Real estate agents, particularly buyers agents, have a fiduciary duty to their clients to recommend the very best inspectors based solely on merit. Buying a home is a rare occurrence for most people and the agent’s professional recommendations are very much needed and relied upon.

However some inspectors bribe real estate agents to give them good recommendations. These inspectors pay the agents (or their real estate companies) to be on what is often called “preferred vendor lists.” The real estate agents then recommend the inspectors who have paid the most (not necessarily the best inspectors). The agents trick their clients into thinking these inspectors are recommended because they are competent, when in fact the real estate agents are only recommending these inspectors because the inspectors “bought” the agents’ praise.

How can a consumer be sure the agent is fulfilling his/her fiduciary duty and recommending the best inspector based on merit? Several home inspection associations have Codes of Ethics which prevent their members from bribing real estate agents and prohibit participation in preferred vendor schemes. These inspectors do not buy their referrals but instead rely on their own good reputations. Home buying consumers should always check to make sure the home inspector is a member of one of the following trade associations that prohibit participation in preferred vendor schemes:

National Association of Certified Home Inspectors at www.nachi.org

A consumer who is referred to an inspector who is not a member of any of the aforementioned associations can never be sure if the recommendation is based on merit or money.

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