Kansas home inspection regulations have been put in place and there are several questions about today’s inspection process and inspection requirements. This article addresses some of those questions. For a thorough understanding of the topic, you can go to the Kansas Home Inspector Registration Board (KHIRB) website, www.ksinspectors.org, to read the State of Kansas Home Inspection Standards of Practice, Code of Ethics and other documents.

Jeff Barnes, Chairman of the KHIRB Home inspectors, likens the period we’re in now to a “honeymoon” for the real estate community and the new regulations. There are some glitches and will likely continue to be some during this first year, he said. 

Inspector Education and Registration Delays

One of the biggest questions revolves around the education issue and who must be registered. In areas where approved educators were not available, some inspectors were unable to fulfill education requirements prior to January 1, 2010. Here’s part of a notice to inspectors that’s posted at the KHIRB website - it explains that there’s a delay in enforcement of education requirements for inspectors who began their business between July 1, 2007 and December 31, 2009:

Ø  Due to delays in establishing the approval process for education providers, no approved education providers were available for pre-registration education by the registration deadline of January 1, 2010. The legislative process for approving education providers is now complete and the Board has approved several education providers which can be found on this web site. Because of the delay, it was not possible for inspectors engaged in the home inspection industry to obtain the required educational hours to meet the requirements of the law. Because of this problem, the Board has provided a grace period for these inspectors to obtain the required education. To be consistent with the regulations in K.S.A. 130-3-1 the grace period of 6 months will begin March 1, 2010 and end August 31, 2010. Until that time the Board will not be enforcing this section of the law for this group of inspectors to allow them the opportunity to meet the requirements of the law. As of August 31st, 2010 all inspectors operating in the state of Kansas will be required to be registered. Until that time the statute has no provision to provide a provisional or temporary registration for you (inspectors who have not had the required education). I recommend you print a copy of this letter to present to anyone questioning your registration status.

It is important to note, if you began your (home inspection) business after January 1, 2010 this grace period does not pertain to you and you may NOT conduct any home inspections until you have met all of the requirements of the law. 

To further explain this situation, Barnes said that although the education requirement has been state law since July 1, 2008, many inspectors have jumped into business without the proper research as to the requirements. The KHIRB has recognized that even if those inspectors had done the research, no schools were available for them attend so the Board has made this accommodation to be fair and reasonable. “In order for us to enforce the law we must have provided a way for citizens to abide by the law,” said Barnes.

“The law does not provide a mechanism for registering these inspectors (who have not had the required education) so we will not be able to place them on the list,” said Barnes.  “The faster they complete their education, the faster they can get registered.” 

Other questions pertain to the two documents inspectors must now give clients prior to conducting an inspection. They are a pre-inspection notice and a pre-inspection agreement. The law does not require either of these documents to be signed; signing one or the other, or both, is a business decision left up to the inspector.

Pre-inspection Notice

The reason for the pre-inspection notice is to require the inspector to let the client know upfront what will be covered and what will not be covered. According to Barnes, the document is required to list three things, which are shown in quotes below, with additional comments from Barnes:

1. "A clear description of the scope of the home inspection." This information is also contained in the Standards of Practice. If anything required in the Standards of Practice will not be covered, it must be listed in the inspection report.
   
2. "A clear description of any limitations on the liability of the home inspector for any errors and omissions which may arise during the home inspection.” The law states that the inspector can not limit his/her liability to less than $10,000; however, the law also states that the client cannot file a claim against the inspector for more than $2,000. This was an error on the part of the Revisor of Statutes. Both dollar amounts were to be $2,000, but the $10,000 was not changed before the Governor signed the bill. This has left the bill somewhat confusing. This language was to be corrected this legislative season; however, due to conflicts in the House it may not happen this year, leaving the confusing language.
   
   It is important for inspectors to make sure that when talking to clients, the $2,000 number is the one discussed, as it is the limitation of claim for any preserved damages. It is also important to note that this only pertains to errors and omissions and does not extend to breach of contract or warranty, violations of the Kansas Consumer Protection Act, or any other common law theory or statutory violation, so other contractual limits may apply to these areas.
   
3. "An identification of the standards of practice approved by the Board." The Board has produced a Standards of Practice and Code of Ethics for the State of Kansas and this is the only Standard that should be followed by the inspector. The three national home inspection associations each have their own Standard, which made it confusing for consumers and REALTORS®, as the Standards the inspector was working under were not always clear. By having one Standard for the state, the confusion is removed. The requirement of including the Kansas Standard by reference in the pre-inspection notice also meets the "clear description of the scope of the home inspection" requirement. 

“The pre-inspection notice must be provided to the client before the inspection,” said Barnes. “The law and the rules and regulations do not define exactly what ‘before’ is because there are too many factors and changing elements that go into each inspection.  The goal of this portion of the bill was to provide the notice far enough in advance so the client could review the notice and make an informed decision as to whether or not to use this inspector.”

It is acceptable to include the pre-inspection notice and the pre-inspection agreement in a single document, according to Barnes. “The information required in the pre-inspection notice is relative generic and will not change much between inspectors, so it is also acceptable to include the required elements of the pre-inspection notice in the pre-inspection agreement,” he said.

Pre-Inspection Agreement

The pre-inspection agreement is required to be provided as part of the inspection report.  It is preferred by the KHIRB, and simply a smart business practice, that it be provided in advance of the inspection to allow the client enough time to review the document before inspection. “As we all know, the process of buying a home is a very fluid one, and circumstances change daily,” said Barnes. “Because of this, the pre-inspection agreement does not have to be signed, as sometimes it is not possible for the client to make it to the inspection or it may be logistically difficult to provide the document before hand.

“I know this is all confusing,” said Barnes, “but the bottom line is that both documents can be merged into one document, they don't have to be signed and the pre-inspection notice must be provided before the inspection. And although a good business practice, the agreement does not have to be presented before the inspection.”

Payment of Inspection fees

There is no requirement as to the timing of the fee payment, Barnes explains. Before is always preferred, but this is an agreement between the inspector and the client. It is never a good practice to wait until closing, as sometimes closing doesn't happen and it is never acceptable for the agent to dictate or suggest the timing of the payment.

Inspection Requirements

Still, other questions pertain to what components of homes inspectors are and are not now required to inspect. Barnes explained that the KHIRB Standards of Practice set forth the minimum requirements for home inspections performed in Kansas. Inspectors may choose as “added value” to inspect some components the Standard say they’re not required to inspect. For example, many questions have come up regarding household appliances. The Standards do not require inspectors to inspect appliances, but it’s up to inspectors’ discretion to choose to do so.

As previously published in Realeyes Online Update, REALTORS® providing a list of home inspectors should refer clients to the KHIRB website (www.ksinspectors.org) for a list of registered home inspectors. For REALTORS® to be protected under the Brokerage Relationships in Real Estate Transactions Act (BRRETA), they can provide a list to clients of registered home inspectors so they are considered qualified third-party professionals. Clients can check www.ksinspectors.org for information.