e110307 Can an inspector be paid at or after the closing?

Identifier: e110307

Date: 03/14/2011

Question

If an inspector does an inspection for a client, but was hired by a real estate agent and only gets paid at or after the closing is this a violation of the ASHI Code of Ethics? The inspector is still being paid by the buyer; but, in this instance, he was paid at/after closing. Had the house not gone to closing, it is not clear if he would have been paid. 

Response

In the previous interpretation of this issue ( e070430, 4/30/2007), ASHI Code of Ethics 1.B was cited. 1B states: Inspectors shall not inspect properties under contingent arrangements whereby any compensation or future referrals are dependent on reported findings or on the sale of the property. The 2011 ASHI Ethics Committee believes the CoE was misinterpreted in this instance. If the inspection or payment thereof is NOT contingent upon the transaction closing, there is no conflict whatsoever. 

Reference: ASHI CoE

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