When checking out E7O ins, doesn't anyone but me get upset with this referring coverage that is part of all I have found. It's bad enough that it gives incentive to assure that Re's ins cos will drag us in.

But it seems to me that it legitimizes a relationship that our licensing authorities forbid. It is clear that we are supposed to act in the best interests of our Clients only. Yet we are being forced to buy policies that provide protection for someone who we are not supposed to have a relationship with.

I showed some literature to an RE friend. She looked them over and said "Oh my God. They have just given every sleazy Agent a free pass to search out the worst Inspector they can find. That referring agent thing ought to be illegal. I wonder why we don't have to cover you? "

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The only reason some people get lost in thought is because it's unfamiliar territory.
- Paul Fix

THOM: "They have just given every sleazy Agent a free pass to search out the worst Inspector they can find."

I agree. It's bad to mandate this requirement on the inspector from the sand-point that the inspector recovery fund obviously was working (see surplus funds). But... now we are forced to carry something that is designed to do nothing more than to line the pockets of the ambulance chasers. To add to the full-body-cavity search imposed upon us by this requirement, we will also have to cover the most unscrupulious acts by some of the (realtor) agents, which statistics have shown, are more than 1000:1 more likely to do something unethical than an inspector will.

This is just a bad requiremnt.... anyway you look at it.

Rich

__________________
"If con is the opposite of pro, is Congress the opposite of progress?"
Richard Rushing, HCRI
Duncanville, Tx.

Just thinking out loud here.

We already have PE or SE doing inspections without a TREC license in this state and I provide specialized inspections that are not regulated by TREC.

So what if I gave up my TREC license?
Dropped all association with TREC, ASHI, TAREI, NACHI…
Change the name to consultant or whatever?

Who would or could bust my chops?
Would I really be performing an illegal activity?

Consumers are free to hire or not hire whomever they choose.

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badair http://www.adairinspection.com Garland, TX 75042
Residential-Commercial-Construction-EIFS-Infrared Thermography
life is the random lottery of events followed by numerous narrow escapes

Well, seems to me that they've covered all basis. You cannot act as a Real Estate Inspector for a transfer of Real Property of Residential Property. That's a shame. I know the quality of your inspections, since you kept my business going when I was unable to work.

But, regarding all the specialties you have, AS YET they have nothing to do with them. TDLR might, but they don't.

I really like what I do. I can't afford to take on the State, but I can't in good conscience play along with this. I guess I'll have to give it up and concentrate on specialty areas and litigation third party stuff. This sucks.

Protecting Clients is one thing. Hurting myself is another.

__________________
The only reason some people get lost in thought is because it's unfamiliar territory.
- Paul Fix

I know it's been posted before, but what, exactly, is the wording in Texas which defines "home inspection" and requires "licensing" as a "home inspector"?

And, E70 is, I assume E&O?

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Jerry Peck, Construction / Litigation Consultant
Ormond Beach, Florida
Construction Litigation Consultants, LLC ( www.ConstructionLitigationConsultants.com )

Yes. I try not to have it link, if possible. Under the current circumstances, I would consider it aiding and abetting. Damn, I wish I hadn't just renewed all my advertising for anothr year.

Attached Images

TX RE OCC CODE_2005.pdf (497.4 KB, 29 views)

__________________
The only reason some people get lost in thought is because it's unfamiliar territory.
- Paul Fix

This is an old response from TREC Q&A
"the times they are a changin'"

Q. Is a Texas home inspector required to obtain errors and omissions (liability) insurance?

A. No. Nothing in the statutes or rules that govern home inspectors requires them to carry any type of liability insurance. The Texas Real Estate Commission is required by law to maintain an “Inspector Recovery Fund”. The fund is available to reimburse persons who have suffered actual damage from a licensed inspector’s act or acts in violation of the statutes. The aggrieved person must have successfully sued the inspector in a civil court. See Subchapter H., Sec. 1102.351, of the Texas Occupations Code entitled, “Real Estate Inspection Recovery Fund” for more information. Chapter 1102 of the Texas Occupations Code may be found here: http://www.trec.state.tx.us/formslaw...codes/rela.asp

let's see a show of hands that think the recovery fund collection and disbursement will go away after the changes are made.
taxation without representation

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badair http://www.adairinspection.com Garland, TX 75042
Residential-Commercial-Construction-EIFS-Infrared Thermography
life is the random lottery of events followed by numerous narrow escapes

Now... that would really be a kick in the ballz!!!

Having to have E&0 and have to pay into a recovery fund.

Damn-it Barry!! most of those jack-azzes werent smart'nuff to beat us with the requirement of both. Now, you've done it!!

