Texas: New Form for Home Inspector Disclosure

Originally Posted By: gromicko
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(October 29, 2004) – A recent Texas Real Estate Commission amendment requires home inspectors to use a new form for disclosing to all parties in the transaction whether they will receive a fee or “other valuable consideration” from someone other than their client. Home inspectors also are required to disclose to?and obtain the written consent of?a client if they intend to pay a fee to a service provider or other participant in the transaction.


Loretta DeHay, TREC's general counsel, says verbal disclosure of such third-party transactions has always been required, but it wasn't until 2004 that the Texas Real Estate Inspector Committee created a uniform document for all home inspectors to use. The form was then adopted by TREC via a rule-making session earlier this year. All home inspectors in Texas must be licensed.

DeHay says that while most real estate practitioners understand the need for written consent when accepting fees from any third party, they also should know that any fees paid to home inspectors must now be disclosed in writing and approved by their client before the money or item of value can change hands.

?By Bridget McCrea for REALTOR Magazine Online


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Nick Gromicko
Founder
dues=79cents/day.

I much prefer email to private messages.

Originally Posted By: rwashington
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Is there a standard form they are now requiring?


I also did not see mention of this story or the form on the TREC website.


Guess Nick got it out there before they even had time to post it.



Richard W Washington


www.rwhomeinspections.com

Originally Posted By: Nick Gromicko
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The news always breaks here first !!! icon_smile.gif .


Actually, I've been talking back and forth on the phone with a good fella, John Cahill, whom I believe sits on ASHI's Ethics Committee and at TREC and worked to get this through in Texas.

I supported it because in principle I believe that if you have no trouble disclosing something verbally, you should have no trouble disclosing it in writing.

It seems a matter of logic to me and so I agree with John Cahill on this matter. Many in Texas (mostly non-members) asked me to oppose it because they don't like so many forms, but I can't.

Nice job John.


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Nick Gromicko
Founder
dues=79cents/day.

I much prefer email to private messages.

Originally Posted By: Nick Gromicko
This post was automatically imported from our archived forum.







Nick Gromicko


Founder


dues=79cents/day.


I much prefer email to private messages.

Originally Posted By: Timothy Pope
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Here you go Richard. Looks like it’s been in effect since 9/1.


http://www.trec.state.tx.us/pdf/forms/insp/REI-7B-0.pdf


Originally Posted By: mroach
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For the purposes


of Texas Occupations Code ?1102.302,


the commission deems the following conduct by


a licensed inspector to be dishonest and grounds


for disciplinary action:


(1) accepting a fee or other valuable consideration
in a real estate transaction from a person
or entity, other than the inspector?s client, without
first disclosing to all parties in the real estate
transaction that the inspector intends to receive
the fee or other valuable consideration, and obtaining
the written consent of the inspector?s client.

(2) paying a portion of any fee received by
the inspector to a service provider or a participant
in a real estate transaction, other than the
inspector?s client, without the written consent of
the inspector?s client.

(3) The Texas Real Estate Commission adopts
by reference the Fee or Other Valuable Consideration
Disclosure Form, REI 7B-0, approved by
the Commission in 2004 which is published by
and available from the Texas Real Estate Commission,
P. O. Box 12188, Austin, Texas 78711-
2188.

(4) A licensed inspector must use the Fee or
Other Valuable Consideration Disclosure Form or
identical terminology in a pre-inspection agreement
to comply with subparagraphs (1) and (2)
of this section. The inspector may select the
type and size of the fonts, provided the fonts are
no smaller than those used in the Fee or Other
Valuable Consideration Disclosure Form.

This is How it is written in the Standards of parctice. If you read paragragh 4, it states that you can simply put it into you contract. That's what I plan on doing so that my clients have one less form to sign. I will have them initial the statment, so that I can say they read it.

MarkR


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Mark Roach
A Professional Home Inspection
TREC# 6467
http://www.aprofessionalhomeinspection.com
"Your Best Protection is a Professional Home Inspection"
Klien Volunteer Fireman