Arizona BTR backs InterNACHI's position opposing Conciere programs.
August 18, 2004.
The Arizona State Board of Technical Registration recently came out in support
of InterNACHI's position opposing Concierge programs.
[i] HOME INSPECTOR PREFERRED VENDOR OR SIMILAR PROGRAMS
The Board’s rules at A.A.C. R4-30-301-.01(B)(1) provide that Certified Home
Inspectors shall not “pay to receive, directly, or indirectly, in full or in part,
a commission or compensation as a referral or finder’s fee.” Questions have been
brought forward regarding whether the Board considers the participation by Certified
Home Inspectors in preferred vendor or similar programs with real estate companies,
offices, agents, or brokers, when compensation is paid by the Certified Home Inspector
to real estate entity, as violating this rule. The substantive policy statement
is offered as guidance to persons interpreting this rule.
This substantive policy statement is advisory only. A substantive policy does
not include internal procedural documents that only affect the internal procedures
of agency and does not impose additional requirements or penalties on regulated
parties or include confidential information or rules made in accordance with the
Arizona Administrative Procedure Act. If you believe that this substantive policy
does not impose additional requirements or penalties on regulated parties, you
may petition the Agency under Arizona Revised Statutes 41-1033 for review of the
statement.
Substantive Policy Statement
Arizona Administrative Code Section R4-30-301-01(B)(1) prohibits a Certified
Home Inspector from paying compensation, even in an indirect manner, in order
to obtain a referral for home inspection business. Many real estate companies,
offices, brokers and/or agents have established programs under various names (i.e.
“preferred vendor”, “approved vendor”, “marketing partner”) in which the home
inspector makes a financial payment to the real estate entity to be included on
a list of recommended inspectors, preferred providers, or part of a similar program.
The Board believes that payment by Certified Home Inspectors to real estate
entities or other parties who have a financial interest in the real estate transaction
to be included on a list of recommended inspectors, preferred providers, or similar
program, is at minimum an indirect payment for a referral of business by the party
to the Certified Home Inspector and violates A.A.C. R4-30-301-01(B)(1)
Filed with the Secretary of State 1-16-04[/i]
