PRIOR PRINTER'S NO. 395 PRINTER'S NO. 1816
No. 359 Session of 2007
INTRODUCED BY GREENLEAF, RAFFERTY, O'PAKE, WAUGH, COSTA, FERLO, WOZNIAK, LOGAN, STACK, A. WILLIAMS AND BROWNE, MARCH 12, 2007
SENATOR TOMLINSON, CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, AS AMENDED, MARCH 11, 2008
AN ACT 1 Amending Title 68 (Real and Personal Property) of the 2 Pennsylvania Consolidated Statutes, further providing for <-- 3 home inspections; establishing the Pennsylvania Board of Home 4 Inspectors; and providing for licensure of home inspectors 5 and for disciplinary proceedings by the Pennsylvania Board of 6 Home Inspectors. REPEALING PROVISIONS RELATING TO HOME <-- 7 INSPECTIONS; PROVIDING FOR HOME INSPECTIONS; ESTABLISHING THE 8 PENNSYLVANIA BOARD OF HOME INSPECTORS; PROVIDING FOR 9 LICENSURE OF HOME INSPECTORS AND FOR DISCIPLINARY PROCEEDINGS 10 BY THE PENNSYLVANIA BOARD OF HOME INSPECTORS; AND MAKING AN 11 APPROPRIATION. 12 The General Assembly of the Commonwealth of Pennsylvania 13 hereby enacts as follows: 14 Section 1. Section 7502 of Title 68 of the Pennsylvania <-- 15 Consolidated Statutes is amended to read: 16 § 7502. Definitions and index of definitions. 17 (a) Definitions.--The following words and phrases when used 18 in this chapter shall have the meanings given to them in this 19 section unless the context clearly indicates otherwise: 20 "Applicant." An individual who applies for a license as a 21 home inspector. 22 "Board." The Pennsylvania Board of Home Inspectors
1 established under section 7504.1 (relating to Pennsylvania Board 2 of Home Inspectors). 3 "Bureau." The Bureau of Professional and Occupational 4 Affairs in the Department of State. 5 "Client." An individual who contracts with a licensee to 6 obtain a home inspection and subsequent written home inspection 7 report. 8 "Direct supervision." A home inspection performed by a home 9 inspector who is not a licensee in the presence of and under the 10 tutelage of a supervising licensee. 11 "Home inspection." A noninvasive visual examination of some 12 combination of the mechanical, electrical or plumbing systems or 13 the structural and essential components of a residential 14 dwelling designed to identify material defects in those systems 15 and components and performed for a fee in connection with or 16 preparation for a proposed or possible residential real estate 17 transfer. The term also includes any consultation regarding the 18 property that is represented to be a home inspection or that is 19 described by any confusingly similar term. The term does not 20 include an examination of a single system or component of a 21 residential dwelling such as, for example, its electrical or 22 plumbing system or its roof. The term also does not include an 23 examination that is limited to inspection for or of one or more 24 of the following: wood destroying insects, underground tanks and 25 wells, septic systems, swimming pools and spas, alarm systems, 26 air and water quality, tennis courts and playground equipment, 27 pollutants, toxic chemicals and environmental hazards. 28 "Home inspection report." A written report [on the results 29 of a home inspection.] prepared by a licensee for compensation 30 and issued after a home inspection that includes: 20070S0359B1816 - 2 -
1 (1) A description or identification of the structure 2 component, systems and subsystems covered by the report. 3 (2) A report on any system or component inspected that, 4 in the opinion of the licensee, is significantly deficient. 5 (3) The licensee's recommendation to seek further 6 evaluation of an expert in that field or monitor deficiencies 7 as reported. 8 (4) A list of any and all systems or components that 9 were designated for inspection in the standards of practice 10 adopted by the board but that were not inspected. 11 (5) The reason a system or component was not inspected. 12 "Home inspector." An individual who performs a home 13 inspection, is properly licensed and meets the qualifications of 14 this chapter. 15 "License." A license issued under this chapter to engage in 16 home inspections. 17 "Licensee." A person who performs home inspections and who 18 is licensed under this chapter as a home inspector. 19 "National home inspectors association." Any national 20 association of home inspectors that: 21 (1) Is operated on a not-for-profit basis and is not 22 operated as a franchise. 23 (2) Has members in more than ten states. 24 (3) Requires that a person may not become a full member 25 unless the person has performed or participated in more than 26 100 home inspections and has passed a recognized or 27 accredited examination testing knowledge of the proper 28 procedures for conducting a home inspection. 29 (4) Requires that its members comply with a code of 30 conduct and attend continuing professional education classes 20070S0359B1816 - 3 -
1 as an ongoing condition of membership. 2 "Preferred provider relationship." A referral service 3 offered by a real estate company, mortgage company, law firm, 4 individual agent, attorney or other similar entity or individual 5 when a licensee is recommended over other licensees in exchange 6 for any direct or indirect consideration therefore, including, 7 without limitation, the payment of a fee, or where in 8 consideration of a licensee advertising produced by or for a 9 person in consideration for recommendations or referrals to 10 undertake home inspections. 11 "Residential dwelling." A structure consisting of at least 12 one, but not more than four, units, each designed for occupancy 13 by a single family, whether the unit or units are occupied or 14 unoccupied. 15 (b) Index of other definitions.--The following is a 16 nonexclusive list of other definitions applying to this chapter 17 and the sections in which they appear: 18 "Agent." Section 7102 (relating to definitions). 19 "Agreement of transfer." Section 7102 (relating to 20 definitions). 21 "Buyer." Section 7102 (relating to definitions). 22 "Material defect." Section 7102 (relating to definitions). 23 "Residential real estate transfer." Section 7103 (relating 24 to application of part). 25 "Seller." Section 7102 (relating to definitions). 26 Section 2. Title 68 is amended by adding sections to read: 27 § 7504.1. Pennsylvania Board of Home Inspectors. 28 (a) Establishment.--The Pennsylvania Board of Home 29 Inspectors is established to conduct business affairs under the 30 Bureau of Professional and Occupational Affairs. The purpose of 20070S0359B1816 - 4 -
1 the board shall be to administer and enforce the provisions of 2 this chapter, promote initiatives to protect consumers of home 3 inspection services, create guidelines for the development of 4 high-level skills in home inspectors and encourage the presence 5 of a viable home inspection industry within this Commonwealth. 6 (b) Composition.--The board shall be composed of seven 7 members who must be full-time residents of this Commonwealth and 8 appointed by the Governor in accordance with the following 9 requirements: 10 (1) For purposes of the initial appointments, five of 11 the members must: 12 (i) Be actively engaged in performing home 13 inspections in this Commonwealth for no less than five 14 years immediately preceding the member's appointment to 15 the board. 16 (ii) Have completed no less than 100 fee-paid 17 inspections per year over the five years immediately 18 preceding appointment to the board. 19 (iii) Demonstrate that they have passed a written 20 examination administered by a national examination 21 organization that complies with the standards established 22 by this chapter. 23 A board member who becomes a home inspector shall obtain the 24 requisite license in accordance with this chapter, before or 25 on the six-month anniversary of the effective date of this 26 section. If a board member does not obtain the requisite 27 license on or before such date, the board member shall be 28 considered to have resigned from the board on the six-month 29 anniversary of the effective date of this section, and the 30 Governor shall fill the vacancy in accordance with this 20070S0359B1816 - 5 -
1 section. Thereafter, the home inspector members must be 2 licensed prior to their appointments. 3 (2) One person shall represent the public at large and 4 shall not be associated with the home inspection, home 5 building or real estate business other than as a consumer. 6 This member shall be appointed by the Governor but shall not 7 be selected from a submitted list of names. 8 (3) One person shall be the Commissioner of the Bureau 9 of Professional and Occupational Affairs or his designee. 10 (c) Member selection and service.-- 11 (1) Appointment of the initial members comprising the 12 board shall begin on the three-month anniversary of the 13 effective date of this section, and their respective terms 14 shall be staggered, as follows: 15 (i) Three members for a term of three years. 16 (ii) Two members for a term of two years. 17 (iii) Two members for a term of one year. 18 (2) Except as provided in paragraph (1), all board 19 members shall serve a term of three years, and no member 20 shall serve for more than three consecutive terms. 21 (3) The Governor may remove a board member at any time 22 for incompetence, neglect of duty or unprofessional conduct. 23 (4) If a vacancy occurs in the membership of the board, 24 the Governor shall appoint an individual to serve for the 25 remainder of the unexpired term who has like qualifications 26 required of the member who created the vacancy. 27 (5) Each year the board shall elect a member as 28 chairperson and vice chairperson. The chairperson and vice 29 chairperson shall serve in their respective capacities for no 30 more than one year consecutively and until a successor is 20070S0359B1816 - 6 -
1 elected. The chairperson shall preside at all meetings at 2 which the chairperson is present. The vice chairperson shall 3 preside at meetings in the absence of the chairperson and 4 shall perform other duties as the chairperson directs. If the 5 chairperson and vice chairperson are absent from a meeting of 6 the board when a quorum exists, the members who are present 7 may elect a presiding officer who shall serve as acting 8 chairperson until the conclusion of the meeting or until the 9 arrival of the chairperson or vice chairperson at the 10 meeting, whichever occurs first. 11 (6) The board shall meet at least quarterly each 12 calendar year at the call of the chairperson or the written 13 request of a majority of the members of the board. The 14 chairperson shall establish the date, time and place for each 15 meeting. A majority of the current members of the board shall 16 constitute a quorum. The affirmative vote of a majority of 17 the members appointed to the board shall be necessary for the 18 board to take official action. 19 (7) Each member of the board shall serve on a voluntary 20 basis but shall be entitled to reimbursement for traveling 21 expenses and other expenses actually incurred in connection 22 with the member's duties as established under this chapter. 23 § 7504.2. Licensure of home inspectors by board. 24 (a) Powers of board.--The board, through the promulgation of 25 administrative rules and regulations, shall: 26 (1) Establish the requirements for and prescribe the 27 form of licenses, applications and other documents that are 28 required for home inspectors to be licensed under this 29 chapter. 30 (2) Grant, deny, suspend and revoke approval of 20070S0359B1816 - 7 -
1 examinations and courses of study regarding home inspections; 2 establish standards for continuing home inspection education, 3 including, without limitation, the subject matter and content 4 of courses of study and the selection of instructors; and 5 approve other equivalent educational programs and establish 6 procedures for the issuance of credit upon satisfactory proof 7 of the completion of these programs. 8 (3) Issue, deny, suspend and revoke licenses in 9 accordance with this chapter. 10 (4) Establish and maintain a current list of home 11 inspectors who are registered or licensed. The list shall be 12 available for public inspection, including by electronic 13 means. 14 (5) Establish and maintain a current list of national 15 home inspectors associations approved by the board as meeting 16 the requirements of this chapter. Any national home 17 inspectors association approved by the board must provide the 18 board initially, and upon request, with a list of its members 19 in this Commonwealth. Once approved, the association shall 20 notify the board within 30 days when any of its members in 21 this Commonwealth fail to maintain their membership in the 22 association or are otherwise not in compliance with the rules 23 of the association. 24 (6) Investigate complaints concerning licensees or 25 persons the board has reason to believe should be licensees, 26 including complaints concerning failure to comply with this 27 chapter or administrative regulations promulgated under this 28 chapter and, when appropriate, take action in accordance with 29 this chapter. 30 (7) Bring actions in the name of the Commonwealth in an 20070S0359B1816 - 8 -
