e060426 Can payments be set to be paid upon closing?

Identifier: e060426

Date: 09/13/2006

Question

Can I bill the inspection fee to be paid upon closing of the inspected property for sale, if I have a contract stating that I will be paid in any case should the closing be cancelled for any reason? 

Response

The Code of Ethics states that "Inspectors shall not inspect properties under contingent arrangements whereby any compensation or future referrals are dependent on reported findings or on the sale of a property."  Since your contract states, as we understand it, that you will be paid whether the house closes or not, your inspection is not contingent on the sale and we see no violation of the Code.