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PRINTER'S NO. 57
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
81
Session of
2015
INTRODUCED BY GREENLEAF, BREWSTER, COSTA, TARTAGLIONE AND
RAFFERTY, JANUARY 14, 2015
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
JANUARY 14, 2015
AN ACT
Amending Title 68 (Real and Personal Property) of the
Pennsylvania Consolidated Statutes, repealing provisions
relating to home inspections; providing for home inspections;
establishing the Pennsylvania Board of Home Inspectors;
providing for licensure of home inspectors and for
disciplinary proceedings by the Pennsylvania Board of Home
Inspectors; and making an appropriation.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Chapter 75 heading and sections 7501, 7502, 7503,
7504, 7505, 7506, 7507, 7508, 7509, 7510, 7511, 7512 and 7513 of
Title 68 of the Pennsylvania Consolidated Statutes are repealed:
[CHAPTER 75
HOME INSPECTIONS
§ 7501. Short title of chapter.
This chapter shall be known and may be cited as the Home
Inspection Law.
§ 7502. Definitions and index of definitions.
(a) Definitions.--The following words and phrases when used
in this chapter shall have the meanings given to them in this
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section unless the context clearly indicates otherwise:
"Home inspection." A noninvasive visual examination of some
combination of the mechanical, electrical or plumbing systems or
the structural and essential components of a residential
dwelling designed to identify material defects in those systems
and components and performed for a fee in connection with or
preparation for a proposed or possible residential real estate
transfer. The term also includes any consultation regarding the
property that is represented to be a home inspection or that is
described by any confusingly similar term. The term does not
include an examination of a single system or component of a
residential dwelling such as, for example, its electrical or
plumbing system or its roof. The term also does not include an
examination that is limited to inspection for or of one or more
of the following: wood destroying insects, underground tanks and
wells, septic systems, swimming pools and spas, alarm systems,
air and water quality, tennis courts and playground equipment,
pollutants, toxic chemicals and environmental hazards.
"Home inspection report." A written report on the results of
a home inspection.
"Home inspector." An individual who performs a home
inspection.
"National home inspectors association." Any national
association of home inspectors that:
(1) Is operated on a not-for-profit basis and is not
operated as a franchise.
(2) Has members in more than ten states.
(3) Requires that a person may not become a full member
unless the person has performed or participated in more than
100 home inspections and has passed a recognized or
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accredited examination testing knowledge of the proper
procedures for conducting a home inspection.
(4) Requires that its members comply with a code of
conduct and attend continuing professional education classes
as an ongoing condition of membership.
(b) Index of other definitions.--The following is a
nonexclusive list of other definitions applying to this chapter
and the sections in which they appear:
"Agent." Section 7102 (relating to definitions).
"Agreement of transfer." Section 7102 (relating to
definitions).
"Buyer." Section 7102 (relating to definitions).
"Material defect." Section 7102 (relating to definitions).
"Residential real estate transfer." Section 7103 (relating
to application of part).
"Seller." Section 7102 (relating to definitions).
§ 7503. Relationship to other laws.
(a) General rule.--Nothing in this chapter shall be
construed to allow a home inspector who is not registered or
licensed under one or more of the following laws to perform any
activity that would constitute the practice of the profession
regulated by that law:
(1) The act of May 23, 1945 (P.L.913, No.367), known as
the Engineer, Land Surveyor and Geologist Registration Law.
(2) The act of January 24, 1966 (1965 P.L.1535, No.537),
known as the Pennsylvania Sewage Facilities Act.
(3) The act of March 1, 1974 (P.L.90, No.24), known as
the Pennsylvania Pesticide Control Act of 1973.
(4) The act of December 14, 1982 (P.L.1227, No.281),
known as the Architects Licensure Law.
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(5) The act of July 9, 1987 (P.L.238, No.43), known as
the Radon Certification Act.
(6) The act of July 10, 1990 (P.L.404, No.98), known as
the Real Estate Appraisers Certification Act.
