In the past, many home inspectors have allowed the payment of their services to be paid at the time of closing. This means that the bill for the home inspection services would be rolled into the closing costs for the home that is being purchased.
The Kansas Home Inspectors Professional Competence and Financial Responsibility Act was recently passed and is in effect in Kansas. One stipulation to this act states that the Kansas Home Inspector Registration Board may deny, suspend, or revoke a home inspectors registration if the inspector allows the inspection fee to be contingent on the closing of the underlying real estate transaction.
Do you see the ethical dilemma? Do you think your inspector will be 100% honest about the conditions found in a home if he/she knows that payment is contingent upon you closing the deal?
Hopefully, you’ve got an inspector that is honest, believes in a strong code of ethics, and stands by that code by joining an organization that promotes strong ethical accountability, such as ASHI (American Society of Home Inspectors).
Mortgage brokers, lenders, home buyers take heed. It’s against the law for a home inspector to bill the services to closing without some other type of guarantee of payment. By aiding in this practice, you may be as guilty as the home inspector.
But notice what I wrote: “…some other guarantee of payment”. Some home inspectors will take a credit card number or a personal check at the time of the inspection AND provide a way to allow their services to bill to closing. If the deal does not close, for any reason, or the home inspector’s fees are not paid at the time of closing, the inspector is still guaranteed payment, either by charging the credit card that was provided, or cashing the check.
I’m not an attorney, so I don’t know whether this loop hole is legal. For me, it’s just better to stay away from perception of a conflict of interest. That’s also in the ASHI Code of Ethics. And is a good enough reason to stay away from that practice.
Cash, check or credit at the time of inspection, or no inspection service. Its the law.
I was recently berated by “one of the best real estate agents in the northland” because of a recent inspection. Normally, I let this go without a second thought. Of the few calls I receive from an angry agent, most are simply a misunderstanding. They’re often easy to resolve, once everyone fully understands the conditions that have been reported.
I can’t stress enough the importance of continuing education. The home inspector that gives up learning should also give up inspecting. In this profession, there is always something new and old to learn. Hiring a home inspector that continues to invest in knowledge is a good investment as a home owner.
This was taken from the Kansas City Regional Association of REALTORS website:
On Sunday, May 18th, Govenor Sebelius signed HB 2315 to require registration for all home inspectors practicing in the state of Kansas. This bill establishes minimum requirements for professional home inspectors in our state. It also establishes a Kansas Home Inspector Registration Board.
With the rising cost of gasoline we hear a lot about tuning up your car, but have you considered tuning up your home?
While not necessarily required, weather caps and spark arrestors are recommended for chimney terminations. Weather caps help to keep water out of the chimney. Spark arrestors help to keep burning embers from setting fire to your house and the neighbors houses.
We have all heard the phrase “You get what you pay for.” We’re firm believers in continuing education and – yes – this all costs time and money.
I don’t normally watch the show “King of the Hill”, but I thought I’d share this episode with you.
The Exterior Design Institute (EDI), based in Norfolk, Virginia, is “a non-profit organization founded for the purpose of training and certifying Building Envelop and EIFS Inspectors and Moisture Analysts to promote quality control within the EIFS industry.”