e061003 Working for a firm that provides closing services

Identifier: e061003

Date: 12/11/2006

Question

Is it a conflict of interest for an ASHI inspector to work for a company that also provides title, mortgages, valuation, closings, flood zone determination, foreclosure, bankruptcy, and tax services as well as home inspections?

Response

It is not a violation of the Code of Ethics to work for, or associate with, a firm that provides other real estate services.  However, if the firm profits from services that are specifically dependent on the closing or settlement of real estate, such as the selling of mortgages, the inspector may be placing himself in a position where he has a financial interest in ensuring that the inspected property goes to closing.  This would clearly represent a conflict of interest for the inspector, would be a violation of the Code, and could result in compromising the unsuspecting consumer’s interest in a fully independent and impartial home inspection.