16. Referring Tradesmen to Identify and/or Correct Adverse Conditions (Eff. 1/26/2016)

The Board’s rules state that “a certified home inspector shall not pay or receive, directly or indirectly, in full or in part, a commission, or compensation as a referral or finder’s fee,” and “a certified home inspector shall not perform, or offer to perform, for an additional fee, any repairs to a structure that has been inspected by that inspector for the inspector’s firm for a period of twenty-four months following the inspection.”  A.A.C. R4-30-301.01(B)(1)(2).

The Board’s statutes regulate the practice of home inspection.  A.R.S. § 32-122.02.

Substantive Policy Statement

1.  It is the Board’s position that referring tradesman to correct adverse conditions identified during a home inspection does not violate the Board’s Rule A.A.C. R4-30-301.01(B)(1) provided the home inspector has no direct or indirect financial interest in the tradesman or his company, and does not pay or receive, directly or indirectly, in part or in full, a commission, or compensation for referral.

2.  It is the Board’s position that referring tradesman to inspect for adverse conditions beyond the scope of a home inspection, such as a pest control company, does  not violate the Board’s Rules, provided the home inspector has no direct or indirect financial interest in the tradesman or his company, and does not pay or receive, directly or indirectly, in part or in full, a commission or compensation for the referral.  The Board considers the payment of a nominal fee by the referred inspector to the home inspector for the administration costs of scheduling the referred inspection, providing access to the property for the referred inspector, and for any related liabilities, not a violation of A.A.C. R4-30-301.01(B)(1).

3.  It is the Board’s position that a certified home inspector is not prohibited from conducting other businesses, such as a pest control company, when that business is fully licensed according to the rules of the State of Arizona.  The Board acknowledges that the nature of a pest control company, unlike that of the home inspector, is to discover and correct, according to the rules of the Board governing termite inspectors, and therefore the treatment of the property for termites discovered during the termite inspection, is not a violation of the A.A.C. R4-30-301.01(B)(2).

Applicable Laws

Arizona Revised Statues § 32-122.02.

Ariz. Admin. Code R4-30-247 and R4-30-301.01