e020419 Can inspector offer incentives or finders fees to individuals who are not real estate agents?
Identifier: e020419
Date: 03/05/2003
Question
Do incentives for inspection referrals (such as finders fees) to friends, friends of friends, and past clients (not to realty agents/brokers) violate the ASHI Code of Ethics?
Response
Home inspectors need to be cautious about offering or providing referral incentives because this activity may violate ASHI Code of Ethics sections 2 or 7 if the incentive is detrimental to clients.
A modest incentive for an inspection referral (including finders fee) to a third party may not be in conflict with the ASHI Code of Ethics if the recipient has no occupation that may involve conflicting interests with home inspectors' clients; has no interest in the property being inspected; and has no interest in the outcome of the inspection.
Incidentally, any referral incentive must comply with state and federal laws applicable in the jurisdiction where the inspection occurs and any applicable provisions of the federal Real Estate Settlement Procedures Act (RESPA). Inspectors should periodically consult their attorneys regarding legal issues.