Home inspectors voice concern

I know the discussion is ongoing. I thought I might post B.C.'s ongoing changes After home inspector licensing was enacted.

Home inspectors voice concern over higher fees but lower standards. Home Inspectors Association B.C. is concerned standards in the industry are dropping while annual fees for home inspectors are going up.

“Ultimately, consumers are going to pay the price,” Bob Hamm, Home Inspectors Association BC president, said.

Over the next three years, annual licensing fees for home inspectors are expected to double from $525 a year to $1,025 by 2018.

“Consumers are going to suffer from that. They’re not going to have the same quality home inspectors,” Hamm said.

So it seems like licensing is not the silver bullet after all.
Here is an article from Global News. Home inspectors voice concern over higher fees but lower standards

http://www.thewhig.com/2018/02/05/home-inspections-questions-and-answers

It is a documented fact that a home buyer who uses an experienced, skilled home inspector gains a wealth of knowledge on
their prospective home, including in a few instances the information to understand when it’s time to walk away.
However, of all the professionals involved in the purchase of a home, the only one in Ontario that has no governance
is the homeinspection industry.
Ontario is in the process of changing this.
IS ONTARIO GETTING LICENSING RIGHT?
British Columbia and Alberta proceeded to license this industry a few years ago and they made some costly mistakes.
I interviewed a number of home inspectors in, BC, Alberta and Ontario for this column.
In BC,Vince Brunett is a former board member for both the BC Association HIABC and the National Home Inspection
Certification Council (NHICC). He commented that the initial legislation was structured with the regional associations in control.
This was a fiasco, one approved association did a weekend approval and processed 40-50 “inspectors” so they could get in under the wire.
Today BC is in the process of taking it back the process at great expense and now has a government agency overseeing licensing.
Alberta was even worse, they got sold on a process, mostly by the internet associations to let nearly everyone in.
Today they are doing the same, at considerable taxpayers cost, restructuring.
Wayne Fulton, National Director with the NHICC told me he was in a government meeting in Alberta with Service Alberta officials
where they claimed they had done their homework,only to find out that the CMHC/NHICC program was ignored,
due to the impact of the internet home inspectors lobbying.
Wayne commented they realized they made a huge mistake but claimed it was too late to change the legislation,
Iunderstand they seriously regret that decision now.
At the recent American Society of Home Inspectors convention in Florida, Joseph W Denneler,
one of the most recognized lawyers in the United States with respect to litigation of home inspectors, was quoted
“many states have lowered the bar by allowing the easy path associations to be recognized which really can be detrimental to consumer protection” He went on to say“licensing is leveling the field of home inspectors…(who are) …
finally being recognized as professionals”.
Fortunately, it appears that Ontario has done its home work,the research done and the document “A closer look;
Home Inspection in Ontario”(CLHIO) is the result of an independent panel of experts who presented a proper process for licensing.
The licensing will function under a government administrative authority.
WHO DO I HIRE AS A HOME INSPECTOR RIGHT NOW?
During my interview with Wayne Fulton he commented that he understood in British Columbia there were around 600 home inspectors before licensing, once the curtain came down, less than 300 remained. In chatting with Vince,
he stated he could not confirm some of the rumors of discount inspections, quick walk-thru’s and a market flooded with coupons for “X”dollars off, but he did hear it happened.
Wayne commented that it was known that the “internet”
HI associations lobbied their way in for practically everyone to be licensed in both western provinces, a mistake many US states also made according to Attorney Joseph Denneler. Brian Callahan, an Ottawa home inspector and past
OAHI director and chair of the Ottawa OAHI Branch simply told me “ most of the inspectors
I see at meetings are scared, wondering how they can get around the coming licensing”
This year, with introduction of licensing expected by January 2019, it is conceivably that the time period is now where those that realize they are not going to make the cut or simply don’t want to be bothered upgrading, is a realization.
Are they going to follow a similar path of discounts, “quickie” inspections and a walk-thru inspection with no written report,
only time will tell but based upon the history out west, it’s almost asure thing.
The CLHIO on page 52 clearly states “Home inspectors with the designations that reflect the licensing requirements of the new regulatory body and are approved by the regulatory body should become licensed without further review”
Based upon my review of the CLHIO, there are only two organizations right now that fit the expected standard.
They are the NHICC top certification NHI and the Ontario Association of Home Inspectors RHI.
There is expected to be a period of transition where examination and additional education/training will be offered to those that do not meet the standard, so that no one is forced out of business.
However if the results in BC are any indication, there is going to be a lot of home inspection phone numbers that say “ This number has been disconnected” come 2019.
Recommendation #1: when you hire an inspector, for now,insist they are an NHI or an RHI.
You stand a 99.9% chance that they will be around once the licensing is enacted.
IS YOUR HOME INSPECTOR “PROPERLY” INSURED?
I had a long chat with Kim Smith, executive at HUB International on home inspection insurance and she really opened my eyes.
Saying you are insured “should” mean you carry both general liability anderrors and omissions insurance.
I have heard of inspectors who claim insurance,but some how the costly E&O is not in their policy.
Kim commented that she got a number of calls for home inspectors out west during their initiation period who wanted to know if the “quickie” inspections or a “walk-thru” for a reduced fee was covered, the answer was “NO”.
She also commented that in the hot Toronto market, it dramatically reduced home inspections and the real estate agents are now seeing an increase of law suits from buyers who passed on a home inspection.
She also noted that in BC after licensing was enacted, her company did not see an upward spike in claims, a testament to those that remained were competent.
Recommendation #2: confirm your inspector has both kinds of insurance and his policy is current, a binder is produced by all insurance companies as proof they are professional enough to carry the full insurance coverage.
IS YOUR INSPECTION BEING DONE TO THE PROPER STANDARD?
This last step should be one every home inspector in Ontario now knows.
In the December 21 consultation paper from the Ministry of Government and Consumer Services it made reference to the Canadian CSA A-770 Homeinspection Standard as the expected inspection method.
It’s a lot more detailedthan most other standards, we began using it when it was announced in March of2016 and find for one inspector, done properly it often takes up to four hours.
The days of the 1-2 hour inspection are gone.
Recommendation #3: ask your inspector if he is following the CSA standard,
it’s expected to be the Ontario standard once licensing arrives and there is no reason not to use a standard that is available now.
If you are buying a home this year a home inspection is always a wise decision, make sure you get what you expect.
Every professional who is involved in the home buying process and referring a home inspector should be aware of these issues and properly guide their clients.
Cam Allen L.I.W. NHI ACI writes the “Ask the Inspector”weekly column in The Kingston Whig-Standard Homes Extra Feature.

