To keep the promises made to their favorite special interest groups, the Republicans have filed what is almost becoming their annual bill to create a licensing law for home inspectors.

 

In spite of the absence of a demonstrated need, the party once famous for its stand in favor of smaller government has filed House Bill No. 1714 that will add another “board” to the long list of boards now draining the State’s budget, to legislate home inspectors.

 

Why? We don’t know. According to the Attorney General for the State of Missouri and the Better Business Bureau…during the same period of time where citizens had filed thousands of complaints against builders (unlicensed by the state), contractors (unlicensed by the state) and even real estate salespeople….only five complaints were filed against home inspectors.

 

Still, the very powerful lobbying infrastructure financed by the Missouri Association of Realtors has insisted that too many of their “deals” are being interfered with by home inspectors they consider to be “incompetent”. I suppose that we are too forget the fact that the home inspector…the person hired by the home buyer to provide him with an unbiased, complete and thorough report on the condition of the home…is supposed to find things wrong with the home. Home buyers who walk away from bad homes are NOT harmed by home inspections….but real estate sales commissions are.

According to the legislators we interviewed, the MAR "parades" real estate salesmen one after the other...all complaining about how the "bad" home inspector "killed their deals".

 

So…they lobbied for a law and House Bill No. 1714 is it.

What does it do to ensure that a consumer will receive a good home inspection?

 

Nothing.

 

In fact, there is nothing in the bill to define what a home inspector should be required to do before being “licensed”. It does not prescribe or identify the need for any specific type of training at all. It is silent on ethical behavior, inspection standards, consumer rights, or anything that one would think they would find in a bill designed to “protect” anyone from “incompetent” home inspectors.

 

It simply provides for growing our government with additional people on the payroll to call itself a “Home Inspector Licensing Board” allowing them to meet, and draw a salary and paid expenses, a minimum of one day a month. (Be reminded that every extremely obese citizen eats a minimum of one meal a month, as well.)

 

This autonomous board…with absolutely no restrictions or accountability to anyone…makes the rules. All the rules. By itself.

 

While the new board is making up rules…long lines of vendors who want to sell their particular brand of test, their particular educational programs, etc…line up to meet with the new board members to “help them” to decide on what home inspectors will need.

 

Remember how the Missouri Association of Realtors opposed a bill that would increase by $1.00 the cost of submitting a form last year? They spent thousands of dollars and many hours fighting that $1.00 increase…begging the House not to burden the home buyer with the additional expense. Now they lobby for a home inspection license with no demonstrated need that will cost the inspector $600 per year in fees alone, they say.

 

Is it not, at the least, disingenuous for the Missouri Association of Realtors to protect the buyer from the $1.00 expense…and lobby for an even greater expense, with no demonstrated need?

 

In the meantime, in order to provide Missouri with its initial group of licensed home inspectors, HB 1740 says that …virtually any inspector currently in business gets a license.

 

What?

Were we not asked to believe that the State needed to make this law and incur this expense because of all of the many “incompetent” inspectors who are plaguing real estate salesmen in their attempts to sell and resell houses?

 

But remember…the new licensing board is still writing all of the rules and is totally autonomous in writing its rules and some of these rules will have to do with who is re-issued a license in the following years?

 

This licensing board gets to write rules as to what an inspector can and cannot inspect…how and what he will be allowed to report to his client…what he can and cannot say to his client…and what happens if anyone (including a real estate salesman) makes a complaint against him.

 

And who is selected to be on the licensing board?

Will the Missouri Association of Realtors acknowledge the conflict of interest that already exists in their involvement in attempting to control what goes in an inspection report….or….will they continue with their agenda and lobby for the appointment of inspectors who have already established long lasting relationships with them and their favorite real estate salesmen?

 

The only consumer advocacy group to have ever weighed in on a Missouri home inspection bill is the group known as HADD (Homeowners Against Deficient Dwellings) and their president has written our State Representatives with her clear and strong opposition to the attempt made by real estate salesmen and home builders to interfere with relationship between a homebuyer and a home inspector. Many representatives agreed with her (and us) in previous years.

 

We are told that this year is different. This year, Mike Parson, the Republican representative for Bolivar wants to run for the senate and needs the support of the Missouri Association of Realtors to make that happen. He has enlisted others to help him in exchange for his help with their priorities and many representatives who have previously opposed this unnecessary law are now obligated to support it.

