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  1. #1
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    Default Annual license fees

    In 2009, when licensing first came to British Columbia the fees were $100. Last year, the fees went up to $150. According to a recent proposal, next spring the fees are going to $475.
    At a recent meeting with Consumer Protection BC, only 2 of the 12 persons in the room were license holders.
    My question to the reader is the following;

    What do the other jurisdictions charge in annual license fees?

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  2. #2
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    Default Re: Annual license fees

    The Arkansas Home Inspectors Registration board requires a fee of $250 per year for initial or renewal of a home inspectors license. $100,000 Liability insurance is also required. A minimum of 90 hours of initial training and 14 hours of continuing education (only 4 hours of online classes can be used to meet the CE requirement each year) each year. E & O coverage is not required at this time. Plus I pay a local tax of $45 per year and a state franchise tax of $200

    To renew this year will cost me around $1,400.00. My wife is a registered nurse. Interestingly enough her license fees, insurance, and her CEs are considerably lower than mine each year...

    Alton Darty
    ATN Services, LLC
    www.arinspections.com

  3. #3
    David McGuire's Avatar
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    Default Re: Annual license fees

    In Kansas the annual fee is $200 at this time. The KSHIRB just had a meeting Monday, annual fee's were the topic. Although I believe it was to clear up issues and discuss a prorating fee basis. They haven't posted the meeting minutes at this time.


  4. #4
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    Default Re: Annual license fees

    In North Carolina, annual renewal license fee for Home Inspector license is $160. Along with 12 hrs Con Ed last license year of which 4 hrs are the state mandatory training. For the next three years, Con Ed is 16 hrs per year of which 4 hrs are the state mandatory training. No online training is accepted. Classroom training runs about $350 for the 12 hrs. General liability (~$225) and $5000 in assets or 1mil of E&O required. State wide priviledge license renewal is $60 yr. Business license runs $60 yr.

    HI license fee ($160), Priviledge License ($60), Business license ($60), GL (~$225), Training (~$350) for a total of ~$855. More if you carry E&O.

    Licensing board collects $10 per credit hour from the trainer plus the licensing fee means that each inspector pays $240 a year to the board. There are only about 1000 inspectors state wide so they only collect ~$240,000 a year. Their expenses last year were ~$360,000. They have to maintain 2 or 3 years reserve. With there current balance and at the current expense rate, the licensing board will be operating in the red within 2 years. The board raised the renewal rate from $150 to $160 a year or two ago.

    "The Code is not a peak to reach but a foundation to build from."

  5. #5
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    Default Re: Annual license fees

    I think pay $300 every two years for Mississippi and $250 every two years for Tennessee. It is what it is and is just the part of the cost of doing business.

    I also have to pay for mandatory E&O and GL insurance in both states.

    Scott Patterson, ACI
    Spring Hill, TN
    www.traceinspections.com

  6. #6
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    Default Re: Annual license fees

    I pay a $400.00 inspector fee and another $400.00 for an entity fee every two years. Most of it goes towards the Illinois Politician's Incarceration Fund. It's one of the many benefits our state leaders get after they "leave" office.

    Eric Barker, ACI
    Lake Barrington, IL

  7. #7
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    Default Re: Annual license fees

    In Oregon:

    150 every 2 years for HI license
    50 every year for Pest/Dry Rot license
    200 every 2 years for contractor's license (required to oversee HI license)

    Then there's the CE for each license

    HI is about $15 hour in most cases - 30 hours every 2 years so $200+ per year
    Contractor License is 16 hours every 2 years, roughly the same $$ as HI so about $120 per year
    Pest/Dry Rot CE is actually reasonable in that I skip the classes and just retake the test every 5 years for $30 total. If I chose to take the mind numbing classes it's 40 hours every 5 years at roughly the same cost as the others, I'm guessing.

    So, about $550 per year is licensing and CE.... yikes, I don't think I've ever actually added it all up just by itself. It's amazing I still have money leftover for beer.


