Consumers For Responsible Home Inspections Dedicated to Consumer Protection
Feb. 28, 2017
Presentation Addendum: Bill-‐59 Sec #1 Again we thank the Committee on Social Policy for their attention and respect shown to the presenters at the Hearings on Bill-‐59. After listening to all the related presentations on days one & two we are compelled to provide a handful more comments: *Independence: The number one “Flaw” in the Home Inspection Industry regarding Consumer Protection is the simple fact that the day-‐to-‐day operation of the Home Inspection industry is controlled by Realtors in the field. Realtors focused on “Making the Sale”. We find it an insult when Realtors boldly state they recommend 3 inspectors. Frankly they could recommend 10. The fact is, regardless of the Inspectors qualifications the unwritten rule for Inspectors remains; “Keep The Realtor Happy If You Want To Stay In Business”. Hence the majority of the Inspection Industry, regardless on their claims of training or education are focused on the needs of the Realtors. (if not they won’t be recommended in the future or even Black Listed) In addition it is our position that the Realtors also have too much control and influence with the Ministry of Consumer Services regarding Bill-‐59 Sec. #1. Hence we are providing this addendum, in part, responding to their presentation. * * * * * * * A/ Energy Audits: It’s no secret that the Realtors adamantly oppose mandatory Energy Audits. Hence their recommending that they become part of Home Inspection is simply self serving. Fully confident that they control the Home Inspection Industry, this way they will also control Energy Audits as well. B/ Number of Inspections: The Realtors reported to the committee that 70% of the homes being sold have Inspections. We are asking for verification of that number as the Inspection industry reports the number is more like 20 – 30%. Seasoned Inspectors understand that the hotter the market becomes the fewer inspections there are. Eliminating the inspection clause is a standard negotiation tool for Realtors, especially during multiple offers. This remains why many will lobby for mandatory inspections.
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C/ Pre-‐Purchase Inspections: Again the Realtors briefly mentioned pre-‐listing inspections. This is another case of “False Security” for consumers. An inspector can follow the current Standards of Practice, which we did talk about in our presentation, and write a totally benign report that makes the house look good when in actuality there are major problems. An Inspection that doesn’t require an Inspector to report on the “Implications” of their findings is of little value to a Consumer. It is our position that Home Inspection clients should always attend the full Home Inspection and ask a lot of questions. D/ Rush – Rush – Rush: The Realtors made a case for how everything has to be Rush, Rush, Rush regarding house sales. Is this really in the best interest of Buyers or is it simply hard handed Bully Sales Tactic’s? It’s our position that a close study will show that the current Home Buying Pricing Frenzy has, for the most part, been orchestrated by the Real Estate industry and their obligation to get sellers the highest possible price. Since 2007 >< we have watch these tactic’s be perfected to the point that bidding wars, warranted or not, make Multiple Offers the norm. Often these tactic’s can be used to avoid the Home Inspection process and keep consumers from making an objective purchase. * It’s our position that every Real Estate Transaction must have a “Cooling off Period of 7 – 12 days for additional Independent Advice. Home Inspector Insurance: It’s our position that, without questions, every Home Inspector must have E & O Insurance. However we caution that an inspectors insurance is Not A Guarantee for the Home Inspection. As was pointed out with the TARION warranty, if a buyer wants to collect on the Inspectors Insurance they must be prepared with the money and stamina to challenge the Insurance Company’s Lawyers when they have just spend all their money purchasing a house. Although E & O Insurance companies will tell you Licencing brings down their claims, it has little to do with quality Inspections. Adding the Governments Sanction of Licencing to both a contract and Standards of Practice that say an inspector is not liable plays a strong role towards “Intimidation”. Inspections Before Major Renovations: (Further response to MPP Jagmeet Singh) This question caught us off guard and resulted in a chunky answer which should have been a simple YES with a better explanation. Many buyers, with good intentions, step into major renovations with no concept of the basic components of a house or the related costs. Many inspectors have story’s about major renovation disasters that failed to deal with costly
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structure and or mechanical issues. I’ve personally been involved in a number of situations in the past year alone were the Buyers ended up loosing the house to the Bank because they couldn’t afford to complete the renovations. Often this leaves the house in questionable condition that the Banks or Mortgage insurer are not required to disclose. Further many buyers don’t understand or respect the need of Permits and Permit Inspections. Licensing in General: History has proven that Licensing, although sounding like the right thing to do, has failed consumers over and over. Story’s from other jurisdictions of having 500 inspectors in the market at the time of licensing and 2,000 a year later are not uncommon. At one point we need a government to understand the implications of doing a Home Inspection. Inspectors passing a single exam and then running through a house in 2-‐3 hours, while supervised by a Realtor, does not provide consumer protection. Consumer Protection: It’s our position that the smoke screen of Mortgage Rates, Ratio’s & Qualification Requirements are simply a smoke screen to keeping the Government from tackling the real issues regarding Consumer Protection and Housing Prices. It’s our position that if the Ontario Government has the courage to deal with our two * Points they will be the North American Leader in making ground breaking Legislation regarding Consumer Protection during the Real Estate Transaction. Respectfully, Bruce McClure RHI, ACI Consumer Advocate Consumers for Responsible Home Inspections
Recommended Legislative Statement !
The Pre-‐Purchase Home Inspection shall be the consumers opportunity for independent advice free from influence or interference by any party or parties that may gain from the purchase / sale / rental transaction
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