Letter to Agents from the Kansas Association of Realtors

[Andrew Shick]

Just thought you might want to read this if you haven't already.
I've gotten several calls about being licensed today, and have tried to explain my position, but basically the agents don't have a choice if they want to stay within the guidelines of their organization.

So, what to do about this?
Give up all the business in KS to those who have folded and registered.
- OR -
Fold and register so I can continue to do business, feed the kids, keep the lights on, etc.

Believe me, the latter choice makes me sick to my stomach.
I have been depending this whole time on some rogue agents who said that they would use me no matter what, but after this letter, I don't think I can count on that any more.

Special Notice: Important Changes to Regulation of the Home
Inspection Industry Go Into Effect on Friday, January 1

During the 2009 Legislative Session, the Kansas Legislature passed legislation that requires home inspectors to register with a new state board, regulates the home inspection industry and prohibits home inspectors from limiting their liability for errors and omissions to less than $2,000 per home inspection.

Since this statute goes into effect on January 1, 2010, it is very important that you review the summary below to familiarize yourself with the major provisions of this legislation that will affect the real estate industry. For more information, please contact Luke Bell, KAR Vice President of Governmental Affairs at IbeIl@kansasrealtor.com or at 785-267-3610 Ext. 2133.

Starting on January 1, 2010, All Home Inspectors Must Be Registered with the Kansas Home Inspectors Registration Board (KHIRB) to Conduct Home Inspections Starting on January 1, 2010, all home inspectors must be registered with the Kansas Home Inspectors Registration Board (KHIRB) in order to provide home inspection services in Kansas. If a home inspector does not register with KHIRB by this date, they will be prohibited from performing home inspections.

If you maintain a preferred provider list or provide any type of referrals of home inspectors to your clients, you must ensure that the individuals on that list are registered as a home inspector with KHIRB. As of December 29, 2009, over 80 home inspectors across the state had already registered wirh KHIRB. You can access the list of registered home inspectors by clicking on a link at http://www.ksinspectors.org/.

After January 1, 2010, Real Estate Licensees Should Under No Circumstances Provide the Name of a Home Inspector Who is Not Registered Under the Act to a Client or Customer.

After January 1, 2010, real estate licensees should under no circumstances provide the name of a home inspector who is not registered under the act to a client or customer. If a home inspector is not registered under the act, they are acting in violation of state law and the client will be unable to rely on the accuracy, quality or reliability of any home inspection reports prepared by that individual.

In order to register as a home inspector under the act, an individual will need to fulfill several requirements specified by KHIRB to ensure that they are qualified to provide home inspection services. These various requirements will vary depending on the experience of the individual applicant or home inspector and can be reviewed in detail at KHIRB's website at http://www.ksinspectors.org

Starting on January 1, 2010, All Home Inspectors Must Be Liable for Up to $2,000 in Errors and Omissions for Defects They Negligently Failed to Spot During the Home Inspection.

Starting on January 1, 2010, all home inspectors are prohibited from limiting their liability for errors and omissions for defects they negligently fail to include in a home inspection report to less than $2,000 per home inspection. After this date, all provisions in home inspection agreements that purport to limit liability for errors and omissions to less rhan $2,000 per home inspection are void and unenforceable.

Please note that this is not a warranty and a home inspector is not required to guarantee their services for up to $2,000 per home inspection. Under the legislation, a home inspector is only liable for those defects that a reasonable inspector would have spotted under the standards of practice followed by the home inspector. As in other civil disputes, the customer will bear the burden to prove that the home inspector negligently failed to note the defect in the home inspection report.

Certain Individuals Such as Electricians. Plumbers. Pest Inspectors and Other Contractors Do Not Need to Register Under the Act if They are Not Providing "Home Inspections"

Under K.S.A. 58-4510, certain individuals are not required to register as home inspectors under the act unless they are performing an inspection of the entire home. This statute enacted by the Kansas Legislature contains a long list of contractors and licensed professionals who do not need to register as a home inspector under the act.

By enacting this exemption, the Kansas Legislature chose to exempt individuals from registration under the act if they are not actively advertising or marketing themselves as "home inspectors" to the general public. However, an individual exempted by this statute will need to register as a "home inspector" if they hold themselves out as a "home inspector" or provide services that are outside the normal scope of their license or profession.

For a complete list of the individuals who are not required to register under the act, please review the provisions of K.S.A. 58-4510. Following is a non-exhaustive list of those the most common individuals who are exempted from registration under the act:
(1) a contractor or tradesman performing an inspection or evaluation of a less than three components
of a home (i.e. appliance repairmen, electricians, HVAC contractors, plumbers, roofers, etc.);
(2) an individual licensed as an architect while acting within the scope of that license;
(3) an individual licensed as a professional engineer while acting within the scope of that license;
(4) an individual licensed as a real estate appraiser while acting within the scope of that license;
(5) an individual licensed as a real estate broker or salesperson while acting within the scope of that
license;
(6) an individual licensed as an insurance adjuster while acting within the scope of that occupation;
(7) an individual licensed as an insurance agent while acting within the scope of that license; and
(8 ) an individual providing services as a pest exterminator or chemical application while acting within
the scope of that occupation and not providing services which would constitute a home inspection.