  8. #8
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    Default Re: Annual license fees

    Good question Steve - In a response to your inquiry consider the following - my general understanding is that the increase and fees are reflective of administration of a program at a non-profit level. Changes in fees were anticipated. One point being how much time and cost is involved in auditing and assuring compliance with the reg's. So there's much more than just issuing a license.

    To respond to your other point, here's an example from a neighbouring province: Alberta

    •Payment of the License Fee. Fees are based upon the number of home inspectors licensed with the home inspection business. Fees for a home inspection business having:

    ◦3 or fewer licensed home inspectors is $500
    ◦more than 3 but fewer than 10 licensed home inspectors is $700
    ◦10 or more licensed home inspectors is $900

    This fee is for a 24 month licence. Licences take effect the date they are issued. The department will send you a notice and the appropriate form(s) before your licence needs to be renewed. Licence holders must notify Service Alberta in writing if their business licence address changes.

    Even as an individual inspector the Alberta fee would be $500 for 2 years. Since the Alberta license is new just this year, even that fee can change over the next few years. Particularly once they realize the cost of running a licensing program.

    Regardless of the two license holders present at the meeting, the associations represented are very aware of the concern of minimizing costs. However, cost recovery is the "buzz" word.


  9. #9
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    Default Re: Annual license fees

    Thanks, Steve. Just as we thought, an increase from $150 to $475 for a one year licence is way over the top.

    These bureaucrats have done AFAIK nothing in response to complaints that they have issued licences to under-qualified home inspectors in BC. Their first priority appears to be to accumulate as much lunch money as possible from a group of maybe about 500 inspectors. We have a website and a list of names, and that's about it.

    John Kogel, RHI, BC HI Lic #47455
    www.allsafehome.ca

  10. #10
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    Default Re: Annual license fees

    John based on your last post - how does one determine those licensed "under qualified" inspectors?

    On another note review the "meeting notes" on the Consumer Protection website. Just a couple of highlights....reference - http://www.consumerprotectionbc.ca/i...tes_110927.pdf

    - Last year’s fee increase was supported however total revenues are not all that high and collectively the associations need to step up and support Consumer Protection BC efforts.

    - Today there are 4 designated associations. (2 by Regulation and 2 by Director), the transitional licensing provision has been appealed, licence fee increased to $150 and there were 476 home inspectors licensed (410 today) and a detailed costing exercise has been undertaken

    - As had been stated during the costing & fee review, under the model established by the government, Consumer Protection BC does not have the resources to take on the development of minimum standards for home inspectors. This responsibility rests with the associations and industry to move forward utilizing the expertise and resources of organizations such as Service Canada, the Industry Training Authority (ITA) and the Private Career Training Institutions Agency (of BC – PCTIA).


  11. #11
    Tom Comstock's Avatar
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    Default Re: Annual license fees

    In Texas:

    $70.00 Renewal Fee every 2 years

    But we also have to purchase E&O, which jumps it up $1000 or so more per year. And we have required CE as well

    But our renewal is only $70.00,, I guess I should feel good about that after reading the rest of these posts.


  12. #12
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    Default Re: Annual license fees

    Quote Originally Posted by Claude Lawrenson View Post
    John based on your last post - how does one determine those licensed "under qualified" inspectors?
    I suppose this occurred during the transition period, but inspectors who were unable to prove education or training were given a license anyway. As you have pointed out, that was then, this is now. During that time, no disciplinary action was taken. Fees were collected. That is all.

    The law says you must be licensed to practice home inspection in BC - good.
    Members of a recognized association are deemed to be qualified, because the association should stipulate a certain level of training for their members.
    The associations are working to establish standard guidelines with respect to training and testing. The two established associations already have standards in place. The two newer associations will need to step up and prove their training is what they say it is.
    The licensing board is handing that responsibility off to the associations. - good. We can look after our own.

