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Inspector committee readies major SOP review and educational fixes; commission increases discipline in negligent inspection case
Summary
The Inspector Committee reported a near‑complete initial review of the Standards of Practice and proposed a rule to require prelicensure coursework be finished before the 40‑hour practicum; the commission also increased the probation period to two years and imposed a $6,000 fine in a negligent‑inspection disciplinary case.
The Texas Real Estate Inspector Committee reported progress on a multiyear Standards of Practice review and changes to prelicensure practicum requirements, and the full commission adopted a disciplinary outcome for a licensed inspector whose report failed to disclose foundation and rot issues.
Inspector committee work Committee chair Lee Warren told commissioners the Standards of Practice (SOP) subcommittee has been reviewing every section and is nearing an initial recommendation for the October inspector committee meeting; if the committee transmits a recommendation it could come to the November full commission meeting. Warren said a new promulgated inspection form is likely after more than three years without form changes.
Education and practicum changes Warren described a proposed rule change that would require students to complete prelicensure coursework before starting the 40‑hour practicum (ride‑along) portion of inspector training. The committee reported that mentors for the practicum would be required to hold an inspector license for at least five years and have completed at least 200 verified inspections. Warren said the change was intended to ensure trainees have enough classroom background to apply SOPs correctly in the field.
Concerns about multi‑inspector firms and corporate licensing The committee discussed the growth of inspection companies with multiple inspectors and flagged consumer‑protection concerns when companies refer work to connected service providers. Warren said a corporate license for inspection companies is under consideration but would likely require legislative change.
Enforcement case and commission action The commission considered a proposed final decision in a disciplinary case involving licensed inspector Sterling Raphael Reed (inspection performed June 2021). Staff presented evidence that Reed’s inspection report omitted key information, did not provide a written opinion on foundation performance, and failed to list the inspector’s name and license number on the report. A follow‑up inspection documented wood rot and subfloor damage that predated the sale, staff said.
An administrative law judge (ALJ) recommended a $6,000 administrative penalty and a one‑year probated suspension. Enforcement staff urged the commission to increase the probated suspension to two years to better reflect the seriousness of the deficiencies. Commissioners voted to adopt the PFD with staff’s modification: a $6,000 administrative penalty and a two‑year fully probated suspension.
Why it matters The inspector committee’s SOP review and the recommended practicum timeline could change how new inspectors are trained and how inspection reports document conditions. The Reed discipline underscores enforcement consequences when reports omit required opinions or fail to identify inspectors properly.
Ending The inspector committee expects to transmit its SOP recommendation to the full commission in October, with possible rule or form proposals coming afterward. Enforcement staff said E&O insurance and civil remedies are options for consumers seeking monetary relief; the inspector‑recovery fund is limited in scope and winding down.
