THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY GREENLEAF, FONTANA, FERLO, BROWNE, O'PAKE, COSTA,

LOGAN, RAFFERTY, STACK, WONDERLING, BOSCOLA AND WAUGH,

JANUARY 30, 2009

SENATOR TOMLINSON, CONSUMER PROTECTION AND PROFESSIONAL

LICENSURE, AS AMENDED, MARCH 31, 2009   

AN ACT

1

Amending Title 68 (Real and Personal Property) of the

2

Pennsylvania Consolidated Statutes, repealing provisions

3

relating to home inspections; providing for home inspections;

4

establishing the Pennsylvania Board of Home Inspectors;

5

providing for licensure of home inspectors and for

6

disciplinary proceedings by the Pennsylvania Board of Home

7

Inspectors; and making an appropriation.

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The General Assembly of the Commonwealth of Pennsylvania

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hereby enacts as follows:

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Section 1.  Chapter 75 heading and sections 7501, 7502, 7503,

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7504, 7505, 7506, 7507, 7508, 7509, 7510, 7511, 7512 and 7513 of

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Title 68 of the Pennsylvania Consolidated Statutes are repealed:

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[CHAPTER 75

14

HOME INSPECTIONS

15

§ 7501.  Short title of chapter.

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This chapter shall be known and may be cited as the Home

17

Inspection Law.

18

§ 7502.  Definitions and index of definitions.

19

(a)  Definitions.--The following words and phrases when used

1

in this chapter shall have the meanings given to them in this

2

section unless the context clearly indicates otherwise:

3

"Home inspection."  A noninvasive visual examination of some

4

combination of the mechanical, electrical or plumbing systems or

5

the structural and essential components of a residential

6

dwelling designed to identify material defects in those systems

7

and components and performed for a fee in connection with or

8

preparation for a proposed or possible residential real estate

9

transfer. The term also includes any consultation regarding the

10

property that is represented to be a home inspection or that is

11

described by any confusingly similar term. The term does not

12

include an examination of a single system or component of a

13

residential dwelling such as, for example, its electrical or

14

plumbing system or its roof. The term also does not include an

15

examination that is limited to inspection for or of one or more

16

of the following: wood destroying insects, underground tanks and

17

wells, septic systems, swimming pools and spas, alarm systems,

18

air and water quality, tennis courts and playground equipment,

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pollutants, toxic chemicals and environmental hazards.

20

"Home inspection report."  A written report on the results of

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a home inspection.

22

"Home inspector."  An individual who performs a home

23

inspection.

24

"National home inspectors association."  Any national

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association of home inspectors that:

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(1)  Is operated on a not-for-profit basis and is not

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operated as a franchise.

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(2)  Has members in more than ten states.

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(3)  Requires that a person may not become a full member

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unless the person has performed or participated in more than

1

100 home inspections and has passed a recognized or

2

accredited examination testing knowledge of the proper

3

procedures for conducting a home inspection.

4

(4)  Requires that its members comply with a code of

5

conduct and attend continuing professional education classes

6

as an ongoing condition of membership.

7

(b)  Index of other definitions.--The following is a

8

nonexclusive list of other definitions applying to this chapter

9

and the sections in which they appear:

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"Agent."  Section 7102 (relating to definitions).

11

"Agreement of transfer."  Section 7102 (relating to

12

definitions).

13

"Buyer."  Section 7102 (relating to definitions).

14

"Material defect."  Section 7102 (relating to definitions).

15

"Residential real estate transfer."  Section 7103 (relating

16

to application of part).

17

"Seller."  Section 7102 (relating to definitions).

18

§ 7503.  Relationship to other laws.

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(a)  General rule.--Nothing in this chapter shall be

20

construed to allow a home inspector who is not registered or

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licensed under one or more of the following laws to perform any

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activity that would constitute the practice of the profession

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regulated by that law:

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(1)  The act of May 23, 1945 (P.L.913, No.367), known as

25

the Engineer, Land Surveyor and Geologist Registration Law.

26

(2)  The act of January 24, 1966 (1965 P.L.1535, No.537),

27

known as the Pennsylvania Sewage Facilities Act.

28

(3)  The act of March 1, 1974 (P.L.90, No.24), known as

29

the Pennsylvania Pesticide Control Act of 1973.

30

(4)  The act of December 14, 1982 (P.L.1227, No.281),

1

known as the Architects Licensure Law.

2

(5)  The act of July 9, 1987 (P.L.238, No.43), known as

3

the Radon Certification Act.

4

(6)  The act of July 10, 1990 (P.L.404, No.98), known as

5

the Real Estate Appraisers Certification Act.

6

(b)  Exclusions.--This chapter shall not:

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(1)  Apply to a person registered or licensed under an

8

act referred to in subsection (a) when acting pursuant to his

9

registration or license.

10

(2)  Apply to an officer or employee of a municipality or

11

local authority when acting in his official capacity.

12

(3)  Affect the obligations or immunities of a person

13

licensed under the act of February 19, 1980 (P.L.15, No.9),

14

known as the Real Estate Licensing and Registration Act, that

15

are imposed or provided by that act or Chapter 73 (relating

16

to seller disclosures) when the person is acting pursuant to

17

his license.

18

(4)  Affect the obligations or immunities of a person

19

certified under the Real Estate Appraisers Certification Act

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when the person is acting pursuant to the person's license.

21

§ 7504.  Duty of care of home inspectors.

