e010905 The relationship between inspector companies, the inspector and real estate agents?

Identifier: e010905

Date: 10/08/2001

Question

1.) Is an ASHI Member defined as an individual or an entity such as a home inspection company? 

2.) Is a member of ASHI in violation of the CoE due to the fact that he/she participate in a realty firm's inspector referral program that includes payment of fees and/or other arrangements detrimental to inspector's clients? 

3.) Is a member of ASHI in violation of the CoE if s/he as an employee performs inspection under the direction of an employer that participates in such realty firm's inspector referral program? 

4.) As an individual, is the ASHI member responsible for avoiding association with an enterprise/ employer that directly or indirectly offers allowances such as those required to participate in such realty firm's inspector referral program? 

5.) Is an ASHI member employed by an enterprise that participates in such realty firm's inspector referral program in violation of the CoE due to the fact that he/she is indirectly offering allowances (by working for an employer that pays allowances) in connection with or arising from the SoP and/or this requested interpretation?

Response

1.) Question #1 is not interpreted by the committee because ASHI membership is not defined or addressed in the Code of Ethics or Standards of Practice. Bylaws section 2.1 and Policy & Procedure Manual chapter 16 may provide guidance. 

2.) Yes; payments to a realty firm or other quid pro quo arrangements to participate in its referral program violate various Code of Ethics provisions. See e010112, e010212, e010330, and e010813. 

3.), 4.), & 5.) In general these types of activities are frowned upon in the 5th sentence of the Code of Ethics which states that members "should . . . avoid association with any enterprise of questionable character, or apparent conflict of interest". However, ASHI policy provides that an employee's individual responsibility, if any, is judged on a case by case basis and the specific facts of a given situation.

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