Consulting in texas - InspectionNews

RobertSmith · #1 (**permalink**) 08-26-2008, 06:26 AM

If I don't do residential & commercial inspections, and just consult, would I need any sort of licensing?

Rick Hurst · #2 (**permalink**) 08-26-2008, 06:54 AM

Since your already an inspector, I believe that your wanting to maybe dance around the licensing.

Personally, I think the answer is going to be NO from TREC.

I'd would contact them to find out for sure.

rick

Scott Patterson · #3 (**permalink**) 08-26-2008, 07:26 AM

When I served on the state home inspector board in MS, we use to say this: "If it quacks like a duck, it is a duck".

I'm sure that TREC will say the same. It is not worth the problems that you might get into by simply trying to avoid paying for the new E&O requirement in TX.

Jerry Peck · #4 (**permalink**) 08-26-2008, 08:15 AM

(underlining is mine)

Quote:

Originally Posted by RobertSmith

If I don't do residential & commercial inspections,

Quote:

Originally Posted by Scott Patterson

When I served on the state home inspector board in MS, we use to say this: "If it quacks like a duck, it is a duck".

And, because it does not look like a duck, does not walk like a duct, and does not quack like a duct ... the answer will likely be 'No.', as Rick said.

Also, as Rick said, TREC could answer that for sure.

Nolan Kienitz · #5 (**permalink**) 08-26-2008, 10:33 AM

If you are looking for a 'solution' to get around the E&O requirement to maintain your TREC license ... there isn't one.

I've heard some HIs working a 'deal' with an insurance person to sign off on coverage that is 'masked' as E&O and it is in fact just GL. I'm guessing the boom will drop on everyone in that trail before long.

I'm just waiting on that one.

As Rick noted best recommendation is to contact TREC and verify to keep everything and everyone honest.

Ted Menelly · #6 (**permalink**) 08-26-2008, 10:36 AM

Actually, (you will have to read it yourself) I believe that the inspecting (consulting) and giving your findings in writing to a client about the condition of the property is in fact a home inspection. As you are already a home inspector I do not think I would go that route. If you were not a home inspector, my argument is that you could do consulting and by doing so you still are doing an inspection. That is where that lies. If you are inspecting a property and consulting with a client about your inspection. You are doing a home/building inspection and must have a home inspectors licence.

Personally I think it is bull. Every time I mention it to anyone they keep telling me the same thing. It all comes down to the inspection. After all, you cannot consult on the property unless you inspected it. So that makes you an inspector. That means you have to be a home inspector licensed in the state of TX.

Please read the info in the TREC website. I guess if you never read it and opened a business as a consultant, well, could you be doing anything wrong? I don't see a clear line where the home inspection ends and you don't have to be licensed.

I would love to call myself a consultant. No 3,000 a year for E&O. Use my own forms. No continuing ed etc etc.

Ted Menelly · #7 (**permalink**) 08-26-2008, 10:43 AM

Quote:

Originally Posted by Nolan Kienitz

If you are looking for a 'solution' to get around the E&O requirement to maintain your TREC license ... there isn't one.

I've heard some HIs working a 'deal' with an insurance person to sign off on coverage that is 'masked' as E&O and it is in fact just GL. I'm guessing the boom will drop on everyone in that trail before long.

I'm just waiting on that one.

As Rick noted best recommendation is to contact TREC and verify to keep everything and everyone honest.

Nolan

Now which insurance company did you say that was

Hmm 500.00 a year instead of 3,000 a year. My goodness

Jack Feldmann · #8 (**permalink**) 08-26-2008, 10:47 AM

Like others have said, the buck stops at the State.

I guess if I was on the Board, the first question I would have is: 'What kind of consultant are you?", "What is the scope of your consultation?".

IF your answer was you were an energy consultant, then maybe you wouldn't need to be licensed as a home inspector (not sure, I don't know TX laws). If you were a feng shui consultant, then maybe not too.

I would check with the State before THEY check with you.

Ted Menelly · #9 (**permalink**) 08-26-2008, 10:49 AM

Quote:

Originally Posted by Jack Feldmann

Like others have said, the buck stops at the State.

I guess if I was on the Board, the first question I would have is: 'What kind of consultant are you?", "What is the scope of your consultation?".

IF your answer was you were an energy consultant, then maybe you wouldn't need to be licensed as a home inspector (not sure, I don't know TX laws). If you were a feng shui consultant, then maybe not too.

I would check with the State before THEY check with you.

Energy consultant is cool. You don't need a TREC license for that and you don't have to use their forms or follow their rules. If thats all you are doing!!!!!!!!!

Rick Hurst · #10 (**permalink**) 08-26-2008, 03:07 PM

Consulting would still be giving people advice and that to me would still me a big liability requiring some professional insurance to keep yourself out of court and protect your assets.

Both Jerrys' on board are consultants. I bet they still have some type of coverage to protect them.

I believe in Texas, no matter what, if you give anyone any advice on real estate if its either about the condition, purchasing, or selling, you have to be licensed.

rick

Jim Luttrall · #11 (**permalink**) 08-26-2008, 03:09 PM

Quote:

§ 1102.407. CRIMINAL PENALTY FOR PRACTICING WITHOUT
LICENSE. (a) A person commits an offense if the person does not
hold a license under this chapter and knowingly engages in the
business of real estate inspecting, including performing an
inspection while the person's license is revoked or suspended.
(b) An offense under this section is a Class A misdemeanor.

