Thread: Who issues your State License?

Does anyone know if there is a compliled list of what area of government controls licensing in different states.

In Mississippi it's the Real Estate Commission. In Arkansas (it use to be) the Secretary of States Office...not sure today.

Gary Smith

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Texas Real Estate Commission (TREC - pronounced trick)

Hi Gary,

EBPHI has put together all of the state listings on this site. It has a short summary of the law and contact information for the agency that is over it.
Home Inspection Exam

In Arkansas you contact Arkansas Home Inspector Registration Board

Thanks Scott, just wondering how many states have their respective real estate commission as the governing body over licensure and enforcement.

ASHI has made it very clear to members that they stronly promote a "no conflict of interest" stance with respect to agents and being involved too closely with the real estate community.

I find it very interesting that ASHI's ideas on this stop when it comes to allowing a state to adopt their SOP and COE. This loose stance has opened the real estate profession to not only govern inspectors but interpret their standards and ethics.

It seems to me that ASHI is speaking out of both sides of their mouth. They say, "Don't appear or even attempt to appear to show a conflict with a realtor." Yet they make their standards and ethics available to states; allowing them to take and be used by the very industry they say stay away from when praticing the inspection profession.

Looks like the purest example of a conflict of interest to me...

Gary,

Did We wake up on the Wrong Side Of The Mississippi Home Inspector Board?

Originally Posted by Gary Smith

Thanks Scott, just wondering how many states have their respective real estate commission as the governing body over licensure and enforcement.

ASHI has made it very clear to members that they stronly promote a "no conflict of interest" stance with respect to agents and being involved too closely with the real estate community.

I find it very interesting that ASHI's ideas on this stop when it comes to allowing a state to adopt their SOP and COE. This loose stance has opened the real estate profession to not only govern inspectors but interpret their standards and ethics.

It seems to me that ASHI is speaking out of both sides of their mouth. They say, "Don't appear or even attempt to appear to show a conflict with a realtor." Yet they make their standards and ethics available to states; allowing them to take and be used by the very industry they say stay away from when praticing the inspection profession.

Looks like the purest example of a conflict of interest to me...

I think many folks have a misconception about the placement of a home inspector board in an agency that also controls the real estate agents, like the Mississippi Real Estate Commission. In MS and a few other states the RE Commission houses The Appraisal Board, The Real Estate Board and The Home Inspector Board. Each board is autonomous and works independently of the other boards. The boards have no interaction between each other.

The head of the Commission is the common denominator, and the individual boards utilize the staff in the commission. It works very well. I served on the HI Board in MS for 4 years and never saw any problems being in the RE Commission. The Real Estate agents do not have any say so on the actions of the Home Inspector Board in MS. The real estate profession in MS does not govern the home inspector board, the MS board is not an Advisory board as many other states have (like TN) Advisory boards are useless and have little to no power. In fact the board positions in MS are filled with only home inspectors. As for other states, I don't have a clue as how they operate with other boards.

The States are free to adopt any SOP they want. Many selected the ASHI SOP because it had become the standard for the profession. Right before I left the MS board we were working on the process of making the standards generic without any reference to ASHI or any other organization. I don't know what happened or if it is still in the works. I do know that the AG said that it would be a lengthy process as it is part of the statute and it would require legislative action.

We are under Illinois' Department of Professional Regulation which also watches over the real estate agents. I've heard of no problems.

Well, actually I have. Since the state is so strapped for cash, our Governor has raided the piggy banks of many state departments and applied the funds else where. From what I understand the monies that inspectors have paid to the state for running the program to oversee us ain't there no more. Heck, it's ok, everyone's honest in our state. The stories you hear about Chicago as well as our former governor being sent to prison are just slanderous lies. I'm sure that where ever the money went it was for a good cause.

Each board is autonomous and works independently of the other boards. The boards have no interaction between each other.

Since you left MS there have been some changes with respect to personell, a new web site, and a new ruling on how long a member may serve and how they can be replaced.

1) The commission has a person hired to serve as the home inspector's clerk. This person is opening mail for the commission and managing office duties that have nothing to do with the home inspection profession. She hardley ever answers her phone.

