Surprise for Inspectors in NY

[Joe Farsetta]

Got a call a few days ago regarding if it is legal for an inspector to inspect a home he/she is purchasing for themself.

Now, the law states that the inspector is barred from performing an inspection for any relative that has an interest, financial or otherwise, in the transfer of the subject property. I always believed that the spirit of this clause was to bar, as an example, an inspector from inspecting a home where his wife was the listing or buyer's agent, as they stood to make money on that sale.

But, the interpretation I received from a representative of the State was that an inspector cannot officially inspect a property he plans to purchase.

I believe we need clarification on this, as I cannot believe the spirit of the law would force a trained professional in the art to use the services of another, for one of the biggest single investments of his/her life.

If so, we would be the only licensed profession where such a law was in place.

[Bruce M. Graham, III]

Is a home inspection a requirement of purchase? If not it's your purchase to to do your own due diligence as you see fit.

[lewens]

Joe
If you were going to buy a home and you wanted to the home inspection yourself who is to stop you. Unless there is a law in the State of NY to prohibit this there is no issue here. I cannot see the home inspector charging himself to do the inspection and writing one off against the other therefore it doesn't even go against our Code Of Ethics.
Larry

[Michael R. Boyett]

For what it's worth where I live the Texas Occupational Code says:

§ 1102.303. ACTING IN CONFLICTING CAPACITIES. An
inspector may not act in a transaction in the dual capacity of
inspector and:
(1) undisclosed principal; or
(2) broker or salesperson.

Added by Acts 2001, 77th Leg., ch. 1421, § 2, eff. June 1, 2003.

So, as long as it is disclosed to the Seller then it would be OK for a Texas inspector to inspect a home he is buying. I would think there is just a misunderstanding of the NY statute and that interpretation needs to be pushed back on.

[Joe Farsetta]

Interpretation provided by Deputy Counsel to the State Attorney General's office, on loan to the Division of Licensing. He says the statute is clear; disclosed or not.

It also includes inspecting a home for your parents, siblings, cousin, children, neices, nephews, or anyone else you are related to, whether you are paid or not, whether they have a financial interest or not, and whether you prepare a written report or not.

I find this portion of the statute troublesome.

Imagine your son and his bride wanting to purchase a home, and you cant perform the inspection. Or your parents, selling the homestead and moving into a smaller place or condo.

Sorry, guy. No dice.

[Emmanuel J. Scanlan]

So what you do is hire the $99 Inspector and walk the whole inspection with them making sure they find the discrepancies. You're not assuming the responsibility as the Inspector. Instead you are just there asking questions of the $99 Inspector.

Oh, and by the way, make sure the $99 Inspector has huge E&O limits.
</IMG></IMG>

[James H. Bushart]

In my opinion, this is an example of why all legislation should be vigorously opposed.

The drafting of the legislation, as step one, will appease many who opposed it initially --- until the interpretation and initiation phases come into being. Then, look out!

I'm waiting to hear someone interpret that a carefully worded "grandfathering" clause can only be applied to a home inspector with grandchildren...

[Joe Farsetta]

Manny,

You could still use your license.

I beleve that this portion of the law should be amended to allow such activity, providing that the relationship is disclosed to the Seller prior to the inspection taking place.

[Michael R. Boyett]

Joe, you're right, the NY statute is pretty clear about this:

4. NO HOME INSPECTOR SHALL:
(A)....
(B) INSPECT ANY RESIDENTIAL BUILDING IN WHICH SUCH INSPECTOR, PARTNER OR RELATIVE THEREOF HAS A FINANCIAL INTEREST OR ANY INTEREST IN THE TRANSFER THEREOF, INCLUDING THE RECEIPT OF ANY COMMISSION AS AN AGENT;
(C)....

[James H. Bushart]

So the real estate salesman can no longer have her husband do the inspections....

[Jason A. Sieg, CMI]

Originally Posted by mboyett

Joe, you're right, the NY statute is pretty clear about this:

4. NO HOME INSPECTOR SHALL:
(A)....
(B) INSPECT ANY RESIDENTIAL BUILDING IN WHICH SUCH INSPECTOR, PARTNER OR RELATIVE THEREOF HAS A FINANCIAL INTEREST OR ANY INTEREST IN THE TRANSFER THEREOF, INCLUDING THE RECEIPT OF ANY COMMISSION AS AN AGENT;
(C)....

Just to put a spin on words, with some levity and not knowing the legal definition of the word "transfer"...

As a person involved in the purchase not the sale you nor the buyer are transferring a claim to the real property. You are receiving a claim to real property.

You have no interest in the transfer thereof, you have interest in the transfer thereafter.

An interesting way to look at the wording and could be clever. Not that it would, could or should work in any court. Just food for thought.

Just trying to be a smart *****.

[Dale Duffy]

Originally Posted by jfarsetta

But, the interpretation I received from a representative of the State was that an inspector cannot officially inspect a property he plans to purchase.

Officially?.....like sit at the kitchen table with a laptop typing yourself a report?

I would think anyone in the inspection profession would have the ability to determine if they wanted a property without a bag of tools and a computer and or checklist.

If the sale of property is contingent upon the outcome of the home inspection I would waive the inspection and stipulate in the sales contract that if I find things wrong with this property simply by walking around taking notes and possibly finding things wrong which would sway my intention to purchase, the contract is than null and void.

And I'm looking in the attic to.

[Jason A. Sieg, CMI]

Originally Posted by jbushart

So the real estate salesman can no longer have her husband do the inspections....

I am sure that this was the true intent of this law.

Which is also a conflict of interest when it comes to the agents family household income. Don't want to lose a commision check on the sale of a $600,000.00 home even if the agent is only going to make 1.5% of the total commision.

[David A. Andersen]

Vote Hillery Clinton of NY for President and the whole country will run like this! Next, your brother-in-law auto mechanic won't be able to work on your car.