WATCHING THE INSPECTORS
In some states, home inspectors aren't licensed - and it's buyer beware
By Rachel Pleasant
NYT Regional Newspapers
Before Lee Myers bought a home in Lakeland, Fla., he did what practically any homebuyer would do - he hired an inspector.
But what Myers soon found out, and what surprised him the most, is that the state of Florida doesn't require home inspectors to carry any sort of license. County rules in his area are minimal as well.
As it turns out, the inspector's report missed a problem in the air conditioning system - a problem not discovered until after Myers closed on the home. So, in the late-summer heat of 2003, a fuming Myers learned one of the hard lessons of home buying.
The detached air conditioning duct, plus the ensuing legal fees, cost Myers $1,500.
In return Myers could only receive a refund of the $225 he paid for his inspection. The agreement released the inspector from any responsibility - a common scenario in inspection contracts.
A lack of licensing standards isn't unusual, according to Jason Bird, spokesman for the American Society of Home Inspectors. Twenty-seven states have some form of regulation. In 1985, Texas was the first to impose standards on the industry.
Inspectors can get certification through certain groups - such as ASHI and the International Association of Certified Home Inspectors. But organizations have different requirements.
Nick Gromicko, executive director of the Pennsylvania-based InterNACHI, said the organization demands that its inspectors pass examinations and complete 18 hours of annual continuing training, in addition to other requirements. Its inspectors are listed on a Web site,
www.FindAnInspector.US. InterNACHI members must retake the organization's exam each year.
``The trouble with the home inspection industry is it's constantly changing,'' he said. ``In the past year, mold became an issue. To have taken an exam many years ago isn't enough. Our exam is a living document.''
Organizations like InterNACHI help inspectors as well as consumers, by keeping them linked, Gromicko said. ``It's a very lonely business. There is almost no camaraderie in the inspection business,'' he said. ``The way we keep connected is to require (inspectors) to pass a home inspection exam every 12 months.''
There's often very little homebuyers can do to protect themselves further should an inspection report be insufficient or incomplete.
Thomas Rutherford, a Lakeland-based real estate lawyer, said hiring a home inspector means accepting some personal liability. Homebuyers should be sure to hire only a home inspector who is bonded and insured, he said.
But Gerald Volden, a Lakeland inspector, said an inspector's insurance is likely to offer only limited protection for a homebuyer. ``It protects you if something turns up missing, like your diamond-studded watch, or if the inspector gets injured, like workers' comp,'' Volden said.
Some home inspectors also carry what's called error and omissions insurance, which acts sort of like medical malpractice coverage, said Ed ``Buzz'' Tarver III of State Farm Insurance. InterNACHI, for example, requires its inspectors to carry this coverage, Gromicko said.
``The home inspector is going to issue a report to the homeowner or potential purchaser, and it will outline areas of concern involving plumbing or wiring or anything else,'' Tarver said, adding that should an inspector miss something that proves to be costly soon after the home is sold, the error and omissions insurance might cover the cost.
Like other types of insurance, error and omissions sets a deductible for home inspectors. That means if an inspector carries a $3,000 deductible, damage caused because he or she overlooked something would have to exceed the deductible before the insurance kicks in at all, Tarver said.
Rutherford said it's not a bad idea to hire an inspector who is a licensed contractor. A contractor's qualification at least ensures an inspector knows a few things about home construction.
After hiring an inspector, homebuyers shouldn't just sit back and wait for a report. Protecting yourself is all about being proactive. Follow your inspector and ask questions. Make sure he or she examines the attic and places where water damage might have occurred - such as under the kitchen sink.
``A seller has a duty to disclose any significant problems, but only if they're known to the seller,'' Rutherford said. ``There's a certain amount of assumption of risk for the buyer. Follow the inspectors.''
Rutherford also advised that homebuyers not merely accept a home inspector's report simply because it's official looking.
``Some of the inspectors are good, and some are worthless,'' Rutherford said. ``They print out a full book and usually you have to read it extremely carefully. It might say you have leakage under the kitchen sink but you could overlook it and never know. They give you a massive volume of worthless paper, but it's very official looking.''
Myers' home inspector was hired through the real estate company that helped him find his home. He admits that if he'd read home inspection language carefully, he would have understood that any chance of recourse was limited.
In the months since last July, when Myers bought his manufactured home for $59,500 and his inspection debacle began, he says he's dealt with a lot of anger and confusion.
Recently, however, the 71-year-old man - who came to sunny Florida from Indiana - has decided to channel his energy into changing the home inspection standards in his state.
``My focus now is altruistic. I'm using my anger and frustration and directing it to licensing house inspectors,'' Myers said. ``A buyer of a house is vulnerable to the inspectors. That's my objective, to get these people licensed.''
Volden himself said the entire business would benefit from tighter standards. ``Right now, the disadvantage is: Guys like us, we find virtually everything that's wrong with a house, but Realtors hate us because it costs them deals, or people hammer them on the price,'' he said. ``I hired an inspector who couldn't find anything wrong with the rental I bought. Then I had a friend look it over and he found 20 things wrong with it, three of which were serious. I opened this business because I got burned.''
