Home Inspectors who are Real Estate Agents or Spouse/Immediate Family Are Real Estate Agents

Recently evidence came before AHIB where a home inspector was allegedly accepting referrals from a real estate agency where the Inspector had a financial interest in the sale of the property. The Inspector was alleged to perform Home Inspections on properties where their spouse (an immediate family member with a shared financial interest) was representing either the buyer or seller in the transaction.

AHIB Rule 402.1.A states that "Inspectors shall not inspect properties for compensation in which they have, or expect to have, a financial interest." Furthermore, and more generally AHIB Rule 402.1 states "Inspectors shall avoid conflicts of interest or activities that compromise, or appear to compromise, professional independence, objectivity, or inspection integrity."

Evidence was presented to a board member which created a board generated complaint. A financial interest conflict exists if the Inspector is inspecting a property where an immediate family member is representing the buyer or seller in the transaction, or the transaction is through a broker who employs that immediate family member or any party with a shared financial interest with the Inspector. The Board found that this activity is in violation of the Arkansas Home Inspector Code of Ethics and a consent agreement with the Inspector was obtained. For more information about this specific case please use the following links:

Original Complaint

Consent Agreement