e050715 Can a practicing home inspector maintain a real estate license?

Identifier: e050715

Date: 03/02/2006

Question

Is it a violation of the Code of Ethics to maintain a real estate license while practicing as a home inspector, if I don't inspect houses that I've listed or sold to a buyer?          

Response

Maintaining a real estate license while practicing as a home inspector is not directly addressed by the Code of Ethics.  However, the Code states that "Inspectors shall avoid conflicts of interest or activities that compromise, or appear to compromise, professional independence, objectivity, or inspection integrity."  The Society has long maintained that there is an inherent conflict of interest when inspectors are also active licensed real estate brokers or sales persons, whether or not such inspectors "inspect properties for compensation in which they have, or expect to have, a financial interest."  

This is embodied in the Bylaws as follows:  

"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."  

The inherent conflict of interest, as defined by ASHI's Bylaws, makes it a violation of the Code for a practicing home inspector to maintain a real estate license.  Consumers of home inspection services need to be sure that the inspector they hire has avoided both the appearance of, and any actual, conflict of interest.

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