Licensing Home Inspectors is not the Answer

[Rudolf Reusse]

The scheduled governmental licensing and the proposed requirements will certainly decimate the number of home inspectors allowed to operate in the Province of Alberta for a while. However - the temporary reduction in competition might be an opportune time to raise inspection fees to improve the meagre profit margins - and to cover the costs for the dictatorial insurance and bonding requirements.

I am surprised that no one has questioned the two governmental representatives in charge of the exercise in Alberta - why they believe that licensing a few home inspectors will protect the interest of home buyers in their jurisdiction.

How can anyone assume that about 2000 home inspectors eligible for licensing throughout Canada - will ever be able to protect consumers against the entrenched tricks of the trade of more than seventy five thousands real estate sales people operating from coast to coast.

The real dilemma is, that no governmental agency has the "hutzpa" to challenge the powerful and influential real estate industry why the majority of property inspection is being carried out these days by preferred home inspectors who come highly recommended by biassed real estate agents.

The majority of lawsuits against home inspectors are actually not being filed because of their negligence or incompetence - but mostly because more and more home inspectors have become too dependent on referrals from real estate agents to make a meagre living - and feel the need to minimize or camouflage observed defects in order not to be blacklisted as a "Deal Breaker" by the powerful real estate fraternity.

The one and only effective approach to protect the interest of Canadian home buyers is to forbid legally that Realtors and their sales force can arrange for home inspections or direct home buyers to their "preferred" home inspectors.

RUDOLF REUSSE - Home Inspector since 1976 - Retired

[James H. Bushart]

Originally Posted by Rudolf Reusse

The one and only effective approach to protect the interest of Canadian home buyers is to forbid legally that Realtors and their sales force can arrange for home inspections or direct home buyers to their "preferred" home inspectors.

RUDOLF REUSSE - Home Inspector since 1976 - Retired

This is the ONLY type of legislative effort that actually makes sense, protects the consumer and eliminates the obvious conflict of interest. The closest that anyone in the US has come to this is Massachusetts which forbids sellers agents (who rarely recommend inspectors, anyway) from giving referrals.

Consumers are at risk, no matter what law is written with the intent (real or not) to protect them that does NOT include prohibiting a relationship between those who profit from the sales proceeds of a house and those who inspect them.

[ctasker]

Real estate referrals in BC were banned either juring or shortly after licensing , If the government does not recognize conflict of interest , then they need to do some research, this was briefly brought up juring the meeting , in time they will realize the need, mortgage brokers also use their preferred list for appraisers, and from my experience, the appraised amount required to satisfy the lender is always provided .

[Rick Strand]

I was the one who brought it up, and the silence of both the government representatives and inspectors was DEAFENING. You can't convince someone of a point when their income is dependent upon them not understanding.

I have already increased my fees and they will continue to increase.

[ctasker]

Originally Posted by rstrand

I was the one who brought it up, and the silence of both the government representatives and inspectors was DEAFENING. You can't convince someone of a point when their income is dependent upon them not understanding.

I have already increased my fees and they will continue to increase.

Of all the things discussed , this topic was given the quickest pass, if you would have blinked, you would not have known the subject was mentioned. for those who soften reports, for the sake of a steady real estate contact , beware, higher insurance rates and possible license suspension .

[James H. Bushart]

Originally Posted by ctasker

Of all the things discussed , this topic was given the quickest pass, if you would have blinked, you would not have known the subject was mentioned. for those who soften reports, for the sake of a steady real estate contact , beware, higher insurance rates and possible license suspension .

You need to take this topic ... and your government's fellating their real estate lobbyists concerning it ... to your media. In my country, they love stories like this.

Expect those among us who "only deal with the honest real estate agents" to hide, balk and resist you, however.

[Brian A. MacNeish]

Originally Posted by Rudolf Reusse

The scheduled governmental licensing and the proposed requirements will certainly decimate the number of home inspectors allowed to operate in the Province of Alberta for a while.
No surprises!!! If they can get "certified" overnight, they can get taken out similarly!!

However - the temporary reduction in competition might be an opportune time to raise inspection fees to improve the meagre profit margins - and to cover the costs for the dictatorial insurance and bonding requirements.

I am surprised that no one has questioned the two governmental representatives in charge of the exercise in Alberta - why they believe that licensing a few home inspectors will protect the interest of home buyers in their jurisdiction.
As with many other licensing efforts, such low levels of required training/experience barely starts to protect the consumer.

How can anyone assume that about 2000 home inspectors eligible for licensing throughout Canada - will ever be able to protect consumers against the entrenched tricks of the trade of more than seventy five thousands real estate sales people operating from coast to coast.

The real dilemma is, that no governmental agency has the "hutzpa" to challenge the powerful and influential real estate industry why the majority of property inspection is being carried out these days by preferred home inspectors who come highly recommended by biassed real estate agents.
BC is heading in the right direction!!

The majority of lawsuits against home inspectors are actually not being filed because of their negligence or incompetence - but mostly because more and more home inspectors have become too dependent on referrals from real estate agents to make a meagre living - and feel the need to minimize or camouflage observed defects in order not to be blacklisted as a "Deal Breaker" by the powerful real estate fraternity.

The one and only effective approach to protect the interest of Canadian home buyers is to forbid legally that Realtors and their sales force can arrange for home inspections or direct home buyers to their "preferred" home inspectors.

RUDOLF REUSSE - Home Inspector since 1976 - Retired

But you still need well trained and experienced HI's to provide accurate and complete information on the home......IMHO, licensing is required to begin to get a truly professional home inspection industry operating.

[John Mills, CMI]

Brian is correct.

There have been problems with the Home Inspection Business in the past.
Until the licencing that comes into affect Sept. 1. nothing was required to be a home inspector, except a business card and flash light.

We can talk about government intrusion, cash grab ($250.00 a year is no cash grab) and the problems of the real estate business.

After the government looks after the Home Inspection Business they may be persuaded to look into the real estate business. The naysayers should start lobbying the government.

At least now, there will be minimum education and insurance requirements for inspectors.

What is wrong with this? Needed improvements can always be made.

[Vern Mitchinson]

Licence fee structure is
HI Business must be licenced and the fee is
1 to 3 HI's $500.00
4 to 9 HI's $700.00
10 or more Hi's $900.00
For a two year licence.
Once again this government has shown it's bias toward big business.
The fee spread is $90.00 or less to $500.00 for single HI firms.
Fee for Home Inspector is free for now.
I'll bet after the first two year licence expires there will be fees for HI licences.
The government will not pass up an opportunity to collect more taxes.
You must be employed by an HI business before you can do a Home inspection.

[John Mills, CMI]

Vern,

I do not think that there are many 9 person home inspection companies in Alberta.
After September 1, we will know how many inspectors are licenced and how many firms and what bias is given to "big business".
What I do not under stand, is why inspectors are not complaining to Scott Hood concerning the need, for the $10,000.00 bond? This is a un-nesacsery cost. To all, big and small.

[Vern Mitchinson]

John
It's frustrating dealing with people that do not have any idea how our business works and writing and enforcing rules that do not make sense.
You seen what happened at the meeting.
They are bureaucrats and good bureaucrats do not think they just follow the rules and have no interest in anything that is outside the rules no matter how much sense it makes.

[Nick Gromicko]

I think they are doing their best.