(b) Exclusions.--This chapter shall not:
(1) Apply to a person registered or licensed under an
act referred to in subsection (a) when acting pursuant to his
registration or license.
(2) Apply to an officer or employee of a municipality or
local authority when acting in his official capacity.
(3) Affect the obligations or immunities of a person
licensed under the act of February 19, 1980 (P.L.15, No.9),
known as the Real Estate Licensing and Registration Act, that
are imposed or provided by that act or Chapter 73 (relating
to seller disclosures) when the person is acting pursuant to
his license.
(4) Affect the obligations or immunities of a person
certified under the Real Estate Appraisers Certification Act
when the person is acting pursuant to the person's license.
§ 7504. Duty of care of home inspectors.
(a) General rule.--It is the duty of a home inspector to
conduct a home inspection with the degree of care that a
reasonably prudent home inspector would exercise.
(b) Standard.--In ascertaining the degree of care that would
be exercised by a reasonably prudent home inspector, the court
shall consider the standards of practice and codes of ethics of
national home inspector associations.
§ 7505. Consumer remedies.
(a) General rule.--The performance of a home inspection is a
service that is subject to the act of December 17, 1968 (P.L.
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1224, No.387), known as the Unfair Trade Practices and Consumer
Protection Law.
(b) Prohibited acts.--Any of the following acts engaged in
by a home inspector, an employer of a home inspector or another
business or person that controls or has a financial interest in
the employer of a home inspector shall be deemed to be an unfair
or deceptive act or practice as defined by section 2(4)(i)
through (xxi) of the Unfair Trade Practices and Consumer
Protection Law:
(1) Performing or offering to perform for an additional
fee any repairs to a structure with respect to which the home
inspector, the employer of the home inspector or such other
business or person has prepared a home inspection report
within the preceding 12 months, except that this paragraph
shall not apply to remediation for radon or wood destroying
insects.
(2) Inspecting for a fee any property in which the home
inspector, the employer of the home inspector or such other
business or person has any financial interest or any interest
in the transfer of the property, including without limitation
receipt of a commission as an agent, unless the financial
interest or interest in the transfer of the property is
disclosed in writing to the buyer before the home inspection
is performed and the buyer signs an acknowledgment of receipt
of the disclosure.
(3) Offering or delivering any commission, referral fee
or kickback to the seller of the inspected property or to an
agent for either or both of the seller and the buyer for the
referral of any business to the home inspector, the employer
of the home inspector or such other business or person.
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(4) Accepting an engagement to perform a home inspection
or to prepare a home inspection report in which the
employment itself or the fee payable for the inspection is
contingent upon the conclusions in the report, preestablished
or prescribed findings or the closing of the transaction.
(c) Exception.--A home warranty company that is affiliated
with or retains the home inspector does not violate subsection
(b) if the home warranty company performs repairs pursuant to
claims made under a home warranty contract.
(d) Remedies.--In addition to any other remedies available
under the Unfair Trade Practices and Consumer Protection Law or
other applicable provision of law, the owner of a property on
which repairs are performed in violation of subsection (b)(1)
shall be entitled to a full refund of any moneys paid for those
repairs, and any promissory note or other obligation to pay
given to the person performing those repairs shall be void.
§ 7506. Required contractual provision regarding home
inspections.
Except as provided in this section, a provision of an
agreement of transfer regarding the right of the buyer to obtain
a home inspection report and providing for the consequences, if
any, shall provide that the home inspection be performed by a
full member in good standing of a national home inspection
association in accordance with the ethical standards and code of
conduct or practice of that association, provided that a home
inspection performed by a person who has not attained full
membership in a national home inspection association satisfies
the requirements of this section if the person is:
(1) licensed or registered as a professional engineer
under the act of May 23, 1945 (P.L.913, No.367), known as the
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Engineer, Land Surveyor and Geologist Registration Law;
(2) licensed or registered under the act of December 14,
1982 (P.L.1227, No.281), known as the Architects Licensure
Law; or
(3) supervised by a full member in good standing of a
national home inspection association who agrees to be
responsible for the home inspection report by signing the
report.
