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Attorney General's Opinion

By Michael Boyett

Home Inspector with Capital City Inspections TREC #7290

November 24, 2009 05:53 AM

In June, TREC requested an opinion from the state Attorney General as to whether TREC has jurisdiction over inspectors who perform inspections for someone other than a Buyer or Seller of real property. The AG handed down his opinion today and the simple answer is No:

S U M M A R Y

The Texas Real Estate Commission does not have authority under section 1102.401(a), Occupations Code, to take disciplinary action against a person licensed under chapter 1102 if the person has not accepted employment to perform a real estate inspection for a buyer or seller of real property.

It is necessary to define the terms "buyer" and "seller" in the context of chapter 1102 in order to determine whether a person, in a particular factual context, constitutes a buyer or seller of real property for which a real estate inspector has accepted employment. As the agency charged with administering chapter 1102 and authorized to establish the standards of conduct and ethics for persons licensed under chapter 1102, the Commission must determine, in the first instance, the meaning of these terms.

Very truly yours,

GREG ABBOTT

Attorney General of Texas

The original request for opinion can be seen here: http://www.oag.state.tx.us/opinions/opinions/50abbott/rq/2009/pdf/RQ0804GA.pdf

And the AG’s complete response can be seen here: http://www.oag.state.tx.us/opinions/opinions/50abbott/op/2009/pdf/ga0748.pdf

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Michael Boyett

Capital City Inspections - Boerne, TX

RETIRED

Dale, No...quite the opposite really. Here's the background to that Request for Opinion. I attended a TREC meeting in the spring, probably May or June of 2009, where a San Antonio home builder addressed the Commission. The Buyer of a home he had built the previous year had an 11th month 'warranty inspection' done by a licensed inspector. The inspector uncovered numerous deficiencies and the Buyer (i.e. now the Home Owner) requested the Builder correct those defects under his 1 year warranty. Well, the Builder took exception to many of the defects that the Inspector had identified and was asking TREC to discipline the Inspector and find him negligent. TREC essentially refused to accept his complaint since the inspection was not for a Buyer nor Seller of real property, i.e. the Buyer was now the Home Owner, not a Buyer any longer. The Builder was irate and ranted and raved on until he was pretty much asked to leave the Commission meeting. TREC, to confirm their position, asked the Attorney General to render an opinion and that's what's referenced here. Now, the opinion does state that TREC really needs to better define a Buyer and Seller so that will likely be forthcoming in the coming months.

Nov 24, 2009 07:18 AM

Attorney General's Opinion

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Michael Boyett

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