40-60% Ignore PA HI Law, per BBB

[James H. Bushart]

Post Your Problems: Inspect home inspector's credentials

Wednesday, August 06, 2008

By Larry Walsh, Pittsburgh Post-Gazette

Since barbers and beauticians have to be licensed in Pennsylvania, you might think home inspectors also would need a license.
You would be wrong.

Although home inspectors don't need a license, they must adhere to the Pennsylvania Home Inspector Law, said Warren King, president of the Better Business Bureau of Western Pennsylvania.

The problem is that too many consumers don't know about the law, what it requires of home inspectors and how to find home inspectors worthy of the name.

Another problem is that too many home inspectors -- from 40 percent to 60 percent -- don't comply with the law, according to the Pennsylvania Home Inspectors Council.

Mr. King said the Better Business Bureau and the Pittsburgh Regional Organization of the American Society of Home Inspectors have teamed up to help consumers and real estate agents find inspectors who do comply with the law.

Mr. King said the law requires a home inspector to:
• Be a full member in good standing of a national, not-for-profit home inspection association.
• Attend continuing professional education classes.
• Carry both liability and errors and omissions insurance.
• Disclose any financial interest in the sale of the home.
• Obtain a client's consent before providing a copy of a report to anyone else.

Mr. King said the law prohibits inspectors -- for one year -- from receiving pay to perform repairs to properties they inspected, and they are not permitted to compensate real estate agents for referrals.

He said the home inspection law has been in effect since Dec 20, 2001, "with limited enforcement action being taken."

"Failure to maintain the required association membership, continuing education and insurance can lead to severe penalties," Mr. King said.
A district judge can impose a fine of $500 or sentence the inspector to no more than three months in jail or both for not having the required insurance provisions. If found guilty of second and subsequent offenses, the inspector can be fined up to $5,000 or imprisoned for up to two years, or both.

Mr. King said consumers should verify the inspectors they hire are in compliance with the law by requesting copies of their current certificates of insurance and proof they are members in good standing of a home inspection association and adhere to the requirements of the state home inspector law.

"The real purpose of a home inspection is to keep residents safe and protect the major investment that a home represents," he said. "The sad news is that errors can occur by both overstating and missing problems. Without proper training an inspector may miss identifying a defect, or on the other side, identify something that is not a defect as a defect.

"If either party suspects a mistake, it is appropriate to inspect the inspector. If the inspector doesn't comply with the law, the inspection is not valid. If the inspector does not have insurance, you could own a 'money pit' and have no recourse."

Dan Howard, a spokesman for the American Society of Home Inspectors and its local chapter, said the pressures on real estate agents to use home inspectors who don't comply with the law "can be intense, especially when sales are down 20 percent as they are here and nationwide."

"The temptation not to use home inspectors who are diligent and thorough is higher than it ever has been because they stand between the commission and the sale," he said.

Mr. Howard, a home inspector for 28 years, said it is expensive for inspectors to comply with the state law. Insurance for a self-employed home inspector starts at about $4,500 a year. Add $2,000 for continuing education courses. And membership in a national home inspection association can run to $900 a year.

Bottom line: Buyer be aware.

I suppose if the consumers really felt that they needed the protection...they would care about the law.

[John McKenna]

Mr. Howard, a home inspector for 28 years, said it is expensive for inspectors to comply with the state law. Insurance for a self-employed home inspector starts at about $4,500 a year. Add $2,000 for continuing education courses. And membership in a national home inspection association can run to $900 a year.

Someone send this guy a brochure about the real world. Where did he get these high prices from?

[Scott Gilligan, CMI]

Another problem is that too many home inspectors -- from 40 percent to 60 percent -- don't comply with the law, according to the Pennsylvania Home Inspectors Council.

OK...who is the Pennsylvania Home Inspectors Council? This is a new one on me.

Mr. Howard, a home inspector for 28 years, said it is expensive for inspectors to comply with the state law. Insurance for a self-employed home inspector starts at about $4,500 a year. Add $2,000 for continuing education courses. And membership in a national home inspection association can run to $900 a year.

Is this guy crazy? He needs to find a better insurance agent. Someone is ripping him off for his CE credits. Wow! What a load!

[James H. Bushart]

Originally Posted by sgilligan1

OK...who is the Pennsylvania Home Inspectors Council? This is a new one on me.

Change "council" to "coalition", and you have your answer.

[Linas I. Dapkus]

Here's their website

[Linas I. Dapkus]

Scott,
I don't see you listed on as a compliant inspector

[Nick Gromicko]

http://www.nachi.org/byebyephic.htm

[William J. Decker]

Good point, Jim. But can't the same be said for tradesmen?

In Illinois, only Plumbers and roofers are state licensed, and GCs can get a local "license" with no testing.

And, I always tell my clients to hire licensed and insured professionals.

But many don't.

You are involation of state law if you do roofing or plumbing without a state license, but many do. The reason? People hire the unlicensed guys because they are cheaper.

