When Will Colorado Finally License Home Inspectors?

As I have mentioned before (in an article about ending regulation of HOA managers), Colorado is a “regulation-light” state, meaning that it will avoid regulating an industry without solid evidence that regulation benefits the public.

That attitude is, in part, why Colorado was the 49th state to regulate mortgage brokers when it did so in  2007, and is why the state still doesn’t regulate home inspectors. Currently, only 19 states do not license inspectors.

If it weren’t for the certification programs of two national trade associations, we would have no reasonable assurance of competence from the men and women who present themselves as “home inspectors.”

It’s amazing, given the value of the investment at risk, that anyone can offer their services as a home inspector without any experience and without taking even a single examination to determine their level competence. The inspector you hire could even be a felon, fresh out of prison, because there is no criminal background check required.

In addition, without regulation there is no requirement that home inspectors have the kind of “errors and omissions” (E&O) insurance that other professionals — including real estate agents — must carry. Without regulation there can be no requirement for continuing education classes, just as there is no requirement for training to become a home inspector.


Author: Golden Real Estate, Inc.

Golden Real Estate is a prominent member of the Denver/Jefferson County real estate scene. Based in Golden, we service both Denver and Jeffco, representing both buyers and sellers. We're well known for Broker Jim Smith's weekly "Real Estate Today" column published in the Denver and Jeffco editions of the Denver Post's YourHub section each Thursday. The column also appears in several weekly newspapers and is archived at www.JimSmithColumns.com. We have nine agents, all of whom are Realtors and EcoBrokers. Our office is Net Zero Energy since December 2017, and several of us drive electrics cars. Known for our sustainable practices, we accept polystyrene (aka "Styrofoam") for recycling, keeping 200 cubic yards per year out of area landfills.

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