e051221 Can an inspector accept referrals from businesses that he or she has a vested interest in?

Identifier: e051221

Date: 03/14/2006

Question

I am in a land development business with two Realtors.  Is it ok for me to accept referrals from them for my inspection business if I properly disclose the business relationship?

Response

There are many opportunities for ethical lapses in any business relationship.  These are magnified when a business partnership is between a home inspector and a real estate sales agent, however, there is no inherent violation of the Code of Ethics involved in accepting referrals for inspection work from a business partner.  Nonetheless, if you, or your development business, would stand to profit from a particular outcome of the inspection, the arrangement would violate the Code per 1.A.  "Inspectors shall not inspect properties for compensation in which they have, or expect to have, a financial interest."  The impartiality of the inspector, and consumer confidence in the integrity of the inspection is vital.