Missouri Housing Industry Alliance meeting April 4, 2007. Can someone go for NACHI?

[Nick Gromicko]

To: MHIA Members
From: Erin Hervey, MAR, 1-800-403-0101 ext. 111
Date: February 7, 2007
Subject: Missouri Housing Industry Alliance Meeting Notice

The next meeting of the Missouri Housing Industry Alliance will include invited legislators and will take place on Wednesday, April 4th, 2007, at the CAPITOL PLAZA HOTEL in Jefferson City, from 8:30 a.m. to 10:30 a.m.

The cost of your breakfast is covered by your dues payments. We will need to know in advance if you plan to attend, so please check the appropriate box(es) below and fax, email, or mail a copy to me. If you must cancel your reservation, please do so at least 24 hours before the meeting. MHIA must pay for the meals of those who have made reservations but do not attend.

Guests are always welcome at our meetings. If you plan to invite guests, please indicate their names and the names of their organizations below and send a copy of this form to me prior to the meeting date. First time visitors are our treat!

___No, I am unable to attend the meeting

___ Yes, I plan to attend the meeting
__ I will be bringing guest(s)


Name of guest:____________________________________________ _______________
Guest Organization:_____________________________________ __________________
Name of guest:____________________________________________ _______________
Guest Organization:_____________________________________ __________________


Fax to: Erin Hervey, Missouri Association of REALTORS®, 573-445-7865
Or email confirmation to ErinHervey@morealtor.com

PO Box 1327· Columbia, Missouri 65205-1327

Members
ASHI-Midwest Pro Chapter
Missouri Apartment Association
Missouri Insurance Coalition
Boone County Recorder of Deeds
Missouri Appraisers Advisory Council
Missouri Land Title Association
Home Builders Association of MO
Missouri Association of Mortgage Brokers
Missouri Manufactured Housing Association
MAR Appraisal Section
Missouri Association of Real Estate Inspectors
Missouri Pest Management Association
MAR Property Management Section
Missouri Association of REALTORS®
Missouri Professional Auctioneers Association
Mid America Crime Free
Missouri Association of Home Inspectors
Mortgage Bankers Association of Missouri
National Association of Home Inspectors
National Association of Certified Home Inspectors

[James E. Braun, CMI]

I can go again. Is there anything that needs to be said? I was not told last time that we was suppose to speak at the meeting until I was at the meeting. I do not like making any statements while representing NACHI without NACHI approval. Any suggestions on what to say? I hope Jim Bushart goes to the meeting, especially after what the president of the Missouri Association of Realtors had to say about inspectors.

Your Opinion
Realtors respond on home inspections



Dear Editor: In response to the letter from Jim Bushart regarding the support of the Missouri Association of Realtors® for legislation which would require home inspectors to be licensed by the State of Missouri, I offer the following in reply.

The Missouri Association of Realtors is indeed interested in legislation to license home inspectors. That is because our members, who interact daily with home inspectors, are concerned at the wide range of competencies encountered. A Realtor has an interest in having an accurate inspection because, if there is an undisclosed problem that later surfaces, the Realtors involved in the transaction are the ones that will hear about it first, they are the ones who will bear the brunt of the outraged home purchaser no matter what their actual liability might be; for this reason and this reason alone an accurate, fair and complete inspection is a must

Currently nearly everyone in the real estate transaction is licensed by the state or federal government. These licenses attempt to insure a minimum level of competency and responsibility. The exception to that statement is the home inspector. In Missouri, in order to be a home inspector you must: purchase a business license, have business cards printed, have a contract of employment between you and the homeowner printed and advise others that you are ready to begin accepting assignments.

Currently many Realtors, as a service to their clients, will give a list of local inspectors that they have found to be competent and accurate. They take a risk in doing so because any failure of one of the people on the list may redound against the Realtor.

On a matter that Mr. Bushart did not raise, I've been told by Realtors around the state that they are seeing an increase in home inspector agreements that limit the liability of the home inspector to the amount of the inspection. If an expert offers their opinion, they ought to be willing to stand by that opinion.