§ 7507. Contracts with home inspectors.
(a) Prohibited provisions.--The following types of
provisions in a contract with a home inspector for the
performance of a home inspection are contrary to public policy
and shall be void:
(1) a limitation on the liability of the home inspector
for gross negligence or willful misconduct;
(2) a waiver or modification of any provision of this
chapter.
(b) Scope of inspection.--The scope of a home inspection,
the services to be performed and the systems and conditions to
be inspected or excluded from inspection may be defined by a
contract between the home inspector and the client.
§ 7508. Home inspection reports.
(a) Required contents.--A home inspection report must be in
writing and shall include:
(1) A description of the scope of the inspection,
including without limitation an identification of the
structural elements, systems and subsystems covered by the
report.
(2) A description of any material defects noted during
the inspection, along with any recommendation that certain
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experts be retained to determine the extent of the defects
and any corrective action that should be taken. A "material
defect" as defined in section 7102 (relating to definitions)
that poses an unreasonable risk to people on the property
shall be conspicuously identified as such.
(3) The following statements, set forth conspicuously:
"A home inspection is intended to assist in evaluation of
the overall condition of the dwelling. The inspection is
based on observation of the visible and apparent condition of
the structure and its components on the date of inspection."
"The results of this home inspection are not intended to
make any representation regarding the presence or absence of
latent or concealed defects that are not reasonably
ascertainable in a competently performed home inspection. No
warranty or guaranty is expressed or implied."
"If the person conducting your home inspection is not a
licensed structural engineer or other professional whose
license authorizes the rendering of an opinion as to the
structural integrity of a building or its other component
parts, you may be advised to seek a professional opinion as
to any defects or concerns mentioned in the report."
"This home inspection report is not to be construed as an
appraisal and may not be used as such for any purpose."
(b) Confidentiality.--Except as otherwise required by law, a
home inspector shall not deliver a home inspection report to any
person other than the client of the home inspector without the
client's consent. The seller shall have the right, upon request,
to receive without charge a copy of a home inspection report
from the person for whom it was prepared.
(c) Repair estimates prohibited.--A home inspector shall not
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express either orally or in writing an estimate of the cost to
repair any defect found during a home inspection, except that
such an estimate may be included in a home inspection report if:
(1) the report identifies the source of the estimate;
(2) the estimate is stated as a range of costs; and
(3) the report states that the parties should consider
obtaining an estimate from a contractor who performs the type
of repair involved.
§ 7509. Liability insurance.
(a) Required insurance.--A home inspector shall maintain
insurance against errors and omissions in the performance of a
home inspection and general liability, with coverages of not
less than $100,000 per occurrence and $500,000 in the aggregate
and with deductibles of not more than $2,500.
(b) Term.--
(1) Except as set forth in paragraph (2), a home
inspector shall maintain insurance under subsection (a) for
at least one year after the latest home inspection report the
home inspector delivers.
(2) Paragraph (1) shall not apply to a home inspection
report that was delivered prior to the effective date of this
section.
§ 7510. Reliance by buyer.
A buyer shall be entitled to rely in good faith, without
independent investigation, on a written representation by a home
inspector that the home inspector is:
(1) licensed or registered as a professional engineer
under the act of May 23, 1945 (P.L.913, No.367), known as the
Engineer, Land Surveyor and Geologist Registration Law;
(2) licensed or registered under the act of December 14,
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1982 (P.L.1227, No.281), known as the Architects Licensure
Law; or
(3) a full member in good standing of a national home
inspection association.
§ 7511. Penalties.
(a) Criminal penalty.--A person who violates section 7509
(relating to liability insurance) or who provides a false
representation under section 7510 (relating to reliance by
buyer) commits a summary offense and, upon conviction thereof
for a first offense, shall be sentenced to pay a fine not
exceeding $500 or to imprisonment for not more than three
months, or both, and for a second or subsequent offense commits
a misdemeanor of the third degree and, upon conviction thereof,
shall be sentenced to pay a fine of not less than $2,000 but not
more than $5,000 or to imprisonment for not less than one year
but not more than two years, or both.
