Point-of-sale inspection is obsolete

A recent column in the Heights Observer discussed the history of point-of-sale ordinances in Cleveland Heights. As a member of City Council in the late 1970s, I co-wrote one version of them. These ordinances once served a useful social purpose; but point-of-sale inspection has become obsolete. This is because provisions for private inspections are standard in real estate contracts.

Government inspections too often miss problems. And the law provides that the city is not liable when they do. Private inspections are more methodical and accurate because the inspectors are qualified. They even are certified by the state of Ohio.

A private inspection benefits both parties. Each receives better knowledge and that makes a fair deal more likely. Private inspections also make litigation less likely. Only a fool would sell or buy a property without discovering its true condition.

The real concern is how best to ensure housing stock is improved over time. Some think coercion by the government is the preferred way to guarantee the performance of repairs. I disagree.

Point-of-sale inspection is not cost effective. It requires an expensive bureaucracy to use and manage inspectors. It keeps the municipal court much too busy. It needlessly turns many new residents of our community into instant “criminals.” It often violates privacy. And it is redundant because almost all buyers already get private inspections.

Another problem is that, by law, sellers must put substantial money into a city escrow account to guarantee major repairs will be done. They must do this prior to transfer of title, even if they do not yet have proceeds of sale. This makes it unreasonably difficult to sell a house. Present owners of Cleveland Heights homes should take note; someday, they all will want to be sellers.

I propose an alternative: Point-of-sale inspection should be waived when there is a private inspection. The parties can and should agree who financially is responsible for any repairs. And the city could consider advising them to provide for a rebate to the buyer from seller proceeds to cover the costs of repairs.

Point-of-sale inspection is well intended. But the city of Cleveland Heights should recognize the way houses are sold these days and get out of the way of the free market.