A couple of other Texas inspectors and I have been working on a Public Service Announcement (PSA) to describe a worrisome issue that is becoming somewhat of a problem in Texas. The issue is a fair number of unlicensed and expired licensed inspectors are continuing to operate throughout the state. The PSA is just about ready and we hope to get it published in as many Realtor association magazines and electronic newsletters as possible to warn people of the risks of using an unlicensed inspector. We are going to make it where any inspector in the state can put his by-line on it and submit it to his local Realtor association for consideration. So, it can act as a little bit of publicity for the inspector as well as carry an important message to the public and Real Estate professionals.
Open Mortgage, LLC NMLS # 2975 - Downey, CA
(562)743-6086
You have to realize that the insurance for a home inspector is around $2,500 per year. Most inspectors either can't afford that, or won't pay it, so be careful. They're not required to be licensed in California, which increases the risk. Do your homework before hiring them.
Sep 25, 2009 07:49 PM
Canyon Lake, TX
This will be good information to provide to the consumer and realtor. The TREC website here in Texas (Texas Real Estate Commission) will list the Home Inspector's and License Number and also indicate if they are "Active" and in good standing.
Thanks Michael for letting us know that this situation exist. (Carl)
Sep 26, 2009 03:21 AM
Capital City Inspections - Boerne, TX
RETIRED
Gregg, thanks for your comment. I want to make sure you understand that the proposed PSA is for Texas only. I tried to make that clear in my original post but maybe I didn't. Texas inspectors are licensed by the Texas Real Estate Commission and are required to carry E&O insurance. Other states may have similar issues but I'm focusing on Texas only.
Sep 26, 2009 04:13 AM
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information
Howdy there Michael
This sure is mighty fine and helpful info, for the folks of The Grand State of Texas. And haven a PSA to get this info published in Realtor association magazines, and out on the net, is a real good idea. Y'all have came up with. And also leting other Inspectors in Texas, put a by-line on it, to submit to his or her's local Realtor association, sure should be of help to them.
What happens to an Inspector. That does Inspections, which is unlicensed or their license is expired?
Sep 26, 2009 08:12 AM
Capital City Inspections - Boerne, TX
RETIRED
Dale, TREC can impose fines on inspectors not operating legally under the state laws governing inspectors. Like many state agencies TREC is short staffed so some illegal activity can get by them. Currently, there is no mechanism for anyone aware of inspectors operating illegally to disclose that to TREC, i.e. no anonymous notifications. Essentially, a one on one formal complaint has to be filed. That means no one wants to risk repercussions so few get turned in. So, if those people that are referring inspectors, including Brokers, Realtors and agents are made aware of the problem then they can play a part in confirming that a particular inspector is properly licensed and, if not, then not refer him to their clients.
Sep 26, 2009 06:52 PM
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information
Howdy there Michael
I sure do hope, by y'all puting this info out there to folks. that it helps folks from not haven an Inspector, that may not know how to do a good job of Inspecting a home for them, there in The Grand State of Texas.
Sep 27, 2009 03:57 PM
Anonymous
Russell states:
That's not correct. TREC cannot fine non-licensees.
All they can do is issue a cease and desist and refer the matter to the local DA.
Russell"
Actually Mike is totally correct that TREC can levy a fine against an unlicensed Inspector. This is from the Texas Occupations Code, Title 7, Subtitle A, Chapter 1101, Subchapter A:
Sec. 1101.759. CEASE AND DESIST ORDER. (a) If it appears to the commission that a person is violating this chapter or Chapter 1102 or a rule adopted under this chapter or Chapter 1102, the commission, after notice and opportunity for a hearing, may issue a cease and desist order prohibiting the person from engaging in the activity.
(b) A violation of an order under this section constitutes grounds for imposing an administrative penalty under Subchapter O.
Sep 29, 2009 08:59 AM
#9
Anonymous
How do you know there are many more unlicnesed inspectors? This must mean you know some and thus you should simply be turning them in. I don't think TREC keeps statistics on this other than for enforcement.
Exactly who are these scofflaws and why are you afraid of them? What type of reprecussions could there be?
Sep 29, 2009 11:22 AM
#10
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information
Howdy there Michael
I see someone new had left a comment, on your post. So I thought I'd stop in to read it.
Howdy there Ed
Even though I'm not an Inspector, in The Grand State of Texas, I thought I'd leave ya a little note. I don't at all think they are afraid of those folks that are do-en Inspections, out side of the rules. I'd say its more that they don't want folks ending up with an Inspector, that just my not do a proper Inspection for the client. And may even put someones life at stake.
Sep 30, 2009 01:40 PM
Anonymous
Mike, Are you serious? Apparently I am so naive that I didn't realize expired licensed guys would still be operating?!?!?!
And secondly, I also didn't realize we had unlicensed inspectors. Talk about a lawsuit waiting to happen.
Take care and thanks for your work.
Bruce
PS I still owe you a dinner.
Oct 07, 2009 08:54 AM
#12
Anonymous
Sec. 1101.759. CEASE AND DESIST ORDER. (a) If it appears to the commission that a person is violating this chapter or Chapter 1102 or a rule adopted under this chapter or Chapter 1102, the commission, after notice and opportunity for a hearing, may issue a cease and desist order prohibiting the person from engaging in the activity. (b) A violation of an order under this section constitutes grounds for imposing an administrative penalty under Subchapter O.
John,
That doesn't say they can penalize you for unlicensed activity. That says they have to notify you, give you a hearing, then may issue a cease and desist against future activity. They can't go after you for anything until after the cease and desist.
RE Inspector Occupation Code:
Sec. 1102.407. CRIMINAL PENALTY FOR PRACTICING WITHOUT LICENSE. (a) A person commits an offense if the person does not hold a license under this chapter and knowingly engages in the business of real estate inspecting, including performing an inspection while the person's license is revoked or suspended.
(b) An offense under this section is a Class A misdemeanor.
Licensing boards don't prosecute criminal activity. DA's do.
The TREC FAQ page says they can assess a fine up to $1000 for unlicensed activity, but That would be after a cease and desist and raises an ugly question: What would/could they do to you if you didn't pay???
The criminal penalty for Class A misdemeanor is a up to a year or $4000. You want to live in a place where administrative enforcement can give ya jail time? Really??
Subtle points, but reality gets that way.
russell
Oct 22, 2009 04:35 PM
#13
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