Quote:

(9) "Real estate inspection" means a written or oral
opinion as to the condition of the improvements to real property,
including structural items, electrical items, mechanical systems,
plumbing systems, or equipment.
(10) "Real estate inspector" means a person who
represents to the public that the person is trained and qualified to
perform a real estate inspection under the indirect supervision of
a professional inspector and who accepts employment to perform a
real estate inspection for a buyer or seller of real property.

See you in court...

Scott Patterson · #12 (**permalink**) 08-26-2008, 03:16 PM

Quote:

Originally Posted by Ted Menelly

Nolan

Now which insurance company did you say that was

Hmm 500.00 a year instead of 3,000 a year. My goodness

$3,000 a year is high. I renewed my E&O ($500,000) with Business Risk Partners in July for around $1,800, this even includes GL coverage for $500K. My rate went down this year about $600.

Ted Menelly · #13 (**permalink**) 08-26-2008, 05:25 PM

Quote:

Originally Posted by Jim Luttrall

See you in court...

Hey Mr Jim

Not arguing with you by any means. I get the same thing out of it myself.

I do believe that an energy consultant is not going to have to be a home inspector. Shoot the cities do energy audits on homes as well as say the electric company. Now they certainly are not home inspectors.

Like I said there has to be a line somewhere.

What about a contractor that inspects the entire home to give someone a full cost of rehab or remodel. Now they are checking everything in that case.

Don't get me wrong but there has to be a limit. TREC cannot be in control of the world of home ownership or remodelling or just a full rehab. All of that requires inspection of all the components to a home.

Ted Menelly · #14 (**permalink**) 08-26-2008, 05:32 PM

Quote:

Originally Posted by Scott Patterson

$3,000 a year is high. I renewed my E&O ($500,000) with Business Risk Partners in July for around $1,800, this even includes GL coverage for $500K. My rate went down this year about $600.

Hey Scott

Its more like 2500 but I think it is to high. When it reaches the half way point on thousands I think of it as the next rounded up thousand. Still ticks me off

Come on guys, how many of you have actually been sued???????????

Now that would be a good poll if it has not always been done.

And for what and how much. I have known a serious amount of inspectors over the years and not any have been sued. Have they paid for a little item here or there. I think a couple but not sued.

Yeah yeah, alls it takes is once. Well make sure when you are at your inspections you are not sleeping!!!!!!!!!!!

RobertSmith · #15 (**permalink**) 08-26-2008, 05:34 PM

Well, let me rephrase.

I want to drop my license.

I don't want to inspect the residential / commercial properties in the entirety anymore.

What I want to do, for example, If a consumer thinks they have a problem with their roof or plumbing or whatever, then I would look at it just that. In other words, I only want to inspect with respect to a component of a home or commercial property. I also want to just get involve in disputes, attorney related stuff.

TREC is clear about the occupant code of inspecting w.r.t to a property as part of a real estate transaction.

Rick Hurst · #16 (**permalink**) 08-26-2008, 05:43 PM

Just curious, why would you want to drop your license? Surely its not just the E&O insurance.

rick

Jerry Peck · #17 (**permalink**) 08-26-2008, 05:45 PM

Quote:

Originally Posted by Rick Hurst

I believe in Texas, no matter what, if you give anyone any advice on real estate if its either about the condition, purchasing, or selling, you have to be licensed.

But what would you have to be licensed in?

As Ted stated "What about a contractor that inspects the entire home to give someone a full cost of rehab or remodel. Now they are checking everything in that case.", I am sure there are restrictions on what "requires" TREC license and what does not.

As I recall (not sure though) it seems to me that you guys posted the language which included wording to the effect that it was a sale or purchase. If not for sale or purchase, then what does TREC have to do with it?

As a licensed General Contractor I can look at what I want and do and say what I want.

As a licensed building code inspector (Standard Inspector - Building, Plumbing, Mechanical, Electrical - Residential and Commercial) I can look at what I want and do and say what I want.

I don't need a "Home Inspection" license.

Now ... *IF* ... if I were doing that to assist in a purchase or a sale ... and they were to rely on my information ... then, yes, I would be doing a "Home Inspection" and would need to be licensed as a "Home Inspector" - whenever that licensing takes effect. BUT ... I do not do those "inspections".

Nolan Kienitz · #18 (**permalink**) 08-26-2008, 06:41 PM

I believe that digging into the TREC verbiage about licensing for 'inspections' relate to the buying/selling transaction of real property. (I believe as noted by Robert Smith a post or two above).

If a contractor 'consults' or 'inspects' a property for a remodel or addition, etc., etc. TREC obviously does not apply.

Almost all of the consultants I know, who do consulting with respect to litigation, expert witness all are still carrying their license (with required insurance) as that is good credibility.

Ted Menelly · #19 (**permalink**) 08-26-2008, 06:53 PM

Quote:

Originally Posted by Nolan Kienitz

I believe that digging into the TREC verbiage about licensing for 'inspections' relate to the buying/selling transaction of real property. (I believe as noted by Robert Smith a post or two above).

If a contractor 'consults' or 'inspects' a property for a remodel or addition, etc., etc. TREC obviously does not apply.

Almost all of the consultants I know, who do consul