1 appropriate court in order to enforce compliance with this 2 chapter or the administrative regulations promulgated under 3 this chapter. 4 (8) Establish licensure fees in an amount determined by 5 the board that are reasonably necessary and appropriate for 6 enforcement. 7 (9) Inspect the records of a licensee in accordance with 8 administrative regulations promulgated by the board. 9 (10) Conduct or designate a member or other 10 representative to conduct public hearings on any matter for 11 which a hearing is required under this chapter and exercise 12 all powers granted under this section. 13 (11) Adopt a seal containing the words "Pennsylvania 14 Board of Home Inspectors" and, through the board's secretary, 15 certify copies and authenticate all acts of the board. 16 (12) Use board members, consultants and other persons to 17 enter into contracts and to authorize expenditures that are 18 reasonably necessary or appropriate to administer and enforce 19 this chapter and administrative regulations promulgated under 20 this chapter. 21 (13) Establish continuing education requirements of not 22 less than 16 hours annually for licensees in accordance with 23 this chapter. 24 (14) Maintain the board's office, files, records and 25 property in the City of Harrisburg. 26 (15) Require all fee-paid home inspections to be 27 conducted in accordance with the standards of practice of 28 board-approved national home inspection associations. 29 (16) Establish standards of practice for licensees. 30 (17) Develop a model home inspection contract meeting 20070S0359B1816 - 9 -
1 the provisions of this chapter and encourage licensees to use 2 the model contract. 3 (18) Create guidelines for mentoring programs and 4 approved training facilities established pursuant to the 5 requirements of section 7506 (relating to required 6 contractual provisions regarding home inspections). 7 (19) Exercise all other powers specifically conferred on 8 the board under this chapter. 9 (20) Promulgate rules and regulations to carry out the 10 effective administration and the requirements of this 11 chapter. 12 (b) Examination requirement.--To be eligible for a license 13 as a home inspector in this Commonwealth, an applicant must pass 14 a valid, reliable examination. This examination shall: 15 (1) Test competence in home inspection practice. 16 (2) Be developed pursuant to accepted psychometric 17 standards promulgated by the American Educational Research 18 Association's "Standards for Educational and Psychological 19 Testing"; the Equal Employment Opportunity Commission's 20 "Uniform Guidelines for Employee Selection Procedures"; the 21 Civil Rights Act of 1964 (Public Law 88-352, 78 Stat. 241); 22 the Americans with Disabilities Act of 1990 (Public Law 101- 23 336, 104 Stat. 327); and similar applicable standards. 24 (3) Be administered and proctored by an approved and 25 recognized testing organization at a physical location to 26 ensure both the security and integrity of the examination. 27 § 7504.3. Support of board by bureau. 28 The bureau shall provide the board with: 29 (1) Clerical or other assistants, including 30 investigators, necessary for the proper performance of the 20070S0359B1816 - 10 -
1 board's duties. 2 (2) A place to hold board meetings and hearings. 3 (3) Office equipment and office space for board records, 4 staff and other effects necessary to carry out the 5 requirements of this chapter. 6 § 7504.4. Income and expenditures of board. 7 (a) Establishment of revolving fund.--There is hereby 8 established in the State Treasury a revolving fund for the use 9 of the board. 10 (b) Deposits in fund.--All fees and other money received by 11 the board in accordance with this chapter shall be deposited in 12 the revolving fund. No part of this revolving fund shall revert 13 to the General Fund. 14 (c) Use of fund.--The reimbursement of the board's expenses 15 shall be paid from the revolving fund. 16 § 7504.5. Licensure of home inspectors. 17 (a) Home inspector license application.--A person applying 18 for a license as a home inspector shall apply on a written, 19 notarized form prescribed and provided by the board. Supporting 20 and other required documents may be submitted by other means as 21 prescribed by the board. The applicant shall pay the applicable 22 licensing fee established by the board. 23 (b) Licensing requirements.--The board shall establish, from 24 time to time, rules and regulations pertaining to the licensure 25 of home inspectors but in any event shall require that a home 26 inspector be a member, in good standing, of a board-approved 27 national home inspection association. 28 (c) Denial of license.--The board shall deny a license to 29 any applicant who fails to: 30 (1) furnish evidence satisfactory to the board, showing 20070S0359B1816 - 11 -
1 that the individual: 2 (i) is at least 18 years of age; 3 (ii) (A) has graduated from high school, earned a 4 Pennsylvania or other state's general educational 5 development diploma; or 6 (B) has actively worked within the business of 7 home inspection for a minimum of five years; and 8 (iii) meets other criteria established by the board. 9 (2) verify the information submitted on the approved and 10 notarized application form; or 11 (3) complete a board-approved training program or course 12 of study involving the performance of home inspections and 13 pass a valid examination prescribed or approved by the board, 14 where such study program shall be for no less than 120 hours 15 of instruction and include no less than 40 hours of actual 16 in-field training. 17 (d) Waivers moving from another jurisdiction.--The licensing 18 requirements for a home inspector may be waived for a person who 19 moves to this Commonwealth from another jurisdiction, and the 20 person may be granted a license as a home inspector if the 21 person meets all of the following requirements: 22 (1) The other jurisdiction grants the same privileges to 23 licensees of Pennsylvania as the Commonwealth grants to 24 licensees of that other jurisdiction. 25 (2) The person is licensed in the other jurisdiction. 26 (3) The licensing requirements of the other jurisdiction 27 are substantially similar to the requirements of this 28 chapter. 29 (4) The person provides a notarized statement that the 30 person has studied, is familiar with and will abide by the 20070S0359B1816 - 12 -
1 provisions of this chapter and the administrative regulations 2 promulgated by the board. 3 (e) Advertising without license.--An individual shall not 4 advertise nor claim to be a licensee and shall not conduct home 5 inspection services for compensation without first obtaining a 6 license issued by the board. 7 (f) Ownership of licenses.--All licenses issued by the board 8 shall remain the property of the board. 9 (g) Information change notification.--A licensee shall 10 notify the board within 30 days of any change of: 11 (1) name; 12 (2) name under which the licensee conducts business; 13 (3) business address; or 14 (4) lapse, change or cancellation of insurance coverage. 15 (h) License renewal.--A licensee may renew the license in 16 accordance with the rules and regulations promulgated by the 17 board which shall include the following provisions: 18 (1) The home inspector shall furnish evidence showing 19 successful completion of the continuing education 20 requirements of this chapter, pay the renewal fee established 21 by the board and show proof of professional liability 22 insurance as required by section 7509 (relating to liability 23 insurance). 24 (2) The board shall send a renewal notice to each 25 licensee at least 60 days prior to the expiration of the 26 license. The notice shall inform the licensee of the need to 27 renew and the requirement to submit an application and to pay 28 the renewal fee. If the board fails to send the notice of 29 expiration within such time period, the licensee shall not be 30 subject to a sanction for failure to renew. If the board 20070S0359B1816 - 13 -
1 later sends the renewal notice to the licensee, the licensee 2 must submit a complete application and renewal fee to the 3 board within 45 days of the receipt of the renewal notice or 4 be subject to a sanction for failure to renew. 5 (3) Renewal fees shall be paid with a draft, money 6 order, cashier's check, certified or other personal check, 7 or, if payment is made in person, the payment may be made in 8 cash. If the board receives an uncertified personal check for 9 the renewal fee and if the check does not clear the bank, the 10 board may refuse to renew the license. 11 (4) Before the end of each license period, the licensee 12 shall complete the continuing education required by the 13 board. 14 (i) Inactive licenses.--The board may, through the 15 promulgation of rules and regulations: 16 (1) Establish an inactive license for licensees who do 17 not actively perform home inspections but wish to maintain 18 the license. This inactive status shall not exceed a term of 19 three years. 20 (2) Reduce license and renewal fees for inactive 21 licenses. 22 (3) Waive the insurance requirements established in 23 section 7509 for inactive licenses except that the inactive 24 licensee must maintain insurance tail coverage for the first 25 year of inactivity. 26 § 7504.6. Nonresident home inspectors. 27 (a) Nonresident licensing.--A nonresident individual who the 28 board determines meets the requirements of this chapter and 29 files a written consent may be licensed as a home inspector. 30 (b) Nonresident consent form.--A nonresident applicant shall 20070S0359B1816 - 14 -
1 file with the board a written and notarized consent stating 2 that, if licensed: 3 (1) The applicant agrees to the commencement of any 4 action arising out of the conduct of the applicant's business 5 in this Commonwealth in the county in which the events giving 6 rise to the cause of action occurred. 7 (2) The applicant: 8 (i) agrees to provide to the board the name and 9 address of an agent to receive service of process in this 10 Commonwealth; or 11 (ii) consents to the board acting as the applicant's 12 agent for the purpose of receiving service of process if: 13 (A) an agent's name and address have not been 14 filed with the board or the agent's name and address 15 on file with the board are incorrect; and 16 (B) the applicant agrees that service of process 17 in accordance with the Pennsylvania Rules of Civil 18 Procedure is proper service and subjects the 19 applicant to the jurisdiction of Pennsylvania courts. 20 § 7504.7. Continuing education of home inspectors. 21 The board shall promulgate rules and regulations concerning 22 the continuing education required for the renewal of a home 23 inspector license and shall: 24 (1) Establish procedures for approving organizations 25 that provide continuing education. 26 (2) Prescribe the content, duration and organization of 27 continuing education courses that contribute to the 28 competence of home inspectors. 29 § 7504.8. Registration or licensing of home inspectors by 30 political subdivisions. 20070S0359B1816 - 15 -