    Other than collecting the fees and maintaining a list and a website, what other duties does the licensing board perform?

    Last edited by John Kogel; 11-05-2011 at 01:16 PM.
    John Kogel, RHI, BC HI Lic #47455
    www.allsafehome.ca

  13. #13
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    Default Re: Annual license fees

    Hi John,

    good. We can look after our own.
    The associations are rife with infighting, turf wars, and terrible accountability as far as OAHI/CAHPI is concerned. Its been that way for over a decade.

    Thats the problem we can't look after ourselves from what I have seen. The profession is more divided now then it was before. We have at least 6-7 home inspectors associations in Canada. They are all managed differently and have differing entry requirements.

    Licencing has leveled the field in so far as associations making them all equal for licencing purposes.

    Apparently even the ole National Certification run and owned by CAHPI continued taking money from applicants for Nat. Certification even though the programmed was canceled.

    Yup home inspectors looking after themselves.

    Must be a serious problem in BC when the government has to step in to license 410 inspectors and generate $61,500.

    In Ontario OAHI members were never privy to the financial CAHPI statements even though OAHI collected monies on behalf of CAHPI.

    Not faulting you John and no offence, and I know you don't know the issues that have and continue to go on with thinking that we can govern ourselves.

    Cheers,

    Last edited by Raymond Wand; 11-05-2011 at 05:05 PM.

  14. #14
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    Default Re: Annual license fees

    Quote Originally Posted by Raymond Wand View Post
    That's the problem we can't look after ourselves from what I have seen. The profession is more divided now then it was before. We have at least 6-7 home inspectors associations in Canada. They are all managed differently and have differing entry requirements.

    Licencing has leveled the field in so far as associations making them all equal for licencing purposes.

    Apparently even the ole National Certification run and owned by CAHPI continued taking money from applicants for Nat. Certification even though the programmed was canceled.

    Yup home inspectors looking after themselves.

    Must be a serious problem in BC when the government has to step in to license 410 inspectors and generate $61,500.

    In Ontario OAHI members were never privy to the financial CAHPI statements even though OAHI collected monies on behalf of CAHPI.

    Not faulting you John and no offence, and I know you don't know the issues that have and continue to go on with thinking that we can govern ourselves.

    Cheers,
    Raymond, I am remotely aware of your trials and tribulations over in Ontario, and have followed your posts for years on that other forum.

    CAHPI(BC) and BCIPI have been able to look after the affairs of their members. The other two associations in BC are new, so they have to prove themselves.

    Don't confuse CAHPI National with the provincial associations.

    So far the only problem I've seen is with the board threatening to arbitrarily raise the fees.

    John Kogel, RHI, BC HI Lic #47455
    www.allsafehome.ca

  15. #15
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    Default Re: Annual license fees

    John

    CAHPI National is the sum of the provincial associations.

    Last edited by Raymond Wand; 11-06-2011 at 04:10 AM.

  16. #16
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    Default Re: Annual license fees

    Quote Originally Posted by Scott Patterson View Post
    I think pay $300 every two years for Mississippi and $250 every two years for Tennessee. It is what it is and is just the part of the cost of doing business.

    I also have to pay for mandatory E&O and GL insurance in both states.
    Scott, you have two E&O and GLs for both states?? how expensive is that?, my policy covers me out of state and I ask that question every year to my agent and they say I am covered because I will do a building once in a while in Philly or NYC. They tell me any place in the USA.
    I just switched from Beazely to CNA at this years renewal and my GL is Travelers

    Joseph Ehrhardt
    Building Forensic Specialist LLC

  17. #17
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    Default Re: Annual license fees

    If the annual licensing fees were zero, that wouldn't be a problem but forking out $475, next year and every year is not acceptable. It's an entirely unnecessary expense. The solution would be for consumer protection BC to take the total number of hours spent on home inspection issues and dividing it by four. That would solve the problem. I'm sure they would argue they would not be able to fulfill their mandate. Simple. Change it. However, that would require a political decision by persons not invited to the September meeting. Fancy that.
    Consumer protection BC requires $1,000,000 E & O.
    FREA, who I was insurance through when licensing came in force told me no jurisdiction in North America has an E&O requirement more than $500,000. That is an entirely unnecessary expense. There is more.
    Consumer protection BC also requires $1,000,000 Commercial Gen. I asked a well-known insurance representative at an annual meeting a few years ago how many commercial Gen. claims there were across the country? He said "Hardly any". Carrying this level of commercial general is an unnecessary expense.


