e130220 Is Providing a Third-party Warranty to My Client a Violation of The Code?
Identifier: e130220
Date: 03/03/2013
Question:
I want to purchase from “Residential Warranty Services” aTermite & Carpenter Ant Warranty (90 days) and a 90-Day-Warranty on themechanical systems and structure, and a Recall Check, and include them freewith my inspections. I am not warranting anything - Residential WarrantyServices is. Does this violate the CoE in any way?
Response:
Providing a third-party warranty is not a violation of theASHI Code of Ethics.
ASHI 1C states Inspectors shall not directly or indirectlycompensate realty agents, or other parties having a financial interest inclosing or settlement of real estate transactions, for the referral ofinspections or for inclusion on a list of recommended inspectors, preferredproviders, or similar arrangements.
The warranty is a value added service provided by the home inspectorthat is going directly to the client. Nothing is going to the realty agent orothers that have a financial interest in the transaction, as an inducement forfurther business. The only inducement for further business is the extra servicethe client receives directly from the home inspector.
The ASHI Code of Ethics, 1F states: Inspectors shall notrepair, replace, or upgrade, for compensation, systems or components covered bythe ASHI Standards of Practice, for one year after the inspection.
It is not the inspector repairing, replacing or upgrading, for compensation, systems or components covered by ASHI Standards of Practice, it is the warranty company.