Thread: Realtors buying the Inspection?

I met Realtors that are buying the inspections. I wAs told that they are buying them because they want the deal to go through. Who then becomes the client? Where or with whom does the liability rest if something is not fixed or disclosed? They are also asking for deeep discounts. Inspections are going to the lowest bidder!!!

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I would be glad to let the low bidder have those inspections!
If you worry about trying to please an agent with your report, it will come back to bite you.

Originally Posted by David D. Whitt

I met Realtors that are buying the inspections. I wAs told that they are buying them because they want the deal to go through. Who then becomes the client? Where or with whom does the liability rest if something is not fixed or disclosed? They are also asking for deeep discounts. Inspections are going to the lowest bidder!!!

I think it depends on the realtor whether this is a bad thing or not. I have seen the realtor pay the fee, but the report still goes to the home buyer. I get the buyer to sign the agreement/contract. They've received a gift from the realtor, but that is all, IMO. No discount.

Hey All,
My buddy is a realtor for Royal Lepage and pays for the inspection as a 'gift' to the client. The report still goes to the buyer and the buyer signs the contract. The realtor just covers the cost. He's in another town than me, and asks for discounts b/c he brings more business to a preferrential inspector. (ex. one gave him 5 inspections and get the next free.)

Originally Posted by Vincent Van Egmond

Hey All,
My buddy is a realtor for Royal Lepage and pays for the inspection as a 'gift' to the client. The report still goes to the buyer and the buyer signs the contract. The realtor just covers the cost. He's in another town than me, and asks for discounts b/c he brings more business to a preferrential inspector. (ex. one gave him 5 inspections and get the next free.)

Sounds like the inspector therefore would be paying for referrals. Even though no cash is exchanged, the inspector is still getting the job, because the realtor will get a free one out of him every now and then. JMO.

I don't care who gives me the check. I do care who signs my contract, since that determines who my client is.

I have had many Realtors pay for the inspection. I've had a few give me a check when my client forgot their checkbook.

Never had one ask for a discount, except when they wanted an inspection for themselves. I gave a very deep discount to one agent when she bought a house for herself. She sent me 40 clients last year.

I don't care who writes the check. The person who signs the agreement gets their name on the report. I've had several realtors pay for the inspection, but they pay the same as the client.

I agree with the others... who writes the check is irrelevant. It's who signs the agreement that matters.

My state just setup some new legislation to stop reports from being passed around and they use the terms "person who contracted for the inspection" and "purchaser of an inspection" interchangeably and I think it's an error. There are often others paying that aren't the ones "contracting" for it. Like when a parent pays or and agent, etc.

Originally Posted by Matt Fellman

I agree with the others... who writes the check is irrelevant. It's who signs the agreement that matters.

My state just setup some new legislation to stop reports from being passed around and they use the terms "person who contracted for the inspection" and "purchaser of an inspection" interchangeably and I think it's an error. There are often others paying that aren't the ones "contracting" for it. Like when a parent pays or and agent, etc.

I think the only thing that should go anywhere is the item of concern for disclosure. The actual report should never leave the buyers hands. The rest of the report should be considered privileged info and the property of the client not someones property that did not pay for the report.

What "if" an agent signed the Inspection agreement?

Most of the time when a buyer has a "buyers agreement" with an agent, that agreement allows the agent to be a representative of the buyer.

What would legally keep them from being able to sign your agreement then?

Anyone?

rick

Originally Posted by Rick Hurst

What "if" an agent signed the Inspection agreement?

Most of the time when a buyer has a "buyers agreement" with an agent, that agreement allows the agent to be a representative of the buyer.

What would legally keep them from being able to sign your agreement then?

Anyone?

rick

I guess that depends on the rules of the state that they have a license in! Also what it says in you contract for representatives.

Agents are acting as representatives of their clients. Have had agents sign for the inspection contract on behalf of their clients (purchasers).

I'm pretty much with everyone else who does not care where the check comes from. My agreement has a area for the client to give me permission to send a copy of the report to anyone they want, like their agent. It is very rare that I'm not told to send a copy to their agent.

I don't recall the agent ever signing the agreement, I always email a copy to the buyer if they will not be at the inspection.

I always make a point that the agent clearly understands that I inspect a home/property for the client regardless who is paying (the Realtor is NOT "buying" the inspection). Weather it is a referral or payment it is a standard, built into my verbal interface with the agent.

The one circumstance you have to really lookout for is the "double ender" agent who believes they can handle both selling and buying side ( I have seldom seen this type of deal go smoothly and you expose yourself to a higher risk of being sued by being dragged into it indirectly). In these cases I normally ask "who will be my client?" in a written (e-mail) form with reply in same form.

