The Ripple Effects of New Real Estate Laws in Ohio

Could Ohio's real estate market be on the verge of a significant shift? That's the question Jim and the office goddess Laura wrestle with in a candid discussion on the latest from the home inspector board meetings. As we peel back the curtain, we examine the contentious proposal for additional Continuing Education (CE) credit for in-person classes and dissect why some board members, including ourselves, are raising eyebrows. The meat of the discussion, however, centers on the ethical quagmire of sharing home inspection reports with non-clients, a practice that could be in for a rude awakening under new licensing laws.

Amidst the routine yet critical rule revisions and CE chatter, the podcast takes a sharp turn into the legal labyrinth of home inspection reports. Breaking down the implications for professional responsibility and client confidentiality, we shine a spotlight on why home inspectors are up in arms about their work being passed around like a hot potato. Listen as Laura brings her characteristic insight to the ramifications of such practices, not just for inspectors but for the unsuspecting buyer B who might be getting more than they bargained for. This episode isn't just a mere discussion; it's a call to attention for anyone with a stake in Ohio's real estate game.

Transcript

Speaker 1 0:02

Welcome to the Standing Out in Ohio podcast, where we discuss topics, upcoming events, news and predictions with real estate professionals and entrepreneurs. Listen and learn what makes their companies and themselves stand out and gain advantages over the competition and gain market share. Subscribe for the latest news and discussion on what it takes to stand out from the crowd. Now here's your host, jim.

Speaker 2 0:30

Hey everybody, welcome to the Standing Out in Ohio podcast. This is Jim, and with me, of course, is the office goddess Laura.

Speaker 3 0:38

Hello everybody.

Speaker 2 0:40

All right, Laura was not with me. I went to the home inspector board meetings last week and normal stuff looking for rule changes, adjusting things, CE requirements that was mentioned.

Speaker 3 0:55

Yes.

Speaker 2 0:56

Some group wanted extra. It's your time. Yeah, I'll talk about this, and we're talking about sharing reports. That was discussed at the board meeting. But first let's listen to this.

Speaker 4 1:09

Habitation investigation is the way to go For a home inspection in Ohio. You trusted license home inspectors for your needs, from rate on to more to warranties For a great home inspection you really can't go wrong. Visit home inspections in Ohiocom.

Speaker 2 1:34

All right, Laura. So board meeting what was to me was funny was there for CE, for home inspectors. Some group wanted, apparently having trouble with their online classes not many people attending or they're losing control of the class because there are so many just online or in person?

Speaker 3 1:56

online Okay.

Speaker 2 1:58

They were losing, like losing control, because they go on tangents and not come back on time to go get through everything. So, anyway, what they were wanting was the inspectors If you attended an onsite class, you would get extra CE hour. You know time credit for being an online being in a personal class, which which I didn't. I didn't agree with that. I don't think the board members liked that either, because how can you give somebody an extra half hour because they showed up even though they're not spending an extra time? So that's not going anywhere. I thought that was silly.

Speaker 3 2:34

That's very silly.

Speaker 2 2:35

To me that was an instructor that doesn't have control of the class If they are getting off topic and they can't bring it back to get the course material done on time that is a problem.

Speaker 3 2:45

So, but so what was the next thing that was discussed then?

Speaker 2 2:50

The next thing that was discussed was the sharing of home inspection reports with say, you got the client a, is the home buyer or property buyer? Whatever they're buying it, they have an inspection done. They don't buy it. It could be a praise or whatever reason appraisal financial fell through condition house. It doesn't matter Buyer a drops out, some agent gives the report to buyer B and they and it says hey just use here. Here's your report.

Speaker 2 3:25

Just use this. That was discussion about if that should be done, because nobody really no home inspector likes that being done.

Speaker 3 3:35

Well, and not only that, but that client has absolutely no signed agreement with the home inspection company.

Speaker 2 3:42

Hold on, hold on. We'll get into all the different liabilities with this, but no home inspector wants their report being used to other people who are not their clients, for lots of reasons. Lots yes, so it was kind of discussed. Well, that's kind of like a it's been commonly done for years and years and that all that changed. It's never been liked that it happens from home. It's always hated that. But when the home inspector licensing came about, now there's confidentiality Within that law, within that law, within the whole licensing thing.

