e101102 Marketing to realty agents/brokers

Identifier: e101102

Date: 11/30/2010

Question

I’ve been marketing to real estate agents/brokers recently and asking them what they look for in an inspector to recommend them. A common answer is they don’t want a “dealbreaker” type that blows little things out of proportion. They want an objective opinion only. To overcome this objection, I am considering offering $100 to the agent/broker if and only if the deal falls through. Not because of the house having defects but because I blew little things out of proportion. Is such an offer ethical?

Response

The ASHI Code of Ethics states:

1.   Inspectors shall avoid conflicts of interest or activities that compromise, or appear to compromise, professional independence, objectivity, or inspection integrity.

B. 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.

C. Inspectors shall not directly or indirectly compensate realty agents or other parties having a financial interest in closing or settlement of real estate transactions, or the referral of inspections or for inclusion on a list of recommended inspectors, preferred providers or similar arrangements.

The above arrangement, as described, is a direct violation of items 1B and 1C and is, therefore prohibited.

Date of Response: 11/30/10

ASHI Ethics Committee

Reference 1B, 1C

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