From The Desk of
Arthur S. Lazerow
The ninety-day American Home
warranty, which is provided to all
Alban home inspection clients as
part of the Brinks alarm system alliance, complements and
supplements the more common full-year real estate warranty. These
are not competing products. In most cases, the one-year warranty
commences with settlement, whereas the American Home warranty (AHW)
should be considered “gap” coverage during the critical period
between the inspection and closing. Consequently, the AHW product
provides protection to our clients when they are not in control
of the property, plus peace of mind during the sensitive time of
home ownership transition.
American Home Warranty’s quarterly newsletter dated September 2006
provided some interesting statistics on claims. These are
illustrative of the type and frequency of problems that are hidden
from view during inspections. Fifty-five percent (55%) of AHW claims
were structural in nature and forty- ive per cent were mechanical
problems. Of the structural claims, 83% were for roof repairs, 14%
were for miscellaneous structural issues and 3% were for garage
doors.
How about this: AHW does more than collect premiums, and I quote “We
like to pay claims… We recognize that another very important value
is realized when claims are paid. For this reason we are pleased
when valid claims are submitted that we can pay, thereby offering
valuable assistance both to the customer and the home inspector. The
claims process present us with the opportunity to support our
partnership with our home inspector clients.” |
THE ASHI CODE OF ETHICS
Important to Clients – Important to Alban
Inspectors |
Too often, home inspectors not affiliated with the American Society
of Home Inspectors (ASHI) advertise that inspections are performed
“in accordance with the standards of practice of ASHI.” These non-
embers claim to comply. ASHI has found, however, that these “me too”
inspectors do not adhere to any code of ethics, and thus clients
have no assurance that conflicts of interests are avoided.
ASHI solved this problem last summer by amending our Standards of
Performance to incorporate the ASHI Code of Ethics, which very
specifically prohibits conflicts of interest. The importance of
ethics to ASHI was succinctly described in an article Marty
Blackwood and I contributed to this summer, which was written by
Sandy Bourseau, editor of the ASHI Reporter.
I have become the contact person between ASHI and the American
Institute of Architects (AIA), a 75,000 member organization, as
compared to ASHI’s 6,000 members. Our first effort was an article
from ASHI, to be published in AIA’s online professional journal,
introducing ASHI and how the architectural and home inspection
industries can be mutually beneficial to clients.
Sandy Bourseau asked three ASHI members who are registered
architects, including Marty Blackwood, our intrepid Alban home
inspector, to contribute. She also asked for my input on where I
envisioned the interface between architects and home inspectors to
exist. As the article developed, more focus was given to ethics than
was originally conceived because of the importance of ethics to both
professions, similar to the focus on ethics these past several years
by the National Association of Realtors. The following speaks for
itself:
“Sharing a commitment to ethics. The goal of a professional society
is to advocate for greater professionalism, education and ethical
conduct within its industry. Both ASHI and the AIA are committed to
requiring that their members |
adhere to the highest standards of
professional and ethical conduct.
Home inspectors must be guided by the interest of their clients.
Conflict of interest is a real and present danger during a real
estate transaction and when a home inspector is called on to do a
general maintenance or special service inspection.
During a real estate transaction, agents/brokers earn their
commission only if the deal goes through. To avoid even the
appearance of impropriety, the ASHI Code of Ethics restricts ASHI
members from participating in preferred provider programs. Illegal
in four states, preferred provider lists are created when inspectors
or inspection companies purchase the right to appear on them;
therefore, the inspectors on the list are referred by the agents or
brokers based on their ability to pay, rather than on the quality of
their work.
Because homebuyers and homeowners may decide to contract for repairs
based on a home inspector’s report, the ASHI Code of Ethics
restricts ASHI members from performing repairs on property they have
inspected for a minimum one year after the inspection.
As a professional who is both an architect and a home inspector,
ASHI Member Martin Blackwood said he’s conscious of this
restriction. “The Code prohibits ASHI Members from using the home
inspection to obtain additional work,” he explained. “The potential
for conflict of interest is obvious when a home inspector is also
a...
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