(b) Fine.--A person who violates any provision of section
7508 (relating to home inspection reports) shall, upon
conviction in a summary proceeding before a magisterial district
judge, be sentenced to pay a fine not exceeding $500.
§ 7512. Statute of limitations.
An action to recover damages arising from a home inspection
report must be commenced within one year after the date the
report is delivered.
§ 7513. Engineers and architects.
Notwithstanding section 7503(b)(1) (relating to relationship
to other laws), the following sections: 7505 (relating to
consumer remedies), 7507(a)(1) and (b) (relating to contracts
with home inspectors), 7508 (relating to home inspection
reports) and 7509 (relating to liability insurance) shall apply
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to a person licensed or registered as a professional engineer
under the act of May 23, 1945 (P.L.913, No.367), known as the
Engineer, Land Surveyor and Geologist Registration Law, or a
person licensed or registered under the act of December 14, 1982
(P.L.1227, No.281), known as the Architects Licensure Law, when
performing a home inspection.]
Section 2. Title 68 is amended by adding a chapter to read:
CHAPTER 75A
HOME INSPECTIONS
Sec.
75A01. Scope of chapter.
75A02. Definitions.
75A03. Pennsylvania Board of Home Inspectors.
75A04. Powers and duties of board.
75A05. Licensure.
75A06. Qualifications.
75A07. Home inspection reports.
75A08. Liability insurance.
75A09. Home inspectors in other states, territories or Dominion
of Canada.
75A10. Duration of license.
75A11. Reporting of multiple licensure.
75A12. Relationship to other laws.
75A13. Unfair Trade Practices and Consumer Protection Law
remedies.
75A14. Contracts with home inspectors.
75A15. Fees, fines and civil penalties.
75A16. Violation.
75A17. Refusal, suspension or revocation of license.
75A18. Suspensions and revocations.
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75A19. Temporary and automatic suspensions .
75A20. Reinstatement of license.
75A21. Injunction.
75A22. Subpoenas and oaths.
75A23. Statute of limitations.
75A24. Engineers and architects.
§ 75A01. Scope of chapter.
This chapter relates to home inspections.
§ 75A02. Definitions.
(a) Definitions.--The following words and phrases when used
in this chapter shall have the meanings given to them in this
section unless the context clearly indicates otherwise:
" Agent. " Any broker, associate broker or salesperson, as
defined in the act of February 19, 1980 (P.L.15, No.9) , known as
the Real Estate Licensing and Registration Act .
" Agreement of transfer. " A contract between a buyer and
seller setting forth the terms of a residential real estate
transfer .
" Applicant. " An individual who applies for a license as a
home inspector.
" Board. " The Pennsylvania Board of Home Inspectors.
" Bureau. " The Bureau of Professional and Occupational
Affairs in the Department of State.
" Buyer. " Any person receiving any estate or interest in real
property in a transfer subject to this part .
"Client." An individual on whose behalf a contract is
entered with a licensee under this chapter, or his employer, to
obtain a home inspection and subsequent home inspection report.
" Commissioner. " The Commissioner of the Bureau of
Professional and Occupational Affairs in the Department of
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State.
" Department. " The Department of State of the Commonwealth.
" Home inspection. " A noninvasive visual examination of some
combination of the mechanical, electrical or plumbing systems or
the structural and essential components of a residential
dwelling designed to identify material defects in those systems
and components and performed for a fee in connection with or
preparation for a proposed or possible residential real estate
transfer. The term includes any consultation regarding the
property that is represented to be a home inspection or that is
described by any similar term. The term does not include any of
the following:
(1) An examination of a single system or component of a
residential dwelling such as its electrical or plumbing
system or its roof.
(2) An examination that is limited to inspection for or
of one or more of the following ancillary services :
(i) Wood-destroying insects.
(ii) Underground tanks and wells.
