Video, part 4 of 4
NHIE practice questions, part 4
50 practice questions for the National Home Inspector Exam, on interior, fireplace and chimney, describing the inspection, and ethics and integrity. Each question is read aloud with its four options. Then you get 5 seconds to pick before the answer and the reason. The video runs about 45 minutes.
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Chapters
Pick a question to start the video there.
The 50 questions, with answers
Here is every question in the video, in the same order, with the answer and the reason under it. None of them is on the free practice exam, a paid practice exam, or the mastery exam.
Question 1, Interior, at 0:22
With single nailing and no adhesive, the MAXIMUM spacing of drywall nails on a ceiling is
- A6 inches
- B7 inches
- C8 inches
- D12 inches
The answer is B
Single nailing without adhesive calls for nails no more than 7 inches apart on ceilings and no more than 8 inches apart on walls. Twelve inches is the limit between nail pairs when double nailing.
Question 2, Interior, at 1:02
A home inspector finds stained, loose vinyl on a below-grade basement floor. Most manufacturers do not recommend vinyl there because the floor:
- Atakes on moisture from the subfloor
- Bcannot hold a full spread of adhesive
- Cis too rigid for a flexible sheet product
- Dneeds a #15 felt water barrier first
The answer is A
Both linoleum and vinyl act as vapor retarders, and most manufacturers advise against them on floors that take on moisture from the subfloor. That moisture is most likely at below-grade floors such as basements, and it can also occur over moist crawl spaces. A #15 felt water barrier is named for laminate and wood, not for vinyl.
Question 3, Interior, at 1:59
A guard is sometimes called a
- Astringer or skirt board
- Bvolute or easing
- Cbalustrade or banister
- Dnewel or gooseneck
The answer is C
Guardrail, balustrade, and banister are all other names for a guard. A volute and an easing are curved handrail pieces, and a newel is a post that gives a guard support.
Question 4, Interior, at 2:35
On better quality cabinets, the solid wood back rails serve to
- Areceive the fasteners that hold the cabinet
- Bcarry the drawers on their glides
- Ccover the gap between the cabinet and the wall
- Dkeep doors clear of drawers at corners
The answer is A
Better quality cabinets will have solid wood back rails, and the fasteners should go through these rails. Lower quality cabinets may be fastened through the rear panel instead. Keeping doors clear of drawers at a corner is the job of a filler strip.
Question 5, Interior, at 3:20
Prewired structured wiring usually runs to a box that contains
- Aa 120 volt receptacle for routers and modems
- Ba 240 volt circuit for smart appliances
- Ca battery backup unit for the security sensors
- Da GFCI breaker for the smart switches
The answer is A
Prewired structured wiring usually runs multiple cables to a single box in a laundry room, a closet, or a similar area. That box usually holds a 120 volt receptacle that powers the modem and router.
Question 6, Interior, at 4:12
A house has smart speakers and an installed smart thermostat. Which statement about inspecting them is accurate?
- AThe thermostat is in scope, and the speakers are out as personal property
- BThe thermostat conveys, so it is in scope
- CBoth are in scope where structured wiring is used
- DBoth are out of scope, whether or not they convey
The answer is D
Some smart devices, speakers and entertainment systems among them, are likely to count as personal property: not installed, and not conveying with the house. Thermostats and switches, by contrast, may be installed, and those may convey. Inspection of both kinds is out of scope either way. Conveying with the house does not bring a smart device into scope.
Question 7, Interior, at 5:10
An exterior termination opening for a kitchen exhaust duct might be too small if its diameter is less than about:
- A3 inches
- B4 inches
- C5 inches
- D6 inches
The answer is D
An opening under about 6 inches in diameter, or a rectangle of equivalent area, might be too small for the exhaust it serves. An improperly sized duct or termination is a typical defect. While at the termination, the inspector also checks that any damper moves freely.
Question 8, Interior, at 5:56
Which food-waste disposer condition should be reported as a typical defect?
- APower switch that is on when pushed up
- BCable held by a strain relief clamp
- CFixture arm ending above the disposer outlet
- DFixture arm ending below the disposer outlet
The answer is C
A fixture arm that enters the wall above the disposer drainage outlet is a typical defect, because the higher termination may leave water standing in the disposer, causing rust and rapid deterioration. The arm should terminate below the outlet. A strain relief clamp at the disposer is the correct way to end the cable.
Question 9, Interior, at 6:48
A disposer mounting ring should be fastened securely to the sink drain outlet. What goes between the mounting hardware and the sink?
- APlumber's putty
- BSilicone caulk
- CPTFE tape
- DPipe joint compound
The answer is A
Plumber's putty goes between the disposer mounting hardware and the sink, and the mounting ring should be firmly secured to the drain outlet. Putty is the sealant named for this joint; silicone caulk, PTFE tape, and pipe joint compound are not. Leaks at the sink connection are a typical defect.
Question 10, Fireplace and chimney, at 7:36
A cleanout, also called an ash dump, is:
- Aa screen at the flue termination that stops hot embers
- Ba projection on the roof that diverts water around a chimney
- Ca chamber above the throat that directs gasses toward the flue
- Dan opening in the hearth that leads to a pit below
The answer is D
The space above the throat is the smoke chamber, the screen on a flue termination is a spark arrestor, and the roof projection is a cricket. A cleanout is the opening in the hearth through which swept ashes drop into a pit below.
Question 11, Fireplace and chimney, at 8:23
A wood mantel is located 5 inches from the firebox opening of a masonry fireplace. The home inspector should report that the mantel:
- Aprojects more than 1/8 inch for every inch of distance
- Bis acceptable, since it is more than 12 inches away
- Cis closer than the 6 inch minimum for combustible trim
- Dis acceptable, since combustible trim may be any thickness
The answer is C
Trim may be any thickness only when it is more than 12 inches from the opening, and 5 inches falls far short of that. A mantel or other combustible trim should stay 6 inches or more from the firebox opening, so a mantel at 5 inches is too close.
Question 12, Fireplace and chimney, at 9:21
Many important components of fireplaces and chimneys cannot be seen or reached. In the report, the home inspector:
- Amay wish to report a limited inspection without listing every component
- Bmust remove finish materials to view hidden components
- Cmust list every component that was not inspected
- Dshould not mention limits when the visible parts were inspected
The answer is A
Listing each hidden component is not necessary. Reporting the limit is something a home inspector may wish to do, along with adding that evaluation by a chimney sweep or a qualified contractor may be prudent when the client wants more assurance.
Question 13, Fireplace and chimney, at 10:18
Which fuel-burning systems fall within the scope of a home inspection?
- AOnly systems that burn wood or wood byproducts
- BOnly systems with a chimney that can be reached
- COnly systems that are lit during the inspection
- DAll visible and installed systems
The answer is D
Every visible and installed fuel-burning system falls within scope. Burning wood, having a reachable chimney, and being lit during the inspection are not conditions on that scope.
Question 14, Fireplace and chimney, at 11:01
A combustion air outlet placed outside the firebox of a masonry fireplace should be:
- AAt hearth level, within 36 inches of the firebox
- BAt damper level, within 24 inches of the firebox
- CAt hearth level, within 24 inches of the firebox
- DAbove the lintel, within 12 inches of the firebox
The answer is C
The outlet belongs at the back or side of the firebox. When it sits outside the firebox, it should be at hearth level and no more than 24 inches from the firebox, with a manually operated damper. An outlet at damper level is not at hearth level.
Question 15, Fireplace and chimney, at 11:54
A home inspector finds a thin mortar wash crown on a masonry chimney. The crown shows no significant deterioration. The inspector should:
- ARecommend that the crown be monitored for signs of future cracking
- BReport the crown, since a thin mortar wash crown is reportable
- CMake no report, since the crown shows no deterioration yet
- DRecommend coating the crown with roofing asphalt to seal it
The answer is B
A thin mortar wash crown is reportable even with no significant deterioration. Mortar is not an acceptable crown material, since it breaks down fast and needs ongoing upkeep. Monitoring leaves a present condition unreported, and roofing asphalt on a crown is an improper, flammable repair.
Question 16, Fireplace and chimney, at 12:56
A home inspector measures a hearth extension that projects 14 inches in front of a small factory-built firebox opening. How should this be reported?
- AAs acceptable, since 12 inches is the minimum
- BAs acceptable if the finish is noncombustible
- CAs a hearth extension that is the wrong size
- DAs a defect only if the firebox is large
The answer is C
A smaller firebox opening should have a hearth extension reaching 16 inches or more in front, so 14 inches falls short, and a wrong-size hearth extension is a typical defect. A noncombustible finish does not fix the size. The 12 inch figure belongs to the sides of a larger firebox, not the front.
Question 17, Fireplace and chimney, at 13:56
Measured from the cabinet bottom, the MINIMUM height of a factory-built chimney is around:
- A3 feet
- B6 feet
- C10 feet
- D15 feet
The answer is D
Measured from the cabinet bottom, a factory-built chimney has a minimum height of around 15 feet, and elbows raise that minimum. The 6 foot figure is the longest length of metal chimney that should stand unsupported over the roof, and 3 feet and 10 feet belong to the 3/2/10 height rule.
Question 18, Fireplace and chimney, at 14:40
In an attic, a home inspector finds a factory-built chimney with three elbows, a total horizontal offset of 12 feet, and one offset at 45 degrees from vertical. Which condition exceeds the common limits?
- AThe number of elbows in the chimney
- BThe 45 degree angle of the single offset
- CThe 12 foot total horizontal offset
- DNo condition, since all three are within limits
The answer is B
For any one flue offset, 30 degrees from vertical is the maximum angle, so a 45 degree offset exceeds it. A factory-built chimney may include up to four elbows, and its total horizontal offset has a maximum of 20 feet, so three elbows and 12 feet are within limits.
Question 19, Fireplace and chimney, at 15:41
Looking down from the attic above a factory-built fireplace, which condition is a reportable defect?
- AAttic insulation in contact with the firebox
- BSquare metal fireblocking at the attic floor
- CAn insulation shield around the chimney
- DThree inches of clearance to the chimney
The answer is A
Looking down from the attic, insulation touching the firebox is a typical defect. Where the chimney runs through an insulated area, an insulation shield should be in place, and 3 inches is more than the 2 inch minimum clearance for a metal chimney.
Question 20, Fireplace and chimney, at 16:31
What may cause dark brick on a chimney that has no cricket?
- AAcidic condensate from an oversized flue
- BMoisture wicking from no cricket and poor flashing
- CCreosote seeping outward through the mortar joints
- DPyrolysis of the brick from high flue temperature
The answer is B
Condensate in an oversized flue may be acidic, and it could damage the flue. On a chimney with no cricket and inadequate flashing, moisture wicking may cause the dark brick.
Question 21, Fireplace and chimney, at 17:15
Why can wood framing near a chimney ignite with no warning sign beforehand?
- APyrolysis starts at the moment the wood reaches flame temperature
- BDrywall over the framing can hide the heat damage
- CPyrolysis may have gone on for decades with no visible sign
- DCreosote may coat the framing and hide any scorching
The answer is C
Pyrolysis does not happen all at once; time and temperature together set its rate, so it can proceed slowly at a lower temperature. Such wood may have been changing for decades. It will probably give no visible sign before it catches fire.
Question 22, Fireplace and chimney, at 18:07
Diagnosing the cause of a fireplace draft problem is:
- AOutside the scope of a home inspection
- BRequired whenever smoke stains are visible
- CPart of the inspection if the client asks
- DRequired only when the chimney is masonry
The answer is A
Visible smoke stains, a masonry chimney, or a request from the client does not bring diagnosis into the inspection. The causes of draft problems are many, and diagnosing one is out of scope for a home inspection. Smoke staining on the surround, above the firebox opening, may indicate a draft problem.
Question 23, Fireplace and chimney, at 18:57
Why is direct connection of a fireplace insert to an existing chimney not recommended?
- AThe gases may be too cool and the chimney too large
- BThe insert rating label may then list no clearances
- CIt is prohibited everywhere in the United States
- DThe chimney may then need a spark arrestor
The answer is A
Direct connection is not banned everywhere in the United States; it is permitted where the manufacturer's instructions allow it. It is still not recommended. The gases may be too cool, and the chimney too large, for an adequate draft to develop.
Question 24, Fireplace and chimney, at 19:48
The damper in the chimney connector of a wood-burning stove intended to do is:
- ASeal the chimney below the connector
- BIsolate the chimney if a chimney fire occurs
- CRegulate how fast the wood burns in the firebox
- DKeep vermin out of the flue between fires
The answer is B
Setting how fast the wood burns is the job of the combustion air supply damper. Keeping vermin out is a job of the spark arrestor, and sealing the chimney below the connector's entry is a separate requirement for a masonry chimney that serves a stove. The connector damper exists to isolate the chimney if a chimney fire occurs.
Question 25, Fireplace and chimney, at 20:42
During a wood-burning stove inspection, which condition should be reported?
- AA grate with a few spots of light rust
- BA circulation fan that runs when switched on
- CA stove on legs over floor protection
- DA door that does not close and latch securely
The answer is D
A grate should be intact and free of significant rust, which a few light spots are not, and a circulation fan should activate once switched on. A stove may sit on legs over combustible flooring, and the noncombustible material that must be installed under it is not a defect. The door should be reasonably easy to open and close, and it should latch securely; a damaged door, or one that does not latch properly, is a typical defect.
Question 26, Describing the inspection, at 21:41
A home inspector finds a basement storage room stacked to the ceiling with the occupant's boxes, which block the foundation walls. Which statement describes those walls?
- ALatent, because the walls show no visible sign of a deficiency
- BOut of scope, because foundation walls belong to another profession
- CReadily accessible, because the inspector could move the boxes
- DNot readily accessible, so deficiencies there cannot be reported
The answer is D
An area is readily accessible only if the inspector can see it without moving the occupant's belongings, so walls behind stored boxes are not. Deficiencies in an area that is not readily accessible cannot be reported. A latent deficiency exists but shows no visible sign, which is a separate limitation.
Question 27, Describing the inspection, at 22:46
Exterior paint that has deteriorated could be a reportable deficiency, rather than a cosmetic one, when the deterioration:
- Acan be found on the trim boards rather than on the main wall coverings
- Bis severe enough that it could allow damage to the wall coverings
- Cmay have been applied by the seller rather than by a painting contractor
- Dmay be seen from the street in front of the house
The answer is B
The test for a cosmetic deficiency is whether the condition significantly affects the component's ability to do its job. Deteriorated exterior paint becomes reportable when it is severe enough that the wall coverings could be damaged. Being visible from the street says nothing about function.
Question 28, Describing the inspection, at 23:46
Which omission do unhappy clients often cite when they seek to make the inspector pay for repairs and damages?
- ANo specific contractor named by the inspector
- BNo explanation of the deficiency's implication
- CNo location given for the deficiency
- DNo picture of every room inside the house
The answer is B
When a report fails to explain the implication, the client may lack what is needed to decide how to handle the deficiency with the seller, and unhappy clients often cite that gap. Pictures and location statements are optional elements that SoPs do not require. Most SoPs do not specifically require even the appropriate contractor, and naming a specific one is a choice the inspector may make.
Question 29, Describing the inspection, at 24:46
A home inspector finds only a small temperature drop in the air passing over the evaporator coil. Further evaluation is the appropriate recommendation MAINLY because:
- Arepair/replace is never recommended for HVAC equipment
- Bthe condition is not deficient on the day of the inspection
- Cconfirming a malfunction needs tests beyond inspection scope
- Dthe system is near the end of its expected service life
The answer is C
A low temperature drop is evidence of a possible deficiency, but deciding whether a malfunction exists, why, and what repair fits takes procedures a home inspection does not include. That is one of the three situations that call for a specialist. Service life is the basis for monitoring, not evaluation.
Question 30, Describing the inspection, at 25:52
Telling the client how wide a crack is matters because:
- Aa wide crack is often more serious
- Bonly wide cracks are reportable as deficiencies
- Cthin cracks usually indicate a structural failure
- Dmost SoPs require crack widths in exact measurements
The answer is A
A thin crack is a common finding and usually not serious, while a wide crack is often more serious, so a description with no sense of width leaves the client unable to judge it. A better statement handles this with the plain word thin rather than a measurement. Thin cracks are usually not serious, not a sign of failure.
Question 31, Describing the inspection, at 26:44
Which type of domestic hot water equipment is often called tankless?
- Ademand
- Btankless coil
- Cheat pump
- Dstorage tank
The answer is A
Demand equipment is the type often called tankless. A tankless coil is a separate type, so the two names are not interchangeable. The three types listed are storage tank, demand, and tankless coil.
Question 32, Describing the inspection, at 27:21
Distinguishing between natural gas and propane as the energy source of water heating equipment is:
- Aoutside the scope and should be avoided
- Brequired by most standards of practice
- Crequired only when the tank is located outdoors
- Da good idea, but not specifically required
The answer is D
Standards usually call for the energy source of hot water equipment; electric, gas, and oil are the usual ones. Telling natural gas from propane is worth doing, but it is not specifically required.
Question 33, Describing the inspection, at 28:09
Why should the inspection date and the beginning and ending times appear in the report?
- AThey help establish the conditions of the inspection
- BThey set the start date of a warranty period
- CThey prove that the report was delivered on time
- DThey are needed to calculate the inspection fee
The answer is A
A warranty period and an inspection fee have nothing to do with it. The date and the start and finish times record the conditions present during the inspection, and a regulated jurisdiction may require the date. Like most of this information, it matters only if questions come up later.
Question 34, Describing the inspection, at 29:01
The material most moisture meters have been calibrated against is:
- Asynthetic stucco
- Bgypsum board
- Cmasonry
- Dwood
The answer is D
Wood is the material most moisture meters are calibrated against, and some meters carry adjustments that recalibrate them for other materials. Either type can read inaccurately when it is not properly calibrated and used.
Question 35, Describing the inspection, at 29:39
Which use belongs to an infrared camera rather than an infrared thermometer?
- ADetecting absent or improperly installed insulation in a wall
- BMeasuring the temperature of hot water at a kitchen or bath fixture
- CMeasuring the air temperature at a supply register
- DMeasuring the air temperature at a return grille
The answer is A
Four jobs belong to the camera: air leaks, insulation that is missing or badly installed, breaker temperature, and water getting in. The thermometer gets three: hot water, breaker temperature, and the air at registers and grilles.
Question 36, Describing the inspection, at 30:32
A client asks a home inspector to scan the whole house with an infrared camera. The home inspector may do so:
- Aas part of the standard inspection, at no additional charge
- Bas an inspection tool, if the camera is used properly
- Cas a routine step wherever the jurisdiction licenses infrared work
- Das an added service under an infrared camera inspection agreement
The answer is D
Two roles stay open to the camera: settling something already observed, or a separate paid service sold under its own agreement. Running it routinely inside an ordinary inspection is the use ruled out.
Question 37, Ethics and integrity, at 31:27
An errors and omissions insurance company receives a claim and opens a claim file. At that point the home inspector is usually required to:
- Apay the policy deductible
- Bsubmit a written statement
- Cselect the defense attorney
- Dattend an onsite meeting
The answer is A
Opening the claim file is what triggers the deductible, and the money is there to help cover processing and investigation. Leftovers are supposed to come back, although that should not be counted on. Choosing defense counsel is the carrier's call, not the inspector's, and it happens later, only where the two sides fail to settle.
Question 38, Ethics and integrity, at 32:21
In federal court and in many state courts, a complaint identifies the parties and contains:
- Aan itemized statement of the relief requested
- Ba brief and straightforward account of the claim
- Ca description of the legal reasons supporting it
- Da sworn account of the facts of the case
The answer is B
Brevity is what federal courts and many state courts accept: enough of the claim for the defendant to see what is alleged and on what grounds. Other states demand considerably more inside the document, including the underlying facts, the legal grounds, and a statement of the damages being sought.
Question 39, Ethics and integrity, at 33:12
Damages for the loss in a property's value caused by defects the plaintiff did not know of when the deal was made are called:
- Apunitive statutory damages
- Bactual compensatory damages
- Cbenefit of the bargain damages
- Dconsequential loss damages
The answer is C
Value, not repair cost, is what this category measures. The award makes up for the drop in the property's worth that the alleged defects caused, defects the plaintiff had no knowledge of when the purchase deal was struck. Repair or replacement of the misreported item falls under actual damages instead.
Question 40, Ethics and integrity, at 34:04
Many jurisdictions apply a heavier burden of proof to common law fraud than to most civil litigation. That burden is:
- Asubstantial evidence in the record
- Ba preponderance of the evidence
- Cproof beyond a reasonable doubt
- Dclear and convincing evidence
The answer is D
Two things set fraud apart from other civil litigation. Courts usually want the fraudulent conduct spelled out specifically in the pleadings, and many jurisdictions lift the standard of proof a step. Most civil cases, negligence among them, run on the preponderance standard instead.
Question 41, Ethics and integrity, at 34:55
Reporting an incident to the errors and omissions insurance company usually:
- Araises the premium charged at the next renewal
- Bdoes not affect the policy cost or its renewal
- Copens a claim file the investigator must review
- Drequires the home inspector to pay the deductible
The answer is B
The policy terms usually require the home inspector to report a client's contact, and doing so usually leaves the cost and renewal of the policy unchanged. The deductible usually comes due later, once a claim arrives and the company opens a claim file. An unreported incident that grows into a claim could cost the home inspector coverage.
Question 42, Ethics and integrity, at 35:52
A home inspection is performed in March while a claims made policy is in effect. The policy lapses in December and is not renewed. A claim arising from that inspection is filed the following June. Coverage:
- Aapplies, because the inspection occurred in March
- Bapplies, because the claim relates to a covered act
- Cdoes not apply, because the policy had lapsed
- Ddoes not apply, because the claim exceeds the limit
The answer is C
Filing is the date a claims made policy answers to, so a claim arriving after the policy has lapsed falls outside it, even where the work happened during the term. An occurrence policy keys on the date of the work and would respond here. Coverage reaching past a lapse can sometimes be bought.
Question 43, Ethics and integrity, at 36:53
A home inspector who drives a personal vehicle for business usually needs:
- Aa business use endorsement on the policy
- Ba separate commercial vehicle policy entirely
- Ca general liability policy naming the vehicle
- Da rider on the homeowner's insurance policy
The answer is A
Driving a personal vehicle on business may leave a loss uncovered during that use, and closing the gap usually takes an endorsement added to the policy. Homeowner's insurance answers a different gap, which is what happens to tools and equipment.
Question 44, Ethics and integrity, at 37:42
A home inspector stores an infrared camera, a blower door, and radon monitors at home. A suggested step for the home inspector is to:
- Aassume the homeowner's policy already covers them
- Brely on the GL policy to cover them
- Cadd the tools to the E&O policy
- Dconfirm coverage with the insurance carrier
The answer is D
Homeowner's insurance may give little or no coverage for a home inspector's tools and equipment. Inspectors who own costly tools may wish to check with their carrier, and endorsements may be available for business property. GL answers for damage and injury the home inspector causes while inspecting, which is a different risk.
Question 45, Ethics and integrity, at 38:40
A home inspector with an occurrence policy retires and lets it lapse. A year later a client files a claim over an inspection done during the policy term. The policy:
- Acovers it if prior acts coverage was bought
- Bcovers the deductible and nothing else, since it has lapsed
- Cdoes not cover it, because the policy has lapsed
- Dcovers it, because the inspection was during the term
The answer is D
An occurrence policy covers claims that arose while it was in effect, no matter when they are filed, so the lapse does not defeat this claim. A claims made policy works the other way and covers only claims filed while it is in effect. Prior acts coverage concerns inspections done before a policy begins, which is not the situation here.
Question 46, Ethics and integrity, at 39:42
A home inspector recommends further evaluation of nearly every component inspected, in order to feel protected against litigation. This practice is:
- Adefensive reporting, which serves no one
- Ban honest source of information at work
- Ca reasonable response to claim exposure
- Dreporting within the scope of expertise
The answer is A
Alarm pitched beyond what a finding warrants, or a referral for evaluation attached to nearly every component, is defensive reporting, and the motive named for it is a feeling of being out of reach of a lawsuit. The verdict is blunt, since the practice helps nobody at all, the home inspector included. Sending a question onward belongs where the home inspector's knowledge runs out, not across an entire report.
Question 47, Ethics and integrity, at 40:45
The listing agent telephones a home inspector on the afternoon of the inspection and asks what the report will say. The home inspector should:
- Aanswer, because the agent arranged the access
- Bsummarize only the major deficiencies found
- Crefer the agent to the client's own agent
- Drelease nothing absent written permission from the client
The answer is D
Results belong to the client, and no other party holds a right to them. A listing agent is one of three parties named by way of example. A summary spoken over the telephone is still the findings, so it waits on permission like anything else. Opening the house for an inspection earns no claim on what the inspection found.
Question 48, Ethics and integrity, at 41:43
On compensation for a referral, a home inspector should:
- Anever offer and never accept compensation
- Baccept it only from allied professionals
- Coffer it where the local market does
- Ddisclose it to the client in writing
The answer is A
Compensation for a referral is neither offered nor accepted. The rule appears in the discussion of cross marketing to allied professionals.
Question 49, Ethics and integrity, at 42:23
A home inspector is barred from paid repair work at an inspected property because the home inspector could be perceived as:
- Acompeting unfairly with the local repair contractors
- Bfinding problems the inspector is then paid to repair
- Cholding a financial interest in selling the house
- Daccepting compensation from vendors for referrals
The answer is B
A home inspector seen as finding problems and then charging the client or the seller to fix them could lose the perception of being an honest information source. For one year after an inspection, then, the home inspector may not take payment for construction or repair work at that property. Being paid by vendors for recommending them is a separate practice, called paid to play.
Question 50, Ethics and integrity, at 43:25
Good real estate agents see dealing with facts up front as serving everyone, the agent included, because it helps:
- Aavoid litigation later
- Bclose the sale sooner
- Ckeep referrals flowing
- Dhold the price steady
The answer is A
Good agents know that handling facts up front serves everyone, the agent included, since it avoids litigation later, and good home inspectors seek out those agents. Keeping referrals flowing is the pull behind understatement, not the reason given for dealing with facts up front.
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