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February 5, 2024 13 mins

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Could Ohio's real estate market be on the verge of a significant shift? That's the question Jim and the office goddess Laura wrestle with in a candid discussion on the latest from the home inspector board meetings. As we peel back the curtain, we examine the contentious proposal for additional Continuing Education (CE) credit for in-person classes and dissect why some board members, including ourselves, are raising eyebrows. The meat of the discussion, however, centers on the ethical quagmire of sharing home inspection reports with non-clients, a practice that could be in for a rude awakening under new licensing laws.

Amidst the routine yet critical rule revisions and CE chatter, the podcast takes a sharp turn into the legal labyrinth of home inspection reports. Breaking down the implications for professional responsibility and client confidentiality, we shine a spotlight on why home inspectors are up in arms about their work being passed around like a hot potato. Listen as Laura brings her characteristic insight to the ramifications of such practices, not just for inspectors but for the unsuspecting buyer B who might be getting more than they bargained for. This episode isn't just a mere discussion; it's a call to attention for anyone with a stake in Ohio's real estate game.

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Episode Transcript

Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Welcome to the Standing Out in Ohio podcast,
where we discuss topics,upcoming events, news and
predictions with real estateprofessionals and entrepreneurs.
Listen and learn what makestheir companies and themselves
stand out and gain advantagesover the competition and gain
market share.
Subscribe for the latest newsand discussion on what it takes

(00:23):
to stand out from the crowd.
Now here's your host, jim.

Speaker 2 (00:30):
Hey everybody, welcome to the Standing Out in
Ohio podcast.
This is Jim, and with me, ofcourse, is the office goddess
Laura.

Speaker 3 (00:38):
Hello everybody.

Speaker 2 (00:40):
All right, Laura was not with me.
I went to the home inspectorboard meetings last week and
normal stuff looking for rulechanges, adjusting things, CE
requirements that was mentioned.

Speaker 3 (00:55):
Yes.

Speaker 2 (00:56):
Some group wanted extra.
It's your time.
Yeah, I'll talk about this, andwe're talking about sharing
reports.
That was discussed at the boardmeeting.
But first let's listen to this.

Speaker 4 (01:09):
Habitation investigation is the way to go
For a home inspection in Ohio.
You trusted license homeinspectors for your needs, from
rate on to more to warrantiesFor a great home inspection you
really can't go wrong.

(01:30):
Visit home inspections inOhiocom.

Speaker 2 (01:34):
All right, Laura.
So board meeting what was to mewas funny was there for CE, for
home inspectors.
Some group wanted, apparentlyhaving trouble with their online
classes not many peopleattending or they're losing
control of the class becausethere are so many just online or

(01:55):
in person?

Speaker 3 (01:56):
online Okay.

Speaker 2 (01:58):
They were losing, like losing control, because
they go on tangents and not comeback on time to go get through
everything.
So, anyway, what they werewanting was the inspectors If
you attended an onsite class,you would get extra CE hour.
You know time credit for beingan online being in a personal

(02:19):
class, which which I didn't.
I didn't agree with that.
I don't think the board membersliked that either, because how
can you give somebody an extrahalf hour because they showed up
even though they're notspending an extra time?
So that's not going anywhere.
I thought that was silly.

Speaker 3 (02:34):
That's very silly.

Speaker 2 (02:35):
To me that was an instructor that doesn't have
control of the class If they aregetting off topic and they
can't bring it back to get thecourse material done on time
that is a problem.

Speaker 3 (02:45):
So, but so what was the next thing that was
discussed then?

Speaker 2 (02:50):
The next thing that was discussed was the sharing of
home inspection reports withsay, you got the client a, is
the home buyer or property buyer?
Whatever they're buying it,they have an inspection done.
They don't buy it.
It could be a praise orwhatever reason appraisal

(03:10):
financial fell through conditionhouse.
It doesn't matter Buyer a dropsout, some agent gives the
report to buyer B and they andit says hey just use here.
Here's your report.
Just use this.
That was discussion about ifthat should be done, because

(03:31):
nobody really no home inspectorlikes that being done.

Speaker 3 (03:35):
Well, and not only that, but that client has
absolutely no signed agreementwith the home inspection company
.

Speaker 2 (03:42):
Hold on, hold on.
We'll get into all thedifferent liabilities with this,
but no home inspector wantstheir report being used to other
people who are not theirclients, for lots of reasons.
Lots yes, so it was kind ofdiscussed.
Well, that's kind of like ait's been commonly done for
years and years and that allthat changed.