Speaker 2 4:24

Yes so what has happened with that is Now, if it is shared, you have on that report is the first client's name being given to Some buyer B. Now you're breaching confidentiality right with their name. That's also breaking confidentiality. Is that that information in the report is Owned by the inspection company we own that? Yes the buyer, the first original client has has paid for access to that. We owe it's copy. It's automatically copyrighted because it's creating. Know you don't need to go through some legal process, it's already done. It's, it's, it's all it's.

Speaker 3 5:11

Whoever the inspector is, and in the inspector licensing law it specifically states that client has to give permission For anybody other than their agent to have that report.

Speaker 3 5:23

Yes and the only way that an Inspection company can do anything for, like, say, the seller, is if it impacts their health and safety. So like, if we're doing an inspection and we see that the the furnace has something disconnected and it's allowing carbon monoxide in, we can call and tell the listing agent hey, they need to get this fixed. But that's as far as we can go, because that's a health and safety issue.

Speaker 2 5:48

Yeah, a serious one right. There's like law if you got, your steps are not the same height. That's the safety thing of my art, that's not a major, for you're not gonna go in mercy, change height of your step risers, not gonna change that, but you understand so. But talking about this, if you were a insurance company, an Errors and admission company, which all home inspectors in Ohio are supposed to have, you know insurance or we can't be licensed.

Speaker 2 6:19

Have you know as well. All right, I've known how much they they pay. I've heard long time ago there's a lot less, what almost much is paying. Oh, I'm sure a lot less mayway Brokers maybe a little different point, what they they've had to pay, but I highly doubt any you know insurance company will go yes, we will, we will cover Any, come you know what complaints that a person may be, even though they were not the sign you know. Client with the home inspection company had our insurance.

Speaker 3 6:55

So if a real estate agent gives client a's report to client B, client B moves in and, let's say, the home inspection company had a conversation with client a that client B didn't know about, and so subsequently well, client B didn't have that information the real estate agent said here you go. This, this is good.

Speaker 2 7:17

Here's how that happens. We inspected a couple houses Well I should say buildings recently which we had a roofing company Check out the roof because it was such a high roof and they know they needed repairs. So the the client, our client had a roof for company roofing company come and do that Inspection on the roof because they wanted bids automatically to fix it. There's nothing in our report about that roof other than see the roofing report.

Speaker 3 7:50

Very basic information, that is true.

Speaker 2 7:53

So if a real estate agent takes that report, gives it to new buyer B who has no contractual obligation or agreement with any home inspection company, takes that report, finds the issues after they moved in.

Speaker 3 8:10

Which they will, because the roof was leaking.

Speaker 2 8:12

If that was the situation, if they try and sue the inspection company, they are completely out of luck, cause there was no contractual obligation between that inspection company and that buyer B. However, the real estate agent that gave that to them is now in the liability loop of that Cause they cause by giving it. They're better said here. You can rely on this report.

Speaker 3 8:39

This is okay.

Speaker 2 8:41

Yes.

Speaker 3 8:41

Now would their ENO cover that? Because they've given a report that wasn't for the original client to a new client. I can't see any ENO company saying, yeah, we'll go ahead and do that.

Speaker 2 8:54

No, I highly doubt they would.

Speaker 3 8:56

So then, that real estate agent would be on the hook themselves for that financially. Good chance good chance and that roof estimate was like 80,000.

Speaker 2 9:06

That one house. Yeah, 80,000 for the. It was a huge slate roof and he wanted to replace the slate. Yes, he did, so that's more expensive than average.

Speaker 2 9:15

But so an agent might give them this report. Well, here you can use this report instead is taking on that liability of that, and I doubt the agents even though would cover that. I'm also wondering cause in the state law agents supposed to what article of the ethics they're supposed to stay with remain within the role as a real estate agent by providing inspection report. They step in outside the role.