2)According to MS law the commission is suppose to have a current list of licensed inspectors posted on a web site managed by the commission. The list is there and has not been updated since June of 06. That's 18 months worth of new home inspectors who have been licensed and who do not show on the list as even been licensed, much less whether or not they have been suspended or not.

3)After 6 years under the Real Estate Commission, the board is just this month beginning to adopt a rules and procedure for handling complaints. Why? Because they are piling up on the desk of the clerk.

I have attended each board meeting in 07 and have seen what a puppet the Home Inspector Board is to the Real Estate Commission.

This board is absolutley broke. No money to even pay the clerk...so the Administrator says...and he mentions that the Commission funds our board each and every year and has done so since it's beginning.

I've mentioned and suggested to the Board members both privately and publicly at the board meetings that they make efforts to promote educational semiars, sell products, or raise fees to help bring us in the black. All of the ideas went totally dead. No discussion. Not even a thougth.

It's very clear that the home inspector board is a great way for the Commission to fund their budget. No actions. Keep it simple. Keep it quiet.

I'm aware of the clerical changes, it took me almost a year to get my address changed. Lost the first change request and check. Lost the second change request and check. I was in town on business so I hand delivered the change to Robert Praytor. It was taken care of before I reached the parking lot. When Pam left many things went down quickly. The website is another issue......It has to do with folks not knowing how to do the work and issues with the IT company that designed the site!! Can you say; State Employee with job security!

We had a good system in place for handling complaints, I don't know what happened. When a complaint came in it was given to a board member on a rotational basis to review and then give an opinion as to the next step. Most of the time it went to the AG's office for disposition.

As for money, the MS Home Inspector Board has never been self sustaining. The RE Commission always contributed to the funding of the board. With only a few hundred inspectors that renew every other year, it is just not enough to be self funding. The magic number if I recall for self funding was 425 licensed inspectors in the state.

Also the state raided the RE Commissions accounts to the tune of a few million dollars a couple of times that I sat on the HI board. I'm sure they are still doing this.

The problem with selling items, promoting education seminars, etc is that the Home Inspection Board or the RE Commission would not receive any of the profit that it made. It has to all go into the States general fund. The Commission/Boards do all of the work and the state gets the money! This is how Mississippi and many other states are setup. The fees can't even be raised without changing the statute and this requires legislative action, and that won't happen because of a certain caucus in the legislature that would block any increase in fees as it would be considered to be discriminatory. Yep it is FUBAR!

Even when we had Douglas Hansen come in and present an 8 hour class back in 2005 for all licensed home inspector in the state we had to give everything away. The 8 hours of CE was free, Cokes and Coffee were free, etc. We could not charge due to the way the legislature has set everything up. It is a mess. At that time we did have a budget item that allowed us to put this on, I have no doubt that those funds are no longer in the budget.

It takes a strong person to direct the board, it sounds like they no longer have one or they are just burned out. Perhaps you should throw your hat in the ring to be appointed by the Governor to the board. With the folks you know in the home building community they could help place your name in front of the Governor.

My original question (before I got on a rant about our local situation) was to ask a simple question about how many states that use the division of the government that handles real estate agents (since that is where we seem to get most of the conflict in this business).

Here is my take from the site you sent me earlier.

Alabama - Alabama Building Commission
Alaska - The Department of Commerce, Community, and Economic Development
Arizona - The Arizona State Board of Technical Registration
Arkansas – Secretary of State’s Office
California - California Contractors State License Board
Georgia - Secretary of State, Construction Industry License Board
Indiana - Indiana Professional Licensing Agency
Kentucky - Kentucky Office of Housing, Buildings and Construction
Louisiana - Department of Economic Development
Massachusetts - Office of Consumer Affairs and Business Regulation
Montana - Office of Building Codes and Inspection
Nevada - Department of Business and Industry
New Jersey - State Board of Professional Engineers and Land Surveyors
New York – Secretary of State
North Caroline – Department of Insurance
North Dakota – Secretary of State
Oklahoma - Department of Health, Occupational Licensing
Oregon - Construction Contractors Board
Pennsylvania - Pennsylvania Bureau of Consumer Protection
Rhode Island - RI Contractors' Registration Board
South Carolina - South Carolina Residential Builders Commission
Tennessee – Department of Commerce and Insurance
Virginia - Department of Professional and Occupational Regulation
West Virginia – State Fire Marshall
Wisconsin - Department of Regulation & Licensing