(04:08):
It's never been liked that ithappens from home.
It's always hated that.
But when the home inspectorlicensing came about, now
there's confidentiality Withinthat law, within that law,
within the whole licensing thing.
Yes so what has happened withthat is Now, if it is shared,

(04:32):
you have on that report is thefirst client's name being given
to Some buyer B.
Now you're breachingconfidentiality right with their
name.
That's also breakingconfidentiality.
Is that that information in thereport is Owned by the

(04:53):
inspection company we own that?
Yes the buyer, the firstoriginal client has has paid for
access to that.
We owe it's copy.
It's automatically copyrightedbecause it's creating.
Know you don't need to gothrough some legal process, it's
already done.
It's, it's, it's all it's.

Speaker 3 (05:11):
Whoever the inspector is, and in the inspector
licensing law it specificallystates that client has to give
permission For anybody otherthan their agent to have that
report.
Yes and the only way that anInspection company can do
anything for, like, say, theseller, is if it impacts their

(05:31):
health and safety.
So like, if we're doing aninspection and we see that the
the furnace has somethingdisconnected and it's allowing
carbon monoxide in, we can calland tell the listing agent hey,
they need to get this fixed.
But that's as far as we can go,because that's a health and
safety issue.

Speaker 2 (05:48):
Yeah, a serious one right.
There's like law if you got,your steps are not the same
height.
That's the safety thing of myart, that's not a major, for
you're not gonna go in mercy,change height of your step
risers, not gonna change that,but you understand so.
But talking about this, if youwere a insurance company, an

(06:12):
Errors and admission company,which all home inspectors in
Ohio are supposed to have, youknow insurance or we can't be
licensed.
Have you know as well.
All right, I've known how muchthey they pay.
I've heard long time agothere's a lot less, what almost
much is paying.
Oh, I'm sure a lot less maywayBrokers maybe a little different
point, what they they've had topay, but I highly doubt any you

(06:37):
know insurance company will goyes, we will, we will cover Any,
come you know what complaintsthat a person may be, even
though they were not the signyou know.
Client with the home inspectioncompany had our insurance.

Speaker 3 (06:55):
So if a real estate agent gives client a's report to
client B, client B moves in and, let's say, the home inspection
company had a conversation withclient a that client B didn't
know about, and so subsequentlywell, client B didn't have that
information the real estateagent said here you go.
This, this is good.

Speaker 2 (07:17):
Here's how that happens.
We inspected a couple housesWell I should say buildings
recently which we had a roofingcompany Check out the roof
because it was such a high roofand they know they needed
repairs.
So the the client, our clienthad a roof for company roofing
company come and do thatInspection on the roof because

(07:39):
they wanted bids automaticallyto fix it.
There's nothing in our reportabout that roof other than see
the roofing report.

Speaker 3 (07:50):
Very basic information, that is true.

Speaker 2 (07:53):
So if a real estate agent takes that report, gives
it to new buyer B who has nocontractual obligation or
agreement with any homeinspection company, takes that
report, finds the issues afterthey moved in.

Speaker 3 (08:10):
Which they will, because the roof was leaking.

Speaker 2 (08:12):
If that was the situation, if they try and sue
the inspection company, they arecompletely out of luck, cause
there was no contractualobligation between that
inspection company and thatbuyer B.
However, the real estate agentthat gave that to them is now in
the liability loop of thatCause they cause by giving it.

(08:36):
They're better said here.
You can rely on this report.

Speaker 3 (08:39):
This is okay.

Speaker 2 (08:41):
Yes.

Speaker 3 (08:41):
Now would their ENO cover that?
Because they've given a reportthat wasn't for the original
client to a new client.
I can't see any ENO companysaying, yeah, we'll go ahead and
do that.

Speaker 2 (08:54):
No, I highly doubt they would.

Speaker 3 (08:56):
So then, that real estate agent would be on the
hook themselves for thatfinancially.
Good chance good chance andthat roof estimate was like
80,000.

Speaker 2 (09:06):
That one house.
Yeah, 80,000 for the.
It was a huge slate roof and hewanted to replace the slate.
Yes, he did, so that's moreexpensive than average.
But so an agent might give themthis report.
Well, here you can use thisreport instead is taking on that
liability of that, and I doubtthe agents even though would

(09:28):
cover that.
I'm also wondering cause in thestate law agents supposed to
what article of the ethicsthey're supposed to stay with
remain within the role as a realestate agent by providing
inspection report.
They step in outside the role.