1 No agency or political subdivision of this Commonwealth, 2 other than the board, shall impose the following on individuals 3 licensed under this chapter: 4 (1) A registration or licensing requirement for 5 conducting home inspections. 6 (2) A license fee to obtain any local license, except 7 that this prohibition shall not prevent any local government 8 from imposing an occupational license tax on any person 9 operating as a home inspector within the jurisdiction of the 10 local government. 11 § 7504.9. Disciplinary proceedings by board. 12 (a) Disciplinary actions.--The board shall take disciplinary 13 action against or impose sanctions on a licensee for failing to 14 comply with any provision of this chapter or any rules and 15 regulations promulgated to carry out this chapter as follows: 16 (1) The board may summarily suspend a license for up to 17 90 days before a final adjudication or during an appeal of 18 the board's determination if the board finds that the 19 licensee represents a clear and immediate danger to the 20 public's health, safety, financial interest or to property if 21 allowed to perform home inspections. The summary suspension 22 may be renewed at a hearing before the board for up to 90 23 days. 24 (2) If the board: 25 (i) Determines that an individual is not licensed 26 under this chapter and is engaged in or believed to be 27 engaged in activities for which a license is required 28 under this chapter, then the board shall issue an order 29 to that individual requiring the individual to show cause 30 why the individual should not be ordered to cease and 20070S0359B1816 - 16 -
1 desist from the activities. The show cause order shall 2 set forth a date, time and place for a hearing at which 3 the individual shall appear and show cause why the 4 individual should not be subject to licensing under this 5 chapter. 6 (ii) After a hearing, determines that the activities 7 in which the individual is engaged are subject to 8 licensure under this chapter, the board may issue a cease 9 and desist order that identifies the individual and 10 describes activities that are the subject of the order. 11 (3) A cease and desist order issued under this section 12 shall be enforceable in the Commonwealth Court. 13 (b) Violations of chapter.--An individual is in violation of 14 this chapter when the individual commits any of the following: 15 (1) Performs or offers to perform home inspections for 16 compensation without being licensed as a home inspector and 17 without being exempt from licensure under this chapter. 18 (2) Presents as the individual's own license, the 19 license of another. 20 (3) Intentionally gives false or materially misleading 21 information to the board or to a board member in connection 22 with a licensing matter. 23 (4) Impersonates another licensee. 24 (5) Uses an expired, suspended, revoked or an otherwise 25 restricted license. 26 (c) Fee or compensation.--The board shall add to any penalty 27 imposed the amount of any fee or other compensation earned by 28 the individual in the commission of the violation. Each 29 transaction involving an unauthorized activity as described in 30 this chapter shall constitute a separate violation. 20070S0359B1816 - 17 -
1 (d) Legal advice.--The Department of State shall act as the 2 legal adviser for the board and provide any legal assistance 3 necessary to carry out this chapter. 4 (e) Revocation or suspension of license.--The board shall 5 adopt provisions to revoke or suspend a license pending 6 investigation for any of the following: 7 (1) A conviction in any jurisdiction of a misdemeanor 8 involving moral turpitude or of a felony. A plea of nolo 9 contendere shall be considered a conviction. 10 (2) An action demonstrating untrustworthiness, 11 incompetence, dishonesty, gross negligence, material 12 misrepresentation, fraud or unethical conduct in any dealings 13 subject to the provisions of this chapter or the rules and 14 regulations promulgated by the board. 15 (3) Use of advertising or solicitation that is false, 16 misleading or otherwise deemed unprofessional by the board. 17 All advertisements, contracts, correspondence and other 18 documents utilized by a home inspector shall prominently 19 include the home inspector's name and registration number as 20 a licensee according to this chapter. 21 (4) Habitual or excessive use of intoxicants or illegal 22 drugs. 23 (5) Failure to supervise adequately and in accordance 24 with rules governing direct supervision an unlicensed 25 inspector performing home inspections under the supervision 26 of the licensed home inspector. 27 (6) Any other reason deemed necessary by the board. 28 Section 3. Sections 7505(b) and (c) and 7506 of Title 68 are 29 amended to read: 30 § 7505. Consumer remedies. 20070S0359B1816 - 18 -
1 * * * 2 (b) Prohibited acts.--Any of the following acts engaged in 3 by a home inspector, an employer of a home inspector or another 4 business or person that controls or has a financial interest in 5 the employer of a home inspector shall be deemed to be an unfair 6 or deceptive act or practice as defined by section 2(4)(i) 7 through (xxi) of the Unfair Trade Practices and Consumer 8 Protection Law: 9 (1) Performing or offering to perform for an additional 10 fee any repairs to a structure with respect to which the home 11 inspector, the employer of the home inspector or such other 12 business or person has prepared a home inspection report 13 within the preceding 12 months, except that this paragraph 14 shall not apply to remediation for radon or wood destroying 15 insects. 16 (2) Inspecting for a fee any property in which the home 17 inspector, the employer of the home inspector or such other 18 business or person has any financial interest or any interest 19 in the transfer of the property, including, without 20 limitation, engaging in a pay-to-play scheme in which the 21 home inspector pays or receives a direct or indirect 22 consideration for receiving leads toward providing home 23 inspection services, or receipt of a commission as an agent, 24 unless the financial interest or interest in the transfer of 25 the property is disclosed in writing to the buyer before the 26 home inspection is performed and the buyer signs an 27 acknowledgment of receipt of the disclosure. 28 (3) Offering or delivering any commission, referral fee 29 or kickback to the seller of the inspected property or to an 30 agent for either or both of the seller and the buyer for the 20070S0359B1816 - 19 -
1 referral of any business to the home inspector, the employer 2 of the home inspector or such other business or person. 3 (4) Accepting an engagement to perform a home inspection 4 or to prepare a home inspection report in which the 5 employment itself or the fee payable for the inspection is 6 contingent upon the conclusions in the report, preestablished 7 or prescribed findings or the closing of the transaction. 8 (5) Participation, by any real estate broker or agent, 9 directly or indirectly, in a pay-to-play scheme in which the 10 home inspector pays or receives a direct or indirect 11 consideration for receiving leads toward providing home 12 inspection services. 13 (6) When there is a home warranty company which is 14 wholly or appreciably owned or affiliated with a real estate 15 brokerage company, failing to disclose to the consumer such 16 affiliation prior to contracting with the consumer for home 17 inspection services. 18 [(c) Exception.--A home warranty company that is affiliated 19 with or retains the home inspector does not violate subsection 20 (b) if the home warranty company performs repairs pursuant to 21 claims made under a home warranty contract.] 22 * * * 23 § 7506. Required contractual provision regarding home 24 inspections. 25 Except as provided in this section, a provision of an 26 agreement of transfer regarding the right of the buyer to obtain 27 a home inspection report and providing for the consequences, if 28 any, shall provide that the home inspection be performed by a 29 licensee. [full member in good standing of a national home 30 inspection association in accordance with the ethical standards 20070S0359B1816 - 20 -
1 and code of conduct or practice of that association, provided 2 that a home inspection performed by a person who has not 3 attained full membership in a national home inspection 4 association satisfies the requirements of this section if the 5 person is: 6 (1) licensed or registered as a professional engineer 7 under the act of May 23, 1945 (P.L.913, No.367), known as the 8 Engineer, Land Surveyor and Geologist Registration Law; 9 (2) licensed or registered under the act of December 14, 10 1982 (P.L.1227, No.281), known as the Architects Licensure 11 Law; or 12 (3) supervised by a full member in good standing of a 13 national home inspection association who agrees to be 14 responsible for the home inspection report by signing the 15 report.] 16 A home inspection performed by a person who has not attained 17 licensure satisfies the requirements of this section if the 18 person is directly supervised by a licensee who agrees to be 19 responsible for the home inspection by signing the report. 20 Section 4. Section 7507 of Title 68 is amended by adding a 21 subsection to read: 22 § 7507. Contracts with home inspectors. 23 * * * 24 (c) Information brochure.--At the time of the signing of the 25 first written contract to purchase, a real estate broker or 26 salesperson shall distribute an informational brochure, 27 published by the board, educating the consumers about the home 28 inspection process and this chapter and providing the consumer 29 with directions on how to find a licensed home inspector. 30 Section 5. Section 7509(a) of Title 68 is amended and the 20070S0359B1816 - 21 -
1 section is amended by adding a subsection to read: 2 § 7509. Liability insurance. 3 (a) [Required insurance.--A home inspector shall maintain 4 insurance against errors and omissions in the performance of a 5 home inspection and general liability, with coverages of not 6 less than $100,000 per occurrence and $500,000 in the aggregate 7 and with deductibles of not more than $2,500.] Professional 8 liability coverage.--Every licensee who is engaged in home 9 inspections shall secure, maintain and file with the Secretary 10 of State proof of a certificate of liability coverage, which 11 terms and conditions shall be determined by the Secretary of 12 State in consultation with the board. Every proof of liability 13 coverage required to be filed with the Secretary of State shall 14 provide that cancellation or nonrenewal of the policy shall not 15 be effective unless and until at least ten days' notice of 16 intention to cancel or nonrenew has been received in writing by 17 the Secretary of State. 18 * * * 19 (c) All required insurance coverage shall: 20 (1) Be issued by an insurance company or other legal 21 entity authorized to transact insurance business in this 22 Commonwealth. 23 (2) Identify the Commonwealth as an additional insured. 24 (3) Provide that cancellation and nonrenewal of the 25 insurance policy is not effective until the board receives no 26 less than ten days' prior written notice of the expiration or 27 earlier termination. Home inspectors shall direct their 28 insurance company to send a notice of cancellation directly 29 to the board. 30 (4) Contain any other terms and conditions established 20070S0359B1816 - 22 -
1 by the board. 2 Section 6. Section 7510 of Title 68 is amended to read: 3 § 7510. Reliance by buyer. 4 (a) Reliance.--A buyer shall be entitled to rely in good 5 faith, without independent investigation, on a written 6 representation by a home inspector that the home inspector is[: 7 (1) licensed or registered as a professional engineer 8 under the act of May 23, 1945 (P.L.913, No.367), known as the 9 Engineer, Land Surveyor and Geologist Registration Law; 10 (2) licensed or registered under the act of December 14, 11 1982 (P.L.1227, No.281), known as the Architects Licensure 12 Law; or 13 (3) a full member in good standing of a national home 14 inspection association.] 15 licensed to conduct home inspections in this Commonwealth. 16 (b) Display of license number.--The home inspector shall 17 display his assigned license number on all promotional, 18 marketing and advertising materials provided to the general 19 public. 20 (c) License requirement.--No person shall conduct a home 21 inspection or represent a qualification to conduct a home 22 inspection for compensation unless that person is licensed as a 23 home inspector under this chapter. 24 (d) Business entities.--A business entity may not: 25 (1) provide or offer to provide home inspection services 26 unless each of the home inspectors employed by the business 27 entity satisfies all the requirements of this section; or 28 (2) use, in connection with the name or signature of the 29 business entity, the title "home inspector" to describe the 30 business entity's services unless each home inspector 20070S0359B1816 - 23 -