Human nature. Don't do your homework and your own due dilegence, and you (usually) get screwed.

Then, rather than admit your own mistake, you cry to government to fix the problem that you caused your own self.

Then, the taxpayers, in general wind up footing the bill.

[James H. Bushart]

The HI laws are not initiated by or lobbied for by consumers or their lobbying groups.

ALL HI laws are the product of either product vendors creating a market for their wares...or inspectors looking to restrict their competition. All...as in...every single law passed or being considered, falls under one of these two categories.

So....when they go to the press and try to get more than a yawn from the public, they should not be surprised. Consumers are smart enough to know when they are being served...and when they are being exploited.

[John McKenna]

Originally Posted by jbushart

Consumers are smart enough to know when they are being served...and when they are being exploited.

I sure meet a lot consumers who get screwed. Most hire an inspector
because they do NOT know how to do it themselves.

At least the consumer can prosecute the bad inspector here.

Little by little, they are being weeded out by higher standards and prosecution.

[James H. Bushart]

Originally Posted by jmckenna1

I sure meet a lot consumers who got screwed.

At least they can prosecute the bad inspector here.

All consumers in all states...HI law or not...have the courts to support them in matters regarding home inspectors. If HI laws do anything, they restrict...not enhance...a consumer's litigation rights in these matters.

[James E. Braun, CMI]

[quote=jbushart]
ALL HI laws are the product of either product vendors creating a market for their wares...or inspectors looking to restrict their competition. All...as in...every single law passed or being considered, falls under one of these two categories.
quote]

Do not forget groups that want to shift liability away from themselves, and lawyers that will make money by the shift.

[William J. Decker]

Originally Posted by jbushart

The HI laws are not initiated by or lobbied for by consumers or their lobbying groups.

ALL HI laws are the product of either product vendors creating a market for their wares...or inspectors looking to restrict their competition. All...as in...every single law passed or being considered, falls under one of these two categories.

So....when they go to the press and try to get more than a yawn from the public, they should not be surprised. Consumers are smart enough to know when they are being served...and when they are being exploited.

Or, as in Illinois, consumers were complaining to the state government, and their local state legislators, that their homes (some new construction, some existing) had big problems with them that were found out only after they closed. Also, complaints about shoody workmanship in remodeling and additions.

So, the legislators approaced the appraisers, looking to license them for apprasials and inspections. But the appraisers didn't want to have anything to do with it.

So, they approached ASHI, at the same time ASHI was doing branding and approaching them.

And, they worked out a pretty good law.

But, the legislators recognised the "association wars" problem and made sure that there would be no particular association advantage in the law. The first 2 years, all ASHI with one NAHI guy on the state board, but the Director made the board "advisory only". Once the guys who were the idiots found out that they could not get an advantage, they left the board. Then, the honest, multiple association guys got on the board and they started to make good changes for every inspector.

Then, we got Gov. Blaggo. He raided all the state funds for his universal health insurance scheme and to pay back his patrons.

So, we have a little setback, but all in all, people get good inspections, the bad inspectors get disciplined and things are getting better.

Hope this helps;

[William J. Decker]

Originally Posted by jbushart

All consumers in all states...HI law or not...have the courts to support them in matters regarding home inspectors. If HI laws do anything, they restrict...not enhance...a consumer's litigation rights in these matters.

If a home owner in a non-licensed state has problems, they have to hire a lawyer and sue the inspector, at their own expense.

If a home owner, in a licensed state, has problems, they can just file a complaint with the state and get relief. They can also, after the state does its thing, go after the inspector on their own.

Licensing, done right, does help (at least the consumer).

Check it out for yourself, Jim.

[James H. Bushart]

Originally Posted by wdecker

Or, as in Illinois, consumers were complaining to the state government, and their local state legislators, that their homes (some new construction, some existing) had big problems with them that were found out only after they closed. Also, complaints about shoody workmanship in remodeling and additions.

So, the legislators approaced the appraisers, looking to license them for apprasials and inspections. But the appraisers didn't want to have anything to do with it.

So, they approached ASHI, at the same time ASHI was doing branding and approaching them.

And, they worked out a pretty good law.

But, the legislators recognised the "association wars" problem and made sure that there would be no particular association advantage in the law. The first 2 years, all ASHI with one NAHI guy on the state board, but the Director made the board "advisory only". Once the guys who were the idiots found out that they could not get an advantage, they left the board. Then, the honest, multiple association guys got on the board and they started to make good changes for every inspector.

Then, we got Gov. Blaggo. He raided all the state funds for his universal health insurance scheme and to pay back his patrons.

So, we have a little setback, but all in all, people get good inspections, the bad inspectors get disciplined and things are getting better.

Hope this helps;

One does not require a license to do a home inspection in Illinois. It is only required if you are doing a home inspection for compensation.

If you do a $450 doorbell inspection...you may add a free home inspection - no license required. Read your law.