Sometimes, industry jargon or terminology is intertwined when it shouldn't be; if it is, there may be some additional liability that no one would want to partake in.
When you purchase a property that is on the market for sale, usually the buyer will have the property inspected by a licensed home inspector. According to N.C.G.S. §43-151.45, a home inspection consists of a written evaluation of two or more of the following components of a residential building: heating system, cooling system, plumbing system, electrical system, structural components, foundation, roof, masonry structure, exterior, and interior components, or any other related residential housing component.
If you hire a home inspector, that inspector must be licensed in the state of NC because they are performing home inspections for compensation. The Home Inspector Licensure Board (HILB), was created to safeguard the public health, safety, and welfare and protect the public from being harmed by unqualified persons by regulating the use of the title "Licensed Home Inspector."
N.C.G.S § 93A. effective July 1, 1957, states that a real estate broker is any person, partnership, corporation, limited liability company, association, or other business entity who for a compensation or valuable consideration or promise thereof lists or offers to list, sells or offers to sell, buys or offers to buy, auctions or offers to auction (specifically not including a mere crier of sales), or negotiates the purchase or sale or exchange of real estate, or who leases or offers to lease, or who sells or offers to sell leases of whatever character, or rents or offers to rent any real estate or the improvement thereon, for others.
This license is a Real Estate Brokers License issued by the North Carolina Real Estate Commission (NCREC).
Now, there are some exceptions to the rule. However, licensed brokers/property managers cannot provide services in which that service requires a separate license to do so. In this case, property managers would need a separate license to be home inspectors; therefore, we cannot use the "inspection" terminology.
During the property visit or walkthrough, we as property managers look at the overall condition of the property and safety and habitable conditions and note them on our reports. We are looking for how the resident or tenant cares for the property. While this is not an all-inclusive list, some items we look for are unreported maintenance issues, condition of the lawn and shrubs, common HOA violations, evidence of damage to the flooring, appliances, windows, ceilings, walls, lights, along with any modifications to the property, neglect, air filters, etc.
You see, as licensed property managers, we are not licensed to check the mechanical and structural integrity of any components of a property, and therefore, refrain from using the term "inspection" and use the terminology "property visit" or "property walkthrough."
In NC, a home inspection requires a licensed home inspector.
Make sure your property manager uses the correct jargon or terminology. It would probably be a good idea to check your state laws to ensure you and your property managers comply with your general statutes, rules, regulations, certifications, and requirements, so there is no misunderstanding.
I hope this helps explain the difference between an inspection and a property visit or walkthrough here in NC.
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