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(a) The responsibility of those persons who engage in the business of
performing independent inspections of improvements in real estate
transactions imposes integrity beyond that of a person involved in ordinary
commerce. Each inspector must maintain a high standard of professionalism,
independence, objectivity and fairness while performing inspections in a
real estate transaction. Each inspector licensee must also uphold, maintain,
and improve the integrity, reputation, and practice of the home inspection
profession.
(b) The relationship between an inspector and a client should at a
minimum meet the following guidelines.
(1) In accepting employment as an inspector, the inspector should
protect and promote the interest of his client to the best of his ability
and knowledge, recognizing that the client has placed his trust and
confidence in the inspector.
(2) In the interest of his client and his profession, the
inspector should endeavor always to maintain and increase his level of
knowledge regarding new developments in the field of inspection.
(3) The inspector should conduct his business in a manner that
will assure his client of the inspector's independence from outside
influence and interests that might compromise his ability to render a fair
and impartial opinion regarding any inspection performed.
(c) The relationship between an inspector and the public should at a
minimum meet the following guidelines.
(1) The inspector should deal with the general public at all times
and in all manners in a method that is conducive to the promotion of
professionalism, independence and fairness to himself, his business and the
inspection industry.
(2) The inspector should attempt to assist the general public in
recognizing and understanding the need for inspections, whether the
inspector is selected to perform such inspection or not.
(3) The inspector accepts the duty of protecting the public
against fraud, misrepresentation or unethical practices in the field of real
estate inspections.
(d) The relationship of the inspector with another inspector should at a
minimum meet the following guidelines.
(1) The inspector should bind himself to the duty of maintaining
fairness and integrity in all dealings with other inspectors and other
persons performing real estate inspections.
(2) The inspector should cooperate with other inspectors to insure
the continued promotion of the high standards of the real estate inspection
profession and pledges himself to the continued pursuit of increasing
competence, fairness, education and knowledge necessary to achieve the
confidence of the public.
(3) If an inspector has knowledge of a possible violation of the
rules of the Texas Real Estate Commission or Texas Occupations Code, Chapter
1102, the inspector should report the possible violation to the Texas Real
Estate Commission.
(e) An inspector shall comply with the following requirements.
(1) An inspector shall not inspect properties under contingent
arrangements whereby any compensation or future referrals are dependent on
reported findings or on the closing or settlement of a property.
(2) In this section "settlement service" means any service
provided in connection with a prospective or actual settlement, and
"settlement service provider" includes, but is not limited to, any one or
more of the following:
(A) Federally related mortgage loan originator;
(B) Mortgage broker;
(C) Title service provider;
(D) Attorney;
(E) A person who prepares documents, including notarization,
delivery, and recordation;
(F) Appraiser;
(G) Inspector;
(H) Settlement agent;
(I) A person who provides mortgage insurance services;
(J) A person who provides services involving hazard, flood, or
other casualty insurance or homeowner's warranties;
(K) Real estate agent or broker; and
(L) A person who provides any other services for which a
settlement service provider requires a borrower or seller to pay.
(3) An inspector shall not pay or receive a fee or other valuable
consideration to or from any other settlement service provider for, but not
limited to, the following:
(A) the referral of inspections;
(B) inclusion on a list of inspectors, preferred providers, or
similar arrangements; or
(C) inclusion on lists of inspectors contingent on other
financial agreements.
(4) An inspector shall not receive a fee or other valuable
consideration, directly or indirectly, for referring services that are not
settlement services or other products to the inspector's client without the
client's consent.
(5) This section does not prohibit an inspector from paying or
receiving a fee or other valuable consideration, such as to or from a
contractor, for services actually rendered.
(6) An inspector shall not accept employment to repair, replace,
maintain or upgrade systems or components of property covered by the
Standards of Practice under this Subchapter on which the inspector has
performed an inspection under a real estate contract, lease, or exchange of
real property within 12 months of the date of the inspection.
(7) Inspectors shall not disclose inspection results or client
information without prior approval from the client. Inspectors, at their
discretion, may disclose observed immediate safety hazards to occupants
exposed to such hazards when feasible.
(8) This subsection does not prohibit an inspector from:
(A) engaging in legal promotional or educational activities to
or with settlement service providers that are not conditioned on the
referral of business; or
(B) purchasing advertising and promoting the inspector at market
rates from any person in any publication, event or media.
(f) The inspector should make a reasonable attempt to cooperate with
other professionals and related tradespersons at all times and in all
manners in a method that is conducive to the promotion of professionalism,
independence and fairness to himself, his business, and the inspection
industry.
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