Why "Fee Paid"?

Originally Posted By: Robert Patterson
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Okay, every body says “fee paid inspections”. If an inspection meets all the requirements of the SOP, COE, paperwork, state and local laws, why does it matter if it’s paid or not? I.e. If I want to do a pro bono, why shouldn’t I get credit for it? It’s not anybody but mine and the clients concern if I get paid or not.


Opinions?

Bob


Originally Posted By: gbeaumont
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Hi Bob,


It’s funny you bring this up as I have been giving this a lot of thought myself. Many HI’s who are just starting out and who live in states that have licensing requirements need to show fee paid inspections passed off by mentor or existing license holder. Who does it hurt, if anyone if many of those are done for friends or family for a nominal fee, and are able to be judged for competency but seasoned inspectors. I like many others agree with the need for licensing and training but feel that the “fee paid” clause really isn’t doing anyone any good.


Good post Bob ![icon_confused.gif](upload://qv5zppiN69qCk2Y6JzaFYhrff8S.gif)

Gerry


Originally Posted By: jmyers
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Bob and Gerry,


I think the term "fee paid" was meant to limit new inspectors to a mentor so you can actually do them under supervision. Basically that means you have to pay an inspector if he/she chooses to be paid because you can not do a fee paid inspection until you are a full member and you need the 100 inspections to be considered a full member. Did I explain that well enough for you to understand?

I for one certainly entertain the fact you can do them for family, neighbors and friends here in PA if you want assuming you charge them at least $1 for the inspection. The only problem I could think of that would arrise is your report can not be used to re-negotiate the selling price of any real estate transactions but that would only hold true if you were doing it for the buyer and not the seller. Rental properties would be another good avenue if you wanted to get the 100 fee paid inspections without paying a mentor. There are lots of good ways, you just have to sit down and think about it.

In a manner of speaking you could also do them for the seller as a pre-listing inspection which is totally acceptable here since it is not going to be used to re-negotiate the selling price of the property. I have not been following the enforcement of this law close so I am not certain of what parts, if any, they are or are not enforcing yet.

Joe Myers


Originally Posted By: jfarsetta
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I agree that the fee-paid thing is just a way to limit past inspections credited toward a license requirement. We should be thankful that it isn’t worded as “an inspection which is part of a real estate transaction”. This would kill those $1 family and friend inspections.


To Bob P's point, he is correct that it should be up to the individual inspector. What's the difference if you give someone a gift certificate good for a home inspection? What if the inspection is limited to, say the electric, or roof, or heating system? Does this make it any less valid an inspection?

No, the "fee-paid" bit was dreamt up by legislators who were whispered to by HI's looking to limit the market. It's the same as performing inspections as a part of your employment, but not being a home inspector by trade of business registration.


Originally Posted By: Robert Patterson
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Joe M,


"I think the term "fee paid" was meant to limit new inspectors to a mentor so you can actually do them under supervision".

How many fee paid inspections did you do under a mentor? Doesn't hold water. If I agree to do a free inspection (for whatever reason) and it meets all the elements of the COE, SOP, and laws, then it is none of your business if I was paid or not.

Joe F,

"No, the "fee-paid" bit was dreamt up by legislators who were whispered to by HI's looking to limit the market"

I think you just be a carpenter, IMO you hit the nail on the head.

Bob


Originally Posted By: jmyers
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Bob, Joe,


I just said that...its meant to limit it so you have to use a mentor...paying him that is.....

Bob,

It does not say you as the trainee has to be paid...it has to be a fee paid inspection meaning someone has to be paid...the law is not specific as to who has to be paid...you just have to be one of the inspectors that participated. OK?

Joe Myers


Originally Posted By: Robert Patterson
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Joe M.,


Scenerio; My client asks me to do a free inspection, I agree because this client has brought me a lot of business, I call a newbie who wants to do ride-alongs, since it's my inspection I don't charge the newbie for the ride along, the newbie doesn't charge me for his time, the inspection meets all the requirements of the COE, SOP and state and local requirements. So why is it your or anybody else's business if I charge or not? Why won't the inspection count towards numbers? What is the rationale for you, the government or any org to stick your nose into my finances (other than for tax purposes)?

Bob


Originally Posted By: jmyers
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Bob,


I am not in disagreement with you, I think you have a good and valid point. The same would hold true if you were doing it for charitable purposes. The only thing I could think to do, is charge them $1. There is no specific requirement on the amount you need to be paid and have it count toward the 100 inspections that are needed to comply with the law.

I am simply trying to point out that here in PA home inspections were seen by the legislature as a negotiating tool for the price of the home. You do not have to meet the requirements of the law here if you are doing the inspections for informational purposes. That means if you are not using the inspection to negotiate the price of the home you don't have to comply with the law at all, EVER!

If this scenerio would ever happen to you, I think they would have a hard time "prosecuting" you for not obeying the law to the letter. It would be even more difficult for them to prove you did not get paid, without your help. There really is no part of the law that anyone is being prosecuted for yet, so it is hard to judge how the law will be interpreted in the courts.

Joe Myers


Originally Posted By: Robert Patterson
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Still ain’t nobody’s business (other than taxing agencies) what I charge or even if I charge.


Bob