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(a)  General rule.--It is the duty of a home inspector to

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conduct a home inspection with the degree of care that a

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reasonably prudent home inspector would exercise.

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(b)  Standard.--In ascertaining the degree of care that would

26

be exercised by a reasonably prudent home inspector, the court

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shall consider the standards of practice and codes of ethics of

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national home inspector associations.

29

§ 7505.  Consumer remedies.

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(a)  General rule.--The performance of a home inspection is a

1

service that is subject to the act of December 17, 1968 (P.L.

2

1224, No.387), known as the Unfair Trade Practices and Consumer

3

Protection Law.

4

(b)  Prohibited acts.--Any of the following acts engaged in

5

by a home inspector, an employer of a home inspector or another

6

business or person that controls or has a financial interest in

7

the employer of a home inspector shall be deemed to be an unfair

8

or deceptive act or practice as defined by section 2(4)(i)

9

through (xxi) of the Unfair Trade Practices and Consumer

10

Protection Law:

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(1)  Performing or offering to perform for an additional

12

fee any repairs to a structure with respect to which the home

13

inspector, the employer of the home inspector or such other

14

business or person has prepared a home inspection report

15

within the preceding 12 months, except that this paragraph

16

shall not apply to remediation for radon or wood destroying

17

insects.

18

(2)  Inspecting for a fee any property in which the home

19

inspector, the employer of the home inspector or such other

20

business or person has any financial interest or any interest

21

in the transfer of the property, including without limitation

22

receipt of a commission as an agent, unless the financial

23

interest or interest in the transfer of the property is

24

disclosed in writing to the buyer before the home inspection

25

is performed and the buyer signs an acknowledgment of receipt

26

of the disclosure.

27

(3)  Offering or delivering any commission, referral fee

28

or kickback to the seller of the inspected property or to an

29

agent for either or both of the seller and the buyer for the

30

referral of any business to the home inspector, the employer

1

of the home inspector or such other business or person.

2

(4)  Accepting an engagement to perform a home inspection

3

or to prepare a home inspection report in which the

4

employment itself or the fee payable for the inspection is

5

contingent upon the conclusions in the report, preestablished

6

or prescribed findings or the closing of the transaction.

7

(c)  Exception.--A home warranty company that is affiliated

8

with or retains the home inspector does not violate subsection

9

(b) if the home warranty company performs repairs pursuant to

10

claims made under a home warranty contract.

11

(d)  Remedies.--In addition to any other remedies available

12

under the Unfair Trade Practices and Consumer Protection Law or

13

other applicable provision of law, the owner of a property on

14

which repairs are performed in violation of subsection (b)(1)

15

shall be entitled to a full refund of any moneys paid for those

16

repairs, and any promissory note or other obligation to pay

17

given to the person performing those repairs shall be void.

18

§ 7506.  Required contractual provision regarding home

19

inspections.

20

Except as provided in this section, a provision of an

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agreement of transfer regarding the right of the buyer to obtain

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a home inspection report and providing for the consequences, if

23

any, shall provide that the home inspection be performed by a

24

full member in good standing of a national home inspection

25

association in accordance with the ethical standards and code of

26

conduct or practice of that association, provided that a home

27

inspection performed by a person who has not attained full

28

membership in a national home inspection association satisfies

29

the requirements of this section if the person is:

30

(1)  licensed or registered as a professional engineer

1

under the act of May 23, 1945 (P.L.913, No.367), known as the

2

Engineer, Land Surveyor and Geologist Registration Law;

3

(2)  licensed or registered under the act of December 14,

4

1982 (P.L.1227, No.281), known as the Architects Licensure

5

Law; or

6

(3)  supervised by a full member in good standing of a

7

national home inspection association who agrees to be

8

responsible for the home inspection report by signing the

9

report.

10

§ 7507.  Contracts with home inspectors.

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(a)  Prohibited provisions.--The following types of

12

provisions in a contract with a home inspector for the

13

performance of a home inspection are contrary to public policy

14

and shall be void:

15

(1)  a limitation on the liability of the home inspector

16

for gross negligence or willful misconduct;

17

(2)  a waiver or modification of any provision of this

18

chapter.

19

(b)  Scope of inspection.--The scope of a home inspection,

20

the services to be performed and the systems and conditions to

21

be inspected or excluded from inspection may be defined by a

22

contract between the home inspector and the client.

23

§ 7508.  Home inspection reports.

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(a)  Required contents.--A home inspection report must be in

25

writing and shall include:

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(1)  A description of the scope of the inspection,

27

including without limitation an identification of the

28

structural elements, systems and subsystems covered by the

29

report.

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(2)  A description of any material defects noted during

1

the inspection, along with any recommendation that certain

2

experts be retained to determine the extent of the defects

3

and any corrective action that should be taken. A "material

4

defect" as defined in section 7102 (relating to definitions)

5

that poses an unreasonable risk to people on the property

6

shall be conspicuously identified as such.

7

(3)  The following statements, set forth conspicuously:

8

"A home inspection is intended to assist in evaluation of

9

the overall condition of the dwelling. The inspection is

10

based on observation of the visible and apparent condition of

11

the structure and its components on the date of inspection."

12

"The results of this home inspection are not intended to

13

make any representation regarding the presence or absence of

14

latent or concealed defects that are not reasonably

15

ascertainable in a competently performed home inspection. No

16

warranty or guaranty is expressed or implied."

