Are These Violations of the ASHI Code of Ethics?

by Jamison Brown June 1, 2020

In this column, ASHI’s Ethics Committee addresses dilemmas faced by home inspectors.

Know the Code:

View the ASHI Code of Ethics

Know the Standard of Practice:

View the ASHI Standard of Practice ASHI Standard of
Practice

Question:

When a member performs a home inspection, what fee-paid services does the ASHI Code of Ethics (Item 1F) prohibit
him or her from performing?

Response:

Item 1F of 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. …

2. Inspectors shall not repair, replace, or upgrade, for compensation, systems or components covered by
ASHI Standards of Practice, for one year after the inspection.

The purpose of this prohibition is to ensure that a home inspection and a report are not used to generate
compensation for certain services that represent a conflict of interest and could harm a consumer. These services
involve repairs, replacements or upgrades performed by an ASHI member on a home that the same ASHI member inspected.
The ASHI member is prohibited from providing these services for compensation.

Compensation refers to any reward or consideration paid for services rendered, whether money or otherwise. The
prohibition refers to repairs, replacements or upgrades to all systems and components covered by the ASHI Standard of
Practice, regardless of their condition. Services other than repairs, replacements or upgrades to systems and
components covered by the ASHI Standard of Practice are not prohibited.

Repairs, replacements or upgrades to systems and components beyond the scope of the ASHI Standard of Practice are not
prohibited. The prohibition lasts one year. The one-year period begins on the day the home inspection begins and
expires one year after the home inspection ends.

Question:

Is it a conflict of interest for an inspector to perform a pre-listing inspection for a seller and then, with the
seller’s permission, provide a buyer of the property with the home inspection report, charge the buyer a fee to
walk through the property and check that items noted in the report were repaired?

Response:

The Code of Ethics does not prohibit an inspector from performing a pre-listing inspection for the seller and then
later, for a fee and with the consent of the seller, consulting with the buyer on items identified in the original
report as needing repair. Item 1D in the Code states that inspectors shall not receive compensation for an inspection
from more than one party unless agreed to by the client(s). The question addressed here describes full disclosure and
agreement between the parties involved.

Question:

Can an ASHI member perform safety inspections or other inspections and use these inspections to generate referrals
for contractors who are willing to pay a referral fee to the inspector?

Response:

Part of our responsibility to our clients is to provide advice and counsel based on our professional judgment. The
client must be able to rely on the inspector to provide that advice based on the best interest of the client, not
based on the payment of a referral fee or some other inducement. Limited inspections on homes must still be performed
in accordance with the ASHI Code of Ethics. Accepting referral fees in the case described here is prohibited.


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