Saturday, August 1, 2009

An Argument in Favor of Licensing

One argument often brought up in favor of home inspector licensing is that licensing gives the consumer relief from bad home inspectors, because it allows the State to take action against a bad home inspector if licensing regulations are violated. Opposition to that argument often comes from those who are members of professional associations which require certain standards be met or maintained for continued membership or certification. However, this is dependent on enforcement of those standards. Here are a few examples:

Not too long ago, a story was related to me by a client who had recently experienced a bad home inspection, along with a particularly grievous insult after the fact. He had retained a home inspector to conduct an inspection for the fee of $225.00. During the inspection, which he attended, the home inspector failed to note a stain on the ceiling. The client took note, and brought this stain to the inspector's attention. The inspector assured the client that the stain was old, and would be fine. On the assurances of the home inspector, the client proceeded to closing. On final walk-through the day before closing, the client noted that the "old stain" had increased in size significantly, and was now growing mold. The client backed out of the deal. The sellers sued for breach of contract. In the court affidavit, the inspector stated that he had indicated the the stain was damp, and required immediate attention. Based on this false affidavit, the court awarded for the seller in the amount of $25,000.00. Thus, this fellow's home inspection ended up costing him $25,225.00. The client felt he had no recourse. He did not have information about the home inspector's certification, nor information on how to file a complaint. In addition, it was his opinion that the certifying association would take no putative action.

In another case, where the home inspector is certified by the same association, documentation and public information reveal that the home inspector provides bids for work after inspecting residential properties, in direct conflict with that association's code of ethics. What's more, this inspector is married to a real estate agent - information that is not disclosed to potential clients, but may be important for clients to know. While it is widely known that this is happening within the local professional home inspection community, no complaints have been filed, and the practice continues.

In both of these cases, licensing may provide the only means to eliminate unethical behavior. Without proper and effective policing from within, any association can claim to be regulating its members, but in reality they are simply covering up incompetent, unethical, and dangerous practices. Before accepting the claim that an organization does police its membership, proof should be on hand demonstrating that they do in fact do this. Cases should be made public, and the docket should show regular and current activity. Without valid proof, the claim of self-policing is mute, and should not be accepted as an argument against protecting the public through home inspector licensing.