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| September 2009 Inspector eNews |
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September 2009 | Archives
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Periodically I receive phone calls from members who want inquire about the “ethics” of a situation or are planning to expand or make changes to their business. They want to make sure they are operating within the ethical standards set by CREIA. I have respect for those who which to maintain a high ethical standard and want to make sure they are in full compliance with the CREIA Code of Ethics. Most everyone, at some time needs some clarification or advice before they “tweak” their business plan. I recall calling Neal Muckler a time or two when he was at the ethics helm. I just wanted to make sure I was on the right track and wanted his input. One question has come up a few times in the last month or so. It relates to the section in the Code of Ethics which states that inspectors shall not, “Inspect for a fee any property in which the inspector, or the inspector’s company, has any financial interest or any interest in the transfer of the property.” Let me construct a typical situation. The inspection business has been tight for the last few years and there is need for additional income. The inspectors spouse obtains or reactivates their Realtor® license. Is it ethical to inspect a property for the client of my spouse? Let me ask a key question, “Do you have any financial interest or any interest in the transfer of the property?” If the sale of the house is completed your spouse would receive a commission. You then would have a financial interest in the transfer of the property. It therefore would be improper and a violation of the Code of Ethics to inspect the property for the client of your spouse. You may be totally objective in your inspection, but the question of financial interest remains. Let’s change the scenario slightly. Let’s say your spouse is the broker in a real estate office. Is it ethical for you to inspect a property for the buyer or seller of an agent in the office? The same question applies, “Do you have any financial interest or any interest in the transfer of the property?” If the sale is completed, the agent receives a commission. However, as the broker of the office, your spouse also receives income in the form of a “commission split” from the sale of the property. You now have a financial interest in the close of the property. It too would be improper and a violation of the Code of Ethics for you to inspect any property for which your spouse receives income. I am reminded of a phrase in a speech made by President Kennedy when speaking of the space program and the goal of landing on the moon. He said, “We choose to go to the moon. We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard, because that goal will service to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win….” We abide by a Code of Ethics not because it is easy, because that is what is required to maintain the highest ethical standard. We are often frustrated by inspectors and inspector associations which are not willing to take the high road, and who are willing to take “ethical shortcuts”. Adhering to our high ethical standards measures our level of integrity. I trust for us it is a challenge we are “willing to accept”. Submitted byDavid Pace, CREIA MCI, Ethics Chair
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Congratulations! New Candidates James Murphy New CCIs Denis Hobson New MCI Colleen Brand
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September 2009 | Archives
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Periodically I receive phone calls from members who want inquire about the “ethics” of a situation or are planning to expand or make changes to their business. They want to make sure they are operating within the ethical standards set by CREIA. I have respect for those who which to maintain a high ethical standard and want to make sure they are in full compliance with the CREIA Code of Ethics. Most everyone, at some time needs some clarification or advice before they “tweak” their business plan. I recall calling Neal Muckler a time or two when he was at the ethics helm. I just wanted to make sure I was on the right track and wanted his input. One question has come up a few times in the last month or so. It relates to the section in the Code of Ethics which states that inspectors shall not, “Inspect for a fee any property in which the inspector, or the inspector’s company, has any financial interest or any interest in the transfer of the property.” Let me construct a typical situation. The inspection business has been tight for the last few years and there is need for additional income. The inspectors spouse obtains or reactivates their Realtor® license. Is it ethical to inspect a property for the client of my spouse? Let me ask a key question, “Do you have any financial interest or any interest in the transfer of the property?” If the sale of the house is completed your spouse would receive a commission. You then would have a financial interest in the transfer of the property. It therefore would be improper and a violation of the Code of Ethics to inspect the property for the client of your spouse. You may be totally objective in your inspection, but the question of financial interest remains. Let’s change the scenario slightly. Let’s say your spouse is the broker in a real estate office. Is it ethical for you to inspect a property for the buyer or seller of an agent in the office? The same question applies, “Do you have any financial interest or any interest in the transfer of the property?” If the sale is completed, the agent receives a commission. However, as the broker of the office, your spouse also receives income in the form of a “commission split” from the sale of the property. You now have a financial interest in the close of the property. It too would be improper and a violation of the Code of Ethics for you to inspect any property for which your spouse receives income. I am reminded of a phrase in a speech made by President Kennedy when speaking of the space program and the goal of landing on the moon. He said, “We choose to go to the moon. We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard, because that goal will service to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win….” We abide by a Code of Ethics not because it is easy, because that is what is required to maintain the highest ethical standard. We are often frustrated by inspectors and inspector associations which are not willing to take the high road, and who are willing to take “ethical shortcuts”. Adhering to our high ethical standards measures our level of integrity. I trust for us it is a challenge we are “willing to accept”. Submitted byDavid Pace, CREIA MCI, Ethics Chair
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Congratulations! New Candidates James Murphy New CCIs Denis Hobson New MCI Colleen Brand
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