17

"If the person conducting your home inspection is not a

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licensed structural engineer or other professional whose

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license authorizes the rendering of an opinion as to the

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structural integrity of a building or its other component

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parts, you may be advised to seek a professional opinion as

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to any defects or concerns mentioned in the report."

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"This home inspection report is not to be construed as an

24

appraisal and may not be used as such for any purpose."

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(b)  Confidentiality.--Except as otherwise required by law, a

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home inspector shall not deliver a home inspection report to any

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person other than the client of the home inspector without the

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client's consent. The seller shall have the right, upon request,

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to receive without charge a copy of a home inspection report

30

from the person for whom it was prepared.

1

(c)  Repair estimates prohibited.--A home inspector shall not

2

express either orally or in writing an estimate of the cost to

3

repair any defect found during a home inspection, except that

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such an estimate may be included in a home inspection report if:

5

(1)  the report identifies the source of the estimate;

6

(2)  the estimate is stated as a range of costs; and

7

(3)  the report states that the parties should consider

8

obtaining an estimate from a contractor who performs the type

9

of repair involved.

10

§ 7509.  Liability insurance.

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(a)  Required insurance.--A home inspector shall maintain

12

insurance against errors and omissions in the performance of a

13

home inspection and general liability, with coverages of not

14

less than $100,000 per occurrence and $500,000 in the aggregate

15

and with deductibles of not more than $2,500.

16

(b)  Term.--

17

(1)  Except as set forth in paragraph (2), a home

18

inspector shall maintain insurance under subsection (a) for

19

at least one year after the latest home inspection report the

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home inspector delivers.

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(2)  Paragraph (1) shall not apply to a home inspection

22

report that was delivered prior to the effective date of this

23

section.

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§ 7510.  Reliance by buyer.

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A buyer shall be entitled to rely in good faith, without

26

independent investigation, on a written representation by a home

27

inspector that the home inspector is:

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(1)  licensed or registered as a professional engineer

29

under the act of May 23, 1945 (P.L.913, No.367), known as the

30

Engineer, Land Surveyor and Geologist Registration Law;

1

(2)  licensed or registered under the act of December 14,

2

1982 (P.L.1227, No.281), known as the Architects Licensure

3

Law; or

4

(3)  a full member in good standing of a national home

5

inspection association.

6

§ 7511.  Penalties.

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(a)  Criminal penalty.--A person who violates section 7509

8

(relating to liability insurance) or who provides a false

9

representation under section 7510 (relating to reliance by

10

buyer) commits a summary offense and, upon conviction thereof

11

for a first offense, shall be sentenced to pay a fine not

12

exceeding $500 or to imprisonment for not more than three

13

months, or both, and for a second or subsequent offense commits

14

a misdemeanor of the third degree and, upon conviction thereof,

15

shall be sentenced to pay a fine of not less than $2,000 but not

16

more than $5,000 or to imprisonment for not less than one year

17

but not more than two years, or both.

18

(b)  Fine.--A person who violates any provision of section

19

7508 (relating to home inspection reports) shall, upon

20

conviction in a summary proceeding before a magisterial district

21

judge, be sentenced to pay a fine not exceeding $500.

22

§ 7512.  Statute of limitations.

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An action to recover damages arising from a home inspection

24

report must be commenced within one year after the date the

25

report is delivered.

26

§ 7513.  Engineers and architects.

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Notwithstanding section 7503(b)(1) (relating to relationship

28

to other laws), the following sections: 7505 (relating to

29

consumer remedies), 7507(a)(1) and (b) (relating to contracts

30

with home inspectors), 7508 (relating to home inspection

1

reports) and 7509 (relating to liability insurance) shall apply

2

to a person licensed or registered as a professional engineer

3

under the act of May 23, 1945 (P.L.913, No.367), known as the

4

Engineer, Land Surveyor and Geologist Registration Law, or a

5

person licensed or registered under the act of December 14, 1982

6

(P.L.1227, No.281), known as the Architects Licensure Law, when

7

performing a home inspection.]

8

Section 2.  Title 68 is amended by adding a chapter to read:

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CHAPTER 75A

10

HOME INSPECTIONS

11

Sec.

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75A01.  Scope.

13

75A02.  Definitions.

14

75A03.  Pennsylvania Board of Home Inspectors.

15

75A04.  Powers and duties of board.

16

75A05.  Licensure.

17

75A06.  Qualifications.

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75A07.  (Reserved).

19

75A08.  Home inspection reports.

20

75A09.  Liability insurance.

21

75A10.  Home inspectors in other states, territories or Dominion

22

of Canada.

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75A11.  Duration of license.

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75A12.  Reporting of multiple licensure.

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75A13.  Relationship to other laws.

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75A14.  Unfair Trade Practices and Consumer Protection Law

27

remedies.

28

75A15.  Contracts with home inspectors.

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75A16.  Fees, fines and civil penalties.

30

75A17.  Violation.

1

75A18.  Refusal, suspension or revocation of license.

2

75A19.  Suspensions and revocations.

3

75A20.  (Reserved)Temporary and automatic suspensions.

<--

4

75A21.  Reinstatement of license.

5

75A22.  Surrender of suspended or revoked license(Reserved).

<--

6

75A23.  Injunction.

7

75A24.  Subpoenas and oaths.

8

75A25.  Statute of limitations.

9

75A26.  Engineers and architects.

10

75A27.  Temporary and automatic suspensions.

<--

11

§ 75A01.  Scope.

12

This chapter relates to home inspections.