1 employed by the business entity satisfies all the 2 requirements of this chapter. 3 Section 7. Section 7511 of Title 68 is amended by adding a 4 subsection to read: 5 § 7511. Penalties. 6 * * * 7 (c) Unauthorized practice.--Any person subject to an 8 administrative order issued by the board directing the cessation 9 of any activity for which a license is required or suspending or 10 revoking a license previously issued and who directly or 11 indirectly: 12 (1) engages in the business of home inspection; 13 (2) holds himself out to the public as being able to 14 engage in the business of home inspection without a license; 15 (3) engages in the business of home inspection after 16 having his license revoked or suspended; or 17 (4) without a license to engage in the business of home 18 inspection, directly or indirectly employs, permits or 19 authorizes an unlicensed person to engage in the business of 20 home inspection; 21 commits a summary offense and on the first conviction thereof 22 shall be sentenced to pay a fine of not more than $1,000, or, 23 upon a second or subsequent conviction thereof, shall be 24 sentenced to pay a fine of not more than $2,500. Each violation 25 of this chapter shall be deemed a separate offense. 26 Section 8. For one year from the effective date of this 27 section, an applicant who meets all of the requirements of 68 28 Pa.C.S. Ch. 75 and this section may be licensed as a home 29 inspector without having to complete a board-approved training 30 program or course of study involving the performance of home 20070S0359B1816 - 24 -
1 inspections. The applicant must: 2 (1) Be at least 18 years of age. 3 (2) Have graduated from high school or earned a 4 Pennsylvania or other state's general educational development 5 diploma. 6 (3) Have passed a written examination to test competence 7 in home inspection practice that was developed pursuant to 8 accepted psychometric standards and was administered and 9 proctored by an approved and recognized testing organization 10 at a physical location to ensure both the security and the 11 integrity of the examination. 12 (4) Have completed no less than 100 fee-paid inspections 13 per year over the five years immediately preceding. 14 (5) Furnish evidence showing successful completion of 15 not less than 16 hours of verifiable continuing education 16 during the past year. 17 (6) Show proof of professional liability insurance 18 consistent with 68 Pa.C.S. § 7509. 19 Section 9. This act shall take effect in 120 days. 20 SECTION 1. CHAPTER 75 HEADING AND SECTIONS 7501, 7502, 7503, <-- 21 7504, 7505, 7506, 7507, 7508, 7509, 7510, 7511, 7512 AND 7513 OF 22 TITLE 68 OF THE PENNSYLVANIA CONSOLIDATED STATUTES ARE REPEALED: 23 [CHAPTER 75 24 HOME INSPECTIONS 25 § 7501. SHORT TITLE OF CHAPTER. 26 THIS CHAPTER SHALL BE KNOWN AND MAY BE CITED AS THE HOME 27 INSPECTION LAW. 28 § 7502. DEFINITIONS AND INDEX OF DEFINITIONS. 29 (A) DEFINITIONS.--THE FOLLOWING WORDS AND PHRASES WHEN USED 30 IN THIS CHAPTER SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS 20070S0359B1816 - 25 -
1 SECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE: 2 "HOME INSPECTION." A NONINVASIVE VISUAL EXAMINATION OF SOME 3 COMBINATION OF THE MECHANICAL, ELECTRICAL OR PLUMBING SYSTEMS OR 4 THE STRUCTURAL AND ESSENTIAL COMPONENTS OF A RESIDENTIAL 5 DWELLING DESIGNED TO IDENTIFY MATERIAL DEFECTS IN THOSE SYSTEMS 6 AND COMPONENTS AND PERFORMED FOR A FEE IN CONNECTION WITH OR 7 PREPARATION FOR A PROPOSED OR POSSIBLE RESIDENTIAL REAL ESTATE 8 TRANSFER. THE TERM ALSO INCLUDES ANY CONSULTATION REGARDING THE 9 PROPERTY THAT IS REPRESENTED TO BE A HOME INSPECTION OR THAT IS 10 DESCRIBED BY ANY CONFUSINGLY SIMILAR TERM. THE TERM DOES NOT 11 INCLUDE AN EXAMINATION OF A SINGLE SYSTEM OR COMPONENT OF A 12 RESIDENTIAL DWELLING SUCH AS, FOR EXAMPLE, ITS ELECTRICAL OR 13 PLUMBING SYSTEM OR ITS ROOF. THE TERM ALSO DOES NOT INCLUDE AN 14 EXAMINATION THAT IS LIMITED TO INSPECTION FOR OR OF ONE OR MORE 15 OF THE FOLLOWING: WOOD DESTROYING INSECTS, UNDERGROUND TANKS AND 16 WELLS, SEPTIC SYSTEMS, SWIMMING POOLS AND SPAS, ALARM SYSTEMS, 17 AIR AND WATER QUALITY, TENNIS COURTS AND PLAYGROUND EQUIPMENT, 18 POLLUTANTS, TOXIC CHEMICALS AND ENVIRONMENTAL HAZARDS. 19 "HOME INSPECTION REPORT." A WRITTEN REPORT ON THE RESULTS OF 20 A HOME INSPECTION. 21 "HOME INSPECTOR." AN INDIVIDUAL WHO PERFORMS A HOME 22 INSPECTION. 23 "NATIONAL HOME INSPECTORS ASSOCIATION." ANY NATIONAL 24 ASSOCIATION OF HOME INSPECTORS THAT: 25 (1) IS OPERATED ON A NOT-FOR-PROFIT BASIS AND IS NOT 26 OPERATED AS A FRANCHISE. 27 (2) HAS MEMBERS IN MORE THAN TEN STATES. 28 (3) REQUIRES THAT A PERSON MAY NOT BECOME A FULL MEMBER 29 UNLESS THE PERSON HAS PERFORMED OR PARTICIPATED IN MORE THAN 30 100 HOME INSPECTIONS AND HAS PASSED A RECOGNIZED OR 20070S0359B1816 - 26 -
1 ACCREDITED EXAMINATION TESTING KNOWLEDGE OF THE PROPER 2 PROCEDURES FOR CONDUCTING A HOME INSPECTION. 3 (4) REQUIRES THAT ITS MEMBERS COMPLY WITH A CODE OF 4 CONDUCT AND ATTEND CONTINUING PROFESSIONAL EDUCATION CLASSES 5 AS AN ONGOING CONDITION OF MEMBERSHIP. 6 (B) INDEX OF OTHER DEFINITIONS.--THE FOLLOWING IS A 7 NONEXCLUSIVE LIST OF OTHER DEFINITIONS APPLYING TO THIS CHAPTER 8 AND THE SECTIONS IN WHICH THEY APPEAR: 9 "AGENT." SECTION 7102 (RELATING TO DEFINITIONS). 10 "AGREEMENT OF TRANSFER." SECTION 7102 (RELATING TO 11 DEFINITIONS). 12 "BUYER." SECTION 7102 (RELATING TO DEFINITIONS). 13 "MATERIAL DEFECT." SECTION 7102 (RELATING TO DEFINITIONS). 14 "RESIDENTIAL REAL ESTATE TRANSFER." SECTION 7103 (RELATING 15 TO APPLICATION OF PART). 16 "SELLER." SECTION 7102 (RELATING TO DEFINITIONS). 17 § 7503. RELATIONSHIP TO OTHER LAWS. 18 (A) GENERAL RULE.--NOTHING IN THIS CHAPTER SHALL BE 19 CONSTRUED TO ALLOW A HOME INSPECTOR WHO IS NOT REGISTERED OR 20 LICENSED UNDER ONE OR MORE OF THE FOLLOWING LAWS TO PERFORM ANY 21 ACTIVITY THAT WOULD CONSTITUTE THE PRACTICE OF THE PROFESSION 22 REGULATED BY THAT LAW: 23 (1) THE ACT OF MAY 23, 1945 (P.L.913, NO.367), KNOWN AS 24 THE ENGINEER, LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW. 25 (2) THE ACT OF JANUARY 24, 1966 (1965 P.L.1535, NO.537), 26 KNOWN AS THE PENNSYLVANIA SEWAGE FACILITIES ACT. 27 (3) THE ACT OF MARCH 1, 1974 (P.L.90, NO.24), KNOWN AS 28 THE PENNSYLVANIA PESTICIDE CONTROL ACT OF 1973. 29 (4) THE ACT OF DECEMBER 14, 1982 (P.L.1227, NO.281), 30 KNOWN AS THE ARCHITECTS LICENSURE LAW. 20070S0359B1816 - 27 -
1 (5) THE ACT OF JULY 9, 1987 (P.L.238, NO.43), KNOWN AS 2 THE RADON CERTIFICATION ACT. 3 (6) THE ACT OF JULY 10, 1990 (P.L.404, NO.98), KNOWN AS 4 THE REAL ESTATE APPRAISERS CERTIFICATION ACT. 5 (B) EXCLUSIONS.--THIS CHAPTER SHALL NOT: 6 (1) APPLY TO A PERSON REGISTERED OR LICENSED UNDER AN 7 ACT REFERRED TO IN SUBSECTION (A) WHEN ACTING PURSUANT TO HIS 8 REGISTRATION OR LICENSE. 9 (2) APPLY TO AN OFFICER OR EMPLOYEE OF A MUNICIPALITY OR 10 LOCAL AUTHORITY WHEN ACTING IN HIS OFFICIAL CAPACITY. 11 (3) AFFECT THE OBLIGATIONS OR IMMUNITIES OF A PERSON 12 LICENSED UNDER THE ACT OF FEBRUARY 19, 1980 (P.L.15, NO.9), 13 KNOWN AS THE REAL ESTATE LICENSING AND REGISTRATION ACT, THAT 14 ARE IMPOSED OR PROVIDED BY THAT ACT OR CHAPTER 73 (RELATING 15 TO SELLER DISCLOSURES) WHEN THE PERSON IS ACTING PURSUANT TO 16 HIS LICENSE. 17 (4) AFFECT THE OBLIGATIONS OR IMMUNITIES OF A PERSON 18 CERTIFIED UNDER THE REAL ESTATE APPRAISERS CERTIFICATION ACT 19 WHEN THE PERSON IS ACTING PURSUANT TO THE PERSON'S LICENSE. 20 § 7504. DUTY OF CARE OF HOME INSPECTORS. 21 (A) GENERAL RULE.--IT IS THE DUTY OF A HOME INSPECTOR TO 22 CONDUCT A HOME INSPECTION WITH THE DEGREE OF CARE THAT A 23 REASONABLY PRUDENT HOME INSPECTOR WOULD EXERCISE. 24 (B) STANDARD.--IN ASCERTAINING THE DEGREE OF CARE THAT WOULD 25 BE EXERCISED BY A REASONABLY PRUDENT HOME INSPECTOR, THE COURT 26 SHALL CONSIDER THE STANDARDS OF PRACTICE AND CODES OF ETHICS OF 27 NATIONAL HOME INSPECTOR ASSOCIATIONS. 28 § 7505. CONSUMER REMEDIES. 29 (A) GENERAL RULE.--THE PERFORMANCE OF A HOME INSPECTION IS A 30 SERVICE THAT IS SUBJECT TO THE ACT OF DECEMBER 17, 1968 20070S0359B1816 - 28 -
1 (P.L.1224, NO.387), KNOWN AS THE UNFAIR TRADE PRACTICES AND 2 CONSUMER PROTECTION LAW. 3 (B) PROHIBITED ACTS.--ANY OF THE FOLLOWING ACTS ENGAGED IN 4 BY A HOME INSPECTOR, AN EMPLOYER OF A HOME INSPECTOR OR ANOTHER 5 BUSINESS OR PERSON THAT CONTROLS OR HAS A FINANCIAL INTEREST IN 6 THE EMPLOYER OF A HOME INSPECTOR SHALL BE DEEMED TO BE AN UNFAIR 7 OR DECEPTIVE ACT OR PRACTICE AS DEFINED BY SECTION 2(4)(I) 8 THROUGH (XXI) OF THE UNFAIR TRADE PRACTICES AND CONSUMER 9 PROTECTION LAW: 10 (1) PERFORMING OR OFFERING TO PERFORM FOR AN ADDITIONAL 11 FEE ANY REPAIRS TO A STRUCTURE WITH RESPECT TO WHICH THE HOME 12 INSPECTOR, THE EMPLOYER OF THE HOME INSPECTOR OR SUCH OTHER 13 BUSINESS OR PERSON HAS PREPARED A HOME INSPECTION REPORT 14 WITHIN THE PRECEDING 12 MONTHS, EXCEPT THAT THIS PARAGRAPH 15 SHALL NOT APPLY TO REMEDIATION FOR RADON OR WOOD DESTROYING 16 INSECTS. 17 (2) INSPECTING FOR A FEE ANY PROPERTY IN WHICH THE HOME 18 INSPECTOR, THE EMPLOYER OF THE HOME INSPECTOR OR SUCH OTHER 19 BUSINESS OR PERSON HAS ANY FINANCIAL INTEREST OR ANY INTEREST 20 IN THE TRANSFER OF THE PROPERTY, INCLUDING WITHOUT LIMITATION 21 RECEIPT OF A COMMISSION AS AN AGENT, UNLESS THE FINANCIAL 22 INTEREST OR INTEREST IN THE TRANSFER OF THE PROPERTY IS 23 DISCLOSED IN WRITING TO THE BUYER BEFORE THE HOME INSPECTION 24 IS PERFORMED AND THE BUYER SIGNS AN ACKNOWLEDGMENT OF RECEIPT 25 OF THE DISCLOSURE. 26 (3) OFFERING OR DELIVERING ANY COMMISSION, REFERRAL FEE 27 OR KICKBACK TO THE SELLER OF THE INSPECTED PROPERTY OR TO AN 28 AGENT FOR EITHER OR BOTH OF THE SELLER AND THE BUYER FOR THE 29 REFERRAL OF ANY BUSINESS TO THE HOME INSPECTOR, THE EMPLOYER 30 OF THE HOME INSPECTOR OR SUCH OTHER BUSINESS OR PERSON. 20070S0359B1816 - 29 -
1 (4) ACCEPTING AN ENGAGEMENT TO PERFORM A HOME INSPECTION 2 OR TO PREPARE A HOME INSPECTION REPORT IN WHICH THE 3 EMPLOYMENT ITSELF OR THE FEE PAYABLE FOR THE INSPECTION IS 4 CONTINGENT UPON THE CONCLUSIONS IN THE REPORT, PREESTABLISHED 5 OR PRESCRIBED FINDINGS OR THE CLOSING OF THE TRANSACTION. 6 (C) EXCEPTION.--A HOME WARRANTY COMPANY THAT IS AFFILIATED 7 WITH OR RETAINS THE HOME INSPECTOR DOES NOT VIOLATE SUBSECTION 8 (B) IF THE HOME WARRANTY COMPANY PERFORMS REPAIRS PURSUANT TO 9 CLAIMS MADE UNDER A HOME WARRANTY CONTRACT. 10 (D) REMEDIES.--IN ADDITION TO ANY OTHER REMEDIES AVAILABLE 11 UNDER THE UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW OR 12 OTHER APPLICABLE PROVISION OF LAW, THE OWNER OF A PROPERTY ON 13 WHICH REPAIRS ARE PERFORMED IN VIOLATION OF SUBSECTION (B)(1) 14 SHALL BE ENTITLED TO A FULL REFUND OF ANY MONEYS PAID FOR THOSE 15 REPAIRS, AND ANY PROMISSORY NOTE OR OTHER OBLIGATION TO PAY 16 GIVEN TO THE PERSON PERFORMING THOSE REPAIRS SHALL BE VOID. 17 § 7506. REQUIRED CONTRACTUAL PROVISION REGARDING HOME 18 INSPECTIONS. 19 EXCEPT AS PROVIDED IN THIS SECTION, A PROVISION OF AN 20 AGREEMENT OF TRANSFER REGARDING THE RIGHT OF THE BUYER TO OBTAIN 21 A HOME INSPECTION REPORT AND PROVIDING FOR THE CONSEQUENCES, IF 22 ANY, SHALL PROVIDE THAT THE HOME INSPECTION BE PERFORMED BY A 23 FULL MEMBER IN GOOD STANDING OF A NATIONAL HOME INSPECTION 24 ASSOCIATION IN ACCORDANCE WITH THE ETHICAL STANDARDS AND CODE OF 25 CONDUCT OR PRACTICE OF THAT ASSOCIATION, PROVIDED THAT A HOME 26 INSPECTION PERFORMED BY A PERSON WHO HAS NOT ATTAINED FULL 27 MEMBERSHIP IN A NATIONAL HOME INSPECTION ASSOCIATION SATISFIES 28 THE REQUIREMENTS OF THIS SECTION IF THE PERSON IS: 29 (1) LICENSED OR REGISTERED AS A PROFESSIONAL ENGINEER 30 UNDER THE ACT OF MAY 23, 1945 (P.L.913, NO.367), KNOWN AS THE 20070S0359B1816 - 30 -