  18. #18
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    Default Re: Annual license fees

    Regarding the enforcement comment - it appears a few complaints have already transpired.
    Enforcement Action Search

    Professional Practices and COE issues are critical administrative obligations by all home inspection associations. Respectfully background, education and practical experience can vary significantly.

    The NHICC does not "certify" registrant members unless they are fully qualified to inspect. We have a high level certification standard and we maintain it. Case in point being out of the last 12 inspectors that completed the last (2) recent TIPRs - Test Inspection with Peer Review, 4 out of 12 did not pass. Yes and even some of these were RHI's.

    Another case in point - no associate, provisional or whatever "conditional titled" member. Likewise it also looks after the business related "discipline/action/compliants" affairs of its' members, and takes its obligations to Consumer Protection BC seriously!

    In the suggested 4 way fee re-structure scenario - I would find it difficult to see any group penalized for the causation of enforcement actions, audits or investigations costs levied by Consumer Protection for the problems of another association or even member, particularly one not affiliated with a fully compliant association. Really how fair is that to charge others for the problems caused by another?

    If others are really concerned about that additional fee - consider what your association can do for you to lower their costs. Have their fees gone down, or up? How much does it cost to even maintain continuing education?

    Seems everythings going up, and although I see the concerns.....I also see it as the cost of "doing" business.


  19. #19
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    Default Re: Annual license fees

    Its so reassuring that nothing has really changed in BC in so far with licencing. Consumers must still try and find resolution with the member and their association, failing which the consumer is advised to hire a lawyer.

    Home Inspections: Who to Talk To If you have a Complaint


  20. #20
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    Default Re: Annual license fees

    Quote Originally Posted by Claude Lawrenson View Post
    Regarding the enforcement comment - it appears a few complaints have already transpired.
    Enforcement Action Search
    Well there was a complaint about a Canachi inspector who was advertising home inspections and maintenance work as his business name. There is no record of a complaint. What complaints are you talking about?

    Quote Originally Posted by Claude Lawrenson View Post
    Seems everythings going up, and although I see the concerns.....I also see it as the cost of "doing" business.
    Quote Originally Posted by Raymond Wand View Post
    Its so reassuring that nothing has really changed in BC in so far with licencing. Consumers must still try and find resolution with the member and their association, failing which the consumer is advised to hire a lawyer.

    Home Inspections: Who to Talk To If you have a Complaint
    What's changed is every inspector pays similar high costs to remain in business. Yes that is the new cost of doing business and that cost will be passed on to the consumer, sorry about that.

    John Kogel, RHI, BC HI Lic #47455
    www.allsafehome.ca

  21. #21
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    Default Re: Annual license fees

    It seems the appropriate word is "enforcement" rather than complaint. On the other hand when you have Consumer Protection calling an association to check on an inspector or inspectors that also involves some administrative work. Even now "auditing" costs as discussed and that is now taking place at the last meeting will also increase costs.

    BTW: I am not here to defend the increase. It is as I stated before based on what the association reps at the meeting received as justification for the cost of the "oversight of the program". Just like the cost of doing business.

    On another side note - as home inspectors we assume a very high level of risk. As such we should be "justly and fairly" compensated for it!


  22. #22
    Dan Musielski's Avatar
    Dan Musielski Guest

    Default Re: Annual license fees

    We have little control over what our state governments do...so lets look at the positve. Annual license fee help keep out the people that aren't serious about the business. Like Eric said, Im also in Illinois, and the fee's double if you are an entity as well.

