I agree with everyone else. Disclose that you know someone or whatever, let the Client decide, and walk if you need to.

When my daughter was in 5th grade I was inspecting a house, been there about an hour, and the seller comes home. I look at her, and she looks at me, and we know we know each other, but just can't place it. She then looks at my card, and asks me if I have a daughter Kelsey. She is her teacher.

OK, now if this goes south, then my daughter may have a really bad school year. I immediately tell the agents and my client the situation, and tell them that I will walk away if they have ANY reservations at all, and will schedule another inspector for them, at no cost. The seller and buyer all agree that they are OK with me doing it, and the teacher agrees not to hold my daughter hostage if I bring something up. It turned out pretty good, with nothing huge on the report. Her husband was a Bob Villa type, and actually knew what he was doing. And my daughter went on to 6th grade.

JF