Understanding Real-Estate Agent Obligations

Now that you have decided on which house to buy, you are left with a couple of decisions. One of them being whether you are going to get the perspective home inspected. For sure your real-estate agent is going to ask you to have an inspection done. This is almost always positioned as being in your best interests. And it is. You should get the perspective property inspected.

For a number of reasons, you may feel that you don't need an inspection. After all, doesn't the current owner have a responsibility to tell you everything that may be wrong with the house? Doesn't the real-estate agent have an obligation to tell you everything about the house? The short answer to both questions is - yes. However, neither the seller nor the agent may know everything that is wrong, or potentially wrong. How many times do you think the owner actually goes into the attic or the crawlspace?

Why Your Agent Wants You To Get A Home Inspection

So you've decided to get the home inspected. Good idea. Your agent will be happy and will probably provide you with a few names of inspectors to call. But lets not get ahead of ourselves. Do you know why the agent wants you to get the home inspected? Typically, the main reasons include:

• it's company policy or part of the standard contract
• it satisfies the real-estate agent's requirement for full disclosure
• it reduces the liability of the real-estate agent and company

Assuming that you get a good inspector, your interests are also protected.

So how do you choose the right (read good) home inspector? You could use the names the agent gave you. Realistically, this is what most people do. You could ask the seller to recommend a home inspector. After all, they have the same requirement for full disclosure. Would you really ask the seller? Not likely. Chances are the seller would provide you the name of someone who would only give a good review of the house. The seller may even recommend a relative. This certainly isn't in your best interest.

Your Agent Is Working For The Seller

Now that you have made it to this point, think about the role of the real-estate agent. Unless you have signed a buyer's agreement with the agent (most people don't), the agent is always working for the seller of the home. Even if he or she has shown you 50 or 100 houses, once you sign an agreement-to-purchase, the agent is working for the seller to get as much as possible for the house. After all, the size of their commission depends on it.

Do you really think the agent wants to jeopardize any of their commission?

By referring two or three inspectors and leaving the final choice up to you, you have reduced the agent's liability because you made the final choice. But the agent is not going to refer any inspectors who will not work with them to "get the house sold". Most inspectors rely on agents for the core of their business, while agents rely on a favorable inspection report to get their commission. You might as well just ask the seller to refer the inspector.

Not All Real-Estate Agents Are Unethical

Not all real-estate agents are unethical, or put the desire for a commission ahead of the best interests of their clients. There are some that really care. However, I have had agents

• ask for referral fees
• tell me how much I should charge for an inspection to get the business
• dissuade clients from using my services
• try to diminish my findings by saying "all the houses in the area are like that" or "it hasn't been a problem yet"
• tell me they never refer home inspectors to clients
• tell me they would never refer so-and-so because he takes too long
• tell me they would never refer so-and-so because he too picky
• tell me it's company policy to only refer certain inspectors

Just as your real-estate agent has no say in which lawyer you use, or which bank you use for your mortgage, your agent has no say in which home inspector you choose. If for any reason your agent tries to control the selection, you should immediately speak to your attorney.

Seacliff Inspections firmly believes the relationship between inspector and realtor creates a conflict-of-interests that compromises professional ethics & integrity, and has chosen to work independently of real-estate agents. There are only four independent home inspectors in Ontario, and Seacliff Inspections is the ONLY Independent Home Inspection Service in Southwestern Ontario serving Windsor, Essex and Chatham-Kent counties.

There may be other inspectors who claim to be independent. What they really mean to say is that they work for themselves and not for a franchise, or the franchise is independently owned and operated. It does not mean they don't solicit referrals from real-estate agents, or that they don't "work" with agents to "help get the house sold".

Visit Independent Home Inspectors Of North America for more information and a complete list of independent inspectors.

Inspected Once, Inspected right™
Certified Home Inspector