e050109 Can a member with a real estate sales license to receive a fee for referral of a client to a real estate broker?

Identifier: e050109

Date: 03/02/2006

Question

Is it a violation of the Code of Ethics for a member with a real estate sales license to receive a fee for referral of a client to a real estate broker?     

Response

It is a violation of ASHI Bylaws for an inspector to be active in the real estate sales business.  "2.1.2 To avoid the possibility or appearance of a conflict of interest, a Member or Candidate, as defined in Sections 2.2 and 2.4.2 shall not, other than a retired Member, be actively engaged in business as a broker or salesperson in the sale, purchase or listing of real estate;"  Beyond this requirement, the Code of Ethics states in 1.E that "Inspectors shall not accept compensation, directly or indirectly, for recommending contractors, services, or products to inspection clients...."  Receiving a fee for referring a client to a real estate broker would be accepting compensation for recommending a service to an inspection client, in direct violation of 1.E of the Code.  This provision in the Code helps ensure that any referral provided by the inspector to a client is based on merit, rather than personal gain.