TERMITE INSPECTION ABUSE
Although, termite inspectors are licensed and regulated by California State law, we believe there are still some unscrupulous termite inspection companies that mis-label or mis-report their findings in a continuing effort to force consumers to perform unneeded corrective work. NBI feels that this abuse is caused by the inherent conflict of interest that is allowed in the termite inspection industry. This conflict of interest is not tolerated in the home inspection industry.
Many people may argue that "there are many industries with a conflict of interest such as mechanics, dentists, etc." "What's different about having an inspection company perform corrective work and having a mechanic perform the work?"
The answer is "in a real estate transaction, you have a buyer!" In all other instances, you have free choice to do whatever you please. If you don't like what the mechanic or dentist recommends, you simply seek another opinion. It's not that easy in a real estate transaction especially if you are already under contract with a buyer. It is problematic even if you don't have a buyer under contract.
Sellers are required to disclose all inspection reports performed on their home, even the ones they don't agree with. Failing to do so could result in a very costly lawsuit after the sale.
Often times, buyers and sellers will enter into a contract stating that one party will pay for repairs recommended in the termite report. Purchase contracts don't specify whether the recommendations from the inspection company have to be fair, logical, practical and fairly priced.
If multiple reports are issued and each contain different corrective recommendations, the buyer is going to select the report that best suits them. It's only logical that they would. This means that the seller may be forced to perform corrective work that may not be "required" under state law or under the purchase contract. Failing to do so could result in the loss of sale.
This is why we think it's imperative to have only non-biased inspections performed on your home the first time.
These are the areas of abuse that NBI has observed most often. Being aware that this can happen can offer you more protection.