Home Inspectors New Standards of Practice

January 9, 2009 by Katie 

At its meeting on October 27, 2008, the Texas Real Estate Commission adopted revised Standards of Practice for inspectors, as well as a new required inspection report form for 1- to 4-family residential property. These revisions, recommended by the Inspector Committee after three years of development, will take effect on February 1, 2009. The Inspector Committee created these revised rules and forms to better serve the public by giving consumers more information about property conditions and inspection limitations. Some of the more notable changes are described below.

The newly adopted inspection report form looks very similar to the current form, with a few important changes. The explanatory text on the first page of the report form has been expanded to two pages to provide more information about the inspection process. That text also explains the “Deficiency” check box, which will replace the “Not Functioning or In Need of Repair” box. Inspectors will no longer be required to report issues as “Not Functioning or In Need of Repair.” Instead, they will report these issues as “Deficient” or “Deficiencies.”
The Standards of Practice (the “Standards”) have been rearranged to match the order of the major systems that are subject to inspection and are covered by the report form. The Standards require inspectors to report certain items for informational purposes only and other items only if they are found to be deficient. Some of the items inspectors will be required to report (regardless of whether they are deficient) are as follows:

  • the type of foundation, roof covering, branch circuit conductors, and heating and cooling systems
  • the energy source of the heating system, cooling system, and water heater
  • the vantage point from which the crawl space, attic, and roof were inspected, as well as any levels of the roof that were not accessed
  • evidence of previous repairs to roofing materials
  • evidence of water penetration
  • the presence and approximate average depth of attic insulation and thickness of vertical insulation, where visible
  • static water pressure
  • the location of the water meter and main water supply valve
  • water heater capacity

Inspectors will also be required to report, by marking the “D” box on the form, deficiencies they observe. The Inspector Committee sought to make the new Standards of Practice more complete by including a wider range of deficiencies in many of the sections in order to give buyers a greater understanding of the condition of the property. For instance, where possible, inspectors will be required to inspect roof covering fasteners and report as “Deficient” missing, inappropriate, or inappropriately installed fasteners. When it is not possible to observe the roof covering fasteners (for instance, because lifting shingles may cause damage to the roof covering), inspectors must tell the client at the earliest practical time that the item was not inspected and must note in the written report the reason the item was not inspected. Realty Inspection Services’ Inspectors are all prepared for these new guidelines.

The current list of unsafe conditions, including excessive baluster spacing and the absence of safety glass at hazardous locations, was increased to include the absence of properly functioning arc fault circuit interrupter (AFCI) devices at required locations (family/living rooms, dining rooms, libraries, dens, bedrooms, sunrooms, recreation rooms, closets, hallways, or similar rooms or areas). Unlike ground fault circuit interrupter (GFCI) devices, which have long been required by building codes to protect occupants from risk of shock, AFCIs have been introduced more recently to protect property from the risk of fire caused by sparks. Form OP-I, Texas Real Estate Consumer Notice Concerning Hazards and Deficiencies, addresses the safety component of the inspection. The Commission approved this form for voluntary use by all licensees.

Review the new rules here:

· 535.227-535.233 (Standards of Practice)

· 535.222 (regarding Inspection Reports)

· 535.223 (regarding the Standard Inspection Report Form, REI 7A-1)

Review the new forms here:

· REI 7A-1 (standard inspection report form)

· OP-I (Texas Real Estate Consumer Notice Concerning Hazards and Deficiencies)


Frequently Asked Questions

Q: Why did “Not Functioning or In Need of Repair” change to “Deficiency?”

A: Not all problems that should be reported will require repairs. Many safety issues do not require a “repair,” but rather an upgrade or safety modification. For instance, the original electrical outlet in the kitchen of a house built in 1980 may be working properly and doesn’t need any repair, but GFCI outlets are now being used in kitchens, and it is recommended that the old outlets be upgraded to GFCI outlets. The term “deficiency” better describes the broad category of issues in which repair, replacement, or an upgrade is recommended. The “D” (“Deficiency”) box on the inspection report form should be used just like the “R” (“Not Functioning or In Need of Repair”) box has been used in the past. The ultimate decision what to do with the reported information, such as making recommended repairs or to simply “live with” a reported deficiency, is a decision to be made by the person for whom the report is prepared.

Q: Are the Standards of Practice and REI 7A-1 form required for all inspections?

A: No. Inspectors are required to follow the Standards and use the standard report form for all inspections performed for buyers or sellers of 1- to 4-family residential properties, but not for inspections of other kinds of properties or inspections performed for purposes other than an anticipated sale or purchase.
Q: I am an inspector. Can I start using the new form and rules now (before February 1, 2009)?
A: The current Standards of Practice and form (REI 7A-0) remain in effect through January 31, 2009. You must use the 7A-0 form through that date. However, because inspectors are always permitted to offer a higher level of inspection service than required by the minimum standards, you may begin to inspect and report on those additional items outlined above before February and simply write in your findings on the 7A-0 form.
Q: What if an inspector gives a client an inspection report on the old form after February 1, 2009?
A: You should inform the inspector that there is a new form and new Standards, and ask him or her to provide a new inspection report on the 7A-1 form and in accordance with the new standards. If he or she asks for more information about this change, you can direct him or her to the TREC website.

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Comments

One Response to “Home Inspectors New Standards of Practice”

  1. Katie on January 25th, 2009 4:52 pm

    Remember Texas Home Inspectors must be licensed. Beware of the few that are out there calling themselves “Forclosure Inspectors”. This is a group of people that are doing walk throughs of Forclosed properties and giving you their opinion on the state of the property. In Texas our regulations state that we are not able to accept money for a Home Inspection unless we are licensed….. Please Make sure you are getting a Licensed Inspector so that the information you receive is VALID.

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