1 ENGINEER, LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW; 2 (2) LICENSED OR REGISTERED UNDER THE ACT OF DECEMBER 14, 3 1982 (P.L.1227, NO.281), KNOWN AS THE ARCHITECTS LICENSURE 4 LAW; OR 5 (3) SUPERVISED BY A FULL MEMBER IN GOOD STANDING OF A 6 NATIONAL HOME INSPECTION ASSOCIATION WHO AGREES TO BE 7 RESPONSIBLE FOR THE HOME INSPECTION REPORT BY SIGNING THE 8 REPORT. 9 § 7507. CONTRACTS WITH HOME INSPECTORS. 10 (A) PROHIBITED PROVISIONS.--THE FOLLOWING TYPES OF 11 PROVISIONS IN A CONTRACT WITH A HOME INSPECTOR FOR THE 12 PERFORMANCE OF A HOME INSPECTION ARE CONTRARY TO PUBLIC POLICY 13 AND SHALL BE VOID: 14 (1) A LIMITATION ON THE LIABILITY OF THE HOME INSPECTOR 15 FOR GROSS NEGLIGENCE OR WILLFUL MISCONDUCT; 16 (2) A WAIVER OR MODIFICATION OF ANY PROVISION OF THIS 17 CHAPTER. 18 (B) SCOPE OF INSPECTION.--THE SCOPE OF A HOME INSPECTION, 19 THE SERVICES TO BE PERFORMED AND THE SYSTEMS AND CONDITIONS TO 20 BE INSPECTED OR EXCLUDED FROM INSPECTION MAY BE DEFINED BY A 21 CONTRACT BETWEEN THE HOME INSPECTOR AND THE CLIENT. 22 § 7508. HOME INSPECTION REPORTS. 23 (A) REQUIRED CONTENTS.--A HOME INSPECTION REPORT MUST BE IN 24 WRITING AND SHALL INCLUDE: 25 (1) A DESCRIPTION OF THE SCOPE OF THE INSPECTION, 26 INCLUDING WITHOUT LIMITATION AN IDENTIFICATION OF THE 27 STRUCTURAL ELEMENTS, SYSTEMS AND SUBSYSTEMS COVERED BY THE 28 REPORT. 29 (2) A DESCRIPTION OF ANY MATERIAL DEFECTS NOTED DURING 30 THE INSPECTION, ALONG WITH ANY RECOMMENDATION THAT CERTAIN 20070S0359B1816 - 31 -
1 EXPERTS BE RETAINED TO DETERMINE THE EXTENT OF THE DEFECTS 2 AND ANY CORRECTIVE ACTION THAT SHOULD BE TAKEN. A "MATERIAL 3 DEFECT" AS DEFINED IN SECTION 7102 (RELATING TO DEFINITIONS) 4 THAT POSES AN UNREASONABLE RISK TO PEOPLE ON THE PROPERTY 5 SHALL BE CONSPICUOUSLY IDENTIFIED AS SUCH. 6 (3) THE FOLLOWING STATEMENTS, SET FORTH CONSPICUOUSLY: 7 "A HOME INSPECTION IS INTENDED TO ASSIST IN 8 EVALUATION OF THE OVERALL CONDITION OF THE DWELLING. THE 9 INSPECTION IS BASED ON OBSERVATION OF THE VISIBLE AND 10 APPARENT CONDITION OF THE STRUCTURE AND ITS COMPONENTS ON 11 THE DATE OF INSPECTION." 12 "THE RESULTS OF THIS HOME INSPECTION ARE NOT INTENDED 13 TO MAKE ANY REPRESENTATION REGARDING THE PRESENCE OR 14 ABSENCE OF LATENT OR CONCEALED DEFECTS THAT ARE NOT 15 REASONABLY ASCERTAINABLE IN A COMPETENTLY PERFORMED HOME 16 INSPECTION. NO WARRANTY OR GUARANTY IS EXPRESSED OR 17 IMPLIED." 18 "IF THE PERSON CONDUCTING YOUR HOME INSPECTION IS NOT 19 A LICENSED STRUCTURAL ENGINEER OR OTHER PROFESSIONAL 20 WHOSE LICENSE AUTHORIZES THE RENDERING OF AN OPINION AS 21 TO THE STRUCTURAL INTEGRITY OF A BUILDING OR ITS OTHER 22 COMPONENT PARTS, YOU MAY BE ADVISED TO SEEK A 23 PROFESSIONAL OPINION AS TO ANY DEFECTS OR CONCERNS 24 MENTIONED IN THE REPORT." 25 "THIS HOME INSPECTION REPORT IS NOT TO BE CONSTRUED 26 AS AN APPRAISAL AND MAY NOT BE USED AS SUCH FOR ANY 27 PURPOSE." 28 (B) CONFIDENTIALITY.--EXCEPT AS OTHERWISE REQUIRED BY LAW, A 29 HOME INSPECTOR SHALL NOT DELIVER A HOME INSPECTION REPORT TO ANY 30 PERSON OTHER THAN THE CLIENT OF THE HOME INSPECTOR WITHOUT THE 20070S0359B1816 - 32 -
1 CLIENT'S CONSENT. THE SELLER SHALL HAVE THE RIGHT, UPON REQUEST, 2 TO RECEIVE WITHOUT CHARGE A COPY OF A HOME INSPECTION REPORT 3 FROM THE PERSON FOR WHOM IT WAS PREPARED. 4 (C) REPAIR ESTIMATES PROHIBITED.--A HOME INSPECTOR SHALL NOT 5 EXPRESS EITHER ORALLY OR IN WRITING AN ESTIMATE OF THE COST TO 6 REPAIR ANY DEFECT FOUND DURING A HOME INSPECTION, EXCEPT THAT 7 SUCH AN ESTIMATE MAY BE INCLUDED IN A HOME INSPECTION REPORT IF: 8 (1) THE REPORT IDENTIFIES THE SOURCE OF THE ESTIMATE; 9 (2) THE ESTIMATE IS STATED AS A RANGE OF COSTS; AND 10 (3) THE REPORT STATES THAT THE PARTIES SHOULD CONSIDER 11 OBTAINING AN ESTIMATE FROM A CONTRACTOR WHO PERFORMS THE TYPE 12 OF REPAIR INVOLVED. 13 § 7509. LIABILITY INSURANCE. 14 (A) REQUIRED INSURANCE.--A HOME INSPECTOR SHALL MAINTAIN 15 INSURANCE AGAINST ERRORS AND OMISSIONS IN THE PERFORMANCE OF A 16 HOME INSPECTION AND GENERAL LIABILITY, WITH COVERAGES OF NOT 17 LESS THAN $100,000 PER OCCURRENCE AND $500,000 IN THE AGGREGATE 18 AND WITH DEDUCTIBLES OF NOT MORE THAN $2,500. 19 (B) TERM.-- 20 (1) EXCEPT AS SET FORTH IN PARAGRAPH (2), A HOME 21 INSPECTOR SHALL MAINTAIN INSURANCE UNDER SUBSECTION (A) FOR 22 AT LEAST ONE YEAR AFTER THE LATEST HOME INSPECTION REPORT THE 23 HOME INSPECTOR DELIVERS. 24 (2) PARAGRAPH (1) SHALL NOT APPLY TO A HOME INSPECTION 25 REPORT THAT WAS DELIVERED PRIOR TO THE EFFECTIVE DATE OF THIS 26 SECTION. 27 § 7510. RELIANCE BY BUYER. 28 A BUYER SHALL BE ENTITLED TO RELY IN GOOD FAITH, WITHOUT 29 INDEPENDENT INVESTIGATION, ON A WRITTEN REPRESENTATION BY A HOME 30 INSPECTOR THAT THE HOME INSPECTOR IS: 20070S0359B1816 - 33 -
1 (1) LICENSED OR REGISTERED AS A PROFESSIONAL ENGINEER 2 UNDER THE ACT OF MAY 23, 1945 (P.L.913, NO.367), KNOWN AS THE 3 ENGINEER, LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW; 4 (2) LICENSED OR REGISTERED UNDER THE ACT OF DECEMBER 14, 5 1982 (P.L.1227, NO.281), KNOWN AS THE ARCHITECTS LICENSURE 6 LAW; OR 7 (3) A FULL MEMBER IN GOOD STANDING OF A NATIONAL HOME 8 INSPECTION ASSOCIATION. 9 § 7511. PENALTIES. 10 (A) CRIMINAL PENALTY.--A PERSON WHO VIOLATES SECTION 7509 11 (RELATING TO LIABILITY INSURANCE) OR WHO PROVIDES A FALSE 12 REPRESENTATION UNDER SECTION 7510 (RELATING TO RELIANCE BY 13 BUYER) COMMITS A SUMMARY OFFENSE AND, UPON CONVICTION THEREOF 14 FOR A FIRST OFFENSE, SHALL BE SENTENCED TO PAY A FINE NOT 15 EXCEEDING $500 OR TO IMPRISONMENT FOR NOT MORE THAN THREE 16 MONTHS, OR BOTH, AND FOR A SECOND OR SUBSEQUENT OFFENSE COMMITS 17 A MISDEMEANOR OF THE THIRD DEGREE AND, UPON CONVICTION THEREOF, 18 SHALL BE SENTENCED TO PAY A FINE OF NOT LESS THAN $2,000 BUT NOT 19 MORE THAN $5,000 OR TO IMPRISONMENT FOR NOT LESS THAN ONE YEAR 20 BUT NOT MORE THAN TWO YEARS, OR BOTH. 21 (B) FINE.--A PERSON WHO VIOLATES ANY PROVISION OF SECTION 22 7508 (RELATING TO HOME INSPECTION REPORTS) SHALL, UPON 23 CONVICTION IN A SUMMARY PROCEEDING BEFORE A MAGISTERIAL DISTRICT 24 JUDGE, BE SENTENCED TO PAY A FINE NOT EXCEEDING $500. 25 § 7512. STATUTE OF LIMITATIONS. 26 AN ACTION TO RECOVER DAMAGES ARISING FROM A HOME INSPECTION 27 REPORT MUST BE COMMENCED WITHIN ONE YEAR AFTER THE DATE THE 28 REPORT IS DELIVERED. 29 § 7513. ENGINEERS AND ARCHITECTS. 30 NOTWITHSTANDING SECTION 7503(B)(1) (RELATING TO RELATIONSHIP 20070S0359B1816 - 34 -
1 TO OTHER LAWS), THE FOLLOWING SECTIONS: 7505 (RELATING TO 2 CONSUMER REMEDIES), 7507(A)(1) AND (B) (RELATING TO CONTRACTS 3 WITH HOME INSPECTORS), 7508 (RELATING TO HOME INSPECTION 4 REPORTS) AND 7509 (RELATING TO LIABILITY INSURANCE) SHALL APPLY 5 TO A PERSON LICENSED OR REGISTERED AS A PROFESSIONAL ENGINEER 6 UNDER THE ACT OF MAY 23, 1945 (P.L.913, NO.367), KNOWN AS THE 7 ENGINEER, LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW, OR A 8 PERSON LICENSED OR REGISTERED UNDER THE ACT OF DECEMBER 14, 1982 9 (P.L.1227, NO.281), KNOWN AS THE ARCHITECTS LICENSURE LAW, WHEN 10 PERFORMING A HOME INSPECTION.] 11 SECTION 2. TITLE 68 IS AMENDED BY ADDING A CHAPTER TO READ: 12 CHAPTER 75A 13 HOME INSPECTIONS 14 SEC. 15 75A01. SCOPE. 16 75A02. DEFINITIONS. 17 75A03. PENNSYLVANIA BOARD OF HOME INSPECTORS. 18 75A04. POWERS AND DUTIES OF BOARD. 19 75A05. LICENSURE. 20 75A06. QUALIFICATIONS. 21 75A07. (RESERVED). 22 75A08. HOME INSPECTION REPORTS. 23 75A09. LIABILITY INSURANCE. 24 75A10. HOME INSPECTORS IN OTHER STATES, TERRITORIES OR 25 DOMINION OF CANADA. 26 75A11. DURATION OF LICENSE. 27 75A12. REPORTING OF MULTIPLE LICENSURE. 28 75A13. RELATIONSHIP TO OTHER LAWS. 29 75A14. UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW 30 REMEDIES. 20070S0359B1816 - 35 -
1 75A15. CONTRACTS WITH HOME INSPECTORS. 2 75A16. FEES, FINES AND CIVIL PENALTIES. 3 75A17. VIOLATION. 4 75A18. REFUSAL, SUSPENSION OR REVOCATION OF LICENSE. 5 75A19. SUSPENSIONS AND REVOCATIONS. 6 75A20. INTERNS. 7 75A21. REINSTATEMENT OF LICENSE. 8 75A22. SURRENDER OF SUSPENDED OR REVOKED LICENSE. 9 75A23. INJUNCTION. 10 75A24. SUBPOENAS AND OATHS. 11 75A25. STATUTE OF LIMITATIONS. 12 75A26. ENGINEERS AND ARCHITECTS. 13 § 75A01. SCOPE. 14 THIS CHAPTER RELATES TO HOME INSPECTIONS. 15 § 75A02. DEFINITIONS. 16 (A) DEFINITIONS.--THE FOLLOWING WORDS AND PHRASES WHEN USED 17 IN THIS CHAPTER SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS 18 SECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE: 19 "AGENT." AS DEFINED UNDER SECTION 7102 (RELATING TO 20 DEFINITIONS). 21 "AGREEMENT OF TRANSFER." AS DEFINED UNDER SECTION 7102 22 (RELATING TO DEFINITIONS). 23 "APPLICANT." AN INDIVIDUAL WHO APPLIES FOR A LICENSE AS A 24 HOME INSPECTOR. 25 "BOARD." THE PENNSYLVANIA BOARD OF HOME INSPECTORS. 26 "BUREAU." THE BUREAU OF PROFESSIONAL AND OCCUPATIONAL 27 AFFAIRS IN THE DEPARTMENT OF STATE. 28 "BUYER." AS DEFINED UNDER SECTION 7102 (RELATING TO 29 DEFINITIONS). 30 "CLIENT." AN INDIVIDUAL WHO CONTRACTS IN WRITING WITH A 20070S0359B1816 - 36 -
1 LICENSEE TO OBTAIN A HOME INSPECTION AND SUBSEQUENT WRITTEN HOME 2 INSPECTION REPORT. 3 "COMMISSIONER." THE COMMISSIONER OF THE BUREAU OF 4 PROFESSIONAL AND OCCUPATIONAL AFFAIRS IN THE DEPARTMENT OF 5 STATE. 6 "DEPARTMENT." THE DEPARTMENT OF STATE OF THE COMMONWEALTH. 7 "DIRECT SUPERVISION." A HOME INSPECTION PERFORMED BY A HOME 8 INSPECTOR WHO IS NOT A LICENSEE IN THE PRESENCE OF AND UNDER THE 9 TUTELAGE OF A SUPERVISING LICENSEE. 10 "HOME INSPECTION." A NONINVASIVE VISUAL EXAMINATION OF SOME 11 COMBINATION OF THE MECHANICAL, ELECTRICAL OR PLUMBING SYSTEMS OR 12 THE STRUCTURAL AND ESSENTIAL COMPONENTS OF A RESIDENTIAL 13 DWELLING DESIGNED TO IDENTIFY MATERIAL DEFECTS IN THOSE SYSTEMS 14 AND COMPONENTS AND PERFORMED FOR A FEE IN CONNECTION WITH OR 15 PREPARATION FOR A PROPOSED OR POSSIBLE RESIDENTIAL REAL ESTATE 16 TRANSFER. THE TERM INCLUDES ANY CONSULTATION REGARDING THE 17 PROPERTY THAT IS REPRESENTED TO BE A HOME INSPECTION OR THAT IS 18 DESCRIBED BY ANY SIMILAR TERM. THE TERM DOES NOT INCLUDE ANY OF 19 THE FOLLOWING: 20 (1) AN EXAMINATION OF A SINGLE SYSTEM OR COMPONENT OF A 21 RESIDENTIAL DWELLING SUCH AS ITS ELECTRICAL OR PLUMBING 22 SYSTEM OR ITS ROOF. 23 (2) AN EXAMINATION THAT IS LIMITED TO INSPECTION FOR OR 24 OF ONE OR MORE OF THE FOLLOWING: 25 (I) WOOD-DESTROYING INSECTS. 26 (II) UNDERGROUND TANKS AND WELLS. 27 (III) SEPTIC SYSTEMS. 28 (IV) SWIMMING POOLS AND SPAS. 29 (V) ALARM SYSTEMS. 30 (VI) AIR AND WATER QUALITY. 20070S0359B1816 - 37 -
1 (VII) TENNIS COURTS AND PLAYGROUND EQUIPMENT. 2 (VIII) POLLUTANTS. 3 (IX) TOXIC CHEMICALS. 4 (X) ENVIRONMENTAL HAZARDS. 5 (XI) MOLD. 6 (XII) BIOLOGICAL ORGANISMS. 7 "HOME INSPECTION REPORT." A REPORT AS REQUIRED UNDER SECTION 8 75A08 (RELATING TO HOME INSPECTION REPORTS). 9 "HOME INSPECTOR." AN INDIVIDUAL WHO PERFORMS A HOME 10 INSPECTION AND IS LICENSED UNDER THIS CHAPTER. 11 "MATERIAL DEFECT." AS DEFINED UNDER SECTION 7102 (RELATING 12 TO DEFINITIONS). 13 "RESIDENTIAL DWELLING." A STRUCTURE CONSISTING OF AT LEAST 14 ONE BUT NOT MORE THAN FOUR UNITS, EACH DESIGNED FOR OCCUPANCY BY 15 A SINGLE FAMILY, WHETHER THE UNIT OR UNITS ARE OCCUPIED OR 16 UNOCCUPIED. 17 "RESIDENTIAL REAL ESTATE TRANSFER." AS DEFINED UNDER SECTION 18 7103 (RELATING TO APPLICATION OF PART). 19 "SELLER." AS DEFINED UNDER SECTION 7102 (RELATING TO 20 DEFINITIONS). 21 "WOOD DESTROYING INSECT." THE TERM INCLUDES TERMITES, 22 CARPENTER ANTS, CARPENTER BEES AND REINFESTING WOOD BORING 23 BEETLES. 24 § 75A03. PENNSYLVANIA BOARD OF HOME INSPECTORS. 25 (A) ESTABLISHMENT.--THERE IS ESTABLISHED THE PENNSYLVANIA 26 BOARD OF HOME INSPECTORS WITHIN THE BUREAU. 27 (B) COMPOSITION.--THE BOARD SHALL CONSIST OF THE FOLLOWING 28 MEMBERS: 29 (1) THE COMMISSIONER OR A DESIGNEE. 30 (2) THE FOLLOWING MEMBERS, WHO SHALL BE CITIZENS OF THE 20070S0359B1816 - 38 -
1 UNITED STATES AND RESIDENTS OF THIS COMMONWEALTH, APPOINTED 2 BY THE GOVERNOR WITH THE ADVICE AND CONSENT OF THE SENATE: 3 (I) TWO MEMBERS REPRESENTING THE PUBLIC AT LARGE. 4 (II) FIVE PROFESSIONAL MEMBERS. PROFESSIONAL MEMBERS 5 SHALL HAVE COMPLETED NO LESS THAN 100 FEE-PAID HOME 6 INSPECTIONS IN THIS COMMONWEALTH OVER THE FIVE YEARS 7 IMMEDIATELY PRECEDING APPOINTMENT TO THE BOARD. EXCEPT AS 8 SET FORTH UNDER SUBSECTION (F), PROFESSIONAL MEMBERS 9 SHALL BE LICENSED UNDER THIS CHAPTER AS HOME INSPECTORS. 10 (III) THE ATTORNEY GENERAL OR A DESIGNEE. 11 (C) MEETING.--THE BOARD SHALL MEET WITHIN 30 DAYS AFTER THE 12 APPOINTMENT OF THE INITIAL MEMBERS AND SHALL DO ALL OF THE 13 FOLLOWING: 14 (1) ESTABLISH PROCEDURES FOR THE BOARD'S OPERATION AND 15 ADMINISTRATION OF THIS CHAPTER. 16 (2) DEVELOP APPLICATION FORMS FOR LICENSURE. 17 (3) CIRCULATE APPLICATION FORMS. 18 (4) CREATE PROGRAM GUIDELINES TO EDUCATE THE PUBLIC 19 REGARDING LICENSURE REQUIREMENTS UNDER THIS CHAPTER. 20 (D) TERM OF MEMBERSHIP.--EXCEPT AS PROVIDED UNDER SUBSECTION 21 (E), PROFESSIONAL AND PUBLIC MEMBERS SHALL SERVE A TERM OF FOUR 22 YEARS OR UNTIL A SUCCESSOR HAS BEEN APPOINTED AND QUALIFIED BUT 23 IN NO EVENT LONGER THAN SIX MONTHS BEYOND THE FOUR-YEAR PERIOD. 24 IN THE EVENT THAT A MEMBER DIES OR RESIGNS OR OTHERWISE IS 25 DISQUALIFIED DURING THE TERM OF OFFICE, A SUCCESSOR SHALL BE 26 APPOINTED IN THE SAME WAY AND WITH THE SAME QUALIFICATIONS AND 27 SHALL HOLD OFFICE FOR AN UNEXPIRED TERM. A PROFESSIONAL OR 28 PUBLIC MEMBER SHALL NOT BE ELIGIBLE TO HOLD MORE THAN TWO 29 CONSECUTIVE TERMS. 30 (E) INITIAL APPOINTMENTS.--FOR PROFESSIONAL AND PUBLIC 20070S0359B1816 - 39 -
