Report on meeting of NACHI
Western BC representatives with BC Government Policy Analysts and Directors of Business Practices and Consumer Protection Authority.
Date: November 16, 2007
Place: Office Business Practices and Consumer Protection Authority,
Attendees:
Susan Walker, Senior Policy and Legislation Analyst @ BC Ministry of Public Safety & Solicitor General
Dave Gelzinis, Senior Policy and Legislation Analyst @ BC Ministry of Public Safety & Solicitor General
Tom R. Aquiline, Director Industry Relations, Business Practices and Consumer Protection Authority
Colleen Tonn, Director NACHI Western BC Chapter and Partner Hometown Inspection Team,
Jan van Huigenbos, Director NACHI Western BC Chapter and owner Homescan Inspection Service,
Roland Borsato, Owner Advanced Inspection service & Instructor Home Inspection course at UCFV
BC Minister of Public Safety and Solicitor General John Les has instructed his staff to kick start the process of licensing the home inspection industry, which is anticipated to be put in place in the course of the coming calendar year 2008.
The meeting was organized by the government official as a fact finding exercise, to gather info from the industry and create a model where the existing industry organization still have a major roll to play in the initial process. The government assured the parties that it is not their intention to replace the industry organizations, such as NACHI and CAHPI. During the initial conversation it was also made clear, that the members of the ASTT will be most likely exempt from the licensing requirement, since they have a voluntary registration and right to title.
Prior to the meeting we received a discussion paper as guide for the conversation, called:
PROPOSALS FOR A REGULATORY FRAMEWORK
FOR HOME INSPECTORS
(Italic text is a brief account of the input of the NACHI representatives to the questions from the government.) Future: Link to government website for questionnaire, so all BC home inspectors will be able to respond and submit ideas. Estimated date posted on line according to Government officials: January 2008.
Mandate
Public Safety and Solicitor General Minister John Les has directed the ministry to lead a process, in consultation with the industry, to develop a regulatory framework for home inspectors to be completed in early 2008 and implemented in the fall of 2008.
Objective of regulation
Regulations are intended to enhance consumer protection by requiring a licence to practice as a home inspector and to give consumers confidence that standards of qualification are in place.
It is not the intention to replace existing professional organizations, which may have additional requirements for membership and offer member services.
Regulatory authority
Licensing of home inspectors is proposed under the Business Practices and Consumer Protection Act (Act). The Business Practices and Consumer Protection Authority (Authority), an independent body, administers the Act and licensing through an agreement with government.
The Act authorizes designation of businesses, industries, trades, professions, occupations or employment, with some exceptions. A licence is required to operate or practice a designated activity. Terms and conditions of licensing are established in the Act and regulations.
The Act states that:
· A person may submit an application for a licence to the director of the Authority, along with information and records required by the director, and a fee established in regulation or by the Authority.
· The director may issue a licence and may impose conditions on the licence.
· The director may refuse to issue a licence, suspend or cancel a licence, or amend a licence under certain circumstances, after giving the person an opportunity to be heard.
· The director may conduct an investigation to determine compliance or assess an applicant for a licence, and the director has powers to enter premises, take records and hear witnesses.
· The director has several ways of enforcing compliance, for example, making compliance undertakings or compliance orders that may be filed in court, taking licensing action, imposing an administrative penalty or initiating court action.
Government may make regulations concerning the following:
· Designating a business, industry, trade, profession, occupation or employment
· Establishing qualifications of licensees
· Exempting a person from all or part of the Act or regulation
· Setting licence fees; alternately, licence fees may be established by the Authority
· Concerning conditions imposed on a licence
· Requiring a licence for each location; display of licence; term of a licence
· Prohibiting or regulating a practice
· Records that must be kept or reported to the director
· Establishing circumstances under which administrative penalties may be imposed.
Proposal for a regulatory framework
Proposed below are the key areas to be established in a licensing regulation, for further discussion and refinement.
Definition
Define a home inspector.
For discussion: How should home inspector be defined?
A home inspector is a professional, who carries out for a fee, a non-invasive visual examination of a residential dwelling to identify observed material defects at exterior and interior, specific components and systems of particular dwelling and produces a written or printed report (in accordance with the Standards of Practice)
A home inspection is not a check for building code compliance, technical exhaustive or destructive, but a functionality and safety check.
Designation
Designate home inspector as an occupation that requires a licence.
For discussion: Should both the home inspection business and the home inspector practitioner require a licence?
Only individuals practicing as home inspector should be required to obtain a license. Each home inspector hired by an inspection company has to satisfy the requirements for licensing on a personal level. If businesses are able to obtain license, it will eventually become a sort of quota system. This should not be the intent of the law.
