The Board's rules at AA.C. R4-30-301.01(B)(1) provide that Certified Home Inspectors shall not ''pay or receive, directly or indirectly, in full or in part, a commission or compensation as a referral or finder's fee." Questions have been brought forward regarding whether the Board considers the participation by Certified Home Inspectors in preferred vendor or similar programs with real estate companies, offices, agents or brokers, when compensation is paid by the Certified Home Inspector to the real estate entity, as violating this rule. This substantive policy statement is offered as guidance to persons interpreting this rule.
This substantive policy statement is advisory only. A substantive policy statement does not include internal procedural documents that only affect the internal procedures of the agency and does not impose additional requirements or penalties on regulated parties or include confidential information or rules made in accordance with the Arizona Administrative Procedure Act. If you believe that this substantive policy statement does impose additional
Requirements or penalties on regulated parties, you may petition the Agency under Arizona Revised Statutes§ 41-1033/or a review of the statement.
Arizona Administrative Code Section R4-30-301.01(B)(1) prohibits a Certified Home Inspector from paying real estate companies, offices, brokers, and/or agents for, or providing compensation to them, even in an indirect manner, in order to obtain a referral for home inspection business. Many real estate companies, offices, brokers, and/or agents have established programs under various names, (e.g.: ''preferred vendor," "approved vendor,"
"marketing services agreement (MSA)," "marketing partner,") in which the home inspector makes a financial payment to the real estate entity to be included on a list of recommended inspectors, preferred providers, MSA providers, or part of a similar program.
The Board believes that payment by Certified Home Inspectors to real estate entities or other parties who have a financial interest in the real estate transaction, in order to be included on a list of recommended inspectors, preferred providers, MSA providers, or similar program, is at a minimum, an indirect payment for referral of business by the party to the Certified Home Inspector and a violation of AA.C. R4-30-301.01(B)(1).
Filed with the Secretary of State on March 9, 2015.
Arizona Revised Statutes §§ 32-106(A)(5), and -128.
Arizona Administrative Code, Title 4, Chapter 30, R4-30-301.01(B)(1).