13

§ 75A02.  Definitions.

14

(a)  Definitions.--The following words and phrases when used

15

in this chapter shall have the meanings given to them in this

16

section unless the context clearly indicates otherwise:

17

"Agent."  As defined under section 7102 (relating to

<--

18

definitions)Any broker, associate broker or salesperson, as

<--

19

defined in the act of February 19, 1980 (P.L.15, No.9), known as

20

the Real Estate Licensing and Registration Act.

21

"Agreement of transfer."  As defined under section 7102

<--

22

(relating to definitions)A contract between a buyer and seller

<--

23

setting forth the terms of a residential real estate transfer.

24

"Applicant."  An individual who applies for a license as a

25

home inspector.

26

"Board."  The Pennsylvania Board of Home Inspectors.

27

"Bureau."  The Bureau of Professional and Occupational

28

Affairs in the Department of State.

29

"Buyer."  As defined under section 7102 (relating to

<--

30

definitions)Any person receiving any estate or interest in real

<--

1

property in a transfer subject to this part.

2

"Client."  An individual on whose behalf a written contract

<--

3

is entered with a licensee under this chapter, or his employer,

4

to obtain a home inspection and subsequent home inspection

5

report.

6

"Commissioner."  The Commissioner of the Bureau of

7

Professional and Occupational Affairs in the Department of

8

State.

9

"Department."  The Department of State of the Commonwealth.

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 ancillary services:

<--

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.

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)A problem with a residential real property or any

<--

13

portion of it that would have a significant adverse impact on

14

the value of the property or that involves an unreasonable risk

15

to people on the property. The fact that a structural element,

16

system or subsystem is near, at or beyond the end of the normal

17

useful life of such a structural element, system or subsystem is

18

not by itself a material defect.

19

"Residential dwelling."  A structure consisting of at least

20

one but not more than four units, each designed for occupancy by

21

a single family, whether the unit or units are occupied or

22

unoccupied.

23

"Residential real estate transfer."  As defined under section

<--

24

7103 (relating to application of part).

25

"Seller."  As defined under section 7102 (relating to

26

definitions)"Seller."  Any person transferring any estate or

<--

27

interest in residential real property in a transfer subject to

28

this part.

29

"Wood destroying insect."  The term includes termites,

30

carpenter ants, carpenter bees and reinfesting wood boring

1

beetles.

2

§ 75A03.  Pennsylvania Board of Home Inspectors.

3

(a)  Establishment.--There is established the Pennsylvania

4

Board of Home Inspectors within the bureau.

5

(b)  Composition.--The board shall consist of the following

6

members:

7

(1)  The commissioner or a designee.

8

(2)  The following members, who shall be citizens of the

9

United States and residents of this Commonwealth, appointed

10

by the Governor with the advice and consent of the Senate:

11

(i)  Two members representing the public at large.

12

(ii)  Five professional members. Professional members

13

shall have completed no less than 100250 fee-paid home

<--

14

inspections per year in this Commonwealth over the

<--

15

fivethree years immediately preceding appointment to the

<--

16

board. Except as set forth under subsection (f),

17

professional members shall be licensed under this chapter

18

as home inspectors.

19

(iii)  The Attorney General or a designee.

20

(c)  Meeting.--The board shall meet within 30 days after the

21

appointment of the initial members and shall do all of the

22

following:

23

(1)  Establish procedures for the board's operation and

24

administration of this chapter.

25

(2)  Develop application forms for licensure.

26

(3)  Circulate application forms.

27

(4)  Create program guidelines to educate the public

28

regarding licensure requirements under this chapter.

29

(d)  Term of membership.--Except as provided under subsection

30

(e), professional and public members shall serve a term of four

1

years or until a successor has been appointed and qualified but

2

in no event longer than six months beyond the four-year period.

3

In the event that a member dies or resigns or otherwise is

4

disqualified during the term of office, a successor shall be

5

appointed in the same way and with the same qualifications and

6

shall hold office for an unexpired term. A professional or

7

public member shall not be eligible to hold more than two

8

consecutive terms.

9

(e)  Initial appointments.--For professional and public

10

members first appointed to the board under this chapter, the

11

term of office shall be as follows:

12

(1)  Three members shall serve for a term of four years.

13

(2)  Two members shall serve for a term of three years.

14

(3)  One member shall serve for a term of two years.

15

(f)  Professional members and first appointments.--

16

(1)  A professional member initially appointed to the

17

board under this chapter need not be licensed at the time of

18

appointment but at the time of appointment must have

19

satisfied eligibility requirements for licensure. All

20

professional members subsequently appointed shall possess the

21

required license.

22

(2)  A board member that becomes a home inspector shall

23

obtain the requisite license within six months of the date

24

the initial licenses are issued. If a board member does not

25

obtain the requisite license within six months of the

26

effective date of this section, the board member shall be

27

considered to have resigned from the board on that date.

28

(g)  Quorum.--A majority of the members of the board shall

29

constitute a quorum. A member may not be counted as part of a

30

quorum or vote on any issue unless the member is physically in

1

attendance at the meeting.

2

(h)  Chairperson.--The board shall select annually a

3

chairperson from among its members.

4

(i)  Expenses.--With the exception of the commissioner and

5

the Attorney General, each member of the board shall receive $60

6

per diem when actually attending to the work of the board. A

7

member shall also receive the amount of reasonable traveling,

8

hotel and other necessary expenses incurred in the performance

9

of the member's duties in accordance with Commonwealth

10

regulations.