1 MEMBERS FIRST APPOINTED TO THE BOARD UNDER THIS CHAPTER, THE 2 TERM OF OFFICE SHALL BE AS FOLLOWS: 3 (1) THREE MEMBERS SHALL SERVE FOR A TERM OF FOUR YEARS. 4 (2) TWO MEMBERS SHALL SERVE FOR A TERM OF THREE YEARS. 5 (3) ONE MEMBER SHALL SERVE FOR A TERM OF TWO YEARS. 6 (F) PROFESSIONAL MEMBERS AND FIRST APPOINTMENTS.-- 7 (1) A PROFESSIONAL MEMBER INITIALLY APPOINTED TO THE 8 BOARD UNDER THIS CHAPTER NEED NOT BE LICENSED AT THE TIME OF 9 APPOINTMENT BUT AT THE TIME OF APPOINTMENT MUST HAVE 10 SATISFIED ELIGIBILITY REQUIREMENTS FOR LICENSURE. ALL 11 PROFESSIONAL MEMBERS SUBSEQUENTLY APPOINTED SHALL POSSESS THE 12 REQUIRED LICENSE. 13 (2) A BOARD MEMBER THAT BECOMES A HOME INSPECTOR SHALL 14 OBTAIN THE REQUISITE LICENSE WITHIN SIX MONTHS OF THE DATE 15 THE INITIAL LICENSES ARE ISSUED. IF A BOARD MEMBER DOES NOT 16 OBTAIN THE REQUISITE LICENSE WITHIN SIX MONTHS OF THE 17 EFFECTIVE DATE OF THIS SECTION, THE BOARD MEMBER SHALL BE 18 CONSIDERED TO HAVE RESIGNED FROM THE BOARD ON THAT DATE. 19 (G) QUORUM.--A MAJORITY OF THE MEMBERS OF THE BOARD SHALL 20 CONSTITUTE A QUORUM. A MEMBER MAY NOT BE COUNTED AS PART OF A 21 QUORUM OR VOTE ON ANY ISSUE UNLESS THE MEMBER IS PHYSICALLY IN 22 ATTENDANCE AT THE MEETING. 23 (H) CHAIRPERSON.--THE BOARD SHALL SELECT ANNUALLY A 24 CHAIRPERSON FROM AMONG ITS MEMBERS. 25 (I) EXPENSES.--WITH THE EXCEPTION OF THE COMMISSIONER AND 26 THE ATTORNEY GENERAL, EACH MEMBER OF THE BOARD SHALL RECEIVE $60 27 PER DIEM WHEN ACTUALLY ATTENDING TO THE WORK OF THE BOARD. A 28 MEMBER SHALL ALSO RECEIVE THE AMOUNT OF REASONABLE TRAVELING, 29 HOTEL AND OTHER NECESSARY EXPENSES INCURRED IN THE PERFORMANCE 30 OF THE MEMBER'S DUTIES IN ACCORDANCE WITH COMMONWEALTH 20070S0359B1816 - 40 -
1 REGULATIONS. 2 (J) FORFEITURE.--A PROFESSIONAL OR PUBLIC MEMBER WHO FAILS 3 TO ATTEND THREE MEETINGS IN 18 MONTHS SHALL FORFEIT THE MEMBER'S 4 SEAT UNLESS THE COMMISSIONER, UPON WRITTEN REQUEST FROM THE 5 MEMBER, FINDS THAT THE MEMBER SHOULD BE EXCUSED FROM A MEETING 6 BECAUSE OF ILLNESS OR THE DEATH OF A FAMILY MEMBER. 7 (K) TRAINING SEMINARS.--A PUBLIC MEMBER WHO FAILS TO ATTEND 8 TWO CONSECUTIVE STATUTORILY MANDATED TRAINING SEMINARS IN 9 ACCORDANCE WITH SECTION 813(E) OF THE ACT OF APRIL 9, 1929 10 (P.L.177, NO.175), KNOWN AS THE ADMINISTRATIVE CODE OF 1929, 11 SHALL FORFEIT THE MEMBER'S SEAT UNLESS THE COMMISSIONER, UPON 12 WRITTEN REQUEST FROM THE PUBLIC MEMBER, FINDS THAT THE PUBLIC 13 MEMBER SHOULD BE EXCUSED FROM A MEETING BECAUSE OF ILLNESS OR 14 THE DEATH OF A FAMILY MEMBER. 15 (L) FREQUENCY OF MEETINGS.--THE BOARD SHALL MEET AT LEAST 16 FOUR TIMES PER YEAR IN THE CITY OF HARRISBURG AND AT ADDITIONAL 17 TIMES AS MAY BE NECESSARY TO CONDUCT THE BUSINESS OF THE BOARD. 18 § 75A04. POWERS AND DUTIES OF BOARD. 19 THE BOARD SHALL HAVE THE FOLLOWING POWERS AND DUTIES: 20 (1) TO PROVIDE FOR AND REGULATE THE LICENSING OF 21 INDIVIDUALS, INCLUDING INTERNS, ENGAGED IN HOME INSPECTION. 22 (2) TO ISSUE LICENSES, RENEW LICENSES, REINSTATE 23 LICENSES, REFUSE TO RENEW, SUSPEND AND REVOKE LICENSES AS 24 PROVIDED UNDER THIS CHAPTER. 25 (3) TO ADMINISTER AND ENFORCE THE PROVISIONS OF THIS 26 CHAPTER. 27 (4) TO REVIEW APPLICATIONS FOR LICENSURE AND TO 28 DETERMINE THE ELIGIBILITY OF AN INDIVIDUAL APPLYING FOR 29 LICENSURE. 30 (5) TO PROMOTE EDUCATIONAL INITIATIVES TO PROTECT 20070S0359B1816 - 41 -
1 CONSUMERS WHO CONTRACT FOR HOME INSPECTION SERVICES. 2 (6) TO PROMULGATE AND ENFORCE REGULATIONS, NOT 3 INCONSISTENT WITH THIS CHAPTER, AS NECESSARY ONLY TO CARRY 4 OUT THE PROVISIONS OF THIS CHAPTER. THIS PARAGRAPH INCLUDES 5 THE SETTING OF FEES AND THE ADOPTION OF STANDARDS FOR 6 CERTIFICATION OF HOME INSPECTORS. REGULATIONS SHALL BE 7 ADOPTED IN CONFORMITY WITH THE PROVISIONS OF THE ACT OF JULY 8 31, 1968 (P.L.769, NO.240), REFERRED TO AS THE COMMONWEALTH 9 DOCUMENTS LAW AND THE ACT OF JUNE 25, 1982 (P.L.633, NO.181), 10 KNOWN AS THE REGULATORY REVIEW ACT. 11 (7) TO KEEP MINUTES AND RECORDS OF ALL PROCEEDINGS. 12 (8) TO SUBMIT ANNUALLY TO THE DEPARTMENT AN ESTIMATE OF 13 FINANCIAL REQUIREMENTS OF THE BOARD FOR ITS ADMINISTRATIVE, 14 LEGAL AND OTHER EXPENSES. 15 (9) TO SUBMIT ANNUALLY A REPORT TO THE CONSUMER 16 PROTECTION AND PROFESSIONAL LICENSURE COMMITTEE OF THE SENATE 17 AND THE PROFESSIONAL LICENSURE COMMITTEE OF THE HOUSE OF 18 REPRESENTATIVES. THE REPORT SHALL INCLUDE A DESCRIPTION OF 19 THE TYPES OF COMPLAINTS RECEIVED, STATUS OF CASES, THE ACTION 20 WHICH HAS BEEN TAKEN AND THE LENGTH OF TIME FROM INITIAL 21 COMPLAINT TO FINAL RESOLUTION. 22 (10) TO SUBMIT ANNUALLY TO THE APPROPRIATIONS COMMITTEE 23 OF THE SENATE AND THE APPROPRIATIONS COMMITTEE OF THE HOUSE 24 OF REPRESENTATIVES, 15 DAYS AFTER THE GOVERNOR HAS SUBMITTED 25 A BUDGET TO THE GENERAL ASSEMBLY, A COPY OF THE BUDGET 26 REQUEST FOR THE UPCOMING FISCAL YEAR WHICH THE BOARD 27 PREVIOUSLY SUBMITTED TO THE DEPARTMENT. 28 (11) TO PRESCRIBE THE FORM OF LICENSES, APPLICATIONS AND 29 OTHER DOCUMENTS THAT ARE REQUIRED FOR HOME INSPECTORS TO BE 30 LICENSED UNDER THIS CHAPTER. 20070S0359B1816 - 42 -
1 (12) TO GRANT, DENY, SUSPEND AND REVOKE APPROVAL OF 2 EXAMINATIONS AND COURSES OF STUDY REGARDING HOME INSPECTIONS, 3 ESTABLISH STANDARDS FOR CONTINUING HOME INSPECTION EDUCATION, 4 INCLUDING THE SUBJECT MATTER AND CONTENT OF COURSES OF STUDY 5 AND THE SELECTION OF INSTRUCTORS AND APPROVE OTHER EQUIVALENT 6 EDUCATIONAL PROGRAMS AND ESTABLISH PROCEDURES FOR THE 7 ISSUANCE OF CREDIT UPON SATISFACTORY PROOF OF THE COMPLETION 8 OF THESE PROGRAMS. 9 (13) TO ESTABLISH AND MAINTAIN A CURRENT LIST OF HOME 10 INSPECTORS WHO ARE LICENSED. THIS LIST SHALL BE AVAILABLE FOR 11 PUBLIC INSPECTION, INCLUDING ON AN INTERNET WEBSITE. 12 (14) TO ESTABLISH CONTINUING EDUCATION REQUIREMENTS OF 13 NOT LESS THAN 32 HOURS BIENNIALLY FOR LICENSEES IN ACCORDANCE 14 WITH THIS CHAPTER. 15 (15) TO REQUIRE ALL FEE-PAID HOME INSPECTIONS TO BE 16 CONDUCTED IN ACCORDANCE WITH THE STANDARDS OF PRACTICE 17 ESTABLISHED BY THE BOARD. 18 (16) TO ADOPT STANDARDS OF PRACTICE FOR LICENSEES. 19 § 75A05. LICENSURE. 20 (A) GENERAL RULE.--AN INDIVIDUAL MAY NOT PERFORM HOME 21 INSPECTIONS, OFFER HIMSELF FOR EMPLOYMENT AS AN INDIVIDUAL WHO 22 PERFORMS HOME INSPECTIONS OR HOLD HIMSELF OUT AS A HOME 23 INSPECTOR UNLESS LICENSED BY THE BOARD. 24 (B) BUSINESS ENTITIES.--AN INDIVIDUAL, CORPORATION, 25 PARTNERSHIP, FIRM OR OTHER ENTITY SHALL NOT EMPLOY AN INDIVIDUAL 26 TO PERFORM A HOME INSPECTION OR ALLOW OR DIRECT AN INDIVIDUAL TO 27 PERFORM A HOME INSPECTION UNLESS THE INDIVIDUAL IS LICENSED 28 UNDER THIS CHAPTER. 29 § 75A06. QUALIFICATIONS. 30 (A) GENERAL RULE.--TO BE ELIGIBLE TO APPLY FOR LICENSURE, AN 20070S0359B1816 - 43 -
1 APPLICANT MUST FULFILL ALL OF THE FOLLOWING REQUIREMENTS: 2 (1) BE OF GOOD MORAL CHARACTER. 3 (2) BE 18 YEARS OF AGE OR OLDER. 4 (3) EXCEPT AS PROVIDED UNDER SUBSECTION (A.1), HAVE 5 SUCCESSFULLY COMPLETED THE PENNSYLVANIA PEST MANAGEMENT 6 ASSOCIATION ACCREDITED WOOD DESTROYING INSECT INSPECTORS 7 TRAINING COURSE. 8 (4) HAVE SUCCESSFULLY COMPLETED AN EXAMINATION APPROVED 9 AND ADMINISTERED BY A THIRD-PARTY TESTING ORGANIZATION. 10 (5) PAY THE FEE SET BY THE BOARD. 11 (A.1) CATEGORY 12 CERTIFICATION.-- 12 (1) IF A HOME INSPECTOR OR PEST INSPECTOR CHOOSES TO 13 OFFER WOOD DESTROYING INSECT INSPECTION SERVICES FOR REAL 14 ESTATE TRANSACTIONS IN THIS COMMONWEALTH, THE INSPECTOR SHALL 15 BE A LICENSED PEST CONTROL OPERATOR WITH CATEGORY 12 16 CERTIFICATION OR SHALL BE A DEPARTMENT OF AGRICULTURE 17 LICENSED INSPECTOR WITH CATEGORY 12 NA CERTIFICATION AND 18 SHALL HAVE SUCCESSFULLY COMPLETED THE PENNSYLVANIA PEST 19 MANAGEMENT ASSOCIATION ACCREDITED WOOD DESTROYING INSECT 20 INSPECTORS TRAINING COURSE, OR ITS EQUIVALENT, AND SHALL BE 21 CURRENTLY ACCREDITED. 22 (2) IN THE EVENT THAT AN ANCILLARY SERVICE IS PERFORMED 23 BY A LICENSED HOME INSPECTOR, THE INSPECTOR SHALL, IN 24 ADDITION TO THE REQUIREMENTS UNDER PARAGRAPH (1), BE LICENSED 25 OR CERTIFIED TO PERFORM THAT SERVICE AS REQUIRED BY STATE 26 REGULATION. INSPECTORS FOUND TO BE PERFORMING ANCILLARY 27 INSPECTIONS FOR THE HOME-BUYING PUBLIC WITHOUT THE REQUIRED 28 LICENSE OR CERTIFICATION SHALL BE SUBJECT TO DISCIPLINE BY 29 THE BOARD. 30 (B) CONVICTIONS PROHIBITED.-- 20070S0359B1816 - 44 -
1 (1) THE BOARD SHALL NOT ISSUE A LICENSE TO AN INDIVIDUAL 2 WHO HAS BEEN CONVICTED OF A FELONY UNDER THE ACT OF APRIL 14, 3 1972 (P.L.233, NO.64), KNOWN AS THE CONTROLLED SUBSTANCE, 4 DRUG, DEVICE AND COSMETIC ACT, OR AN OFFENSE UNDER THE LAWS 5 OF ANOTHER JURISDICTION WHICH IF COMMITTED IN THIS 6 COMMONWEALTH WOULD BE A FELONY UNDER THE CONTROLLED 7 SUBSTANCE, DRUG, DEVICE AND COSMETIC ACT, UNLESS ALL OF THE 8 FOLLOWING APPLY: 9 (I) AT LEAST FIVE YEARS HAVE ELAPSED FROM THE DATE 10 OF CONVICTION. 11 (II) THE INDIVIDUAL SATISFACTORILY DEMONSTRATES TO 12 THE BOARD THAT THE INDIVIDUAL HAS MADE SIGNIFICANT 13 PROGRESS IN PERSONAL REHABILITATION SINCE THE CONVICTION 14 SUCH THAT LICENSURE OF THE INDIVIDUAL SHOULD NOT BE 15 EXPECTED TO CREATE A SUBSTANTIAL RISK OF HARM TO THE 16 HEALTH AND SAFETY OF HOME INSPECTORS, TRAINEES OR THE 17 PUBLIC OR A SUBSTANTIAL RISK OF FURTHER CRIMINAL 18 VIOLATIONS. 19 (III) THE INDIVIDUAL SATISFIES THE QUALIFICATIONS 20 PROVIDED UNDER THIS CHAPTER. 21 (2) AN INDIVIDUAL'S STATEMENT ON THE APPLICATION 22 DECLARING THE ABSENCE OF A CONVICTION SHALL BE DEEMED 23 SATISFACTORY EVIDENCE OF THE ABSENCE OF A CONVICTION UNLESS 24 THE BOARD HAS EVIDENCE TO THE CONTRARY. 25 § 75A07. (RESERVED). 26 § 75A08. HOME INSPECTION REPORTS. 27 (A) REQUIRED CONTENTS.--A HOME INSPECTION REPORT MUST BE IN 28 WRITING AND SHALL INCLUDE: 29 (1) A DESCRIPTION OF THE SCOPE OF THE INSPECTION, 30 INCLUDING WITHOUT LIMITATION AN IDENTIFICATION OF THE 20070S0359B1816 - 45 -
1 STRUCTURAL ELEMENTS, SYSTEMS AND SUBSYSTEMS COVERED BY THE 2 REPORT. 3 (2) A DESCRIPTION OF ANY MATERIAL DEFECTS NOTED DURING 4 THE INSPECTION, ALONG WITH ANY RECOMMENDATION THAT CERTAIN 5 EXPERTS BE RETAINED TO DETERMINE THE EXTENT OF THE DEFECTS 6 AND ANY CORRECTIVE ACTION THAT SHOULD BE TAKEN. A MATERIAL 7 DEFECT THAT POSES AN UNREASONABLE RISK TO PEOPLE ON THE 8 PROPERTY SHALL BE CONSPICUOUSLY IDENTIFIED AS SUCH. 9 (3) THE FOLLOWING STATEMENTS, SET FORTH CONSPICUOUSLY: 10 A HOME INSPECTION IS INTENDED TO ASSIST IN EVALUATION 11 OF THE OVERALL CONDITION OF THE DWELLING. THE INSPECTION 12 IS BASED ON OBSERVATION OF THE VISIBLE AND APPARENT 13 CONDITION OF THE STRUCTURE AND ITS COMPONENTS ON THE DATE 14 OF INSPECTION. 15 THE RESULTS OF THIS HOME INSPECTION ARE NOT INTENDED 16 TO MAKE ANY REPRESENTATION REGARDING THE PRESENCE OR 17 ABSENCE OF LATENT OR CONCEALED DEFECTS THAT ARE NOT 18 REASONABLY ASCERTAINABLE IN A COMPETENTLY PERFORMED HOME 19 INSPECTION. NO WARRANTY OR GUARANTY IS EXPRESSED OR 20 IMPLIED. 21 IF THE PERSON CONDUCTING YOUR HOME INSPECTION IS NOT 22 A LICENSED STRUCTURAL ENGINEER OR OTHER PROFESSIONAL 23 WHOSE LICENSE AUTHORIZES THE RENDERING OF AN OPINION AS 24 TO THE STRUCTURAL INTEGRITY OF A BUILDING OR ITS OTHER 25 COMPONENT PARTS, YOU MAY BE ADVISED TO SEEK A 26 PROFESSIONAL OPINION AS TO ANY DEFECTS OR CONCERNS 27 MENTIONED IN THE REPORT. 28 THIS HOME INSPECTION REPORT IS NOT TO BE CONSTRUED AS 29 AN APPRAISAL AND MAY NOT BE USED AS SUCH FOR ANY PURPOSE. 30 (B) CONFIDENTIALITY.--EXCEPT AS OTHERWISE REQUIRED BY LAW, A 20070S0359B1816 - 46 -
