Many clients often ask: "Do home inspectors need to be licensed, or what qualifications should they possess to practice?" As a practitioner, I always strive to provide comprehensive and accurate information about this matter, particularly regarding my own professional qualifications and experience.

In reality, there is currently no unified or strictly enforced entry standard for home inspectors. This means that there is no licencing requirement in Ontario so far, and anyone can claim to be a home inspector and offer related services. As a result, the market is quite disorganized and unregulated, causing confusion for the public (including buyers, sellers, real estate professionals, and other related industries) and leading to various problems. Some of the major issues include:

• Service providers may claim various qualifications, often use complicated or misleading titles that are difficult to verify.
• The public have no clear way to determine whether these individuals possess basic professional knowledge, training, and experience, or whether they follow any accepted standards or ethical guidelines, or are accountable to any regulatory body.
• Serious problems sometimes are overlooked, or minor issues are exaggerated, leading clients to make incorrect decisions or miss good transaction opportunities.

Additionally, there are frequent disputes and even lawsuits arising when the opposing party (usually the seller) disagrees with the inspection results and questions the inspector's qualifications. These conflicts are rooted in the fact that there are conflicting interests between the parties involved in a real estate transaction, and the home inspector is often caught in the middle. It is understandable that the other party cares about the qualification of inspector, as they want a scientific, credible, and fair evaluation of the property, and may not accept random or arbitrary judgments. This is why most real estate purchase agreements specify that inspections must be conducted by a "Qualified Home Inspector". If the inspector hired by the buyer cannot prove or is not widely recognized as qualified, the opposing party may argue that the buyer breached the agreement and reject the inspection results. Such conflicts typically arise when further negotiations fail after the inspection.

What exactly is a "Qualified Home Inspector"? It usually refers to someone who has the appropriate level of professional knowledge and training, practical experience, and even formal recognition by an official or authoritative body.

To that end, the Ontario government has taken some steps. In 1994, the Ontario Legislature passed Bill Pr158, The Ontario Association of Home Inspectors Act, which received Royal Assent. The Ontario Association of Home Inspectors (OAHI) is the only officially recognized/endorsed organization under Bill Pr158.

Bill Pr158 also established the professional designation Registered Home Inspector (RHI) and authorized OAHI as the sole certifying body for this title. Therefore, RHI is the only legally protected designation, representing the highest level of professional credibility and recognition in the field. However, the law does not require all home inspectors to be RHI-certified or to be governed by OAHI. This is partly because home inspections primarily affect the interests of transaction parties, and there is no justification for prohibiting arrangements where mutually trusted individuals (e.g., relatives, friends, or agents) inspect a property if both parties agree to accept the findings - just as buyers are not legally required to conduct a pre-purchase inspection.

Nevertheless, as home inspections have become more common and influential, along with the various issues that arise, there have been growing calls - especially within the real estate industry - for stricter regulation of the profession.

Founded in 1987, the Ontario Association of Home Inspectors (OAHI) is a non-profit, self-regulating professional organization. It is also the Ontario chapter of the Canadian Association of Home and Property Inspectors (CAHPI). Bill Pr158 serves as its legal foundation. OAHI's mission includes:

• Enhance members' professional skills.
• Improve members' inspection practices.
• Promote industry development.
• Protect public interests.

OAHI has clearly defined:

• Standards of Practice: what must be inspected; what is not required; and how inspections should be conducted.
• Code of Conduct: guides professional behavior and conflict-of-interest management, including: no referral fees to or from any party; not accepting fees from multiple parties unless all are fully informed; not soliciting related services e.g., renovations; remaining independent, etc.

As the only government-recognized organization for home inspectors, OAHI imposes rigorous requirements for RHI certification, including: education background checks, professional training, examinations, field experience, and continuing education. RHIs are full members of OAHI, must adhere to its regulations, and are subject to its oversight. OAHI also recognizes other membership levels, but non-members or those still in training are not allowed to claim any affiliation with OAHI - doing so may result in penalties or disciplinary actions.

For more information on OAHI and the RHI designation, please visit: www.oahi.com

This article was originally published in "Real Estate Weekly", Issue #32, August 19, 2005, Some revisions made here.