More Information

Most importantly, any decisions to hire a specific home inspector should be left entirely up to the individual client in each transaction. However, if you have any questions that are not addressed in this article, please contact Luke Bell, KAR Vice President of Governmental Affairs at Ibell@kansasrcaltor.com or at 785-267-3610 Ext. 2133.

The words in bold were done by me.
It's just so ridiculous to imply that an Inspector that they have had a relationship with for years, would all of a sudden be a source of inaccurate, low quality and unreliable information.

Here's the one to Reece and Nichols agents (additional):

As a reminder, the new Kansas regulations governing home inspectors performing services on Kansas properties went into effect on January 1, 2010. Please take a moment to review the attached summary from KAR.

MOST IMPORTANT TO OUR AGENTS, they should ensure that any inspector used in one of their transactions is registered with the State of Kansas, which can be checked by going to http://www.ksinspectors.org/. On that site there is a link to the full list of inspectors by individual name and company name that are properly registered with the State. Thanks.

[Nick Gromicko]

What is your main objection to registering?

[Andrew Shick]

My main objection is being told how I have to run my business by the State, and a bunch of guys that I don't know, and who don't have my best interest at heart.
I object to the added expense, and the whole idea in general.

[Nick Gromicko]

Here is what I would do if I were you:

Get registered. Then when you have license in hand... you can freely pound away on the corrupt KHIRB Chairman Jeff Barnes.

[James E. Braun, CMI]

How long have you been in business Andrew?

[Andrew Shick]

I understand.
You can comply, or not comply, either way you're screwed in the end.
That seems to be the same choice we face in all current legislation.
What fun!

[James E. Braun, CMI]

The sicking part is I bet the real estate agents referr unlicense handing men who perform electrical and plumbing repairs.

[Andrew Shick]

Originally Posted by gromicko

you can freely pound away on the corrupt KHIRB Chairman Jeff Barnes.

Promises, promises.

[Andrew Shick]

Originally Posted by jbraun

How long have you been in business Andrew?

8 years

[James E. Braun, CMI]

I was just concerned you had less than two than you could not be an inspector in Kansas.

[Steve Taylor]

I think ALL registered home inspectors should immediately raise their fees to a minimum of $2000 per inspection in order to comply with the law.

[Andrew Shick]

Originally Posted by jbraun

I was just concerned you had less than two than you could not be an inspector in Kansas.

Nah, that's not the problem.
The problem is that I'm belligerent, and that KS Legislators ignore my calls and letters because I don't live or vote in KS.
I'm hoping I can have some added effect in MO in that regard.

It's a crappy idea, that has been sloppily instituted.

[James E. Braun, CMI]

Well, you have the right to be pissed.

[James H. Bushart]

When I started my company in St. Louis, I decided early on to take careful measures not to depend upon the referrals of commissioned real estate salesmen. It was an easy decision in St. Louis, for a business that depends upon such referrals requires soft reports and ASHI membership. With all due respect to the beloved Bill Boerner, it is easy to see (in his inexperience) why so many used house salesmen fell in love with him. Once he learns enough to give a thorough and complete inspection, he'll have some difficult decisions to make should he return to that market.

Moving to the Ozarks and starting over was actually easier since my website was already established for five years and my inspections have been favorably accepted by about 80% of the commissioned real estate salesmen who, without solicitation, have freely referred me....and still represent only 15% of my inspections.

If I had a business that relied upon the cooperation of commissioned real estate salespeople to put customers in front of me...I would get my Kansas license.

I don't and, accordingly, I will not get a Kansas license.

My market in that state will be those Kansas home buyers who would prefer to have an inspector who is NOT overseen by the Kansas Association of Realtors and who does NOT have a real estate salesman among those who will determine whether or not I get my license renewed.

The excrement that pollutes the integrity of home inspections in Kansas must remain there, for there is little we can do to get rid of it. However, we must do all that we can to keep the commissioned real estate salesman out of our business in Missouri. That...for the present time....is something within our control.

[Gary Farnsworth]

http://www.metrospeckc.com/Pricing.php

I would like opinions as to what I posted today on my web site. Read the center paragraph.

A "representitive number" means one per room. This is all we have to inspect per Kansas law; one outlet, one switch, one window, no appliances, an overall basic inspection. This is what Mr. Bell and his "associates" want; an inspection as to not alarm the home buyer, so the home will sell; that is all. Mr. Bell's statement does not protect the consumer; only limits, by the laws he implemented, what we can inspect.

Since being licensed in Kansas, I have had only one home inspection in Kansas. Buckle up Missouri; the same laws are coming your way.