1 HOME INSPECTOR SHALL NOT DELIVER A HOME INSPECTION REPORT TO ANY 2 PERSON OTHER THAN THE CLIENT OF THE HOME INSPECTOR WITHOUT THE 3 CLIENT'S CONSENT. NOTWITHSTANDING THIS SUBSECTION, IF THE 4 INSPECTION IS FOR THE SALE OF A RESIDENCE, THE SELLER SHALL HAVE 5 THE RIGHT, UPON REQUEST, TO RECEIVE WITHOUT CHARGE A COPY OF A 6 HOME INSPECTION REPORT FROM THE PERSON FOR WHOM IT WAS PREPARED. 7 (C) REPAIR ESTIMATES PROHIBITED.--A HOME INSPECTOR SHALL NOT 8 EXPRESS EITHER ORALLY OR IN WRITING AN ESTIMATE OF THE COST TO 9 REPAIR ANY DEFECT FOUND DURING A HOME INSPECTION. 10 § 75A09. LIABILITY INSURANCE. 11 (A) REQUIRED INSURANCE.--A HOME INSPECTOR SHALL MAINTAIN 12 GENERAL LIABILITY INSURANCE IN THE PERFORMANCE OF A HOME 13 INSPECTION AND GENERAL LIABILITY, WITH COVERAGES OF NOT LESS 14 THAN $100,000 PER OCCURRENCE AND $500,000 IN THE AGGREGATE. 15 (B) TERM.-- 16 (1) EXCEPT AS SET FORTH IN PARAGRAPH (2), A HOME 17 INSPECTOR SHALL MAINTAIN INSURANCE UNDER SUBSECTION (A) FOR 18 AT LEAST ONE YEAR AFTER THE LATEST HOME INSPECTION REPORT WAS 19 DELIVERED. 20 (2) PARAGRAPH (1) SHALL NOT APPLY TO A HOME INSPECTION 21 REPORT THAT WAS DELIVERED PRIOR TO THE EFFECTIVE DATE OF THIS 22 SECTION. 23 § 75A10. HOME INSPECTORS IN OTHER STATES, TERRITORIES OR 24 DOMINION OF CANADA. 25 THE BOARD MAY ISSUE A LICENSE TO AN INDIVIDUAL WHO HAS 26 LICENSURE OR ITS EQUIVALENT AS A HOME INSPECTOR IN ANY OTHER 27 STATE OR TERRITORY OF THE UNITED STATES OR THE DOMINION OF 28 CANADA IF ALL OF THE FOLLOWING REQUIREMENTS ARE MET: 29 (1) THE OTHER JURISDICTION GRANTS THE SAME PRIVILEGES TO 30 LICENSEES OF PENNSYLVANIA AS THE COMMONWEALTH GRANTS TO 20070S0359B1816 - 47 -
1 LICENSEES OF THAT OTHER JURISDICTION. 2 (2) THE PERSON IS LICENSED OR ITS EQUIVALENT IN THE 3 OTHER JURISDICTION AND HAS SUCCESSFULLY PASSED THE EXAM. 4 (3) THE LICENSING REQUIREMENTS OF THE OTHER JURISDICTION 5 ARE SUBSTANTIALLY SIMILAR TO THE LICENSING REQUIREMENTS OF 6 THIS CHAPTER. 7 (4) THE PERSON PROVIDES A NOTARIZED STATEMENT THAT THE 8 PERSON HAS STUDIED, IS FAMILIAR WITH AND WILL ABIDE BY THE 9 PROVISIONS OF THIS CHAPTER AND THE ADMINISTRATIVE REGULATIONS 10 PROMULGATED BY THE BOARD. 11 (5) THE INDIVIDUAL PAYS THE REQUIRED FEE. 12 § 75A11. DURATION OF LICENSE. 13 (A) DURATION OF LICENSE.--A LICENSE ISSUED UNDER THIS 14 CHAPTER SHALL BE ON A BIENNIAL BASIS. THE BIENNIAL EXPIRATION 15 DATE SHALL BE ESTABLISHED BY THE BOARD. APPLICATION FOR RENEWAL 16 OF A LICENSE SHALL BIENNIALLY BE FORWARDED TO AN INDIVIDUAL 17 HOLDING A CURRENT LICENSE PRIOR TO THE EXPIRATION DATE OF THE 18 CURRENT RENEWAL BIENNIUM. 19 (B) INACTIVE STATUS.--AN INDIVIDUAL LICENSED UNDER THIS 20 CHAPTER MAY REQUEST AN APPLICATION FOR INACTIVE STATUS. THE 21 APPLICATION FORM MAY BE COMPLETED AND RETURNED TO THE BOARD. 22 UPON RECEIPT OF AN APPLICATION, THE INDIVIDUAL SHALL BE 23 MAINTAINED ON INACTIVE STATUS WITHOUT FEE AND SHALL BE ENTITLED 24 TO APPLY FOR A LICENSURE RENEWAL AT ANY TIME AFTER COMPLYING 25 WITH THE REQUIREMENTS FOR CONTINUING EDUCATION. AN INDIVIDUAL 26 WHO REQUESTS THE BOARD TO ACTIVATE THE INDIVIDUAL'S LICENSE AND 27 WHO HAS BEEN ON INACTIVE STATUS FOR A PERIOD OF THREE 28 CONSECUTIVE YEARS SHALL, PRIOR TO RECEIVING AN ACTIVE LICENSE, 29 SATISFY THE REQUIREMENTS OF THE BOARD'S REGULATIONS FOR ENSURING 30 CONTINUED COMPETENCE, INCLUDING HOLDING CURRENT CERTIFICATION 20070S0359B1816 - 48 -
1 AND REMITTING THE REQUIRED FEE. THE BOARD SHALL PROMULGATE 2 REGULATIONS TO CARRY OUT THE PROVISIONS OF THIS SUBSECTION. 3 § 75A12. REPORTING OF MULTIPLE LICENSURE. 4 A HOME INSPECTOR WHO IS ALSO LICENSED TO PERFORM HOME 5 INSPECTIONS IN ANY OTHER STATE, TERRITORY OR POSSESSION OF THE 6 UNITED STATES OR ANY OTHER COUNTRY SHALL REPORT THIS INFORMATION 7 TO THE BOARD ON THE BIENNIAL REGISTRATION APPLICATION. A 8 LICENSEE SHALL REPORT ANY DISCIPLINARY ACTION REGARDING A 9 LICENSE TAKEN IN ANOTHER STATE, TERRITORY, POSSESSION OF THE 10 UNITED STATES OR ANY OTHER COUNTRY TO THE BOARD ON THE BIENNIAL 11 REGISTRATION APPLICATION OR WITHIN 90 DAYS OF FINAL DISPOSITION, 12 WHICHEVER IS SOONER. MULTIPLE LICENSURE SHALL BE NOTED BY THE 13 BOARD ON THE HOME INSPECTOR'S RECORD, AND THE STATE, TERRITORY, 14 POSSESSION OR COUNTRY SHALL BE NOTIFIED OF ANY DISCIPLINARY 15 ACTIONS TAKEN BY THE BOARD AGAINST THE LICENSEE IN THIS 16 COMMONWEALTH. 17 § 75A13. RELATIONSHIP TO OTHER LAWS. 18 (A) GENERAL RULE.--NOTHING IN THIS CHAPTER SHALL BE 19 CONSTRUED TO ALLOW A HOME INSPECTOR WHO IS NOT REGISTERED OR 20 LICENSED UNDER ONE OR MORE OF THE FOLLOWING LAWS TO PERFORM ANY 21 ACTIVITY THAT WOULD CONSTITUTE THE PRACTICE OF THE PROFESSION 22 REGULATED BY THAT LAW: 23 (1) THE ACT OF MAY 23, 1945 (P.L.913, NO.367), KNOWN AS 24 THE ENGINEER, LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW. 25 (2) THE ACT OF JANUARY 24, 1966 (1965 P.L.1535, NO.537), 26 KNOWN AS THE PENNSYLVANIA SEWAGE FACILITIES ACT. 27 (3) THE ACT OF MARCH 1, 1974 (P.L.90, NO.24), KNOWN AS 28 THE PENNSYLVANIA PESTICIDE CONTROL ACT OF 1973. 29 (4) THE ACT OF DECEMBER 14, 1982 (P.L.1227, NO.281), 30 KNOWN AS THE ARCHITECTS LICENSURE LAW. 20070S0359B1816 - 49 -
1 (5) THE ACT OF JULY 9, 1987 (P.L.238, NO.43), KNOWN AS 2 THE RADON CERTIFICATION ACT. 3 (6) THE ACT OF JULY 10, 1990 (P.L.404, NO.98), KNOWN AS 4 THE REAL ESTATE APPRAISERS CERTIFICATION ACT. 5 (B) EXCLUSIONS.--THIS CHAPTER SHALL NOT: 6 (1) APPLY TO A PERSON REGISTERED OR LICENSED UNDER AN 7 ACT REFERRED TO IN SUBSECTION (A) WHEN ACTING PURSUANT TO HIS 8 REGISTRATION OR LICENSE. 9 (2) APPLY TO AN OFFICER OR EMPLOYEE OF A MUNICIPALITY OR 10 LOCAL AUTHORITY WHEN ACTING IN HIS OFFICIAL CAPACITY. 11 (3) AFFECT THE OBLIGATIONS OR IMMUNITIES OF A PERSON 12 LICENSED UNDER THE ACT OF FEBRUARY 19, 1980 (P.L.15, NO.9), 13 KNOWN AS THE REAL ESTATE LICENSING AND REGISTRATION ACT, THAT 14 ARE IMPOSED OR PROVIDED BY THAT ACT OR CHAPTER 73 (RELATING 15 TO SELLER DISCLOSURES) WHEN THE PERSON IS ACTING PURSUANT TO 16 HIS LICENSE. 17 (4) AFFECT THE OBLIGATIONS OR IMMUNITIES OF A PERSON 18 CERTIFIED UNDER THE REAL ESTATE APPRAISERS CERTIFICATION ACT 19 WHEN THE PERSON IS ACTING PURSUANT TO THE PERSON'S LICENSE. 20 § 75A14. UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW 21 REMEDIES. 22 (A) GENERAL RULE.--THE PERFORMANCE OF A HOME INSPECTION IS A 23 SERVICE THAT IS SUBJECT TO THE ACT OF DECEMBER 17, 1968 24 (P.L.1224, NO.387), KNOWN AS THE UNFAIR TRADE PRACTICES AND 25 CONSUMER PROTECTION LAW. 26 (B) PROHIBITED ACTS.--ANY OF THE FOLLOWING ACTS ENGAGED IN 27 BY A HOME INSPECTOR, AN EMPLOYER OF A HOME INSPECTOR OR ANOTHER 28 BUSINESS OR PERSON THAT CONTROLS OR HAS A FINANCIAL INTEREST IN 29 THE EMPLOYER OF A HOME INSPECTOR SHALL BE DEEMED TO BE AN UNFAIR 30 OR DECEPTIVE ACT OR PRACTICE AS DEFINED BY SECTION 2(4)(I) 20070S0359B1816 - 50 -
1 THROUGH (XXI) OF THE UNFAIR TRADE PRACTICES AND CONSUMER 2 PROTECTION LAW: 3 (1) PERFORMING OR OFFERING TO PERFORM FOR AN ADDITIONAL 4 FEE ANY REPAIRS TO A STRUCTURE WITH RESPECT TO WHICH THE HOME 5 INSPECTOR, THE EMPLOYER OF THE HOME INSPECTOR OR SUCH OTHER 6 BUSINESS OR PERSON HAS PREPARED A HOME INSPECTION REPORT 7 WITHIN THE PRECEDING 12 MONTHS, EXCEPT THAT THIS PARAGRAPH 8 SHALL NOT APPLY TO REMEDIATION FOR RADON OR WOOD DESTROYING 9 INSECTS. 10 (2) INSPECTING FOR A FEE ANY PROPERTY IN WHICH THE HOME 11 INSPECTOR, THE EMPLOYER OF THE HOME INSPECTOR OR SUCH OTHER 12 BUSINESS OR PERSON HAS ANY FINANCIAL INTEREST OR ANY INTEREST 13 IN THE TRANSFER OF THE PROPERTY, INCLUDING WITHOUT LIMITATION 14 RECEIPT OF A COMMISSION AS AN AGENT, UNLESS THE FINANCIAL 15 INTEREST OR INTEREST IN THE TRANSFER OF THE PROPERTY IS 16 DISCLOSED IN WRITING TO THE BUYER BEFORE THE HOME INSPECTION 17 IS PERFORMED AND THE BUYER SIGNS AN ACKNOWLEDGMENT OF RECEIPT 18 OF THE DISCLOSURE. 19 (3) OFFERING OR DELIVERING ANY COMMISSION, REFERRAL FEE 20 OR KICKBACK TO THE SELLER OF THE INSPECTED PROPERTY OR TO AN 21 AGENT FOR EITHER OR BOTH OF THE SELLER AND THE BUYER FOR THE 22 REFERRAL OF ANY BUSINESS TO THE HOME INSPECTOR, THE EMPLOYER 23 OF THE HOME INSPECTOR OR SUCH OTHER BUSINESS OR PERSON. 24 (4) ACCEPTING AN ENGAGEMENT TO PERFORM A HOME INSPECTION 25 OR TO PREPARE A HOME INSPECTION REPORT IN WHICH THE 26 EMPLOYMENT ITSELF OR THE FEE PAYABLE FOR THE INSPECTION IS 27 CONTINGENT UPON THE CONCLUSIONS IN THE REPORT, PREESTABLISHED 28 OR PRESCRIBED FINDINGS OR THE CLOSING OF THE TRANSACTION. 29 (C) EXCEPTION.--A HOME WARRANTY COMPANY THAT IS AFFILIATED 30 WITH OR RETAINS THE HOME INSPECTOR DOES NOT VIOLATE SUBSECTION 20070S0359B1816 - 51 -
1 (B) IF THE HOME WARRANTY COMPANY PERFORMS REPAIRS PURSUANT TO 2 CLAIMS MADE UNDER A HOME WARRANTY CONTRACT. 3 (D) CONSUMER REMEDIES.--IN ADDITION TO ANY OTHER REMEDIES 4 AVAILABLE UNDER THE UNFAIR TRADE PRACTICES AND CONSUMER 5 PROTECTION LAW OR OTHER APPLICABLE PROVISION OF LAW, THE OWNER 6 OF A PROPERTY ON WHICH REPAIRS ARE PERFORMED IN VIOLATION OF 7 SUBSECTION (B)(1) SHALL BE ENTITLED TO A FULL REFUND OF ANY 8 MONEYS PAID FOR THOSE REPAIRS, AND ANY PROMISSORY NOTE OR OTHER 9 OBLIGATION TO PAY GIVEN TO THE PERSON PERFORMING THOSE REPAIRS 10 SHALL BE VOID. 11 § 75A15. CONTRACTS WITH HOME INSPECTORS. 12 (A) PROHIBITED PROVISIONS.--ANY OF THE FOLLOWING TYPES OF 13 PROVISIONS IN A CONTRACT WITH A HOME INSPECTOR FOR THE 14 PERFORMANCE OF A HOME INSPECTION ARE CONTRARY TO PUBLIC POLICY 15 AND SHALL BE VOID: 16 (1) A LIMITATION ON THE LIABILITY OF THE HOME INSPECTOR 17 FOR GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. 18 (2) A WAIVER OR MODIFICATION OF ANY PROVISION OF THIS 19 CHAPTER. 20 (B) SCOPE OF INSPECTION.--THE SCOPE OF A HOME INSPECTION, 21 THE SERVICES TO BE PERFORMED AND THE SYSTEMS AND CONDITIONS TO 22 BE INSPECTED OR EXCLUDED FROM INSPECTION MAY BE DEFINED BY A 23 CONTRACT BETWEEN THE HOME INSPECTOR AND THE CLIENT. 24 (C) REQUIRED CONTRACTUAL PROVISION REGARDING HOME 25 INSPECTIONS.--EXCEPT AS PROVIDED UNDER THIS SECTION, A PROVISION 26 OF AN AGREEMENT OF TRANSFER REGARDING THE RIGHT OF THE BUYER TO 27 OBTAIN A HOME INSPECTION REPORT AND PROVIDING FOR THE 28 CONSEQUENCES, IF ANY, SHALL PROVIDE THAT THE HOME INSPECTION BE 29 PERFORMED BY A FULL MEMBER IN GOOD STANDING OF A NATIONAL HOME 30 INSPECTION ASSOCIATION IN ACCORDANCE WITH THE ETHICAL STANDARDS 20070S0359B1816 - 52 -
1 AND CODE OF CONDUCT OR PRACTICE OF THAT ASSOCIATION, EXCEPT THAT 2 A HOME INSPECTION PERFORMED BY A PERSON WHO HAS NOT ATTAINED 3 FULL MEMBERSHIP IN A NATIONAL HOME INSPECTION ASSOCIATION 4 SATISFIES THE REQUIREMENTS OF THIS SECTION IF THE PERSON IS: 5 (1) LICENSED OR REGISTERED AS A PROFESSIONAL ENGINEER 6 UNDER THE ACT OF MAY 23, 1945 (P.L.913, NO.367), KNOWN AS THE 7 ENGINEER, LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW; 8 (2) LICENSED OR REGISTERED UNDER THE ACT OF DECEMBER 14, 9 1982 (P.L.1227, NO.281), KNOWN AS THE ARCHITECTS LICENSURE 10 LAW; OR 11 (3) SUPERVISED BY A FULL MEMBER IN GOOD STANDING OF A 12 NATIONAL HOME INSPECTION ASSOCIATION WHO AGREES TO BE 13 RESPONSIBLE FOR THE HOME INSPECTION REPORT BY SIGNING THE 14 REPORT. 15 § 75A16. FEES, FINES AND CIVIL PENALTIES. 16 (A) FEES.--ALL FEES REQUIRED UNDER THIS CHAPTER SHALL BE 17 FIXED BY THE BOARD BY REGULATION AND SHALL BE SUBJECT TO THE ACT 18 OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE REGULATORY 19 REVIEW ACT. IF THE REVENUES RAISED BY THE FEES, FINES AND CIVIL 20 PENALTIES IMPOSED UNDER THIS CHAPTER ARE NOT SUFFICIENT TO MEET 21 EXPENDITURES OVER A TWO-YEAR PERIOD, THE BOARD SHALL INCREASE 22 THOSE FEES BY REGULATION SO THAT PROJECTED REVENUES WILL MEET OR 23 EXCEED PROJECTED EXPENDITURES. 24 (B) DEPOSIT OF FEES.--ALL FEES, FINES AND CIVIL PENALTIES 25 IMPOSED IN ACCORDANCE WITH THIS CHAPTER SHALL BE PAID INTO THE 26 PROFESSIONAL LICENSURE AUGMENTATION ACCOUNT. 27 (C) PERMITTED FEES.--THE BOARD MAY CHARGE A FEE, AS SET BY 28 THE BOARD BY REGULATION, FOR LICENSURE, FOR RENEWING LICENSURE 29 AND FOR OTHER SERVICES OF THE BOARD AS PERMITTED UNDER THIS 30 CHAPTER OR BY REGULATION. 20070S0359B1816 - 53 -
1 § 75A17. VIOLATION. 2 (A) CRIMINAL PENALTY.--A PERSON VIOLATING A PROVISION OF 3 THIS CHAPTER OR A REGULATION OF THE BOARD COMMITS A MISDEMEANOR 4 OF THE THIRD DEGREE AND SHALL, UPON CONVICTION, BE SENTENCED TO 5 PAY A FINE OF NOT MORE THAN $2,500 OR TO IMPRISONMENT FOR NOT 6 MORE THAN SIX MONTHS FOR THE FIRST VIOLATION. A PERSON CONVICTED 7 OF A SECOND OR SUBSEQUENT VIOLATION SHALL BE SENTENCED TO PAY A 8 FINE OF NOT MORE THAN $5,000 OR TO IMPRISONMENT FOR NOT LESS 9 THAN SIX MONTHS OR MORE THAN ONE YEAR, OR BOTH. 10 (B) CIVIL PENALTY.--IN ADDITION TO ANY OTHER CIVIL REMEDY OR 11 CRIMINAL PENALTY PROVIDED FOR UNDER THIS CHAPTER, THE BOARD, BY 12 A VOTE OF THE MAJORITY OF THE MAXIMUM NUMBER OF THE AUTHORIZED 13 MEMBERSHIP OF THE BOARD AS PROVIDED BY LAW OR BY A VOTE OF THE 14 MAJORITY OF THE DULY QUALIFIED AND CONFIRMED MEMBERSHIP OR A 15 MINIMUM OF FIVE MEMBERS, WHICHEVER IS GREATER, MAY LEVY A CIVIL 16 PENALTY OF UP TO $10,000 ON ANY OF THE FOLLOWING: 17 (1) A HOME INSPECTOR WHO VIOLATES A PROVISION OF THIS 18 CHAPTER. 19 (2) AN INDIVIDUAL WHO PERFORMS HOME INSPECTIONS WITHOUT 20 A LICENSE, AS REQUIRED BY THIS CHAPTER. 21 (C) PROCEDURE.--THE BOARD SHALL LEVY THE CIVIL PENALTY UNDER 22 SUBSECTION (B) ONLY AFTER AFFORDING THE ACCUSED THE OPPORTUNITY 23 FOR A HEARING AS PROVIDED UNDER 2 PA.C.S. (RELATING TO 24 ADMINISTRATIVE LAW AND PROCEDURE). 25 § 75A18. REFUSAL, SUSPENSION OR REVOCATION OF LICENSE. 26 (A) GENERAL RULE.--THE BOARD SHALL HAVE THE AUTHORITY TO 27 REFUSE, SUSPEND OR REVOKE A LICENSE OR DISCIPLINE FOR UNLICENSED 28 ACTIVITY IN A CASE WHERE THE BOARD FINDS ANY OF THE FOLLOWING: 29 (1) THE LICENSEE IS NEGLIGENT OR INCOMPETENT IN 30 PERFORMING A HOME INSPECTION. 20070S0359B1816 - 54 -
