(Link to Service Alberta Survey) Consultation closes June 30th.
With about 225 home inspection businesses in Alberta, you might be surprised to learn that there is currently no specific regulations in Alberta governing them, or any licensing requirements or enforced standards.
The Alberta Chapter of the Canadian Association of Home and Property Inspectors requires all of its members to follow standards of practice, however, membership in the association is voluntary. The association has asked the Alberta government to create regulations and standards for the industry that would be mandatory.
British Columbia just started a licensing system in March, the first jurisdiction in Canada to do so.
The following are some issues to consider, taken from the Home Inspection Business Regulation Proposal:
Is there a need to regulate?
The Alberta government receives relatively few complaints from consumers about home inspectors. In the last four years, Service Alberta has received 18 complaints about home inspection businesses. Many home inspectors in Alberta have voluntarily joined the Canadian Association of Home and Property Inspectors or the International Association of Certified Home Inspectors and adhere to those associations’ membership criteria. However, even if the number of complaints is low, the cost to the homeowner could reach hundreds of thousands of dollars in those cases where an inspector is negligent.
Potential For Higher Costs
The creation of government regulations, mandatory licensing, and a requirement that inspectors carry liability insurance could lead to higher costs for home inspection companies. Some could be forced out of business. And the fees inspectors charge their customers could increase, perhaps significantly.
Complexity of Regulations & Standards
Regulations could cover a variety of things. They could include minimum standards of training, experience and continuing education; contract requirements; posting of bonds or other security; or the creation of a compensation fund for clients.
Since anyone can call himself or herself a “home inspector,” which can put consumer confidence and protection at risk, the Alberta government is seeking input from Albertans.
Please take the time to fill out the short survey located here
You can also read more about it at the Service Alberta Website
Calgary Herald: Alberta Considers Regulating Home Inspectors
Yes there is a need to regulate Home Inspectors. While there may have only been 18 reported complaints to Service Alberta in the past four years, how many complaints have been reported to other consumer watch dogs, had went directly to court or had gone unreported. As a Calgary Realtor I have had the opportunity to see first hand the difference between good and bad Home Inspectors and have found the difference to be astounding.
As for the potential for higher costs may be a reality the fact of the matter is that the cost of a good Home Inspector is well worth knowing exactly what you are purchasing and possibly even avoiding the purchase of a problem property.
If regulation leads to minimum standards of training, continuing education and insurance then this will only ensure value to there customers.
In the meantime your realtor should be able to provide you with the names of several good or even great Home Inspectors
Fixed Rates Up Again
Read more about it at the Canadian Mortgage Trends blog
If massage therapists (for example) have to be tested and licenced then I see no reason why it should be any different for a home inspector. Especially when the thing you are purchasing is considerably more expensive than an hour on a massage table.