11

(j)  Forfeiture.--A professional or public member who fails

12

to attend three meetings in 18 months shall forfeit the member's

13

seat unless the commissioner, upon written request from the

14

member, finds that the member should be excused from a meeting

15

because of illness or the death of a family member.

16

(k)  Training seminars.--A public member who fails to attend

17

two consecutive statutorily mandated training seminars in

18

accordance with section 813(e) of the act of April 9, 1929 (P.L.

19

177, No.175), known as The Administrative Code of 1929, shall

20

forfeit the member's seat unless the commissioner, upon written

21

request from the public member, finds that the public member

22

should be excused from a meeting because of illness or the death

23

of a family member.

24

(l)  Frequency of meetings.--The board shall meet at least

25

four times per year in the City of Harrisburg and at additional

26

times as may be necessary to conduct the business of the board.

27

§ 75A04.  Powers and duties of board.

28

The board shall have the following powers and duties:

29

(1)  To provide for and regulate the licensing of

30

individuals engaged in home inspection.

1

(2)  To issue licenses, renew licenses, reinstate

2

licenses, refuse to renew, suspend and revoke licenses as

3

provided under this chapter.

4

(3)  To administer and enforce the provisions of this

5

chapter.

6

(4)  To review applications for licensure and to

7

determine the eligibility of an individual applying for

8

licensure.

9

(5)  To promote educational initiatives to protect

10

consumers who contract for home inspection services.

11

(6)  To promulgate and enforce regulations, not

12

inconsistent with this chapter, as necessary only to carry

13

out the provisions of this chapter. This paragraph includes

14

the setting of fees and the adoption of standards for

15

certification of home inspectors. Regulations shall be

16

adopted in conformity with the provisions of the act of July

17

31, 1968 (P.L.769, No.240), referred to as the Commonwealth

18

Documents Law and the act of June 25, 1982 (P.L.633, No.181),

19

known as the Regulatory Review Act.

20

(7)  To keep minutes and records of all proceedings.

21

(8)  To submit annually to the department an estimate of

22

financial requirements of the board for its administrative,

23

legal and other expenses.

24

(9)  To submit annually a report to the Consumer

25

Protection and Professional Licensure Committee of the Senate

26

and the Professional Licensure Committee of the House of

27

Representatives. The report shall include a description of

28

the types of complaints received, status of cases, the action

29

which has been taken and the length of time from initial

30

complaint to final resolution.

1

(10)  To submit annually to the Appropriations Committee

2

of the Senate and the Appropriations Committee of the House

3

of Representatives, 15 days after the Governor has submitted

4

a budget to the General Assembly, a copy of the budget

5

request for the upcoming fiscal year which the board

6

previously submitted to the department.

7

(11)  To prescribe the form of licenses, applications and

8

other documents that are required for home inspectors to be

9

licensed under this chapter.

10

(12)  To grant, deny, suspend and revoke approval of

11

examinations and courses of study regarding home inspections,

12

establish standards for continuing home inspection education,

13

including the subject matter and content of courses of study

14

and the selection of instructors and approve other equivalent

15

educational programs and establish procedures for the

16

issuance of credit upon satisfactory proof of the completion

17

of these programs.

18

(13)  To establish and maintain a current list of home

19

inspectors who are licensed. This list shall be available for

20

public inspection, including on an Internet website.

21

(14)  To establish continuing education requirements of

22

not less than 32 hours biennially for licensees in accordance

23

with this chapter.

24

(15)  To require all fee-paid home inspections to be

25

conducted in accordance with the standards of practice

26

established by the board.

27

(16)  To adopt standards of practice for licensees.

28

§ 75A05.  Licensure.

29

(a)  General rule.--An individual may not perform home

30

inspections, offer himself for employment as an individual who

1

performs home inspections or hold himself out as a home

2

inspector unless licensed by the board or as otherwise

<--

3

consistent with this chapter.

4

(b)  Business entities.--An individual, corporation,

5

partnership, firm or other entity shall not employ an individual

6

to perform a home inspection or allow or direct an individual to

7

perform a home inspection unless the individual is licensed

8

under this chapter.

9

§ 75A06.  Qualifications.

10

(a)  General rule.--To be eligible to apply for licensure, an

11

applicant must fulfill all of the following requirements:

12

(1)  Be of good moral character.

13

(2)  Be 18 years of age or older.

14

(3)  Have successfully completed high school or its

15

equivalent.

16

(4)  Satisfactorily complete a board-approved training

17

program or course of study involving the performance of home

18

inspections; such study program shall be for no less than 120

19

hours of instruction and include no less than 40 hours of

20

actual in-field training.

21

(5)  Satisfactorily complete a board-approved examination

22

that is designed to test competence in home inspection

23

practices. The board shall contract with a professional

24

testing organization for the examination of qualified

25

applicants for licensure. All written, oral and practical

26

examinations shall be prepared and administered by a

27

qualified and approved professional testing organization in

28

the manner prescribed for written examinations by section

29

812.1 of the act of April 9, 1929 (P.L.177, No.175), known as

30

The Administrative Code of 1929.

1

(6)  Pay the fee set by the board.

2

(a.1)  Ancillary services.--In the event that an ancillary

3

service is performed by a licensed home inspector, the inspector

4

shall be licensed or certified to perform that service as

5

required by State regulation. Inspectors found to be performing

6

ancillary inspections for the home-buying public without the

7

required license or certification shall be subject to discipline

8

by the board.