Bruce Aydt, president
Missouri Association of Realtors

[James H. Bushart]

Here is my reply to Mr. Aydt's letter, which will be published soon:

Dear Editor: The following is my response to the recent letter by Bruce Aydt, President of the Missouri Association of Realtors, explaining why he supports HB 978.

As Mr. Aydt pointed out, his members (real estate salesmen) are in favor of HB 978. On this point, we both agree.

He pointed out that "nearly everyone in the real estate transaction is licensed" which I also agree.

Where we differ on these two points is the very crux upon which the citizens (and their State Representatives) must take a stand.

Home inspectors, home builders, and other contractors in Missouri are not licensed. While Mr. Aydt argues that home inspectors should be licensed, he fails to continue his argument with justification as to why a home inspector licensing bill must be written by real estate salesmen, why real estate salesmen must sit on the home inspector licensing board, and/or why real estate salesmen should have input as to which home inspectors can sit on the licensing board. This is HB 978.

In other words, he failed to explain why his argument for licensing (in general) also includes the need for the salesmen to govern the home inspector.

His second point gives us a clue. He considers the home inspector to be a part of the "real estate transaction" which is something we are not supposed to be.

As a home inspector, I have never considered myself to be a part of the "real estate transaction". To the contrary, there have been many times that my report has been the cause for the immediate interruption (temporary and permanent) of a real estate transaction.

As a home buyer, you are looking for an unbiased report on the condition of your prospective purchase by someone who is NOT a part of the real estate transaction.

Your home inspector, to be unbiased and competent, must have no interest at all in the sale (or no sale) of the house. If his license is governed by the real estate salespeople of Missouri who...as Mr. Aydt has indicated...want him to be a licensed person along with them in the "real estate transaction", can he provide an unbiased and indifferent report?

Perhaps, for state revenue generating purposes or other purposes, home inspectors could someday be licensed. HB 978...or any other bill that would put home inspectors under the thumb of the real estate agent trying to convince you to buy the home...is not the answer.

Please contact your representative and let him know that you disagree with the Missouri Association of Realtors and that you want your home inspector to be unbiased, objective and to have no interest at all in the sale of the home.


James H. Bushart
President, Missouri Chapter of the National Association of Certified Home Inspectors

[James H. Bushart]

Originally Posted by gromicko

Fax to: Erin Hervey, Missouri Association of REALTORS®, 573-445-7865
Or email confirmation to ErinHervey@morealtor.com

PO Box 1327· Columbia, Missouri 65205-1327

FYI, Mr. Hervey is also a paid lobbyist for the Missouri Association of Realtors. This is another "coalition" established to provide the appearance of a united group.

I wonder if they also back HB 978. Interestingly enough, however, there was no mention at all of this bill at the last meeting. hhhmmmmmmm

April 4th is also Holy Thursday, the day in which my church recalls the betrayal of Christ by one of His own disciples. What an appropriate day to hold this meeting.

This is getting interesting....

[James H. Bushart]

Some of my admirers at MAR, NAHI and ASHI are monitoring these threads to see what the next move of the opposition to their HB 978 will be.

Here is what's coming.

Another bill that the MAR supports that is now sitting before the same committee as HB 978 is HB 324.

HB 324 -- Sexual Offender Registry

Sponsor: Smith (150)

This bill specifies that real estate licensees will be immune
from liability for acts or omissions regarding the disclosure of
information on registered sexual offenders if the information
given only refers to where their clients may obtain information
on the sexual offender registry.

Yes. You read that right.

The same people that want to govern home inspectors on a real estate agent controlled licensing board ALSO want the right to conceal the fact that the home you are purchasing to move into with your five pre-teen daughters has a child molester living next door. Anything for a sale and to protect the salesman making it.

Wait until you see where I go with this one.

[Dan Bowers, CMI]

A few thoughts on Bruce Aydt's comments in the previous letter.

.

The Missouri Association of Realtors is indeed interested in legislation to license home inspectors. That is because our members, who interact daily with home inspectors, are concerned at the wide range of competencies encountered.
As a Professional Home Inspector, I'm VERY concerned at the huge range of competency in LICENSED Real Estate Agents.

