Texas Register

TITLE 22 EXAMINING BOARDS
PART 23TEXAS REAL ESTATE COMMISSION
CHAPTER 535GENERAL PROVISIONS
SUBCHAPTER RREAL ESTATE INSPECTORS
RULE §535.220Professional Conduct and Ethics
ISSUE 09/05/2014
ACTION Proposed
Preamble Texas Admin Code Rule

(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 license holder [licensee] must also uphold, maintain, and improve the integrity, reputation, and practice of the home inspection profession.

(b)The relationship between an inspector and a client should at a minimum meet the following guidelines.

  (1)In accepting employment as an inspector, the inspector should protect and promote the interest of the [his] client to the best of the inspector's [his] ability and knowledge, recognizing that the client has placed [his] trust and confidence in the inspector.

  (2)In the interest of the [his] client and the inspector's [his] profession, the inspector should endeavor always to maintain and increase the inspector's [his] level of knowledge regarding new developments in the field of inspection.

  (3)The inspector should conduct the inspector's [ his] business in a manner that will assure the [his] client of the inspector's independence from outside influence and interests that might compromise the inspector's [his] ability to render a fair and impartial opinion regarding any inspection performed.

(c)The relationship between an inspector and the public should at a minimum meet the following guidelines.

  (1)The inspector should deal with the general public at all times and in all manners in a method that is conducive to the promotion of professionalism, independence and fairness to the inspector's [himself], the inspector's [ his] business and the inspection industry.

  (2) - (3)(No change.)

(d)The relationship of the inspector with another inspector should at a minimum meet the following guidelines.

  (1) - (2)(No change.)

  (3)If an inspector has knowledge of a possible violation of the rules of the Commission [rules of the Texas Real Estate Commission] or [Texas Occupations Code,] Chapter 1102, the inspector should report the possible violation to the [Texas Real Estate] Commission.

(e)An inspector shall comply with the following requirements.

  (1)An inspector shall not inspect a property when [properties under contingent arrangements whereby] any compensation or future referrals depend [are dependent ] on reported findings or on the closing or settlement of a property.

  (2)In this section, "settlement service" means a [ 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 [Federally] related mortgage loan originator;

    (B)mortgage [Mortgage] broker;

    (C)title [Title] service provider;

    (D)attorney [Attorney];

    (E)a [A] person who prepares documents, including notarization, delivery, and recordation;

    (F)appraiser [Appraiser];

    (G)inspector [Inspector];

    (H)settlement [Settlement] agent;

    (I)a [A] person who provides mortgage insurance services;

    (J)a [A] person who provides services involving hazard, flood, or other casualty insurance or homeowner's warranties;

    (K)real [Real] estate agent or broker; and

    (L)a [A] person who provides any other services for which a settlement service provider requires a borrower or seller to pay.

  (3) - (8)(No change.)

(f)The inspector should make a reasonable attempt to cooperate with other professionals and related tradespersons at all times and in all manners in a method that is conducive to the promotion of professionalism, independence and fairness to the inspector [himself], the inspector's [his ] business, and the inspection industry.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 25, 2014

TRD-201404060

Kerri Lewis

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: October 5, 2014

For further information, please call: (512) 936-3092



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