9

(b)  Convictions prohibited.--

10

(1)  The board shall not issue a license to an individual

11

who has been convicted of a felony under the act of April 14,

12

1972 (P.L.233, No.64), known as The Controlled Substance,

13

Drug, Device and Cosmetic Act, or an offense under the laws

14

of another jurisdiction which if committed in this

15

Commonwealth would be a felony under The Controlled

16

Substance, Drug, Device and Cosmetic Act, unless all of the

17

following apply:

18

(i)  At least five years have elapsed from the date

19

of conviction.

20

(ii)  The individual satisfactorily demonstrates to

21

the board that the individual has made significant

22

progress in personal rehabilitation since the conviction

23

such that licensure of the individual should not be

24

expected to create a substantial risk of harm to the

25

health and safety of home inspectors, trainees or the

26

public or a substantial risk of further criminal

27

violations.

28

(iii)  The individual satisfies the qualifications

29

provided under this chapter.

30

(2)  An individual's statement on the application

1

declaring the absence of a conviction shall be deemed

2

satisfactory evidence of the absence of a conviction unless

3

the board has evidence to the contrary.

4

§ 75A07.  (Reserved).

5

§ 75A08.  Home inspection reports.

6

(a)  Required contents.--A home inspection report must be in

7

writing and shall include:

8

(1)  A description of the scope of the inspection,

9

including without limitation an identification of the

10

structural elements, systems and subsystems of the structure

<--

11

covered by the report.

12

(2)  A description of any material defects noted during

13

the inspection, along with any recommendation that certain

14

experts be retained to determine the extent of the defects

15

and any corrective action that should be taken. A material

16

defect that poses an unreasonable risk to people on the

17

property shall be conspicuously identified as such.

18

(3)  The following statements, set forth conspicuously:

19

A home inspection is intended to assist in evaluation of

20

the overall condition of the dwellingstructure. The

<--

21

inspection is based on observation of the visible and

22

apparent condition of the structure and its components on the

23

date of inspection.

24

The results of this home inspection are not intended to

25

make any representation regarding the presence or absence of

26

latent or concealed defects that are not reasonably

27

ascertainable in a competently performed home inspection. No

28

warranty or guaranty is expressed or implied.

29

If the person conducting your home inspection is not a

30

licensed structural engineer or other professional whose

1

license authorizes the rendering of an opinion as to the

2

structural integrity of a buildingstructure or its other

<--

3

component parts, you may be advised to seek a professional

4

opinion as to any defects or concerns mentioned in the

5

report.

6

This home inspection report is not to be construed as an

7

appraisal and may not be used as such for any purpose.

8

(b)  Confidentiality.--Except as otherwise required by law, a

9

home inspector shall not deliver a home inspection report to any

10

person other than the client of the home inspector without the

11

client's consent. Notwithstanding this subsection, if the

12

inspection is for the sale of a residence, the seller shall have

13

the right, upon request, to receive without charge a copy of a

14

home inspection report from the person for whom it was

<--

15

preparedhome inspector.

<--

16

(c)  Repair estimates prohibited.--A home inspector shall not

17

express either orally or in writing an estimate of the cost to

18

repair any defect found during a home inspection, except that

19

such an estimate may be included in a home inspection report if

20

the home inspector is so qualified and:

21

(1)  the report identifies the source of the estimate;

22

(2)  the estimate is stated as a range of costs from

23

verifiable price sources; and

24

(3)  the report states that the parties should consider

25

obtaining an estimate from a contractor who performs the type

26

of repair involved.

27

§ 75A09.  Liability insurance.

28

(a)  Required insurance.--A home inspector shall maintain

29

general liability insurance in the performance of a home

30

inspection and general liability, with coverages of not less

1

than $100,000 per occurrence and $500,000 in the aggregate.

2

(b)  Term.--

3

(1)  Except as set forth in paragraph (2), a home

4

inspector shall maintain insurance under subsection (a) for

5

at least one year after the latest home inspection report was

6

delivered.

7

(2)  Paragraph (1) shall not apply to a home inspection

8

report that was delivered prior to December 20, 2001.

9

§ 75A10.  Home inspectors in other states, territories or

10

Dominion of Canada.

11

The board may issue a license to an individual who has

12

licensure or its equivalent as a home inspector in any other

13

state or territory of the United States or the Dominion of

14

Canada if all of the following requirements are met:

15

(1)  The other jurisdiction grants the same privileges to

16

licensees of Pennsylvania as the Commonwealth grants to

17

licensees of that other jurisdiction.

18

(2)  The person is licensed or its equivalent in the

19

other jurisdiction and has successfully passed the exam.

20

(3)  The licensing requirements of the other jurisdiction

21

are substantially similar to the licensing requirements of

22

this chapter.

23

(4)  The person provides a notarized statement that the

24

person has studied, is familiar with and will abide by the

25

provisions of this chapter and the administrative regulations

26

promulgated by the board.

27

(5)  The individual pays the required fee.

28

§ 75A11.  Duration of license.

29

(a)  Duration of license.--A license issued under this

30

chapter shall be on a biennial basis. The biennial expiration

1

date shall be established by the board. Application for renewal

2

of a license shall biennially be forwarded to an individual

3

holding a current license prior to the expiration date of the

4

current renewal biennium.

5

(b)  Inactive status.--An individual licensed under this

6

chapter may request an application for inactive status. The

7

application form may be completed and returned to the board.