Texas – Real Estate Commission
Mississippi Real Estate Commission
Maryland - State Commission of Real Estate Appraisers and Home Inspectors
Illinois - Office of Banks and Real Estate
South Dakota - Real Estate Commission

So... the answer is 5. These states have elected to put control of licensure and rules making under the real estate profession.

In the great Commonwealth of Massachusetts:
Licenses are required since 5/01/2001 --Issued by :
The Division of Professional Licensure
They work under the "Office of Consumer Affairs and Business
Regulation".
CMR 266 9.03--3 "Registrants shall not knowingly permit a real estate broker or saleperson (as defined in MGL c 112 87PP) to directly recommend his/her services"
This prohibition shall not apply if there is a written contractual agreement or a written agency disclosure between a specific buyer and the real estate broker specifying the real estate broker is acting exclusively for the buyer as a Buyers Broker.

We may be the only state that has this provision!

The new revised CMR 266 should be in effect 1/01/08

Thanks Jack I had left that state out...sorry about that.

I like the idea of not allowing the realtor to get involved. How do you market your business?

Comments?

Originally Posted by Jack Ahern

In the great Commonwealth of Massachusetts:
Licenses are required since 5/01/2001 --Issued by :
The Division of Professional Licensure
They work under the "Office of Consumer Affairs and Business
Regulation".
CMR 266 9.03--3 "Registrants shall not knowingly permit a real estate broker or saleperson (as defined in MGL c 112 87PP) to directly recommend his/her services"
This prohibition shall not apply if there is a written contractual agreement or a written agency disclosure between a specific buyer and the real estate broker specifying the real estate broker is acting exclusively for the buyer as a Buyers Broker.

We may be the only state that has this provision!

The new revised CMR 266 should be in effect 1/01/08

This is only for the listing agent. The selling or buyers agent can recommend whoever they want. I would say that most of the time the buyers have their own agent, so this is a moot point. It sounds and looks good but......

This prohibition shall not apply if there is a written contractual agreement or a written agency disclosure between a specific buyer and the real estate broker specifying the real estate broker is acting exclusively for the buyer as a Buyers Broker.

Scott I think he's saying that the only one that can recommend is an agent who has made a public statement that they are a "buyer's agent"?

Working directly for the buyer...

Am I correct Jack?

Out here in California no license is in place yet been tring to get one passed but to many issues so far..

Originally Posted by Gary Smith

Scott I think he's saying that the only one that can recommend is an agent who has made a public statement that they are a "buyer's agent"?

Working directly for the buyer...

Am I correct Jack?

Not to answer for Jack but,

Now a days, I don't know of any agents that would not have a buyers agreement or contract if they are working with a buyer. This law is really to keep the listing agent from selling their own listing to a buyer and recommending a home inspector who will be easy on the house. If I recall a statistic from my days as a Realtor back in the early 1990's, listing agents who are part of MLS sell about 15-20% of their own listings.

Read some on Active Rain and you'll find lots of agents who don't get the agency agreements signed until it's actually time to make an offer.

They're afraid that they'll lose the buyer if they ask for a contract.

Kind of like home inspectors who don't use an inspection agreement because they're afraid they'll lose the client.

Gary-- I'm good at what I do. Never been to court. Save my clients much money and time. Referrals from past clients--Mortgage/ banks--lawyers--buyers agents.
In a Real Estate transaction, Licensed Home Inspectors may not accept referrals from a selling/listing RE agent. There will be sanctions.
If a "buyers agent" recommends a HI, there should be a written (Buyers Agency)agreement. I have no interest in testing this Comm. of Mass. Regulation. This has been in effect since 5/01/01.
Sellers and sellers representatives may not recommend Mass. Home Inspectors. Licenses could be lost and money could be awarded.