1 (2) THE LICENSEE HAS WILLFULLY OR REPEATEDLY VIOLATED 2 ANY OF THE PROVISIONS OF THIS CHAPTER OR A REGULATION OF THE 3 BOARD. 4 (3) THE LICENSEE OR INDIVIDUAL HAS COMMITTED FRAUD OR 5 DECEIT IN ANY OF THE FOLLOWING: 6 (I) PERFORMING HOME INSPECTIONS. 7 (II) SECURING LICENSURE OR CERTIFICATION. 8 (III) ADVERTISING. 9 (IV) PERFORMING OR OFFERING TO PERFORM HOME 10 INSPECTIONS FOR COMPENSATION WITHOUT BEING LICENSED AS A 11 HOME INSPECTOR AND WITHOUT BEING EXEMPT FROM LICENSURE 12 UNDER THIS CHAPTER. 13 (V) PRESENTING AS THE INDIVIDUAL'S OWN LICENSE, THE 14 LICENSE OF ANOTHER. 15 (VI) INTENTIONALLY GIVING FALSE OR MATERIALLY 16 MISLEADING INFORMATION TO THE BOARD OR TO A BOARD OR 17 STAFF MEMBER IN CONNECTION WITH A LICENSING MATTER. 18 (VII) USING AN EXPIRED, SUSPENDED, REVOKED OR 19 OTHERWISE RESTRICTED LICENSE. 20 (VIII) PERFORMING OR OFFERING TO PERFORM FOR AN 21 ADDITIONAL FEE ANY REPAIRS TO A STRUCTURE WITH RESPECT TO 22 WHICH THE HOME INSPECTOR, THE EMPLOYER OF THE HOME 23 INSPECTOR OR OTHER BUSINESS OR PERSON HAS PREPARED A HOME 24 INSPECTION REPORT WITHIN THE PRECEDING 12 MONTHS, EXCEPT 25 THAT THIS SUBPARAGRAPH SHALL NOT APPLY TO REMEDIATION FOR 26 RADON OR WOOD DESTROYING INSECTS. 27 (IX) PARTICIPATION, BY ANY REAL ESTATE BROKER OR 28 AGENT, DIRECTLY OR INDIRECTLY, IN AN ACTION IN WHICH THE 29 HOME INSPECTOR PAYS OR RECEIVES A DIRECT OR INDIRECT 30 CONSIDERATION FOR RECEIVING LEADS TOWARD PROVIDING HOME 20070S0359B1816 - 55 -
1 INSPECTION SERVICES. 2 (4) THE LICENSEE HAS BEEN CONVICTED OF A FELONY OR A 3 CRIME OF MORAL TURPITUDE. 4 (5) THE LICENSEE HAS HAD HIS LICENSE SUSPENDED OR 5 REVOKED OR HAS RECEIVED OTHER DISCIPLINARY ACTION BY THE 6 PROPER LICENSING AUTHORITY IN ANOTHER STATE, TERRITORY, 7 POSSESSION OF THE UNITED STATES OR ANY OTHER COUNTRY. 8 (6) THE LICENSEE FALSELY ADVERTISED OR MADE MISLEADING, 9 DECEPTIVE, UNTRUE OR FRAUDULENT MATERIAL REPRESENTATIONS 10 REGARDING LICENSURE. 11 (B) ACTS AUTHORIZED.--IF THE BOARD FINDS THAT THE LICENSE OF 12 A HOME INSPECTOR MAY BE REFUSED, REVOKED OR SUSPENDED UNDER 13 SUBSECTION (A), THE BOARD MAY DO ANY OF THE FOLLOWING: 14 (1) DENY THE APPLICATION FOR A LICENSE. 15 (2) ADMINISTER A PUBLIC REPRIMAND. 16 (3) REVOKE, SUSPEND, LIMIT OR OTHERWISE RESTRICT A 17 LICENSE. 18 (4) REQUIRE A LICENSEE TO SUBMIT TO THE CARE, COUNSELING 19 OR TREATMENT OF A PHYSICIAN OR A PSYCHOLOGIST DESIGNATED BY 20 THE BOARD. 21 (5) SUSPEND ENFORCEMENT OF ITS FINDING AND PLACE A 22 LICENSEE ON PROBATION WITH THE RIGHT TO VACATE THE 23 PROBATIONARY ORDER FOR NONCOMPLIANCE. 24 (6) RESTORE OR REISSUE, IN ITS DISCRETION, A SUSPENDED 25 LICENSE AND IMPOSE ANY DISCIPLINARY OR CORRECTIVE MEASURE 26 WHICH IT MIGHT ORIGINALLY HAVE IMPOSED. 27 § 75A19. SUSPENSIONS AND REVOCATIONS. 28 DISCIPLINARY ACTION SHALL BE IMPOSED ONLY IN ACCORDANCE WITH 29 THE REGULATIONS OF THE BOARD AND ONLY BY MAJORITY VOTE OF THE 30 MEMBERS OF THE BOARD AFTER A HEARING. AN ACTION OF THE BOARD 20070S0359B1816 - 56 -
1 SHALL BE TAKEN SUBJECT TO THE RIGHT OF NOTICE, HEARING AND 2 ADJUDICATION, AND THE RIGHT OF APPEAL, IN ACCORDANCE WITH 2 3 PA.C.S. (RELATING TO ADMINISTRATIVE LAW AND PROCEDURE). THE 4 BOARD, BY MAJORITY ACTION, MAY REISSUE A LICENSE WHICH HAS BEEN 5 SUSPENDED. IF A LICENSE HAS BEEN REVOKED, THE BOARD SHALL 6 REISSUE A LICENSE ONLY UNDER SECTION 75A21 (RELATING TO 7 REINSTATEMENT OF LICENSE). 8 § 75A20. INTERNS. 9 (A) ELIGIBILITY.--TO BE ELIGIBLE FOR A HOME INSPECTOR INTERN 10 PERMIT, AN APPLICANT SHALL HAVE DONE ALL OF THE FOLLOWING: 11 (1) HAVE SUCCESSFULLY COMPLETED HIGH SCHOOL OR ITS 12 EQUIVALENT. 13 (2) HAVE ENROLLED IN AND COMPLETED A BOARD-APPROVED 14 TRAINING PROGRAM THAT MEETS THE REQUIREMENTS OF REGULATIONS 15 ADOPTED BY THE BOARD RELATING TO 120-HOUR CLASS TIMES. 16 (3) HAVE AN IDENTIFIED SUPERVISOR WHO IS LICENSED AS A 17 HOME INSPECTOR UNDER THIS CHAPTER, IS IN GOOD STANDING AS A 18 HOME INSPECTOR AND HAS AGREED TO PERFORM SUPERVISORY 19 FUNCTIONS AS DESCRIBED UNDER SUBSECTION (C). 20 (4) HAS PAID A FEE AS ESTABLISHED BY THE BOARD. 21 (B) EXAMINATION.--UPON COMPLETION OF A BOARD-APPROVED 22 TRAINING PROGRAM THAT MEETS THE REQUIREMENTS OF THE REGULATIONS 23 ADOPTED BY THE BOARD, THE HOME INSPECTOR INTERN MAY TAKE THE 24 HOME INSPECTOR LICENSURE EXAMINATION. IF THE INTERN DOES NOT 25 PASS HIS LICENSURE EXAMINATION, THE INTERN MAY TAKE UP TO TWO 26 ADDITIONAL EXAMINATIONS DURING THE ONE-YEAR PERIOD COMMENCING ON 27 THE DATE OF THE APPLICANT'S FIRST EXAMINATION APPLICATION. IF 28 THE APPLICANT DOES NOT PASS A THIRD EXAMINATION, THE APPLICANT 29 MAY NOT BE EXAMINED AGAIN UNTIL ONE YEAR AFTER THE DATE OF THE 30 THIRD EXAMINATION. 20070S0359B1816 - 57 -
1 (C) SUPERVISION.--A HOME INSPECTOR INTERN SHALL PERFORM 2 FUNCTIONS OF A HOME INSPECTOR ONLY UNDER THE SUPERVISION OF A 3 LICENSED HOME INSPECTOR AND IN ACCORDANCE WITH RULES AND 4 REGULATIONS ADOPTED BY THE BOARD. THE SUPERVISION SHALL BE 5 DIRECT SUPERVISION FOR A MINIMUM OF 100 INSPECTIONS. FOR THE 6 PURPOSE OF THIS SUBSECTION, "DIRECT SUPERVISION" MEANS THE 7 SUPERVISOR SHALL BE PRESENT AT THE SITE OF A HOME INSPECTION 8 WHERE THE HOME INSPECTOR INTERN IS ASSIGNED 100% OF THE TIME AND 9 THE SUPERVISOR SHALL COUNTERSIGN ALL DOCUMENTS PREPARED AND 10 COMPLETED BY THE HOME INSPECTOR INTERN. 11 (D) RESPONSIBILITY.--THE LICENSED HOME INSPECTOR SUPERVISING 12 THE HOME INSPECTOR INTERN SHALL BE RESPONSIBLE FOR ALL 13 INSPECTIONS DONE BY THE HOME INSPECTOR INTERN UNDER THE LICENSED 14 HOME INSPECTOR'S CHARGE. 15 (E) AGREEMENT.--AS A CONDITION FOR APPLYING FOR AN INTERN 16 HOME INSPECTOR'S LICENSE, THE APPLICANT SHALL AGREE IN WRITING 17 TO PARTICIPATE IN AND PERFORM THE TRAINING, FUNCTIONS AND 18 RESPONSIBILITIES PRESCRIBED FOR INTERN HOME INSPECTORS AND SHALL 19 AGREE TO UPHOLD STANDARDS OF ETHICS AND PROFESSIONAL CONDUCT 20 PRESCRIBED BY THE BOARD. 21 § 75A21. REINSTATEMENT OF LICENSE. 22 UNLESS ORDERED TO DO SO BY THE COMMONWEALTH COURT OR AN 23 APPEAL FROM THE COMMONWEALTH COURT, THE BOARD SHALL NOT 24 REINSTATE THE LICENSE OF AN INDIVIDUAL WHICH HAS BEEN REVOKED. 25 AN INDIVIDUAL WHOSE LICENSE HAS BEEN REVOKED MAY REAPPLY FOR A 26 LICENSE AFTER A PERIOD OF AT LEAST FIVE YEARS BUT MUST MEET ALL 27 OF THE LICENSING REQUIREMENTS OF THIS CHAPTER. 28 § 75A22. SURRENDER OF SUSPENDED OR REVOKED LICENSE. 29 THE BOARD SHALL REQUIRE AN INDIVIDUAL WHOSE LICENSE HAS BEEN 30 SUSPENDED OR REVOKED TO RETURN THE LICENSE IN THE MANNER AS THE 20070S0359B1816 - 58 -
1 BOARD DIRECTS. A PERSON THAT FAILS TO DO SO COMMITS A 2 MISDEMEANOR OF THE THIRD DEGREE. 3 § 75A23. INJUNCTION. 4 WHENEVER IN THE JUDGMENT OF THE BOARD A PERSON HAS ENGAGED IN 5 AN ACT OR PRACTICE WHICH IS REGULATED UNDER THIS CHAPTER AND 6 WHICH CONSTITUTES OR WILL CONSTITUTE A VIOLATION OF THIS 7 CHAPTER, THE BOARD OR ITS AGENTS MAY MAKE APPLICATION TO THE 8 APPROPRIATE COURT FOR AN ORDER ENJOINING THE ACT OR PRACTICE 9 AND, UPON A SHOWING BY THE BOARD THAT THE PERSON HAS ENGAGED OR 10 IS ABOUT TO ENGAGE IN THE ACT OR PRACTICE, AN INJUNCTION, 11 RESTRAINING ORDER OR OTHER ORDER AS MAY BE APPROPRIATE SHALL BE 12 GRANTED BY THE COURT. THE REMEDY BY INJUNCTION SHALL BE IN 13 ADDITION TO ANY OTHER CIVIL OR CRIMINAL PROSECUTION AND 14 PUNISHMENT. 15 § 75A24. SUBPOENAS AND OATHS. 16 (A) AUTHORITY GRANTED.--THE BOARD SHALL HAVE THE AUTHORITY 17 TO ISSUE SUBPOENAS, UPON APPLICATION OF AN ATTORNEY RESPONSIBLE 18 FOR REPRESENTING THE COMMONWEALTH IN DISCIPLINARY MATTERS BEFORE 19 THE BOARD, FOR THE PURPOSE OF INVESTIGATING ALLEGED VIOLATIONS 20 OF THIS CHAPTER OR REGULATIONS OF THE BOARD. THE BOARD SHALL 21 HAVE THE POWER TO SUBPOENA WITNESSES, TO ADMINISTER OATHS, TO 22 EXAMINE WITNESSES AND TO TAKE TESTIMONY OR COMPEL THE PRODUCTION 23 OF BOOKS, RECORDS, PAPERS AND DOCUMENTS AS IT MAY DEEM NECESSARY 24 OR PROPER IN AND PERTINENT TO ANY PROCEEDING, INVESTIGATION OR 25 HEARING HELD OR HAD BY THE BOARD. THE BOARD IS AUTHORIZED TO 26 APPLY TO THE COMMONWEALTH COURT TO ENFORCE ITS SUBPOENAS. THE 27 COURT MAY IMPOSE LIMITATIONS ON THE SCOPE OF THE SUBPOENA AS IS 28 NECESSARY TO PREVENT UNNECESSARY INTRUSION INTO CLIENT 29 CONFIDENTIAL INFORMATION. 30 (B) DISCIPLINARY MATTERS.--AN ATTORNEY RESPONSIBLE FOR 20070S0359B1816 - 59 -
1 REPRESENTING THE COMMONWEALTH IN DISCIPLINARY MATTERS BEFORE THE 2 BOARD SHALL MAINTAIN CURRENT RECORDS OF ALL REPORTED ALLEGED 3 VIOLATIONS AND PERIODICALLY REVIEW THE RECORDS FOR THE PURPOSE 4 OF DETERMINING THAT EACH ALLEGED VIOLATION HAS BEEN RESOLVED IN 5 A TIMELY MANNER. 6 § 75A25. STATUTE OF LIMITATIONS. 7 AN ACTION TO RECOVER DAMAGES ARISING FROM A HOME INSPECTION 8 REPORT MUST BE COMMENCED WITHIN ONE YEAR AFTER THE DATE THE 9 REPORT IS DELIVERED. 10 § 75A26. ENGINEERS AND ARCHITECTS. 11 NOTWITHSTANDING SECTION 75A13(B)(1) (RELATING TO RELATIONSHIP 12 TO OTHER LAWS), THE FOLLOWING SECTIONS SHALL APPLY TO A PERSON 13 LICENSED OR REGISTERED AS A PROFESSIONAL ENGINEER UNDER THE ACT 14 OF MAY 23, 1945 (P.L.913, NO.367), KNOWN AS THE ENGINEER, LAND 15 SURVEYOR AND GEOLOGIST REGISTRATION LAW, OR A PERSON LICENSED OR 16 REGISTERED UNDER THE ACT OF DECEMBER 14, 1982 (P.L.1227, 17 NO.281), KNOWN AS THE ARCHITECTS LICENSURE LAW, WHEN PERFORMING 18 A HOME INSPECTION: 19 (1) SECTION 75A08 (RELATING TO HOME INSPECTION REPORTS). 20 (2) SECTION 75A09 (RELATING TO LIABILITY INSURANCE). 21 (3) SECTION 75A14 (RELATING TO UNFAIR TRADE PRACTICES 22 AND CONSUMER PROTECTION LAW REMEDIES). 23 (4) SECTION 75A15(A)(1) AND (B) (RELATING TO CONTRACTS 24 WITH HOME INSPECTORS). 25 SECTION 2.1. FOR ONE YEAR FROM THE EFFECTIVE DATE OF THIS 26 SECTION, AN APPLICANT WHO MEETS ALL OF THE REQUIREMENTS OF 27 FORMER 68 PA.C.S. CH. 75 AND THIS SECTION MAY BE LICENSED AS A 28 HOME INSPECTOR WITHOUT HAVING TO COMPLETE A BOARD-APPROVED 29 TRAINING PROGRAM OR COURSE OF STUDY INVOLVING THE PERFORMANCE OF 30 HOME INSPECTIONS. THE APPLICANT MUST: 20070S0359B1816 - 60 -
1 (1) BE AT LEAST 18 YEARS OF AGE. 2 (2) HAVE PASSED A WRITTEN EXAMINATION TO TEST COMPETENCE 3 IN HOME INSPECTION PRACTICE. 4 (3) HAVE COMPLETED NO LESS THAN 100 FEE-PAID INSPECTIONS 5 PER YEAR OVER THE FIVE YEARS IMMEDIATELY PRECEDING. 6 (4) SHOW PROOF OF PROFESSIONAL LIABILITY INSURANCE 7 CONSISTENT WITH 68 PA.C.S. § 75A09. 8 SECTION 3. THE SUM OF $85,000, OR AS MUCH THEREOF AS MAY BE 9 NECESSARY, IS HEREBY APPROPRIATED FROM THE PROFESSIONAL 10 LICENSURE AUGMENTATION ACCOUNT TO THE DEPARTMENT OF STATE FOR 11 THE PAYMENT OF COSTS ASSOCIATED WITH PROCESSING LICENSES AND 12 RENEWING LICENSES, FOR THE OPERATION OF THE PENNSYLVANIA BOARD 13 OF HOME INSPECTORS AND FOR OTHER COSTS ASSOCIATED WITH THE 14 IMPLEMENTATION OF 68 PA.C.S. CH. 75A. THE APPROPRIATION SHALL BE 15 REPAID BY THE BOARD WITHIN THREE YEARS OF THE BEGINNING OF 16 ISSUANCE OF LICENSES BY THE BOARD. 17 SECTION 4. WITHIN 18 MONTHS OF THE EFFECTIVE DATE OF THIS 18 SECTION, THE PENNSYLVANIA BOARD OF HOME INSPECTORS SHALL 19 PROMULGATE REGULATIONS TO CARRY OUT THE PROVISIONS OF 68 PA.C.S. 20 CH. 75A. 21 SECTION 5. THE ADDITION OF 68 PA.C.S. CH. 75A IS A 22 CONTINUATION OF FORMER 68 PA.C.S. CH. 75. EXCEPT AS OTHERWISE 23 PROVIDED UNDER CHAPTER 75A, ALL ACTIVITIES INITIATED UNDER 24 FORMER CHAPTER 75 SHALL CONTINUE AND REMAIN IN FULL FORCE AND 25 EFFECT AND MAY BE COMPLETED UNDER CHAPTER 75A. ORDERS, 26 REGULATIONS, RULES AND DECISIONS WHICH WERE MADE UNDER FORMER 27 CHAPTER 75 AND WHICH ARE IN EFFECT ON THE EFFECTIVE DATE OF THIS 28 SECTION SHALL REMAIN IN FULL FORCE AND EFFECT UNTIL REVOKED, 29 VACATED OR MODIFIED UNDER CHAPTER 75A. CONTRACTS, OBLIGATIONS 30 AND COLLECTIVE BARGAINING AGREEMENTS ENTERED INTO UNDER FORMER 20070S0359B1816 - 61 -
1 CHAPTER 75 ARE NOT AFFECTED NOR IMPAIRED BY THE REPEAL OF FORMER 2 CHAPTER 75. 3 SECTION 6. THIS ACT SHALL TAKE EFFECT IN 60 DAYS. A8L68DMS/20070S0359B1816 - 62 -