The bill was filed in the House of Representatives on the day following the evening in which the Missouri Association of Realtors paid for and entertained the entire Missouri House of Representatives with an evening of wining and dining.

 

Who can we count on to see that what is right…not what is politically expedient…is done for the consumer who uses and depends upon the unbiased nature of his home inspector?

James H. Bushart, Licensed Public Adjuster

Visit My Website

 
This post has been included in Missouri Real Estate News

5 Comments on Missouri Association of Realtors Buys a House...Bill

FEB
04
2010
135,942 Points Outside Blog Attended Rain Camp

Interesting, our home inspectors are licensed in Massachusetts.  It would be interesting to know how some of the other states initiated the process.

7:08pm • #1
2 Featured Posts

Massachusetts actually has a good law.  It was initiated and followed through by home inspectors.  It is the only law in the country that actually addresses and controls the potential conflict of interest between realtors and home inspectors.

Other laws have gone as far as to exploit that relationship.  It is feared that this law has that potential.

7:12pm • #2
1,151,950 Points 53 Featured Posts Outside Blog

Jim,

It will be interesting to see how it plays out this time. Maybe your group will be able to stop it again this year.

7:15pm • #3
180,823 Points 5 Featured Posts Called Shot Master

I do believe Illinois also license their home inspectors.

As a Realtor, Jim, I am for some sort of license for a home inspector. Even beauticians have to attend school and have a license - to cut hair. A home inspector is assisting a home buyer with one of the largest purchases they will ever make - should there not be some regulation?

We have home inspectors in our area that are fireman first, home inspectors second. We have one that is also a Realtor. We have another inspector that has trouble writing a report so we can read it.

I always recommend at least three inspectors and tell the Buyer they are certainly free to choose someone not on my list. But, those three that I recommend use photos, type their report and are available to answer questions.

I've never had an inspector throw me under the bus - if a deal died due to an inspection, it probably saved the Buyer and me a lot of grief in the future.

10:23pm • #4
2 Featured Posts

Licensing has not always satisfactorily resolved the issues it was intended to address, but I will say that I do not oppose licensing, in general.  If the catalyst for licensing was consumer driven...or even if it was a simple matter of revenue increases to help the State bring in some money...not too many inspectors would balk.

But to resolve the issue of "killed deals", licensing is a conflict of interest that I am sure is incredibly obvious to most.

I know of many brand new home inspectors who push for licensing so that they can instantly obtain a "credential" that will make them equal (in the eyes of the public) to their more experienced competitors.  In this manner, it will be almost impossible to tell the difference between your "real" inspector and the fireman or contractor who is doing it on the side.

I recently (11/08) moved to Southwest Missouri from St. Louis where my counterparts were pushing for a licensing bill so that the rural inspectors presently doing very few inspections would not be able to afford to keep up with the expensive requirements.  When they did away with these "part timers" in the rural areas, realtors and buyers would have to call upon them to drive out and do them...where they could charge even higher fees for the distance while gaining the additional business.

The Ohio State Real Estate Commission did a study of licensed and unlicensed home inspections conducted in several midwestern states and concluded in their report that licensing did nothing to improve the home inspection process.

It is in your interest to either recommend no inspector and encourage your client to use the internet (for Yellow Pages are now obsolete for home inspector's use) or to recommend several, as you do.  It is best for the inspector as well...for it does not help either of us for the client to believe that we are working in tandem to convince him to buy a particular house.

The bill that is presently before the Missouri legislature that the Missouri Association of Realtors (to be more specific....Sam Licklider) pushed for does nothing to protect the consumer or to improve the quality of home inspections.  It should be opposed...especially by rural real estate professionals who do not want to have to call Springfield or Kansas City to get someone to inspect for their clients.

You mentioned licensing of beauticians and barbers....but I must ask you whether or not you are aware that our State does not license electricians...plumbers....HVAC technicians....or even the builders, themselves?

Not only are our contractors unlicensed in more than 75% of Missouri, but they have no standards that they have to work by...meaning that there are no building codes.  Accordingly, there is no one to inspect the work of the unlicensed electrician after he wires the house that the unlicensed builder built.

I live in Barry County, Missouri.  In my county, a 10 year old is qualified by the State to install the electric wiring in a three story hotel that his 12 year old brother designed and built.

What are your thoughts about that?

Interestingly enough, even in areas where there are no building codes and anyone who wants to can wire the house with no one to double check their work.....beauticians must still be licensed.

That bothers me.

10:54pm • #5


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