(a)The responsibility of those persons who engage in the business of performing independent inspections of improvements in real estate transactions imposes integrity beyond that of a person involved in ordinary commerce. Each inspector must maintain a high standard of professionalism, independence , objectivity and fairness while performing inspections in a real estate transaction. Each inspector licensee must also uphold, maintain, and improve the integrity, reputation, and practice of the home inspection profession. (b) - (d)(No change.) (e)An inspector shall comply with the following requirements. (1)An inspector shall not inspect properties under contingent arrangements whereby any compensation or future referrals are dependent on reported findings or on the closing or settlement of a property. (2)In this section "settlement service" means any service provided in connection with a prospective or actual settlement, and "settlement service provider" includes, but is not limited to, any one or more of the following: (A)Federally related mortgage loan originator; (B)Mortgage broker; (C)Title service provider; (D)Attorney; (E)A person who prepares documents, including notarization, delivery, and recordation; (F)Appraiser; (G)Inspector; (H)Settlement agent; (I)A person who provides mortgage insurance services; (J)A person who provides services involving hazard, flood, or other casualty insurance or homeowner's warranties; (K)Real estate agent or broker; and (L)A person who provides any other services for which a settlement service provider requires a borrower or seller to pay. (3)An inspector shall not pay or receive a fee or other valuable consideration to or from any other settlement service provider for, but not limited to, the following: (A)The referral of inspections; (B)inclusion on a list of inspectors, preferred providers, or similar arrangements; or (C)inclusion on lists of inspectors contingent on other financial agreements. (4)An inspector shall not receive a fee or other valuable consideration, directly or indirectly, for referring services that are not settlement services or other products to the inspector's client without the client's consent. (5)This section does not prohibit an inspector from paying or receiving a fee or other valuable consideration, such as to or from a contractor, for services actually rendered. (6)An inspector shall not accept employment to repair, replace, maintain or upgrade systems or components of property covered by the Standards of Practice under this subchapter on which the inspector has performed an inspection under an earnest money contract, lease, or exchange or real property within 12 months of the date of the inspection. (7)Inspectors shall not disclose inspection results or client information without prior approval from the client. Inspectors, at their discretion, may disclose observed immediate safety hazards to occupants exposed to such hazards when feasible. (f)[(e)] The inspector should make a reasonable attempt to cooperate with other professionals and related tradespersons [tradesmen] at all times and in all manners in a method that is conducive to the promotion of professionalism, independence and fairness to himself, his business, and the inspection industry.
This agency hereby
certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on May 5, 2006
TRD-200602516 Loretta R. DeHay
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: June 18, 2006
For further information, please call: (512) 465-3900
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