Code of Ethics

402 Code of Ethics: This Code of Ethics shall be followed and complied with by registered home inspectors in Arkansas. Any Arkansas law which conflicts with this Code of Ethics, shall take precedence. 1. Inspectors shall avoid conflicts of interest or activities that compromise, or appear to compromise, professional independence, objectivity, or inspection integrity. A. Inspectors shall not inspect properties for compensation in which they have, or expect to have, a financial interest. B. Inspectors shall not inspect properties under contingent arrangements whereby any compensation or future referrals are dependent on reported findings or on the sale of a property. C. Inspectors shall not directly or indirectly compensate realty agents, or other parties having a financial interest in closing or settlement of real estate transactions, for the referral of inspections or for inclusion on a list of recommended inspectors, preferred providers, or similar arrangements. D. Inspectors shall not receive compensation for an inspection from more than one party unless agreed to by the client(s). E. Inspectors shall not accept compensation, directly or indirectly, for recommending contractors, services, or products to inspection clients or other parties having an interest in inspected properties. F. Inspectors shall not repair, replace, or upgrade, for compensation, systems or components covered by the Standards of Practice, for one year after the inspection. 2. Inspectors shall act in good faith toward each client and other interested parties. A. Inspectors shall perform services and express opinions based on genuine conviction and only within their areas of education, training, or experience. B. Inspectors shall be objective in their reporting and not knowingly understate or overstate the significance of reported conditions. C. Inspectors shall not disclose inspection results or client information without client approval. Inspectors, at their discretion, may disclose observed immediate safety hazards to occupants exposed to such hazards, when feasible. 3. Inspectors shall avoid activities that may harm the public, discredit themselves, or reduce public confidence in the profession. A. Advertising, marketing, and promotion of inspectors' services or qualifications shall not be fraudulent, false, deceptive, or misleading. B. Inspectors shall report substantive and willful violations of this Code to the Board. 29 4. A.C.A. §17-52-321 states: (a) It is an unfair business practice for a home inspector, a company that employs the inspector, or a company that has a financial interest in a company employing a home inspector to do any of the following: (1) Perform or offer to perform for an additional fee any repairs to the property on which the inspector or the inspector's company has prepared a home inspection report in the past twelve (12) months; (2) Inspect for a fee any property in which the inspector or the inspector's company has any financial interest or any interest in the transfer of the property; (3) Offer or deliver any compensation, inducement, or reward to the owner of the inspected property, the broker, or the agent for the referral of any business to the inspector or the inspection company; or (4) Accept an engagement to make an inspection or to prepare a report in which the employment itself or the fee payable for the inspection is contingent upon the conclusions in the report, pre-established findings, or the close of escrow. (b) (1) A home inspection report shall not be used in any manner other than that agreed to in writing by the inspector and his or her client. (2) Transfer of an inspection report or portion of a report to any third party absolves the inspector and his or her client of any responsibility for liability for claims or adverse actions arising from the use.