To all,

Like TAREI I am late getting around to this reply and did attend the “roundtable”.

Basically TAREI is still looking into the E&O & GL issue.

It would be very doubtful that any injunction action will be taken, as previously spoken of by TAREI prez DS. The tune has changed since he/TAREI issued the OAG FUND letter.

As we now know the Bill has gone to the AG for review clarification and for answers to TREC questions and questions have also been posed by TAREI that have yet been answered. TAREI’s main comment/defense being E&O does not cover Subchapter G events. If you read the print of Subchapter G (below) none of this verbiage is covered by E&O or any other inzurance for that matter. Not much of a defense IMHO.

As it stands now until overridden/clarified by the AG, starting 09-01-07 TREC will require proof of continuous coverage of GL and E&O, by all licensed inspectors in order to renew, amounts yet to be determined (TREC wants $100,000 of both per event minimum), TREC will maintain the Recovery Fund and those rules applicable, and a total refund of your inspection fee if a claim is paid out from any source as I understand it.

The real spin from SA was that TAREI would pursue negotiations with E&O providers for discounts to its members.

I hope this helps or at least answers some questions.

SUBCHAPTER G. PROHIBITED ACTS

§ 1102.301. NEGLIGENCE OR INCOMPETENCE. An inspector may
not perform a real estate inspection in a negligent or incompetent
manner.

Added by Acts 2001, 77th Leg., ch. 1421, § 2, eff. June 1, 2003.


§ 1102.302. AGREEMENT FOR SPECIFIC REPORT;
DISHONESTY. An inspector may not:
(1) accept an assignment for real estate inspection if
the employment or a fee is contingent on the reporting of:
(A) a specific, predetermined condition of the
improvements to real property; or
(B) specific findings other than those that the
inspector knows to be true when the assignment is accepted; or
(2) act in a manner or engage in a practice that:
(A) is dishonest or fraudulent; or
(B) involves deceit or misrepresentation.

Added by Acts 2001, 77th Leg., ch. 1421, § 2, eff. June 1, 2003.


§ 1102.303. ACTING IN CONFLICTING CAPACITIES. An
inspector may not act in a transaction in the dual capacity of
inspector and:
(1) undisclosed principal; or
(2) broker or salesperson.

Added by Acts 2001, 77th Leg., ch. 1421, § 2, eff. June 1, 2003.


§ 1102.304. REPAIRS AND MAINTENANCE. An inspector may
not perform or agree to perform repairs or maintenance in
connection with a real estate inspection under an earnest money
contract, lease, or exchange of real property.

Added by Acts 2001, 77th Leg., ch. 1421, § 2, eff. June 1, 2003.


§ 1102.305. VIOLATION OF LAW. An inspector may not
violate this chapter or a rule adopted by the commission.

Added by Acts 2001, 77th Leg., ch. 1421, § 2, eff. June 1, 2003.

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badair http://www.adairinspection.com Garland, TX 75042
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