Exemptions
Exempt certain professionals that conduct home inspections.
The Act allows us to designate an occupation, except in certain cases if another statute applies to that occupation. The Applied Science Technologists and Technicians Act applies to home inspectors, in that it establishes voluntary registration and a right to title. Other professionals that may be providing home inspection services may also be governed by another statute, for example the Architects Act and the Engineers and Geoscientists Act.
One way of avoiding dual governance is by exempting persons conducting home inspections if they have a credential under another statute, and to work with other governing bodies to promote similar regulatory practices.
For discussion: Are there other professionals qualified to conduct home inspections that should be exempt from licensing or certain licensing requirements?
Home inspectors are General Professionals and cover almost all components and systems present in home, while for example a geotechnical engineer’s inspection is much more in depth, however it is narrow in its scope. Home buyers are better served with an overall report of material defects visual at time of inspection. Engineers may practice full or partial inspections on homes as far as their license or seal allows. The new licensing requirement should not overrule, substitute or restrict the qualification in effect for specialized professionals. These professionals can apply for license if the requirements are met with regards to qualifications
Exempt commercial property inspections.
The Act applies to consumer transactions, defined as a supply of goods or services or real property by a supplier to a consumer for purposes that are primarily personal, family or household. Commercial transactions are not captured under the Act.
A person conducting both types of inspections would be licensed for home inspections but not for commercial property inspections.
For discussion: How should commercial property inspections be defined?
Not discussed at meeting, the licensing will not cover commercial inspections and it is up to the Government or the Authority to define commercial property inspections.
Qualifications – Education
Note: Qualifications may be set out in the regulation or may be required by the director.
An applicant for a licence must
· Have a certificate of qualification in home inspection from a public post secondary institution or accredited private college, such as BCIT OR
· Be a National Certificate Holder in home inspection under the National Certification Program for Home and Property Inspectors, OR
· Have another certificate acceptable to the director.
For discussion: What other certification should be accepted? Should specific courses and hours of study be set out?
Nick Gromiko, founder of NACHI on inclusion of home inspection associations:”The number one item is bias-les-ness. If a law favours one private association over another, consumers die.”
Western BC chapters view is: Nachi on-line exam and similar tests should be sufficient, if exam is proctored when taken and written proof is produced of passing the exam with certification from official observer, or examination is conducted by BC Universities and/or College. In house courses offered by large companies, and home study courses, should be sufficient, however the potential home inspector needs to write an approved exam to qualify for licensing. It is not necessary to set minimum amount of study hours, although the need for some practice in the field was found to be important before licensing a graduate.
Nick Gromicko, founder of Master Inspector Certification Board wrote:
“We want to make sure our position is made clear; that CMI’s http://www.certifiedmasterinspector.org/cmi/index.htm, should be grandfathered in. CMI is built for grandfathering.”
The particulars of this designation were brought to the attention of the Authority for consideration to include as acceptable to the director.
The Master Inspector Certification Board, Inc. is a non-profit 501(c)(6), tax-exempt organization dedicated to promoting excellence in the inspection industry. The Board holds the registered Trademark Certified Master Inspector® (CMI), the inspection industry’s top professional designation, and awards it qualifying inspectors who have demonstrated a high level of competency by:
- Completing 1,000 fee-paid inspections or hours of inspection-related continuing education (combined) in their lifetime.
- Abiding by the industry's toughest Code of Ethics.
- Substantially following a Board approved Standards of Practice.
- Submitting to a criminal background check.
- Applying for Board certification by signing the affidavit in front of a Notary.
The Master Inspector Certification Board, Inc. is not a trade association and the Certified Master Inspector® is not a membership level. Certified Master Inspector® is a professional designation available to all qualifying inspectors who wish to be Board Certified™.
By awarding the continuing education/experience-based Certified Master Inspector® professional designation, the Master Inspector Certification Board, Inc. supports the inspection industry's advanced education providers and encourages experienced inspectors to maintain excellence.
An applicant for a licence must have successfully completed coursework in
British Columbia building, plumbing and electrical codes.
For discussion: From what institutions, what length of course? What other educational requirements should there be?
It was conveyed that due to the generality of the profession this should not be one of the requirements of the licensing policy.
Qualifications – Practical training
For discussion: Should there be a requirement to conduct a certain number of home inspections prior to full licensing? Should there be a class of licence that allows a person with educational qualifications to practice while they receive the required practical training? Should supervision be required during this period?
