Ethics and integrity practice questions

A meritless claim must be defended just as a legitimate one must, and the defense can cost about the same. The two part at the end: a legitimate claim may add a judgment to the legal costs, while a meritless claim ends with none. Nothing in the section says a meritless claim needs no defense or shifts its cost to the client.

A letter from the client's attorney demanding money can come first, but that is uncommon. More commonly, the client first contacts the home inspector to talk about concerns. A home inspector carrying E&O insurance should report that contact to the insurer.

The deductible usually comes due when the claim file is opened. Whatever remains after processing and investigation should go back to the home inspector, but a refund is not to be expected. Nothing in the section moves the unspent amount toward a premium or to the claimant.

Before a trial, litigation often ends one of several ways: a settlement, or arbitration or mediation that the parties enter voluntarily. Of these, only mediation can also be ordered by the court before trial. Arbitration appears only as a voluntary step.

Such a relationship exists where a person owes a duty to act for another's benefit on matters the relationship covers. For a home inspector, the duty is to give accurate information that benefits the client. It is one of two concepts behind what a home inspector owes the client; due diligence is the other.

The ethics material is offered as a common perspective, not a universal one. People, professional associations, and states differ in their opinions and readings of what ethical behavior is in the profession. Several sections also note that some licensing jurisdictions have interpretations of their own.

One area calls for reporting the inspected property's condition accurately, completely, and fairly. The other two are avoiding conflicts of interest, both actual and perceived, and running business activities so as to avoid fraud, deceit, or misleading activities, whether actual or perceived. Brevity and speed of delivery are not part of the requirement.

Pay to play describes real estate companies and other sources of referrals demanding payment to be included on preferred provider or recommended inspector lists. Mortgage companies, banks, title insurance companies, and real estate attorneys are the other sources named. Pest inspection and security system companies appear as vendors in the paid to play discussion, where the money flows to the home inspector instead.

A sales contract may give sellers a right to see the report, but that contract does not make the home inspector a party. Only the client has a right to know the results, so passing them on without written permission from the client is something the home inspector should not do. Whether agents and sellers receive the report is the client's decision and the client's responsibility.

Pay to play covers sources of referrals demanding payment to be placed on preferred provider or recommended inspector lists, and it covers direct payments made to referral sources for referrals. Vendors paying the home inspector for a recommendation is paid to play. Gifts of nominal cost and sponsorship of legitimate events run by referral source companies are usually acceptable.