Holding a Real Estate Licence and Inspection Licence

7 Replies

Hey BP! Does anyone who is a Real Estate agent also hold a Home inspection licence for the same state?

Can you inspect homes you list for sellers and can you inspect homes that your client puts an offer in on?

I could see a lot of benefits to having both and if anyone is out there doing it would love to hear some input on this! 

@Bryce Stclair I cant see why that would be ab issue. My concern is you may be opening yourself up to a lot of liability. its hard enough being a RE agent. i have for 22 years and have sold over 1300 homes. I would not want that monkey on my back. Maybe it will work? check with your realtors association first to be sure it is allowed and there is no conflict of interest.

As a buyer, I would probably see it as a conflict of interest to do both on the same deal.

As a realtor, you want to close the deal, and even though you should be looking out for your client's best interests, you don't get paid until the sale closes.

As an inspector, you're typically pointing out all the reasons that make this deal a bad one. All the things that the buyer will need to spend money on when they move in.

The first time something happens, I'd be wondering if you as the inspector overlooked it to make the deal seem better. Even if you're 110% honest and up front, there will still be questions, maybe hard feelings, and hopefully never litigation/threats/etc.

I think the hardest thing in your position will be letting the inspector do his job and not providing your 'technical' input. :)

Definately a conflict of interest, I would not recommend it. If you want to hold both licenses and essentially have two jobs, that's fine but get your clients for the inspections elsewhere, not from your re clients you represent.

Thanks everyone for your input! I was leaning towards this being a bad idea but wanted to hear other peoples opinions on it.  

Originally posted by @Will Barnard :

Definately a conflict of interest, I would not recommend it. If you want to hold both licenses and essentially have two jobs, that's fine but get your clients for the inspections elsewhere, not from your re clients you represent.

 It is definitely a conflict of interest!  And has a ton of liability and ethical questions attached to it.  Here in Washington, on the application for the Inspector license they ask about RE License.  It's in our SOP (Can't also refer or work on a house inspected for upto 24 months).  I also believe that most of the Inspector National groups frown on the practice. 

you CAN have both...BUT, if you are listing the property then you only need to do an inspection for the seller (having one is a good idea to identify any issues that might come up when a buyer gets one). If you want to do the inspection for the buyer, then it should ONLY be a house that you are not listing (and probably not one in the company you work for...unless you do dual agency). The reason you wouldn't do it for a buyer of a house you listed is that you CAN'T really get the highest price for your client (the seller) while you have an interest in the buyer purchasing the house (ie your commission, both.sides)....all of this would be governed by your state requirements like others have said. Some restrict it, others do not. 

NOW, you BETTER have 2 separate LLC's to protect yourself to a degree. All business should be separate. Additionally, you might find that E&O insurance will be more expensive at the very least if the company will write a policy while you are doing the other. That is a huge consideration. People have already mentioned that you have a large amount of exposure for liability, so DO NOT SKIMP on this part.

I also would write in special stips in the listing allowing the buyers to use any other inspection company they want and language that states each job is a separate thing (this is where a real estate lawyer will help you with that language).

We have companies here in Georgia that own a real estate company and a mortgage company...or an inspection company. You just have to tread carefully and CYA (that lawyer's fees for writing the special stips is more WELL spent).

Good luck.

Charles Jones