Where is the nearest bridge???


Rich

Attached Images

bungee_Jumpin1_rr.gif (18.6 KB, 18 views)

__________________
"If con is the opposite of pro, is Congress the opposite of progress?"
Richard Rushing, HCRI
Duncanville, Tx.

Read

Section 1102.001, (8), (9), and (10).

Section 1102.002. Applicability of Chapter, mainly (a).

Section 1102.102 Real Estate Inspector License Required. Also 1102.103. Professional Inspector License Required.

Many ways around it in those sections and definitions.



Texas could become the first "licensed state" with no licensed home inspector and no "unlicensed" home inspectors, yet have plenty of (see Section 1102.002 Applicability of Chapter).

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Jerry Peck, Construction / Litigation Consultant
Ormond Beach, Florida
Construction Litigation Consultants, LLC ( www.ConstructionLitigationConsultants.com )

Texas could become the first "licensed state" with no licensed home inspector and no "unlicensed" home inspectors, yet have plenty of (see Section 1102.002 Applicability of Chapter).
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Jerry Peck
Ormond Beach, Florida

I'm all ears.

What I would really like to do is show them how they cause a conflict of interest if they allow us to have policies with the referring coverage clause.

__________________
The only reason some people get lost in thought is because it's unfamiliar territory.
- Paul Fix

__________________
Jerry Peck, Construction / Litigation Consultant
Ormond Beach, Florida
Construction Litigation Consultants, LLC ( www.ConstructionLitigationConsultants.com )

I'm not seeing a referring clause in the new amendment. Where are y'all seeing that?

All I'm seeing in the actual verbage is (3) offers proof that the applicant carries liability insurance with a minimum limit of $100,000 per occurrence to protect the public against a violation of Subchapter G.

I noticed that Gov. Perry still hasn't signed the bill yet as of today. Not that I'm holding my breath.

I wrote Gov. Perry a long letter back when this happened questioning the conflict of interest in the representative who added the amendment. The rep's family was (or still may be) in insurance and he is currently an advisor for the company that bought his family's insurance agency.

Politicians...

JB, if you look at subchapter G, I think you will see the part of the code that says an inspector can't act in a negligent or incompetent manner (paraphrase). The insurance that would cover this is E & O, not general liability, IMO.


Jerry, I see what you are trying to say (I think) but I doubt a jury would read the statute the way you imply. I could be wrong, but "I" don't want to be the test case. I think the intent of the statute is pretty clear.
JMO
Jim

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Jim Luttrall
Mr. Inspector.net, Inc.
Allen, Texas 75002

Yes, I realize that. Unless some mistake has been made , we will have to purchase E/O or quit. The earlier posts mention that we have to indemnify real estate agents. I don't see that anywhere. I'm wondering if they're seeing that in particular E/O policies because I cannot find it in the amendment.

Thanks,
Bruce

It's not in the amendment. As you are looking for a carrier (appropriate term for an insurwrence company, carrier) you will notice that it is a sales tool. The problem is that so far, I haven't found one that doesn't "offer" it.

Can you say "target?"

__________________
The only reason some people get lost in thought is because it's unfamiliar territory.
- Paul Fix

Hypothetical but I think we can all get the gist of this.

I can see it now. Just like the phone calls that people get from attorneys after an automoble accident accident, it''ll probably go something like this:

New homeowner's phone rings with an attorney on the line:

Attorney:
"Did you have your home inspected prior to purchase?"

Homebuyer:
" Of course."

Attorney:

"Did you realize that home inspectors in Texas are required to carry E&O insurance and that many home inspectors miss crucial repair items during the inspection?

Homebuyer:
"Really?"

Attorney:
"Yes they do and you may be entitled to a settlement. We are offering at no charge to have your home re-inspected by our own inspector to determine if your inspector missed anything. If we find any missed repair issues there will be no charge to you and we can start the leagal proceedings on your behalf for a cut of the settlement."

Homebuyer:
"Wow, thanks Mr. Attorney, you are really looking out for the consumer!"

Of course since the real estate transaction is already over, the attorneys inspector would not be required to carry E&O.

Coincidence??
Cahill has been trying to change the Texas SOP.
Cahill lives in Plano.
Rep. McCall lives in Plano.
Cahill announced, after the bill passed, that he will concentrate on the expert witness testimony business.

Hey Rich S...

Yep. I think that is only a coincidence.

That's kinda like saying that most older folks die in bed... so, the bed is causing older people to die.

Just a coincidence.

As far as EW work goes... well, there will certainly now be one hell of a market for it as opposed to without the E&0 requiremen