Kansas HB 2315 Update

[Gary L. Farnsworth, CMI]

Here it is guys. I would like to hear some comments. Senator Karin Brownlee of Kansas just sent me this e-mail:

Mr. Farnsworth,
I apologize for not getting the info from the revisor turned around faster and back to you. Here is what Jason Long sent to me.

Mr. Bell is correct. Section 11 becomes effective on July 1, 2008 and prohibits home inspectors, as defined by the act, whether registered or not, from limiting their liability through the home inspection agreement
to less than $10,000. Neither Renae nor I recall any discussion among the conference committee members regarding the effective date of Section 11. Furthermore, it was my understanding that the board needed to be
appointed and organized before it could begin accepting registrations. So, the act needed to become effective on July 1, 2008, for organizational purposes even though registrations would not occur before July 1, 2009.

However, Mr. Farnsworth is incorrect in that the requirements that must be met for registration, including education, financial responsibility
and continued training, will not be imposed until the home inspector is required to register; July 1, 2009, in counties of 60,000 or more and
July 1, 2011 in all counties. Thus, the only requirements that arguably will be imposed on July 1, 2008, are those found in sections 9 and 11 of the bill.

I hope you will read again the sections that the revisor mentioned and realize that it is not as bad as you have suggested. Nonetheless, I am aware that you are very displeased with the legislation.

Karin Brownlee

[Steven D. Farnsworth]

Remember this is a previous post from Nick

P.S. The law only prevents inspectors from unilaterally limiting their liability to an amount under $10,000.

The law doesn't prevent YOUR CLIENTS from limiting YOUR liability to an amount under $10,000.

Just double your prices but offer an option to do the inspection at 1/2 price if the client agrees not to hold you responsible for more than twice the cost of the inspection or even $1. The law doesn't hinder a consumer's right to bargain with you (over price or services or liability), it only limits your ability to impose (on the consumer) a written-in limitation of liability unilaterally.

Nick, How are you coming on the new Kansas Inspection Agreement and Warranty?




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[Paul Sabados]

Nick, How are you coming on the new Kansas Inspection Agreement and Warranty?

With only 20 days left before the July 1st change we're running out of time. The agreement shouldn't be that difficult to author, but some legal checking should be done first. Secondly, reading the requirements and the 10K minimum limits, I would have to guess that a warranty program is not going to cut mustard. There is one option that can be taken to slow down and possibly toss this whole thing out the window and it will involve some deep pockets and an expert willing to take on challenge. I think Nick know's what I mean.

Paul

[Dan Bowers, CMI]

But Paul, if we bring in that Yugoslavian sniper, where will we house him till he gets them all?? You know how much he eats - yuk!

[Dan Bowers, CMI]

I think the agents are getting warmed up early. Since last Wednesday I've had 4 different inspectors call and tell me their horror stories.

Things like: the dishwasher starts leaking in the middle of a cycle and the agent is yelling - you broke it, you can't limit your liability now ........

[Steven D. Farnsworth]

HB2315 Section 3 Item B; Examination of Kitchen type appliances and the condition and operation of are not included; or worded something like that.

Do not touch them

Turn in the agent and the agents broker to the new board. If the agent cannot be a professional, they should not be one. Turn them in !!!!

[Dan Bowers, CMI]

I think the Kansas City Board of Realtors and Kansas Board of Realtors are trying to help notify their agents about the new law. I've seen articles from both groups in their newsletters talking about how they've finally got regulation of home inspectors. The articles also talk about how they worked toward this goal and pushed it for 9 years.

All the articles point out that although nothing starts before 2009, the other aspects of the Bill are enforceable after 7/1/08. Each article then goes on to point out that a home inspector can't limit his liability to under $10,000 per transaction.

Its alnost embarrassing thinking about all the meetings I've set through listening to some lying sack of ***** realtor or some of their staff or officers spouting off about how they're not trying to control or manipulate another industry - just help support us if thats what we want. Oh please!!

[Gary L. Farnsworth, CMI]

I have a credit card with a cap of $40,000. Wouldn't that be good enough for the realtors/State of Kansas? It is greater than the $10,000.

[cbottger]

Guess this means I will have to stay on my side of the border. Unless IR Its not regulated

[James E. Braun, CMI]

Is the Kansas inspectors going to steeply raise their prices because of this?
I know I would be, and I would point back at the bill when people ask me why.

[Dan Bowers, CMI]

You'd certainly hope so but there are always the group that don't want to anger a realtor.

[James H. Bushart]

My guess is...those who are dependent upon the RE salesman who legislated their doom will continue their dependency until they are put out of business by virtue of their imposed $10,000 warranty.

The problem is....the licensing schools that will be opening up will be sending out enough temporary home inspectors to replace these guys at the rate (or higher) than they are falling out.

Raising rates to meet expenses in a licensed state is pretty difficult....except for the planet of Texas, where licensing has saved everyone from harm.

[Joe Farsetta]

Sounds like there may be a case against the law, or perhaps with the behavior of some, with the Federales...

[John McKenna]

Originally Posted by jbushart

Raising rates to meet expenses in a licensed state is pretty difficult....except for the planet of Texas, where licensing has saved everyone from harm.

Send your houses to Texas and we will inspect them for you.
(Client pays for shipping both ways)

[Gary L. Farnsworth, CMI]

It will just be a matter of time until all of this goes to a court somewhere in the state of Kansas. The only winners will be the attorneys. All we can do is hope that the real estate companies will be drained by the fees from their attorneys. It will happen. Just when and in what county, who knows, and which inspector will be involved we will not know until it happens. It will happen to some unsuspecting inspector, perhaps for no reason but to test the law, no matter what he puts into his pre-agreement, and his reports. It will not matter. Only that it will go to court, and soon.