- No, upon passing the exam requirements for home inspectors, the candidate has proven to be knowledgeable and should be able to practice the profession. To have a class of license for novices or not knowledgeable inspectors does not serve the public well. Nachi
Western BC chapter may consider implementing a requirement that the prospective home inspector should perform a few (mock) inspections under supervision of an accredited body before admission as member of NACHI. Current requirement for joining NACHI is: You must agree that (after you join) if you have never performed a home inspection for a fee you will submit 4 mock inspections to InterNACHI's Report Review Committee (free) before performing your first home inspection for a client.
Qualifications – Insurance
For discussion: Should there be a requirement that home inspectors have liability insurance and/or errors and omissions insurance? What amount of insurance should be required? Do home inspectors that are not members of BCIPI or CAHPI have access to insurance?
All home inspectors have access to Insurance coverage, and most receive discount for being member of industry organization. If coverage can not be obtained by individual, a license should not be granted, thus proof of Insurance is a requirement for licensing. If the act requires a minimum amount of coverage, the Authority should be prepared to request prove of policy on an annual basis.
Qualifications – Code of Ethics
Most industry organizations require their members to comply with a code of ethics and standards of practice. Home inspectors that do not belong to these organizations are not subject to these codes and standards.
For discussion: How can professional conduct and code of ethics be best addressed?
Authority should take stock of existing industry organizations and accept the Standard of Practice and Code of Ethics. A licensee should be required to carry current membership of one of the organizations and subscribe to the SoP and CoE in force with the Association. A home inspection report should consist of the items prescribed in the Standard of Practice and a copy of the SoP adopted by the inspector need to be included with each report produced.
Qualifications – professional development
For discussion: Should there be a requirement for ongoing professional development? What types of professional development should be required?
Nachi has Continuing Education requirements in place, which are to be worked out through the UCFV course. All Nachi members are required to maintain the qualifications up-to-date by earning credits and passing proctored tests on a regular basis. The Authority needs to see proof of current membership of industry organization, which will include the required CEC, before issuing new or renewal license. The bottom line: The Association in BC is responsible for the verifying of members’ 24 Credits per year. Roland Borsato was present at chapter meeting, November 22 and elaborated on this issue.
Licence fees
Licence fees are set at a level that will allow the Authority to recover its costs of administering the program. The authority is a not-for-profit agency and all licensing revenue is used for administration.
For discussion: What is a reasonable annual licence fee?
Licensing fee of $ 100.00 to 150.00 per year should be reasonable.
Prohibited practices
For discussion: Are there practices which should be prohibited or regulated?
NACHI Code of Ethics states many prohibitions: discrimination on basis of race, color, religion, national origin etc, plus undisclosed conflict of interest, offer service of repairs on the property inspected. A home inspector may never perform any act which is contrary to the Law of
If inspector is connected with other business, such as Restoration Company, the inspector or affiliated business may not offer repair services as this may create a conflict of interest. Think of large corporations with services in Duct cleaning, Furnace servicing etc.
Article 32 of Electrical Safety Act prohibits home inspectors to perform Electrical inspections, such as taking cover off panel. We need clear defined rules so all are on same footing and public will be able to receive good report on possible defects in electrical system.
Grandfathering
For discussion: How should home inspectors working in the industry but not meeting minimum qualifications be transitioned in the licensing model?
Not discussed due to lack of time
Other comments on licensing
Authority is a body which could serve as an arbitrator and decide in case a settlement can not be reached between home inspector and client or agent/realtor in disputes. The procedure for client complaints should be properly outlined for inspectors, realtors and home-buyers on Authority website. The Authority has power to grant or revoke, or place conditions on license. Disputes are not dealt with by peers or competitors.
The following comments are not discussed at meeting, but could be forwarded to Government Policy Analyst: Susan Walker
Standard industry agreement between inspector and client should:
· Include the address of the property to be inspected
· Include the name of the client, reports are not transferable
· Include Name and address of inspector and license number issued by Authority
· Make mention of website where Authority posts all licensing info of home inspectors including conditions
· Mention all industry organizations home inspector is member of.
· Make reference to the adopted SoP and CoE (which organization they are designed by and government website they are posted as filed)
· Spell out the policy of disclosure of information of inspection to third parties
· State declaration of limited visual observance, and not technical exhaustive
· State assumed Liabilities and limitation thereof
· Explain how complaints are to be handled, and cost of filing complaint with Authority.
· Mention the total fee paid for by the client.
Authority should post on own website names of all home inspector licenses issued, with conditions if imposed for public to consult, plus approved Standards of Practice and Code of Ethics
A licensed home inspector may show his/her credentials as BC approved licensee? Authority may have a logo which could be granted for home inspectors to use.
When all is said and done, Director of Authority should be invited to our chapter meeting to explain the implementation of the licensing requirement and possibly answer questions from home inspectors.