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cstone55
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Joined: 08/01/2018 06:56 PM EDT
Messages: 1
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I'm new to the business and have started dropping off cards around real-estate offices in my area, to be expected every office had Inspectors advertisements pamphlets and cards etc. Here is my question I walked into one office that had a billboard with a list of affiliated partners, loan services, interior designers etc. A home inspector was on that list, is this legal? I thought that was a no no. I'm from Texas. Don't get me wrong I'd love to be that guy that has his name right next to KW, but the realtors should not be promoting for the inspector like this or am I wrong?
Nathan
King
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Joined: 06/17/2014 09:32 PM EDT
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Location: Carmel, IN
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Not illegal. Just can't pay for a referral. So no quid pro-quo so to speak. (i.e. "I'll pay your office $30 for every inspection I do") You can pay an advertising fee.

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jeff32@satx.rr.com
Maverick

Joined: 12/05/2014 10:07 AM EST
Messages: 87
Location: San Antonio, Texas
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Yeah a real gray area, there has been law suites (Caldwell bankers, etc) as well as several out of court settlements in Texas over this crap. Why market to realtors??? Live by the realtor die by the realtor, you should direct market so your not dependent on someone else to supply you work.

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hmilesphi
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Joined: 09/16/2018 07:46 PM EDT
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Location: South Carolina
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It's not uncommon here for an agent to provide a list of home inspectors and then the buyer will tell the agent just to choose one and the agent will call the one they prefer and handle all the arrangements.

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jeff32@satx.rr.com
Maverick

Joined: 12/05/2014 10:07 AM EST
Messages: 87
Location: San Antonio, Texas
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Oh its common, its also common for the agent and inspector to get sued. Only an idiot realtor would assume such liability. At least for lots of inspectors there is enough idiots to go around.

Proven Experience
Adams Home Inspection is the right choice !!!

18 + years experience
TREC Lic #3813
Certified Applicator #0557483
Pest Control Business #12101
NAWT #61921TC
FHA/HUD Lic # H717
25 + years of construction experience
Adjunct Faculty San Antonio College
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Nathan
King
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Joined: 06/17/2014 09:32 PM EDT
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Location: Carmel, IN
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jeff32@satx.rr.com wrote:Oh its common, its also common for the agent and inspector to get sued. Only an idiot realtor would assume such liability. At least for lots of inspectors there is enough idiots to go around.



That is indisputably, statistically false. The liability is incredibly low and actually has shown to be lower when the agent refers a single inspector.

P. Nathan Thornberry
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jeff32@satx.rr.com
Maverick

Joined: 12/05/2014 10:07 AM EST
Messages: 87
Location: San Antonio, Texas
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list your statistics, i have 4 court cases right now so frankly it would be hard to believe what your selling here. I know you peddle this type marriage between the inspector and the agent but it does tie the agent and the inspector together in the courts eyes. Hey you think maybe thats why so many policies have a referral policy attached to the E&O or is that also incorrect??? lol

I cannot even begin to tell you how many court cases ive seen or been the expert in but it is a lot.

Proven Experience
Adams Home Inspection is the right choice !!!

18 + years experience
TREC Lic #3813
Certified Applicator #0557483
Pest Control Business #12101
NAWT #61921TC
FHA/HUD Lic # H717
25 + years of construction experience
Adjunct Faculty San Antonio College
Experienced Arbitrator

Http://www.adamsinspectionservice.com
Http://www.proinspector.net
https://www.facebook.com/pages/Adams-Home-Inspection/151468024893792
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Nathan
King
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Joined: 06/17/2014 09:32 PM EDT
Messages: 5187
Location: Carmel, IN
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jeff32@satx.rr.com wrote:list your statistics, i have 4 court cases right now so frankly it would be hard to believe what your selling here. I know you peddle this type marriage between the inspector and the agent but it does tie the agent and the inspector together in the courts eyes. Hey you think maybe thats why so many policies have a referral policy attached to the E&O or is that also incorrect??? lol

I cannot even begin to tell you how many court cases ive seen or been the expert in but it is a lot.



I can't speak to your statistics on a micro local level, but we're involved in over 20% of real estate transactions so our position is not an opinion or based on some very limited number of experiences. Further, we have full access to Lexis Nexis and can search these largely non-existent cases.

The problem with taking your localized and limited experience and making blanket statements is that it scares people over a boogie man that doesn't exist.

P. Nathan Thornberry
www.Nathan.tv
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mikejones4
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Joined: 04/06/2020 08:39 PM EDT
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I've found myself getting a few calls a year from big realty firms like KW, Remax, etc. about being on their """preferred""" vendor list, for a mere +$500 a year. Sounds outrageously corrupt, but I guess that's legal. Glad to know it's been going on for a while.

https://ensureinspections.com/
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JohnMetz
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Joined: 10/24/2020 05:33 AM EDT
Messages: 2
Location: Los Angeles
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Nathan wrote:Not illegal. Just can't pay for a referral. So no quid pro-quo so to speak. (i.e. "I'll pay your office $30 for every inspection I do") You can pay an advertising fee.


I also agree with you!

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idnpoker988poker
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Joined: 10/26/2020 12:37 PM EDT
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jtroth
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Joined: 06/18/2014 10:11 PM EDT
Messages: 139
Location: Columbus Ohio area
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Nothing illegal about it. I would look at the ethics of the agents involved. If a small agency asking for it and they "feel slimy" stay away. With larger agencies there will be a mix of course of various ethical values, most will be good. Negotiate the offer and see if it fits for your company.

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