Speaker 3 (09:43):
Well, they would be because they would be handing
that report and saying that youcan use this that's not a real
estate agent's rule to hand youan inspection report.
That's a home inspectioncompany.

Speaker 2 (09:53):
And tell you to rely upon it.

Speaker 3 (09:54):
Right.

Speaker 2 (09:55):
Most of us design for a different person.
There also would be breakingconfidentiality if that buyer's
name was still on there.

Speaker 3 (10:02):
And they do have confidentiality clauses also and
their ethics.

Speaker 2 (10:06):
Yes.
Now here's my thought, thoughif, even if they take the
buyer's name and scratched itout, blacked it out, it's still,
it's not their property to sendRight that report, so it's
still breaking privacy,confidentiality could be civil
penalties for that, I'm sure.
I'm sure that if the agent didthat and their insurance found
out about it probably Jack ofthe UNO insurance- oh, I would

(10:30):
guarantee that yeah.
Probably if the UNO has beenany money defending a real
estate agent or a home inspector, they jack up their UNO.

Speaker 4 (10:37):
The next year.

Speaker 2 (10:39):
Yep, so that was the big thing that was discussed in
the board meeting.

Speaker 3 (10:44):
So what were they talking about doing then at the
board meeting, cause I did missit.

Speaker 2 (10:48):
Here's how it went.
The board is like while we, asthe home inspector board, have
no control of the real estateagents, if they do it Cause they
can't, they can't say, hey, youagent, have to stop it.

Speaker 4 (11:00):
Right.

Speaker 2 (11:00):
They have no control over that.
So what's going to happen?
I can't think what real estatecommittee.
There's some meeting coming up.
I can't think of the name of it.
I got written down somewhere.
They're going to try and bringthat up for the next meeting
they have with the agents.

Speaker 3 (11:14):
Oh, okay.

Speaker 2 (11:15):
So and you talked to our UNO and we're waiting to get
a response from him whether ornot they would ever ever
consider covering somebody whohad no agreement with the
inspection company.
I kind of doubt, cause I can'timagine any of them going yeah,
I'll do this job and I'll payanybody in the world who has a

(11:36):
problem with it.
No, it is specifically for thisagreement.
This report is for this client,that's it.
We're not opening up to theworld and I show I surely doubt
UNO company would ever want todo that it wouldn't make any
financial sense to them to dothat.
Yep, Well it commands healthinsurance going.

(11:57):
Yes, we will cover your family,but if for some reason you want
, we'll cover any other familymember who's outside your family
.

Speaker 3 (12:05):
We'll cover your cousin's brother, sister's
husband, and it's not a problem,that's not going to happen.

Speaker 2 (12:08):
So anyway, that was the big thing from the home
inspection board meeting.

Speaker 3 (12:14):
So expect some developments on that one and
keep tuned.

Speaker 2 (12:17):
Yeah, well, that was the first board meeting they've
had in a while.
Yes, it was.
They canceled one because ofweather and I think they're
doing, I think they can do themonce a quarter.
So if you cancel one, it's likesix months between meetings.
So, it's been stupid long.

Speaker 3 (12:32):
I think the next one's in April, so we should
have an update in April then.

Speaker 2 (12:35):
Yes, hopefully, I'm hoping for some reason.
I'm thinking March is the realestate agent meeting, whatever
that is.

Speaker 3 (12:45):
That's what they're going to do, so hopefully I'll
have, so that's good timing thenyeah, I want to go to that.

Speaker 2 (12:48):
It's the same room as a board meeting.

Speaker 3 (12:50):
Oh, okay.

Speaker 2 (12:51):
For home inspectors.

Speaker 3 (12:52):
so oh, so we're going to go to that one.

Speaker 2 (12:55):
If you're available.

Speaker 3 (12:56):
Yeah, let's go to that one.

Speaker 2 (12:57):
If we're there.

Speaker 3 (12:58):
We'll find out.
We'll have an update for you inMarch too.
Yep so all right, I think thatis it All right?

Speaker 2 (13:05):
everybody take care.
Bye-bye, Bye.

Speaker 1 (13:09):
You've been listening to the Standing Out in Ohio
podcast.
Be sure to subscribe on Spotifyor Google podcast to get new,
fresh episodes.
For more, please follow us onInstagram, Twitter and Facebook,
or visit the website of thebest Ohio home inspection
company athomeinspectionsinohiocom or
jimtrophcom.

(13:29):
That's J-I-M-T-R-O-T-H andclick on podcast Until next time
.
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