    Illinois went from 5000 licensed inspectors to just under 1700. We have to pay for all our crooked governor's and politicians.


  23. #23
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    Default Re: Annual license fees

    It's $250 every two years here in NV. I think that's pretty reasonable.

    Nevada IOS#1730
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  24. #24
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    Post Re: Annual license fees

    There isn't any sane reason why a home inspector should pay more than a builder, real estate agent, doctor, or other professional for annual licensing.

    Randall Aldering GHI BAOM MSM
    Housesmithe Inspection
    www.housesmithe.com

  25. #25
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    Default Re: Annual license fees

    Quote Originally Posted by Randy Aldering View Post
    There isn't any sane reason why a home inspector should pay more than a builder, real estate agent, doctor, or other professional for annual licensing.
    The problem is likey due because many boards must be self-supporting via fees. If there are only 1000 home inspectors the fees must be higher to support even a basic board administration vs. thousands of contractors, agents, or doctors supporting a board.

    I am interested to see how it plays out in NC since they will be operating in the Red within a year or two based on projected fees that can be collected from a diminishing base of inspectors. Still not sure why the board needs an exec director, two investigators, and two office staff year round. Licensing tests are offered 6 days a year. Renewal is once a year so they need a full staff for the month before and two weeks following renewal. The rest of the time they are just collecting a salary and being ornery.

    "The Code is not a peak to reach but a foundation to build from."

  26. #26
    David McGuire's Avatar
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    Default Re: Annual license fees

    Here in Kansas, the registration board, the KSHIRB elected to waive the renewal application fee for 2012. That was a nice gift. They said the fund is sufficient to waive the renewal fee for next year. Hope this isn't where they mess up and then in 2013 it increases.


  27. #27
    Greg Kelly's Avatar
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    Default Re: Annual license fees

    Steve,
    I think British Columbia is the only province so far that requires license and fees. Ontario and Alberta coming soon.

    Greg


  28. #28
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    Default Re: Annual license fees

    Alberta does require a licensing fee. (See my post #8)
    ◦3 or fewer licensed home inspectors is $500
    ◦more than 3 but fewer than 10 licensed home inspectors is $700
    ◦10 or more licensed home inspectors is $900

    An earlier post by Bruce "nailed" it when they indicated the cost distributed over such a small number of licensed (regulated) inspectors. He stated
    "The problem is likey due because many boards must be self-supporting via fees. If there are only 1000 home inspectors the fees must be higher to support even a basic board administration vs. thousands of contractors, agents, or doctors supporting a board."

    Even one admin person assigned strictly to handle home inspectors say salaried at $60,000 with roughly 300 inspectors this still amounts to $200 per inspector alone per year at a minimum. Now factor on the other "stuff" that needs to be included.

    As Bruce noted the key is "self-supporting via fees".


  29. #29
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    Default Re: Annual license fees

    We all understand economies of scale argument, but it has its limits. If there were only 10 licensees, they would be forking out a cool six grand. All of the jurisdictions across the country except Ontario and Québec are smaller and if the argument holds, would have even higher license fees. I'm fairly certain that's not going to happen.
    And so Consumer Protection BC incurs any kind of costs they and only they deem appropriate and simply pass the bill onto the home inspectors.


  30. #30
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    Talking Re: Annual license fees

    State wide priviledge license renewal is $60 yr. - Bruce


    Does this get you out of paying for "city of...." business licenses in every little municipality???

    If so, way worth it...

    We know why you fly: because the bus is too expensive and the railroad has a dress code...
    www.atozinspector.com

  31. #31
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    Default Re: Annual license fees

    Perhaps to cut to the heart of the matter, does the regulation permit for an increase? And if so, is there a defined criteria for such an increase to take place?

