also stop Coldwell’s ‘Concierge’ program. They attempt to get around this by caling it ‘advertizing’, not referral preference.

I am totally in favor of this, don’t get me wrong, but it (as usual) relies on the integrety and ethics of the individual inspector. It would be nice is the responsibility to police this came down from on top as well (NACHI and ASHI with enforcment, as well as the NAR and the various Realtor companies.

It stops NACHI member participation in it. Coldwell will probably continue it until everyone stops paying into it. ASHI’s prohibition takes effect on 10/14. Ours took effect yesterday.

What it is called is of little consequence. If it is a transfer of funds that results in access to referrals, it is unethical and prohibited.


I agree and agree with the policy. I have never paid for referral or Realtor advertising. I have a few Realtors who agree and I get all their referrals (even though 2 of them work for Coldwell Banker. Go figure.).

I was just hoping that some kind of pressure could be put on the companies and the NAR to help in enforcment, or at least publicity.

This is a big problem in my area specifically with Century 21. This is really going to put them is a compromising position! I can’t wait:mrgreen:

What is the Brinks deal? I’ve missed that one. Paying or accepting fees is a state law here too. I like it that way. I get my jobs from good old PR and beating the bushes.
Frank :stuck_out_tongue: