The Real Estate Agent’s Duty

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Feb 16 .2 min

The Real Estate Agent’s Duty

Just for a moment, let’s assume that you’re a real estate agent. The seller has accepted your clients’ offer and now, with your help, your clients must choose a home inspector. Should you steer them toward the inspector who writes the softest reports? Should you steer them toward the inspector who pays to be on your office’s preferred vendor list? Should you help them find the cheapest inspector? The answers to these questions are of course, No, No, and Heck, no.

Real estate agents have a fiduciary duty to their clients and, therefore, must recommend the very best inspectors. If a real estate agent recommends an inspector who indirectly pays for an agent’s recommendation, the agent potentially violates their fiduciary duty to their client. The National Association of REALTORs defines an agent’s duties in their Code of Ethics. Article 1 requires an agent to protect and promote their clients’ interests. Article 6 requires an agent to disclose any financial benefit they may receive from recommending related real estate services (this also includes any benefit to an agent’s broker).

Because most real estate agents get paid only if the real estate transaction successfully takes place, the personal interests and the fiduciary duties may already conflict. Agents should not make the situation any worse. The best way to avoid negligent referral claims, to operate ethically, and to fulfill the fiduciary duty is to help the client find an inspector based solely on merit and fit for the type of home and the inspection services that will be required. A high price doesn’t guarantee and better inspection, and a low price doesn’t mean an inferior inspection. Larger \ multi-inspector companies and franchises will have more overhead costs to cover than a one or two inspector company. This enables the smaller company to charge less per inspection. In addition to the cost difference, larger multi- inspector companies, may have a mix of knowledgeable and certified inspectors on staff as well as trainees and other staff that are not certified inspectors that are inspecting your home. It is best to talk to the inspection company and ask questions before deciding on your inspector. The decision is ultimately the home buyers decision and although your real estate agent may provide you with referrals, it is prudent for you to select a company not on the referral list and call them as well.

Safe at Home LLC is built on the notion of offering all inclusive, personalized value priced inspection services. Your Home, Your Safety, Your Trust is My Promise.

John Laches

Owner and Certified Professional Inspector

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