    From Bill M220- 2007 .......(BC Regulation)
    Powers and responsibilities of the board

    6 (1) The board is responsible for the licensing of home inspectors under this Act;

    (2) In addition to subsection (1), the board must

    (a) establish criteria for issuing, renewing, failing to renew, suspending or revoking a home inspection licence;

    (b) establish standards for the initial and continuing education of home inspectors;

    (c) adopt a code of ethics and standards of practice for licensed home inspectors; and

    (d) establish standards for acquiring the training and experience requirements of home inspectors.

    (3) The board must publish any standards or criteria established under subsection (2).

    Power to make regulations

    7 (1) The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.

    (2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:

    (a) defining an expression used but not defined in this Act;

    (b) exempting a person from the application of all or part of the Act or establishing circumstances when all or part of this Act does not apply;

    (c) respecting fees and charges payable for applications or licences under this Act.

    My take there's broad interpretation of what is specified, but the bottom line - the Lieutant Governor in Council MAY make regulation respecting fees and charges applicable under the Act.


  32. #32
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    Default Re: Annual license fees

    Quote Originally Posted by Mike Gault View Post
    State wide priviledge license renewal is $60 yr.

    Does this get you out of paying for "city of...." business licenses in every little municipality???

    If so, way worth it...
    Yes, it is a state wide priviledge license and gets us out of paying fees to every City Of XXX municipality. Most home inspectors were NOT paying fees to every little municipality. One fella was and felt he was always chasing municipalities to figure out how much, when, etc. He found a state law that allowed about dozen state licensed professions to pay a state fee and were except from local fees. He found a lobbist and was able to get the local home inspector association to pay the lobbist to convince lawmakers to add Home Inspectors to the list. At the same time, the lawmakers changed the law to not allow any other licenses to be added to the list closing the loophole.

    The few home inspectors who had been paying mulitple fees were happy. The rest who were not paying any fees griped the cost of business went up $60 a year. My veiwpoint is that it is a cheap cost to pay to never have to worry about all the little muncipalities.

    "The Code is not a peak to reach but a foundation to build from."

  33. #33
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    Default Re: Annual license fees

    how expensive our canadians paid! The licencing, institution, insurance, continue edu, etc cost me about 5000 annually.


  34. #34
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    Default Re: Annual license fees

    Hi Peter - I hear you and understand.

    Just step back for a few minutes and reflect on the beneficiaries of those requirements. Why is membership and education so expensive?

    Some associations thrive on the financial benefits of mandatory training and expensive continuing education.

    On the insurance front it's mandatory, and somewhat limited to find insurance under $2,000/year.

    I see it as part of the cost of doing business. However, I also believe it can be done more economically, especially for those that are financially challenged. Respectfully not everyone operates in a lucrative or full time marketplace. - Just my POV.

    Regards, Claude


  35. #35
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    Default Re: Annual license fees

    In Maryland it's $400 every two years.


  36. #36
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    Default Re: Annual license fees

    Quote Originally Posted by Scott Patterson View Post
    I think pay $300 every two years for Mississippi and $250 every two years for Tennessee. It is what it is and is just the part of the cost of doing business.

    I also have to pay for mandatory E&O and GL insurance in both states.
    Exactly
    a cost of doing business.
    If the business generated does not generate the fulfillment of the licensing expense....
    time to find a new line of work...


  37. #37
    mitch buchanan's Avatar
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    Default Re: Annual license fees

    In Kentucky, it's $250 per year, although the State inspection board is in the process of trying to lower the yearly fees to $200 per year. There was a deficit in the state budget and the Governor took most of our reserves (over $70,000) to help pay general fund expenses. This was done to most of our state agencies and is legal under "extraordinary circumstances". Due to the removal of most of out reserves, we don't have much of a reserve fund to cover administrative expenses, etc. This type of thing happens when general revenues are down - we feel like this is a tax on home inspectors in our state, so by reducing our licensing fees, there's less $$$ to take away from the our members in "tight" times.


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