14.7 Use of Experts and "Recommendations"

The Company maintains a strong policy that agents not go beyond her/his area of expertise regarding a transaction. The company strongly recommends that an agent advise the use of an expert in situations where appropriate. For example, if questions arise with a buyer about the adequacy of the electrical system, the agent should advise that a building inspector, engineer, or licensed electrician be consulted.

However, an equally strong policy exists in NOT recommending any particular inspector, engineer, electrician, or other expert. While advising that AN expert be used is a good risk reduction technique, the benefits of this technique are lost if a specific expert is recommended. Recommendation of a specific expert could lead to liability if the expert fails to do her/his job and the agent was negligent in “recommending” that person.

The policy of the Company is to give the names of three experts in each field whenever asked for a recommendation. Do not fall into the trap of responding to a customer/client who insists that you make a specific recommendation. The agent should be firm in having the customer/client make the choice. If you are related to any of the inspectors on the list provided, or have a pre-existing relationship with any inspectors on the list, this must be disclosed in writing prior to using the services.

Some agents have found a helpful tool in keeping several sample reports from various building/mechanical inspectors, engineers, roofers, etc. When the customer/client asks for a recommendation, the agent gives the customer/client the samples and suggests that they choose the style and cost of the expert which fits their style and needs the best.

A related issue is ordering the report. The policy of the Company is that the agent should not order the report if at all possible. The company recognizes that certain situations require the agent to place the order, but, in general, the agent should have the customer/client place the order. This removes the company and agent from any involvement in the selection process and reduces the liability of possible negligence in "recommendation" of an expert.