Currently nearly everyone in the real estate transaction is licensed by the state or federal government. These licenses attempt to insure a minimum level of competency and responsibility. The exception to that statement is the home inspector.
Not Really - home builders, contractors, roofers, radon mitigators, mold inspectors, chimney sweeps, etc all fall into this boat PLUS we don't have mandatory building codes or code inspections in 3/4th of the state.

Currently many Realtors, as a service to their clients, will give a list of local inspectors that they have found to be competent and accurate.
You're kidding - right! Thats choice #A - choice #B is ...............


On a matter that Mr. Bushart did not raise, I've been told by Realtors around the state that they are seeing an increase in home inspector agreements that limit the liability of the home inspector to the amount of the inspection. If an expert offers their opinion, they ought to be willing to stand by that opinion.
If Realtors are just now noticing the "Limit of Liability Clause" they're about 15 Yrs behind the times, and that explains a lot of the problems we have with many of them. By the way I wonder if Mr. Aydt has ever noticed that a "Limit of Liability" or "Release of Liability" form is also used by Doctors, hospitals, Day Care Centers, schools, sports teams, the boy scouts, etc. I gues they're not professionals. If Mr. Aydt reads most Real Estate Contracts in use throughout the state, he will discover that the RE Contracts almost always have phrases that Limit or Disclaim ALL Liability if ..........."


Bruce Aydt, president
Missouri Association of Realtors

[James E. Braun, CMI]

I just got back from the Missouri Housing Industry Alliance meeting. Stacey Van Houton of NAHI did a great job clearifying why we in Missouri do not need to be licensed at this time. ASHI appears to be positioning themselves away from the bill. Even the leader of what I call the ASHI dirty thirty in Missouri (I can not remember the organization's name) said that they are just monotoring the situation. He expressed to me and Stacy privately that they had nothing to do with the bill and Mr. Bushart's editoral has really caused the matter to get worse. I agree the editorial did stir things up but what was said has been said. There is no going back. Mr. Bushart is fighting a good fight. Go James. I myself voiced to the Alliance that since NACHI is the largest inspection organization, we need to be included in the writing of any bills that affect home inspectors. I believe after talking to Stacey that NAHI and NACHI can get together and write a bill, but the only problem is the dinosaurs in ASHI. Oh ha! it was also expressed to me that we need to stop bashing ASHI. OOps! I am bad. I am sure they never do it to us. So stop it guys.

[bkelly1]

Originally Posted by jbraun

I just got back from the Missouri Housing Industry Alliance meeting. Stacey Van Houton of NAHI did a great job clearifying why we in Missouri do not need to be licensed at this time. ASHI appears to be positioning themselves away from the bill. Even the leader of what I call the ASHI dirty thirty in Missouri (I can not remember the organization's name) said that they are just monotoring the situation. He expressed to me and Stacy privately that they had nothing to do with the bill and Mr. Bushart's editoral has really caused the matter to get worse. I agree the editorial did stir things up but what was said has been said. There is no going back. Mr. Bushart is fighting a good fight. Go James. I myself voiced to the Alliance that since NACHI is the largest inspection organization, we need to be included in the writing of any bills that affect home inspectors. I believe after talking to Stacey that NAHI and NACHI can get together and write a bill, but the only problem is the dinosaurs in ASHI. Oh ha! it was also expressed to me that we need to stop bashing ASHI. OOps! I am bad. I am sure they never do it to us. So stop it guys.

Imagine that.

[James H. Bushart]

Originally Posted by jbraun

Even the leader of what I call the ASHI dirty thirty in Missouri (I can not remember the organization's name) said that they are just monotoring the situation. He expressed to me and Stacy privately that they had nothing to do with the bill and Mr. Bushart's editoral has really caused the matter to get worse.

If it was who I think, it was "Dirty" Harry Morrell, the President of MAHI.

He has a difficult job. As the president of ASHI's St. Louis Chapter, he has to pretend to support the membership majority who oppose licensing. In the meantime, as the President of MAHI - the fake "ASHI" coalition that has secretly been meeting with the MAR and Parson to write this bill - he has to risk his cover by supporting this bill with the hope of personally gaining one of the seats on the new licensing board.

I have made things very difficult for him by turning the lights on, but you will not find any reference to "ASHI" in any editorial, televised news broadcast, newspaper article, letters/emails to congressional members or any other communications (outside of this message board) coming from me.

