State Control of HI Industry - Good or Bad?

The floor is open…

State or Provincial control is good if only from the point it takes control out of home inspector overseeing themselves. The perfect example is north of the border. We have had self regulation in Ontario for over a decade and its fraught with problems.

Of the states that have licensing which one seems to be the best for all concerned? Anyone.

The state whose licensing control and overseer function is handled by a commission that has absolutely no interests (by that meaning no connections, involvements, investments, etc.) in the real estate industry (except their own residence of course) and has advisory panels made up of those from the Inspection industry.

The second best is the state whose licensing and overseer function is handled by a commission made up exclusively of licensed and reputable Real Estate Inspectors who accept input from all sides prior to creating regulations.

All others are analogous to the fox guarding the hen house!

We have State certification here in AZ. at first I thought it might be good to Laval the field for all HI’s to get business. After 3 years it has made it so there are over 1000 HI’s and new HI’s coming out of the local HI schools to the tune of 100 every 3 months. The new HI’s tend to work for $100.00 to $150.00 for any home. It makes it a little more difficult to keep your prices to a liveable range but it can be done. I also thought that the new guys would go out of business fast and everything would Laval out in the end but for every new guy that goes out there are 3 to replace where he left off at the low price range. with the flat market here (not slow market) it means we all do more marketing. At this time I don’t know that State certification is good?

Michael we don’t have licencing up here in Ontario or Canada for that matter and the same thing is happening with Inspector Mills, et ceteras. I think the solution is ensuring that members prior to becoming licenced actively lobby the government on their behalf so they can as home inspectors get the best possible legislation. Overseen by a Council.

Very BAD but the alternative is worse .
Sorry but honest honerable management by our selves would be great but it ain’t going to happen so we must have government control the sooner the better in Canada for sure
Roy Cooke.… RHI. CAHPI-ON

I’m very much against states that mandate a certain report format. NC is considering it. It will result in lower prices because everyone will be the same. Real Estate folks are all for it. Go figure.

Would this format be consistent with our SOP?

Typically, state licensing mandate a standard of care (or minimum SOP). All reporting would need to include items covered in the SOP.

I have never heard of having to follow any standard reporting format; only minimum content.

I’m not from the great state of Texas but I thought TREC did require a particular reporting format??? Texans please chime in here.

The unfortunate thing is that some of the states were set up before the local HI’s had a chance to voice an opinion and now once it is in place it takes almost an act of God to correct the laws. The other thing that happend was that other organizations (ASHI, NAHI etc…) help set up the criteria that all HI’s must now live with or take an act of God to change. From what I have seen you can’t get enough NACHI guys to stand up together and go to the local Gov. to lobby for a change. Also most NACHI guys here in AZ. have not been in business for more than 5 years ( the Gov. won’t listen to you if you have not been active in this business for more than 5 years. Hence the long term other organizations members will always have more control (been HI’s more than 5 years)

What do you want changed Mike?


The Texas Real Estate Commission has mandated a standard reporting format with a basic outline of checkboxes for all major systems or areas inspected. There is room for variations between checkboxes but the basic format, down to the font type and style must be adhered to. There is allowance betwen the basic format to be somewhat creative. The intention was to standardize the report format so clients would know what to expect from any Inspector.

The sad part is that in 28 years I don’t believe 5 buyers (if that) ever said they couldn’t understand my report - regardless of whether it was a checklist, typed report, computer generated boiler-plate, etc.

We do get realestators pushing that drivel however. Buyers don’t buy a house often enough to differentiate.


Interesting comments. I have been in biz for 15 years and I have never had anyone say they could not understand my report, and I use the Carson Dunlop report. So we should know what we speak of. Thanks.

It seems like the “best interest of the consumer” argument for state regulation does not really interest the consumer, at all. Who really gains, in your opinion, through state controlled home inspecting?

In my opinion, any home inspector who is fed up with the bull that some associations perpetrate on their members through so called “self regulation”. The buck stops at the desk of the licencing commission, no more passing the buck or burying issues.

I was PM’ed about my previous description of the TREC report format and the sender did rightly point out my description of the TREC reporting format was potentially misleading. So to answer your question again about the TREC reporting format, with a better description, is appropriate.

The basic TREC reporting format can be viewed at the following URL. Select REI-7A0 form.

As stated before we do have the ability to be creative between these major topic headings. We must use font sizes no less than that on the form and can select our own font type.

As a result some reporting software uses this format throughout the report and gives the appearance of a checklist style report. However, even these software systems allow modification of the default form to be a complete narrative report except the required TREC checkboxes.

Having one report format makes it almost idiot-proof for all agents, brokers, attorneys and TREC when reviewing for complaints.

It really has nothing to do with the clients’ awareness, understanding, and perception.

It’s a bad situation when the brokers, agents, appraisers, and inspectors or inspection firms are regulated from under the same umbrella.

Who’s interests are best served?