8

Upon receipt of an application, the individual shall be

9

maintained on inactive status without fee and shall be entitled

10

to apply for a licensure renewal at any time after complying

11

with the requirements for continuing education. An individual

12

who requests the board to activate the individual's license and

13

who has been on inactive status for a period of three

14

consecutive years shall, prior to receiving an active license,

15

satisfy the requirements of the board's regulations for ensuring

16

continued competence, including holding current certification

17

and remitting the required fee. The board shall promulgate

18

regulations to carry out the provisions of this subsection.

19

§ 75A12.  Reporting of multiple licensure.

20

A home inspector who is also licensed to perform home

21

inspections in any other state, territory or possession of the

22

United States or any other country shall report this information

23

to the board on the biennial registration application. A

24

licensee shall report any disciplinary action regarding a

25

license taken in another state, territory, possession of the

26

United States or any other country to the board on the biennial

27

registration application or within 90 days of final disposition,

28

whichever is sooner. Multiple licensure shall be noted by the

29

board on the home inspector's record, and the state, territory,

30

possession or country shall be notified of any disciplinary

1

actions taken by the board against the licensee in this

2

Commonwealth.

3

§ 75A13.  Relationship to other laws.

4

(a)  General rule.--Nothing in this chapter shall be

5

construed to allow a home inspector who is not registered or

6

licensed under one or more of the following laws to perform any

7

activity that would constitute the practice of the profession

8

regulated by that law:

9

(1)  The act of May 23, 1945 (P.L.913, No.367), known as

10

the Engineer, Land Surveyor and Geologist Registration Law.

11

(2)  The act of January 24, 1966 (1965 P.L.1535, No.537),

12

known as the Pennsylvania Sewage Facilities Act.

13

(3)  The act of March 1, 1974 (P.L.90, No.24), known as

14

the Pennsylvania Pesticide Control Act of 1973.

15

(4)  The act of December 14, 1982 (P.L.1227, No.281),

16

known as the Architects Licensure Law.

17

(5)  The act of July 9, 1987 (P.L.238, No.43), known as

18

the Radon Certification Act.

19

(6)  The act of July 10, 1990 (P.L.404, No.98), known as

20

the Real Estate Appraisers Certification Act.

21

(b)  Exclusions.--This chapter shall not:

22

(1)  Apply to a person registered or licensed under an

23

act referred to in subsection (a) when acting pursuant to his

24

registration or license.

25

(2)  Apply to an officer or employee of a municipality or

26

local authority when acting in his official capacity.

27

(3)  Affect the obligations or immunities of a person

28

licensed under the act of February 19, 1980 (P.L.15, No.9),

29

known as the Real Estate Licensing and Registration Act, that

30

are imposed or provided by that act or Chapter 73 (relating

1

to seller disclosures) when the person is acting pursuant to

2

his license.

3

(4)  Affect the obligations or immunities of a person

4

certified under the Real Estate Appraisers Certification Act

5

when the person is acting pursuant to the person's license.

6

§ 75A14.  Unfair Trade Practices and Consumer Protection Law

7

remedies.

8

(a)  General rule.--The performance of a home inspection is a

9

service that is subject to the act of December 17, 1968 (P.L.

10

1224, No.387), known as the Unfair Trade Practices and Consumer

11

Protection Law.

12

(b)  Prohibited acts.--Any of the following acts engaged in

13

by a home inspector, an employer of a home inspector or another

14

business or person that controls or has a financial interest in

15

the employer of a home inspector shall be deemed to be an unfair

16

or deceptive act or practice as defined by section 2(4)(i)

17

through (xxi) of the Unfair Trade Practices and Consumer

18

Protection Law:

19

(1)  Performing or offering to perform for an additional

20

fee any repairs to a structure with respect to which the home

21

inspector, the employer of the home inspector or such other

22

business or person has prepared a home inspection report

23

within the preceding 12 months, except that this paragraph

24

shall not apply to remediation for radon or wood destroying

25

insects.

26

(2)  Inspecting for a fee any property in which the home

27

inspector, the employer of the home inspector or such other

28

business or person has any financial interest or any interest

29

in the transfer of the property, including without limitation

30

receipt of a commission as an agent, unless the financial

1

interest or interest in the transfer of the property is

2

disclosed in writing to the buyer before the home inspection

3

is performed and the buyer signs an acknowledgment of receipt

4

of the disclosure.

5

(3)  Offering or delivering any commission, referral fee

6

or kickback to the seller of the inspected property or to an

7

agent for either or both of the seller and the buyer for the

8

referral of any business to the home inspector, the employer

9

of the home inspector or such other business or person.

10

(4)  Accepting an engagement to perform a home inspection

11

or to prepare a home inspection report in which the

12

employment itself or the fee payable for the inspection is

13

contingent upon the conclusions in the report, preestablished

14

or prescribed findings or the closing of the transaction.

15

(c)  Exception.--A home warranty company that is affiliated

16

with or retains the home inspector does not violate subsection

17

(b) if the home warranty company performs repairs pursuant to

18

claims made under a home warranty contract and discloses its

<--

19

affiliation.

20

(d)  Consumer remedies.--In addition to any other remedies

21

available under the Unfair Trade Practices and Consumer

22

Protection Law or other applicable provision of law, the owner

23

of a property on which repairs are performed in violation of

24

subsection (b)(1) shall be entitled to a full refund of any

25

moneys paid for those repairs, and any promissory note or other

26

obligation to pay given to the person performing those repairs

27

shall be void.