The reason for that is that we have as many ASHI members as NACHI members helping us to fight this bill. The "real coalition" between associations is working to defeat the bill that the the "fake coalition", headed by the ASHI president in St. Louis, has helped to write (and pretends to monitor).

I don't blame him for being upset with me. This evening on Jeff City television, and in the days to come as some of the missiles already in flight begin to hit their targets, I presume that he...and a few MAR folks...will be even more displeased with me, but I will try to get over it the best that I can.

[James E. Braun, CMI]

It was Harry alright. I did not mean to in apply that all ASHI members are bad. I believe that they are just stuck in their system and some just too afraid to get out. At least that what I have gathered from talking to some ASHI members.

[James H. Bushart]

Originally Posted by jbraun

It was Harry alright. I did not mean to in apply that all ASHI members are bad. I believe that they are just stuck in their system and some just too afraid to get out. At least that what I have gathered from talking to some ASHI members.

Some are, but we are all Missourians and this law will affect all of us adversely if we allow the MAR to have its way with us. I know that you are aware of
and also appreciate their efforts.

A few ASHI presidents are cooperating with MAR so they can take their promised seats on the new licensing board - but if the bill fails, which it looks like it will, how they go back and face their membership will be an interesting thing to watch.

ASHI members from all over the state are helping us to ensure that every legislator who will vote on this bill know that it is bad for the Missouri consumer and that the home inspection industry opposes it. I am grateful to them, as I know you are as well.

Here is the editorial that the ASHI Chapter President referred to. Try to find any mention of ASHI in it:

Representative Mike Parson has introduced legislation (HB 97 that he contends will protect the consumer in regard to the qualifications of home inspectors.

This bill is heavily supported by the Missouri Association of Realtors which, along with Rep. Parson, fails to acknowledge that there is a conflict of interest in allowing the people who sell real estate to have any influence over those who are supposed to inspect it - and report upon it fairly and accurately to the consumer.

A few years back, when homes in Missouri were selling for $30,000 to $50,000 - the real estate salesman was earning a 6 percent commission. Today, with the houses selling for $300,000 and up, the salesman still makes the same percentage. With $18,000 in commissions on the line, the real estate salesman wants to be the one to recommend to the buyer which home inspector to hire. He also wants his lobbyist in Jefferson City to tell Parson and other elected officials how these home inspectors are to be governed.

Home inspectors should be disinterested third parties. Their reports should be complete and objective, and they should not be dependent upon future referrals from the same real estate agents.

Massachusetts prohibits real estate sales people from referring home inspectors. If the Missouri Association of Realtors and Rep. Parson were truly interested in the consumer's welfare, Parson's bill would include this requirement.
I encourage every Missourian to contact his or her state representative and let them know that you want home inspectors to be free from the control of the real estate industry and its political lobbyists in Jefferson City. Tell your representative that you expect him or her to stop the efforts of the real estate industry in this state from controlling home inspectors in our state.

[James E. Braun, CMI]

I am grateful for ASHI's support. But they should had said that at the Alliance meeting, instead of dodging the issue. Maybe the next time they need to send better representation. The lady they sent down to represent ASHI themselves did nothing to support Stacey or mines fight in the meeting. If ASHI opposes the bill they need to be more vocal. If I am wrong please let me know and I will apologize.

[James H. Bushart]

James, you are not wrong. It is just that the ASHI leadership you see at these meetings are very, very beholding to the real estate salesmen pushing this bill. The ASHI members you do not see at these meetings, you will find supporting the fight against it. Fortunately for us, they represent the majority of members.

For instance, of 130 members of St. Louis ASHI, only 30 would join their president as he formed a "coalition" called MAHI. ASHI members in Columbia were informed, by letter, that they were automatically made members of MAHI and were mandated to send in their dues of $50. This way, Columbia announced to MAR that 100% of its members (MAR is also based in Columbia) were in support of MAR's bill.

Not too many people outside of our state are actually aware how closely tied ASHI is to the real estate sales community.

ASHI has a strange way of administering their form of "democracy", but in any event...what comes from the mouths of ASHI leadership does not necessarily reflect the views of the majority of its members...at least in Missouri.