Speaker 3 9:43

Well, they would be because they would be handing that report and saying that you can use this that's not a real estate agent's rule to hand you an inspection report. That's a home inspection company.

Speaker 2 9:53

And tell you to rely upon it.

Speaker 3 9:54

Right.

Speaker 2 9:55

Most of us design for a different person. There also would be breaking confidentiality if that buyer's name was still on there.

Speaker 3 10:02

And they do have confidentiality clauses also and their ethics.

Speaker 2 10:06

Yes. Now here's my thought, though if, even if they take the buyer's name and scratched it out, blacked it out, it's still, it's not their property to send Right that report, so it's still breaking privacy, confidentiality could be civil penalties for that, I'm sure. I'm sure that if the agent did that and their insurance found out about it probably Jack of the UNO insurance- oh, I would guarantee that yeah. Probably if the UNO has been any money defending a real estate agent or a home inspector, they jack up their UNO.

Speaker 4 10:37

The next year.

Speaker 2 10:39

Yep, so that was the big thing that was discussed in the board meeting.

Speaker 3 10:44

So what were they talking about doing then at the board meeting, cause I did miss it.

Speaker 2 10:48

Here's how it went. The board is like while we, as the home inspector board, have no control of the real estate agents, if they do it Cause they can't, they can't say, hey, you agent, have to stop it.

Speaker 4 11:00

Right.

Speaker 2 11:00

They have no control over that. So what's going to happen? I can't think what real estate committee. There's some meeting coming up. I can't think of the name of it. I got written down somewhere. They're going to try and bring that up for the next meeting they have with the agents.

Speaker 3 11:14

Oh, okay.

Speaker 2 11:15

So and you talked to our UNO and we're waiting to get a response from him whether or not they would ever ever consider covering somebody who had no agreement with the inspection company. I kind of doubt, cause I can't imagine any of them going yeah, I'll do this job and I'll pay anybody in the world who has a problem with it. No, it is specifically for this agreement. This report is for this client, that's it. We're not opening up to the world and I show I surely doubt UNO company would ever want to do that it wouldn't make any financial sense to them to do that.

Speaker 2 11:54

Yep, Well it commands health insurance going. Yes, we will cover your family, but if for some reason you want, we'll cover any other family member who's outside your family.

Speaker 3 12:05

We'll cover your cousin's brother, sister's husband, and it's not a problem, that's not going to happen.

Speaker 2 12:08

So anyway, that was the big thing from the home inspection board meeting.

Speaker 3 12:14

So expect some developments on that one and keep tuned.

Speaker 2 12:17

Yeah, well, that was the first board meeting they've had in a while. Yes, it was. They canceled one because of weather and I think they're doing, I think they can do them once a quarter. So if you cancel one, it's like six months between meetings. So, it's been stupid long.

Speaker 3 12:32

I think the next one's in April, so we should have an update in April then.

Speaker 2 12:35

Yes, hopefully, I'm hoping for some reason. I'm thinking March is the real estate agent meeting, whatever that is.

Speaker 3 12:45

That's what they're going to do, so hopefully I'll have, so that's good timing then yeah, I want to go to that.

Speaker 2 12:48

It's the same room as a board meeting.

Speaker 3 12:50

Oh, okay.

Speaker 2 12:51

For home inspectors.

Speaker 3 12:52

so oh, so we're going to go to that one.

Speaker 2 12:55

If you're available.

Speaker 3 12:56

Yeah, let's go to that one.

Speaker 2 12:57

If we're there.

Speaker 3 12:58

We'll find out. We'll have an update for you in March too. Yep so all right, I think that is it All right?

Speaker 2 13:05

everybody take care. Bye-bye, Bye.

Speaker 1 13:09

You've been listening to the Standing Out in Ohio podcast. Be sure to subscribe on Spotify or Google podcast to get new, fresh episodes. For more, please follow us on Instagram, Twitter and Facebook, or visit the website of the best Ohio home inspection company at homeinspectionsinohiocom or jimtrophcom. That's J-I-M-T-R-O-T-H and click on podcast Until next time. Learn and go do stuff.