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 05/13/2005
ACTION Proposed
Rule Withdrawn: 06/14/2005
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 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 requirements [guidelines].

  (1) - (3) (No change.)

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

  (1) - (3)(No change.)

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

  (1) - (3)(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)An inspector shall not directly or indirectly pay a fee or other valuable consideration to any person for the referral of inspections.

  (3)An inspector shall not receive a fee, compensation or other valuable consideration for an inspection in a real estate transaction from more than one party without the consent of the inspector's client.

  (4)An inspector shall not accept a fee or other valuable consideration in a real estate transaction, directly or indirectly, for recommending contractors, services, or products to the inspector's client or other parties having an interest in inspected properties.

  (5)An inspector shall not 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 of real property within 12 months of the date of the inspection.

  (6)Inspectors shall perform services and express opinions based only within their areas of education, training, or experience.

  (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 April 27, 2005

TRD-200501732

Loretta DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: June 12, 2005

For further information, please call: (512) 465-3900



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