e090312 Disclosing Inspector and Real Estate Agent Relationship

Identifier: e090312

Date: 03/12/2009

Question 

Can I perform home inspections on properties being sold by my wife who is a real estate agent if the relationship is disclosed to the homebuyers?? 

Response?

The question of performing inspections on properties being sold by a spouse was asked and clearly answered in RFI e071023, which found this to be a conflict ofinterest because the inspector has a financial interest in the property through his relationship with his wife. The new question is whether disclosure will eliminatethe CoE violation.

The Ethics Committee finds that disclosure of facts surrounding a “possible conflict of interest” that proves no conflict exists can in some circumstance be used to remedy the “appearance of a conflict of interest” if the disclosure is properly executed. However, in this case, we aren’t dealing with the appearance of a conflict of interest; rather with a real conflict that does in fact exist. Disclosing the real conflict of interest in no way diminishes the fact that the home inspector has a financial interest in the sale of the property. Disclosing is simply a way to let the client know the inspector is violating the Code of Ethics. The prospective client, who is relying on independence of the home inspector, is placed in an unreasonable risk of harm as described.

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