Home inspector licensing is in front of the Ohio legislature again this session. A group of home inspectors calling themselves the Joint Legislative Commission has authored HB 257 with Representative Michelle Schneider of Cincinnati as the sponsor.
Currently there are 32 states with licensing laws for home inspectors with Florida being the latest after West Virginia to join the ranks. This is not the first attempt to get something through the legislature with previous attempts in 1999 and 2006. Neither of the previous bills got beyond the House Commerce and Labor Committee and it remains to be seen if this bill will make it through either.
Ohio lawmakers are somewhat reluctant to enact more government regulation when there is little demonstrated need in the marketplace. Few consumers have really been harmed in a significant way by minimally qualified inspectors. The amount of complaints with the Ohio Attorney General is minimal and so are lawsuits in the civil courts. The one stakeholder group which has wanted to see home inspectors licensed for a long time is the Realtors. They are concerned that home inspectors can continue to disrupt their transactions with no disciplinary measures other than the courts. One person told me "we just want a way to discipline home inspectors who write bad reports". I guess that begs the question what is a bad report? Hopefully the requirement is not whether a deal has gone south.
A recent study was performed by the Ohio Division of Real Estate through Belmont Technical College. The study surveyed home inspectors, Realtors and Consumers in both licensed and unlicensed states. Their conclusion was that the level of home inspection quality was not improved by licensing laws. HB 257 requires 8 hours education about the law, the passage of the National Home Inspector Exam (NHIE) and General Liability Insurance in the amount of 100,000. Thirty hours of continuing education are required over a two year period. It also requires 10 parallel inspections under a licensed inspector.
It should be no surprise that home inspectors are divided over this legislation. Many experienced inspectors feel that the requirements are too low. Those that want to see high professional standards feel that a law like this will decrease the quality of an inspection as consumers will believe that all licensed inspectors are competent to inspect. Other inspectors feel that high requirements are too restrictive and create a restriction of trade forming unreasonable barriers to entry and any law no matter what the requirements is better than no law. All in all this should make for interesting debate this fall when hearings begin in the Ohio House. A copy of HB 257 as well as an analysis of key problems with the bill is available at www.ohioinspectorlicensing.com.
David Tamny
Professional Property Inspection
www.worryfreeinspections.com
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David,
Interesting blog. I am from a State which has licensing, CT. There have been more than a few blogs and debates recently here on AR concerning this issue of home inspector licensing. I for one am for it as long as the law is good. Florida has just passed a bad licensing law. It was fought and defeated previously, but now has been approved.
Your reference to a study that found licensing does not improve the quality of inspections is interesting. I seriously can not believe that to be true. I have spoke with many realtor's here over last several years about inspector licensing in CT. The overwhelming consensus is that the quality and professionalism of the home inspections is much better because of licensing. I realize this is anecdotal evidence, but none the less it would seem there has been an improvement.
Another aspect that the study probably has not taken into account is time. Even when licensing laws are instituted the older inspectors are grandfathered. Most states have very new laws, less than 5 years. Connecticut's law is 7 years old.
Time will eventually weed out the bad inspectors. Once the bar has been raised the new inspectors will have to meet those standards, unlike their predecessors. This statement;
Other inspectors feel that high requirements are too restrictive and create a restriction of trade forming unreasonable barriers to entry and any law no matter what the requirements is better than no law.
Restriction is the wrong word, it is standards that are being set. High standards are by nature restrictive. The reason is that there is a certain level of competence that must be achieved by the individual in order to be granted the privilege of practicing that particular profession.
This system is employed in all types of trades and professions. Doctors and lawyers, electricians and plumbers. Does this mean these people are all competent and good at their jobs, NO! But would you want no standards or restrictions on who could enter into these professions? Would it be better if any one could just wake up one morning and start wiring houses or practicing medicine? I believe the answer is a resounding NO!
No law or regulation is perfect. That is why it is imperative that when a home inspection law is enacted it is a good one. Bad legislation or laws are the same or even worse than no laws or regulation.