Just a comment on the above article:

I would treat anything that “Wayne Fulton” has to say about anything with a grain of salt. That man is a downright fraud. Ask why he was removed from NHICC. I know from personal experience.

Cheers

When was he removed? He is still on their website…
http://www.nationalhomeinspector.org/NHICCcouncil.pdf

I understood that he had been removed quite a few years ago. I could be wrong though.

What a joke…Professional Practices?

Cheers

Never thought it was or would. Always be cautious of government and their agencies and RGT (Revenue Generating Tools).

[RIGHT][RIGHT] [/RIGHT][/RIGHT]

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Ontario’sRegulatory Registry

**ConsultationPaper and Industry Survey to Support Regulations and Implementation for theHome Inspection Act, 2017 **

[RIGHT][RIGHT]**Regulation Number(s): **[/RIGHT][/RIGHT]
not applicable
[RIGHT][RIGHT]**Bill or Act: **[/RIGHT][/RIGHT]
Home Inspection Act, 2017
[RIGHT][RIGHT]**Summary of Proposal: **[/RIGHT][/RIGHT]
The Putting Consumers First Act (Consumer ProtectionStatute Law Amendment), 2017 received Royal Assent on April 13, 2017. Itenacted a new statute called the Home Inspection Act, 2017 (HIA). The HIA,which comes into force on a date (or dates) set by proclamation of theLieutenant Governor, is not yet in force as regulations must be developed tosupport the implementation of this legislation. Once in force, the HIA and itsproposed regulations will establish mandatory licensing in Ontario for homeinspection providers and home inspectors, and is intended to be administered byan administrative authority.

The HIA reflects the recommendations made by a panel of consumer and industryexperts in the 2013 report A Closer Look: Qualifying Ontario’s Home Inspectors.

The ministry has developed a consultation paper and an industry survey for homeinspectors to support the development of regulations and implementation of theHIA. Links to the paper and survey can be found in “FurtherInformation” below.

The consultation paper topics include:

• The definition of a home inspection and consulting on the term “readilyaccessible”.
• Which professions or occupations should be exempted from the application ofthe HIA and what activities should be excluded from home inspector licensingand requirements of the HIA.
• What are the core items to be included in a standard home inspection andwritten report.
• What should be included in a home inspection contract.
• What qualifications should be met by home inspectors in order to obtain alicence under the HIA.
• What qualifications should existing home inspectors be expected to meet totransition to licensing.
• How much and what sort of insurance should home inspectors be required tohold, if any.
• What should be included or excluded in a code of ethics for licensees.
• What types of disclosures should be made to clients.
• What should be considered when developing an administrative authority for theregulation of the home inspection industry.

The industry survey topics include:

• Home inspector locations, work status and number of years working as a homeinspector;
• Type of business or employment;
• Number of home inspections, type and other services provided;
• Referrals;
• Education; and,
• Insurance.

We encourage you to provide feedback on the consultation paper. If you are ahome inspector, home inspector provider or a representative of a home inspectororganization, please additionally complete the industry survey. Any feedbackreceived by the ministry will be considered during the development of regulationsand the implementation of the HIA.

You may provide comments directly via the email link below or to the addressprovided in the consultation proposal.
[RIGHT][RIGHT]**Further Information: **[/RIGHT][/RIGHT]
[FONT=Times New Roman]

Consultation Paper - Implementing the HomeInspection Act, 2017 ](http://www.ontariocanada.com/registry/showAttachment.do?postingId=26126&attachmentId=36674)

Home Inspector Survey - Implementing the Home InspectionAct, 2017 ](https://www.surveymonkey.com/r/HIsectorsurvey)

Survey to Evaluate Consultation Paper and Industry Survey](http://questionnaire.simplesurvey.com/f/s.aspx?s=9c43d6b2-f955-4359-8a98-40d51bb11a83&mode=44&lang=EN)

Home Inspection Act, 2017 ](https://www.ontario.ca/laws/statute/17h05)

A Closer Look:Qualifying Ontario’s Home Inspectors ](http://www.ontariocanada.com/registry/showAttachment.do?postingId=14645&attachmentId=22811)[/FONT]
[RIGHT][RIGHT]**Proposal Number: **[/RIGHT][/RIGHT]
17-MGCS022
[RIGHT][RIGHT]**Posting Date: **[/RIGHT][/RIGHT]
December 20, 2017
[RIGHT][RIGHT]**Comments Due Date: **[/RIGHT][/RIGHT]
February 16, 2018
[RIGHT][RIGHT]**Contact Address: **[/RIGHT][/RIGHT]
56 Wellesley St. W, 6th Floor
Toronto ON, M7A 1C1
Comment on this proposal via email](http://www.ontariocanada.com/registry/mail.do?action=displayComment)

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