Thread: Free Reports Anyone

I sent a message to the Arizona Department of Real Estate asking, What is the position of the ADRE In dealing with realtors giving out old home inspection reports to new buyers that were not a party to the original transaction. They said, The licensing statutes and rules under our jurisdiction do not address the sharing of home inspection reports. The matter you describe can best be answered by private legal counsel.

Thanks,
Frustrated

"If you are reading this inspection report, be warned.
Time has passed and this house needs a fresh inspection,
by someone that knows the place.
And that would be Me."

Originally Posted by Larry Vance

I sent a message to the Arizona Department of Real Estate asking, What is the position of the ADRE In dealing with realtors giving out old home inspection reports to new buyers that were not a party to the original transaction. They said, The licensing statutes and rules under our jurisdiction do not address the sharing of home inspection reports. The matter you describe can best be answered by private legal counsel.

Thanks,
Frustrated

I agree with the State, it is a private matter. I stopped worrying about who see my reports years and years ago.... Realalisticlly little can be done about it and fretting over it is akin to worrying if the sun will rise.

It would be beneficial if everyone did the same thing in their own home State, for clarification purposes (especially Florida...)

Originally Posted by Ian Page

It would be beneficial if everyone did the same thing in their own home State, for clarification purposes (especially Florida...)

And more specifically and especially California ...

This is just part of the business. Here's how I look at it. I have already been paid for my inspection and services. My liability is only with the people that paid for the report. My original client can choose to share or sell the report to anyone, I can not. If some one else uses the report so what, I have no liability to them as they did not hire me.

Originally Posted by Trent Tarter

This is just part of the business. Here's how I look at it. I have already been paid for my inspection and services. My liability is only with the people that paid for the report. My original client can choose to share or sell the report to anyone, I can not. If some one else uses the report so what, I have no liability to them as they did not hire me.

Well Trent that's not strictly true...there are other factors. In any event anyone can sue any one for virtually anything. Doesn't mean that they would be successful and an insurance company may settle to avoid expensive litigation. Just do what ever we can do to limit liability.

Originally Posted by Ian Page

Well Trent that's not strictly true...there are other factors. In any event anyone can sue any one for virtually anything. Doesn't mean that they would be successful and an insurance company may settle to avoid expensive litigation. Just do what ever we can do to limit liability.

You are right I am quite aware of how the legal system works, it's not always fair. However I do not live my life being paranoid about people sharing the report or suing me. Some things are simply not in my control. I personally would never loose sleep about Realtors sharing my report.

Originally Posted by Larry Vance

I sent a message to the Arizona Department of Real Estate asking, What is the position of the ADRE In dealing with realtors giving out old home inspection reports to new buyers that were not a party to the original transaction. They said, The licensing statutes and rules under our jurisdiction do not address the sharing of home inspection reports. The matter you describe can best be answered by private legal counsel.

Thanks,
Frustrated

Larry,

The best answer (and the only one which will stand up in court) is an opinion from the Office of the Attorney General of each state.

Most (if not all) states limit such asking for such Opinions from the Office of the Attorney General to political subdivisions of the state (towns, cities, counties, etc.) and to other state offices and agencies (such as the agency which licenses home inspectors).

The way to get the real and legally defensible answer is to have your licensing board as the Attorney General for an Opinion on any restrictions and legalities for real estate agents, owners, etc., passing reports around to be used by persons not in contract with the inspector, who did not pay for the report, and does not have permission to use the report.

If there is language like that in Oregon, the good money is on the Attorney General issuing an Opinion stating it is not legal. Is California, the good money seems to be on the side of the Attorney General issuing an Opinion stating it is legal and not only is it legal but the home inspector has liability for such unauthorized use of the inspection report. In other states (and in Oregon and California) the Attorney General will research *all* laws and find any which apply, their opinion will be written based on what they find. Their opinion can then be used to support any effort to stop anyone (typically real estate agents) from the unauthorized use of reports done for one client and used for another client.

Should anyone want the real answer, have the home inspectors licensing board ask the Attorney General for their opinion.

I still see a mix up in the posts of not understanding what is being discussed: passing reports around for others to see the report versus passing the report around to a subsequent buyer to use when there is no contractual relationship to the inspector and no money has been paid to the inspector.

A) Does anyone care if their reports are "passed around for people to LOOK AT"? Probably no inspector cares about that as it is free advertising.

B) Does anyone care if their reports are "passed around for people to USE FOR THEIR INSPECTION when they did not pay for the inspection and there is not contract between them and the inspector? I would hope that every inspector would care about that.

Some keep posting that they don't if A) is done ... fine and dandy, BUT ... the discussion is about B). There is a BIG difference between A) and B).

Here is an interesting twist to this question. Do you send a copy of the report to a realtor? Yes, I do if they specifically ask me to, with the client's consent. The agent supposedly needs this info to help in negotiations.

Now that the agent has your report, can they pass it on to a third party? And can you be held liable to that third party? There is no clear answer to that question. It's up to the judge. The implication is that you gave them the report knowing that they might give it to someone else.

Got time to read?
http://www.law.ua.edu/pubs/lrarticle...%201/Marsh.pdf

Originally Posted by John Kogel

Now that the agent has your report, can they pass it on to a third party? And can you be held liable to that third party? There is no clear answer to that question. It's up to the judge. The implication is that you gave them the report knowing that they might give it to someone else.

There is no such implication if, as I suspect most inspectors do, there is a clause in the contract and/or the report which states that the report is for the client's use only, or for the client's benefit only (I just added the underlined part as I am not sure that has been discussed much).

With that in the report, in sufficiently strong enough language, even in California it would be accepted (based on what the appeals court wrote regarding that case).

I will be skimming through your link to see what I find, just have not done it yet.