Regards - Richard

Every once in awhile I'll get one where an agent calls and then shows up without a buyer and wants to sign an agreement and pay. I wonder how much prying and investigation we're really expected to do to find this alleged "buyer".

Basically, I sell widgets.... you call me and schedule a time to come buy a widget. You show up and pay me for a widget. Seems pretty straight forward. Something tells me it would get a bit more complex if it ever hit the fan later.

I think the ones who are really sticking their necks out on this are the agents signing on behalf of their clients. They'd be instantly right in the middle of any dispute since they entered into the contract on their buyer's behalf. It's nice of us to be concerned for them but it largely falls under the "not our problem" catagory (kind of).

I've received a similar response from several attorneys over the years when asking this question. Of course, keeping in mind they make their money going to court so that isn't really a "bad" thing in their eyes.

Who is picking the inspector? Isn't that the more important question?

Is the idea of agents paying suggesting that they will more often be the one who chooses which inspectors gets the job?

If so, I don't like the idea. David Whitt was told that they are buying them so more deals go through. Really? What does that mean?

Originally Posted by John Dirks Jr

Who is picking the inspector? Isn't that the more important question?

Is the idea of agents paying suggesting that they will more often be the one who chooses which inspectors gets the job?

If so, I don't like the idea. David Whitt was told that they are buying them so more deals go through. Really? What does that mean?

That's what I want to know. What does that mean? If the agent buys ten inspections from you, they think you should go easy on a house or what?

Originally Posted by Ian Niquette

That's what I want to know. What does that mean? If the agent buys ten inspections from you, they think you should go easy on a house or what?

This whole concept has been beat to death and I personally believe any inspector taking part isn't long for this profession. Not that it can't happen, just than anyone with any integrity and desire to survive in this business won't be part of it (applies to agents too).

All the more reason people should seek out an experienced inspector and/or company.

I don't have a problem with the agent purchasing the inspection. My liability and report goes to the person signing the inspection contract and who's name the report is in.

If the person signing is the realtor and they in turn give that report to the home buyer I am under no obligation to honor that contract or report with the home buyer. The same as if I performed the inspection for a buyer who backed out of the purchase and sold the report to another buyer. I'm only under obligation to the person who signed the contract and who's name is on the report.

If you ended up in court with something like this you'd simply tell the judge you never inspected the house for the buyer, show them a copy of the contract (signed by the agent) and the inspection report in the agents name. They should immediately dismiss the case.

I don't have a problem with an agent paying for an inspection either, but I do have a problem with the op's scenario.

Let's be honest. The inspection is intended to benefit the buyer, correct?

The problem is, the practices can lead to putting the home buyer in a bad way. How helpful to the public is it to say that we are not liable to the home buyer because their name is not on the report. Doesn't that sound like a sham?

About these agents that are paying for inspections. If they pay at closing, that further increases the conflict of interest in my opinion. It places the inspector as having an interest that the deal actually makes it to closing.

I understand that many inspectors can work under these conditions and still serve the buying public well. However, I believe the practices in general are a conflict of interest that will lead some inspectors astray. Because of that, they should be prohibited.

If you are a good inspector, why would you argue against a level playing field? Whats wrong with everyone having the same playing rules?

Originally Posted by John Dirks Jr

Let's be honest. The inspection is intended to benefit the buyer, correct?

The problem is, the practices can lead to putting the home buyer in a bad way. How helpful to the public is it to say that we are not liable to the home buyer because their name is not on the report. Doesn't that sound like a sham?

About these agents that are paying for inspections. If they pay at closing, that further increases the conflict of interest in my opinion. It places the inspector as having an interest that the deal actually makes it to closing.

I understand that many inspectors can work under these conditions and still serve the buying public well. However, I believe the practices in general are a conflict of interest that will lead some inspectors astray. Because of that, they should be prohibited.

If you are a good inspector, why would you argue against a level playing field? Whats wrong with everyone having the same playing rules?

When I was told that the realtors are buying the inspections to allow the deal to go through, I almost puked on the floor.

I am not in the habit of compromising my integrity with even the slightest hint of impropriety. Who am I working for, the buyer, yes? If the Realtor buys the inspection than any number of the issues you guys bring up will look as if there was some "back scratching" going on when there isn't.

I am the newer inspector in my area because we relocated from another state, so I haven't had the experience of being asked directly to do this, but I can see how it would be and more importantly should be a conflict of interest.

If the Realtor wants to reimburse the buyer for the inspection, that is not something I need to know. I would prefer trading goods for services with the one receiving the goods, the buyer or seller.

Realtor Pay's so what ?

The Report is the same.

They Shift The Liability to You.
* why do you think they are paying ?
.