Code of Ethics: Integrity, Conflicts and Confidentiality
The Code of Ethics domain tests judgment when commercial pressure conflicts with duty. Exam items often present a plausible business opportunity, a referral arrangement or a client request that creates a conflict, and ask what a registered inspector must do. The answer usually turns on disclosure, avoidance and written documentation, not on whether the conduct is common in the local market.
Core duties
- Act honestly and objectively, and protect the client's interests within the agreed scope.
- Avoid conflicts of interest. Disclose any financial interest in the property, a repair business or a referral arrangement before accepting the engagement.
- Do not accept undisclosed compensation from realtors, contractors or other third parties for inspections or referrals.
- Keep client information confidential. The report belongs to the client; sharing it with an agent or contractor requires consent.
- Practise only within your competence and disclose the limits of your training, certification and insurance.
- Advertise truthfully, do not disparage colleagues, and cooperate with ethics or certification reviews.
Worked example
A real estate agent offers $75 for every inspection booked through her and asks to be copied on all reports. Accepting the fee creates a secret incentive to keep the agent's transactions moving and breaches the duty of objectivity; it should be declined. Copying reports without client consent breaches confidentiality. If the inspector also owns a repair company, that interest must be disclosed in writing, and many codes prohibit performing repairs on a property inspected by the same inspector within a defined period. The reasoning is that the client must be able to trust the report was not shaped by a hidden benefit.
Traps that cost marks
Assuming verbal disclosure cures a conflict. Treating a gift, lunch or marketing support as harmless when it creates an obligation. Discussing a client's findings on social media. Accepting work outside your competence to avoid losing a booking. Altering a report after delivery without documenting the change and the reason.
Key points
- Disclose conflicts in writing before the inspection; avoid arrangements that compromise objectivity.
- No undisclosed third-party compensation for referrals or inspections.
- Client information is confidential and sharing requires consent.
- Accept only work within your competence and certification.
- Advertising must be truthful, and colleagues must not be disparaged.