28

§ 75A15.  Contracts with home inspectors.

29

(a)  Prohibited provisions.--Any of the following types of

30

provisions in a contract with a home inspector for the

1

performance of a home inspection are contrary to public policy

2

and shall be void:

3

(1)  A limitation on the liability of the home inspector

4

for gross negligence or willful misconduct.

5

(2)  A waiver or modification of any provision of this

6

chapter.

7

(b)  Scope of inspection.--The scope of a home inspection,

8

the services to be performed and the systems and conditions to

9

be inspected or excluded from inspection may be defined by a

10

contract between the home inspector and the client.

11

(c)  Required contractual provision regarding home

12

inspections.--

13

(1)  Except as provided under paragraph (2), a provision 

14

of an agreement of transfer regarding the right of the buyer

15

to obtain a home inspection report and providing for the

16

consequences, if any, shall provide that the home inspection

17

be performed by a licensed home inspector.

18

(2)  A home inspection satisfies the requirements of this

19

section if the person is:

20

(i)  licensed or registered as a professional

21

engineer under the act of May 23, 1945 (P.L.913, No.367),

22

known as the Engineer, Land Surveyor and Geologist

23

Registration Law; or

24

(ii)  licensed or registered under the act of

25

December 14, 1982 (P.L.1227, No.281), known as the

26

Architects Licensure Law.

27

§ 75A16.  Fees, fines and civil penalties.

28

(a)  Fees.--All fees required under this chapter shall be

29

fixed by the board by regulation and shall be subject to the act

30

of June 25, 1982 (P.L.633, No.181), known as the Regulatory

1

Review Act. If the revenues raised by the fees, fines and civil

2

penalties imposed under this chapter are not sufficient to meet

3

expenditures over a two-year period, the board shall increase

4

those fees by regulation so that projected revenues will meet or

5

exceed projected expenditures.

6

(b)  Deposit of fees.--All fees, fines and civil penalties

7

imposed in accordance with this chapter shall be paid into the

8

Professional Licensure Augmentation Account.

9

(c)  Permitted fees.--The board may charge a fee, as set by

10

the board by regulation, for licensure, for renewing licensure

11

and for other services of the board as permitted under this

12

chapter or by regulation.

13

§ 75A17.  Violation.

14

(a)  Criminal penalty.--A person violating a provision of

15

this chapter or a regulation of the board commits a misdemeanor

<--

16

of the third degree and shall, upon conviction, be sentenced to

17

pay a fine of not more than $2,500 or to imprisonment for not

18

more than six months for the first violation. A person convicted

19

of a second or subsequent violation shall be sentenced to pay a

20

fine of not more than $5,000 or to imprisonment for not less

21

than six months or more than one year, or both.

22

(b)  Civil penalty.--In addition to any other civil remedy or

23

criminal penalty provided for under this chapter, the board, by

24

a vote of the majority of the maximum number of the authorized

25

membership of the board as provided by law or by a vote of the

26

majority of the duly qualified and confirmed membership or a

27

minimum of five members, whichever is greater, may levy a civil

28

penalty of up to $10,000 on any of the following:

29

(1)  A home inspector who violates a provision of this

30

chapter.

1

(2)  An individual who performs home inspections without

2

a license, as required by this chapter.

3

(c)  Procedure.--The board shall levy the civil penalty under

4

subsection (b) only after affording the accused the opportunity

5

for a hearing as provided under 2 Pa.C.S. (relating to

6

administrative law and procedure).

7

§ 75A18.  Refusal, suspension or revocation of license.

8

(a)  General rule.--The board shall have the authority to

9

refuse, suspend or revoke a license or discipline for unlicensed

10

activity in a case where the board finds any of the following:

11

(1)  The licensee is negligent or incompetent in

12

performing a home inspection.

13

(2)  The licensee has willfully or repeatedly violated

14

any of the provisions of this chapter or a regulation of the

15

board.

16

(3)  The licensee or individual has committed fraud or

17

deceit in any of the following:

18

(i)  Performing home inspections.

19

(ii)  Securing licensure or certification.

20

(iii)  Advertising.

21

(iv)  Performing or offering to perform home

22

inspections for compensation without being licensed as a

23

home inspector and without being exempt from licensure

24

under this chapter.

25

(v)  Presenting as the individual's own license, the

26

license of another.

27

(vi)  Intentionally giving false or materially

28

misleading information to the board or to a board or

29

staff member in connection with a licensing matter.

30

(vii)  Using an expired, suspended, revoked or

1

otherwise restricted license.

2

(viii)  Performing or offering to perform for an

3

additional fee any repairs to a structure with respect to

4

which the home inspector, the employer of the home

5

inspector or other business or person affiliated with the

<--

6

home inspector has prepared a home inspection report

7

within the preceding 12 months, except that this

8

subparagraph shall not apply to remediation for radon or

9

wood destroying insects.

10

(ix)  Participation, by with any real estate broker

<--

11

or agent, directly or indirectly, in an action in which

12

the home inspector pays or receives a direct or indirect

13

consideration for receiving leads toward providing home

14

inspection services.

15

(4)  The licensee has been convicted of a felony or a

16

crime of moral turpitude.

17

(5)  The licensee has had his license suspended or

18

revoked or has received other disciplinary action by the

19

proper licensing authority in another state, territory,