Robert Jones Posted April 3, 2010 Report Posted April 3, 2010 I recently was told that one of the local real estate offices has an "in house" home inspector. The person actually has an office in the same building as the real estate company. Would this go against any state sop? Little bit of conflict of interest possibly?
Marc Posted April 3, 2010 Report Posted April 3, 2010 If these two businesses are merely occupying separate offices within the same building then that alone isn't proof of an ethical violation. If the inspection company is actually merged with the realty or occupies an office belonging to the realty, then the presence of a conflict of interest is beyond any doubt. I don't know about the rest of the forum membership but when I have convincing evidence of a home inspector selling out to agents, I don't waste any time reporting to the State Board in person. Representing an agent's interests in even a minuscule way when the buyer is paying for it in full damages the reputation of the industry that I work in. I take it seriously. Just my opinion. Marc
Robert Jones Posted April 3, 2010 Author Report Posted April 3, 2010 I agree with you Marc. The HI company is listed as an affiliated vendor. Other than that, I just know what I was told, and what I was able to read on the RE Co's website.
barlyhop Posted April 3, 2010 Report Posted April 3, 2010 Who might employ a Home Inspector who is associated with the selling agent?? Are consumers really that naive? Agents in my area are quite careful about referring a HI due to liability and claims. I am quite surprised to learn of this "In House" relationship. I can't even begin to imagine that this is even possible? let alone ethical. I hope that this is investigated by your State regarding consumer protection, conflict of interest and the whole concept in general! This is truly ONE TEAM-ONE FIGHT!!!!!!!!
ghentjr Posted April 3, 2010 Report Posted April 3, 2010 Our offices occupied part of the third floor of a three story building and the first floor was one of the larger Prudential RE offices in the County. They had over 20 agents. I think we got two maybe three inspections during the 15 years we were there. They had a guy who threw real softballs. We were too tough for their office.
ghentjr Posted April 3, 2010 Report Posted April 3, 2010 Our offices occupied part of the third floor of a three story building and the first floor was one of the larger Prudential RE offices in the County. They had over 20 agents. I think we got two maybe three inspections during the 15 years we were there. They had a guy who threw real softballs. We were too tough for their office.
Nolan Kienitz Posted April 3, 2010 Report Posted April 3, 2010 Happens all the time in Texas. Many HIs are in the RE-Agents pockets. Some of the advertising is so blatant it can make you sick. One HI has his smiling face as a partner of a RE group and the link to his website notes it is "under development". His web-presence advertising is via the RE group. I've tried many times to officially question 'conflict of interest', etc., etc.. and have always been shut down by TREC. Recent attempt was just within the past three weeks. Over 1/2-dozen of e-mails between me and a TREC attorney and I was summarily dismissed as the TREC attorney did not consider the situation a violation. Texas TREC is all about the RE Agents ... HIs are simply an afterthought. It ends up being a pointless pursuit ... at least in Texas.
hausdok Posted April 4, 2010 Report Posted April 4, 2010 Hi, Pay to play is not allowed under the new rules. If that company has paid a fee to be their in-house inspector it would be a violation of the code of ethics. If that company is getting free office space as the "in-house inspector" the inspector must disclose it to the client in writing. If that company has a business relationship with that real estate office, the inspector must disclose it "in writing" to every client he represents who is dealing with that office. Send a complaint to DOL and sign it; they cannot act on complaints that are anonymous. ONE TEAM - ONE FIGHT!!! Mike
MMustola Posted April 4, 2010 Report Posted April 4, 2010 We had a large broker who owned 10 offices hire an in-house inspector. The broker also owned a home warranty company and he would give the buyer a two year warranty instead of a one year warranty if they used the in-house inspector. He also owned a title and mortgage company. After a couple of years most of his top producing agents left because they got tied of this broker trying to force every bit of the transactions his way. Buyers also started to resent this and went else where. Now the broker is down to two offices, lost his national franchise affiliation, and has a bad reputation. This is one of the few times I have seen someone get what was coming to them.
Marc Posted April 4, 2010 Report Posted April 4, 2010 Now the broker is down to two offices, lost his national franchise affiliation, and has a bad reputation. That's a good example of free enterprise doing what our state government does not. Each of us inspectors can further the effect by educating the home buying public as much as possible about common conflicts of interests in our profession. It can only benefit us all, well.....maybe not those inspectors who depend on the exploitation of our collective image to be successful. Marc
gtblum Posted April 4, 2010 Report Posted April 4, 2010 Rob, A couple of months ago, I got a call from someone who was dealing with a broker who has an ad from another inspector printed on the sleeve used for paper work. While booking the appointment, I happened to ask who the realtor was. When she told me, there was a pause. I told her to not be surprised if the broker objected to my being hired because they hide behind a policy of not using inspectors who don't belong to, let's just say, one of the nationally known H.I. clubs. An hour later she called back to tell me, not only was that exactly what had been said, but the broker also objected because she claimed to not know me. The client told the broker, she would hire who she wanted, not someone pushed on her by the broker. The broker attended the inspection. Upon her arrival, she introduced herself to me in front of everyone. I reminded her in front of everyone, we had met before. LOL. I did my inspection, acted like a gentleman and left. A week later, I walked into the RE office and took everything I had out of the place. No attitude, no unpleasant anything. I figured it was better to not have any reason for them to make stuff up, and lose other business because of lies told to keep their boy working. Marc is right. Each of us inspectors can further the effect by educating the home buying public as much as possible about common conflicts of interests in our profession. It can only benefit us all, well.....maybe not those inspectors who depend on the exploitation of our collective image to be successful. Very frustrating, huh?
kurt Posted April 4, 2010 Report Posted April 4, 2010 I think it's more of a dying gasp continual effort than a developing trend. I don't think any of my paying customers don't get the conflict; the one's that don't apparently get it never hire me. The realtor referrals I get are realtors that understand the conflict of interest. Even stupid animals figure out who's slapping them around. Most humans are figuring it out too.
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