Can a Real Estate Broker Also Be a Home Inspector?

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A real estate broker can also be a home inspector. There is no prohibition against working in both industries. Some may consider it a conflict of interest, however, for a real estate broker to also perform the home inspection in the same transaction.

Compensation

  • A home inspector is usually paid regardless of the status of the sale. A broker's fees, however, are usually contingent upon the sale. Because negative findings may put the sale at risk, some people consider it a conflict of interest for the real estate broker to act as the home inspector.

Risk Management

  • Realtors are advised to avoid recommending specific home inspectors to avoid legal liability. They are similarly advised to avoid acting as the home inspector in their own transaction.

Professional Associations

  • The National Association of Home Inspectors and the National Association of Realtors are professional associations that promote education and professionalism in both industries. Real estate brokers and home inspectors are not required to belong to either association, however.

Code Of Ethics

  • Members of both national associations are guided by similar codes of ethical conduct. Neither directly prohibits acting as both a Realtor and a home inspector.

Licensing

  • Not all states require licensing to work as a home inspector. Licensing for real estate brokers is required in all states.

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