Realtor/Home Inspector

[Brian Kelly]

I had just discovered a local Real Estate Office announcing the addition of a new Sales Rep that is also a NYS Licensed Home Inspector. The ad states that he has over 30 years as a Real Estate Salesman and a Home Inspector, He can offer both the buyer and sellers the knowledge needed to reap the best possible financial return.

Seems kind of Sleazy to me but I can not find where he is breaking the Law only that he is unethical in advertising in the same ad he is both. If there is anyone out there who knows the laws regarding this in New York I would be greatly interested in possibly doing something about this.

Any help would be appreciated.

[StevenT]

§ 444-g. Duty of care of home inspectors.

4. No home inspector shall:

(b) inspect any residential building in which such inspector, partner or relative thereof has a financial interest or any interest in the transfer thereof, including the receipt of any commission as an agent;

§ 444-h. Suspension and revocation of licenses.

1. The secretary may refuse to grant or may suspend or revoke a home inspector license, and may impose a civil penalty not to exceed one thousand dollars per violation, upon proof to the satisfaction of the secretary that the holder thereof has:

(a) Violated the provisions of subdivision four of section four hundred forty-four-g of this article;

(b) Disclosed any information concerning the results of the home inspection without the approval of the client or the client's representatives;

© Accepted compensation from more than one interested party for the same service without the consent of all interested parties;

(d) Accepted commissions or allowances, directly or indirectly, from other parties dealing with the client in connection with work for which the licensee is responsible;

(e) Failed to disclose promptly to a client information about any business interest of the licensee which may reasonably affect the client in connection with the home inspection;

[JerryM]

California Civil Code 7197:

7197. (a) It is an unfair business practice for a home inspector, a

company that employs the inspector, or a company that is controlled

by a company that also has a financial interest in a company

employing a home inspector, to do any of the following:

(1) To perform or offer to perform, for an additional fee, any

repairs to a structure on which the inspector, or the inspector's

company, has prepared a home inspection report in the past 12 months.

(2) Inspect for a fee any property in which the inspector, or the

inspector's company, has any financial interest or any interest in

the transfer of the property.

[Erby]

Stay with me for a minute or two as this can get kind of confusing:

Broker "A" represents seller "1" who is also buyer "1" represented by Broker "A".

Seller "1"s house has been on the market for several months..

Broker "A" represents seller "2" who is also buyer "2" represented by Broker "A".

Seller "2' (aka Buyer "2") decides to buy seller "1"s house.

Broker "A" recommends that seller "2" (aka Buyer "2") have a home inspection done and happens to know just the person to do it.

Who is it??

Why Inspector "A" (a licensed home inspector) who also happens to be a real estate agent (Agent "1") working for???

You guessed it! Broker "A".

Buyer "2" either didn't see the problem or didn't want to offend Broker "A" because Inspector "A" did the inspection.

Too top this off, Inspector "A" (aka Agent "1") is accompanied to the inspection by his wife who is also a real estate agent [not an inspector] (Agent "2") working for???

You guessed it! Broker "A".

Strangely, the only person who apparently saw the potential for a conflict of interest in this scenario was Seller "1".

Do you think Inspector "A" would mention the "little foundation problem" that could cost several thousand dollars to fix, thus killing the deals for Broker "A".

Your thoughts??

Is this a red flag for you??

[hausdok]

Yeah, but what I want to know is...who's on first?! Abbo't!

OT - OF!!!

M.

[ozofprev]

Brian, getting back to New York...

This person - if performing home inspectionsid="maroon"> - is walking a very fine line. If the person is NOT performing home inspections, then he is just trying to distinguish himself from other realtors.

From New York's 12B of the Real Property Law:

1. ... The duty of every home inspector shall be to the client.

(That's the law, not just a nice thing to say.)id="blue">

2. Every home inspector shall display his or her license number and status as a licensed home inspector on every home inspection report and in all advertising. ...

(So it should always be simple to identify this person.)id="blue">

3....

4. No home inspector shall:

(a) ...

(b) inspect any residential building in which such inspector, partner or relative thereof has a financial interest or any interest in the transfer thereof, including the receipt of any commission as an agent;

(To my mind, this makes it risky to inspect ANY home since it is possible a partner in the inspector's realty firm will eventually sell this house. E.g., What's to stop an inspector from negatively coloring an inspection for a competitor's buyer in order to bring more business to this guy's firm? And what's to stop competitors from making such a claim against this inspector even if he didn't?)id="blue">

© ...

(d) agree to perform any home inspection or prepare any home inspection report for which compensation or employment is contingent upon the conclusions of the home inspection report, pre-established or prescribed findings, or the closing of a real estate transaction.

(So, if this guy's inspection report causes a competitor's buyer to flee, and then a buyer from this guy's realty firm buys the home, there is at least a legal can of worms.)id="blue">

1. The secretary may refuse to grant or may suspend or revoke a home inspector license, and may impose a civil penalty not to exceed one thousand dollars per violation, upon proof to the satisfaction of the secretary that the holder thereof has:

(a) ...

(b) ...

...

(e) Failed to disclose promptly to a client information about any business interest of the licensee which may reasonably affect the client in connection with the home inspection;

(He should tell every HI client that he is also a realtor. An intelligent buyer will prefer another HI.)id="blue">

Of course, all of this is from:

http://www.dos.state.ny.us/lcns/homeinspector-law.htm