(iii) Septic systems.
(iv) Swimming pools and spas.
(v) Alarm systems.
(vi) Air and water quality.
(vii) Tennis courts and playground equipment.
(viii) Pollutants.
(ix) Toxic chemicals.
(x) Environmental hazards.
(xi) Mold.
(xii) Biological organisms.
" Home inspection report. " A report as required under section
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75A07 (relating to home inspection reports).
" Home inspector. " An individual who performs a home
inspection and is licensed under this chapter.
" Material defect. " A problem with a residential real
property or any portion of it that would have a significant
adverse impact on the value of the property or that involves an
unreasonable risk to people on the property. The fact that a
structural element, system or subsystem is near, at or beyond
the end of the normal useful life of such a structural element,
system or subsystem is not by itself a material defect .
" Residential dwelling. " A structure consisting of at least
one but not more than four units, each designed for occupancy by
a single family, whether the unit or units are occupied or
unoccupied.
"Residential real estate transfer." As defined under section
7103 (relating to application of part).
"Seller." Any person transferring any estate or interest in
residential real property in a transfer subject to this part .
" Wood-destroying insect. " The term includes termites,
carpenter ants, carpenter bees and reinfesting wood boring
beetles.
§ 75A03. Pennsylvania Board of Home Inspectors.
(a) Establishment.--There is established the Pennsylvania
Board of Home Inspectors within the bureau.
(b) Composition.--The board shall consist of the following
members:
(1) The commissioner or a designee.
(2) The following members, who shall be citizens of the
United States and residents of this Commonwealth, appointed
by the Governor with the advice and consent of the Senate:
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(i) Two members representing the public at large.
(ii) Five professional members. Professional members
shall have completed no fewer than 400 fee-paid home
inspections in this Commonwealth over the five years
immediately preceding appointment to the board. Except as
set forth under subsection (f), professional members
shall be licensed under this chapter as home inspectors.
(3) The Attorney General or a designee.
(c) Meeting.--The board shall meet within 30 days after the
appointment of the initial members and shall do all of the
following:
(1) Establish procedures for the board's operation and
administration of this chapter.
(2) Develop application forms for licensure.
(3) Circulate application forms.
(4) Create program guidelines to educate the public
regarding licensure requirements under this chapter.
(d) Term of membership.--Except as provided under subsection
(e), professional and public members shall serve a term of four
years or until a successor has been appointed and qualified but
in no event longer than six months beyond the four-year period.
In the event that a member dies or resigns or otherwise is
disqualified during the term of office, a successor shall be
appointed in the same way and with the same qualifications and
shall hold office for an unexpired term. A professional or
public member shall not be eligible to hold more than two
consecutive terms.
(e) Initial appointments.--For professional and public
members first appointed to the board under this chapter, the
term of office shall be as follows:
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(1) Three members shall serve for a term of four years.
(2) Two members shall serve for a term of three years.
(3) One member shall serve for a term of two years.
(f) Professional members and first appointments.--
(1) A professional member initially appointed to the
board under this chapter need not be licensed at the time of
appointment but at the time of appointment must have
satisfied eligibility requirements for licensure. All
professional members subsequently appointed shall possess the
required license.
(2) A board member that becomes a home inspector shall
obtain the requisite license within six months of the date
the initial licenses are issued. If a board member does not
obtain the requisite license within six months of the
effective date of this section, the board member shall be
considered to have resigned from the board on that date.
(g) Quorum.--A majority of the members of the board shall
constitute a quorum. A member may not be counted as part of a
quorum or vote on any issue unless the member is physically in
attendance at the meeting.
(h) Chairperson.--The board shall select annually a
chairperson from among its members.
(i) Expenses.--With the exception of the commissioner and
the Attorney General, each member of the board shall receive $60
per diem when actually attending to the work of the board. A
member shall also receive the amount of reasonable travel, hotel
and other necessary expenses incurred in the performance of the
member's duties in accordance with Commonwealth regulations.
(j) Forfeiture.--A professional or public member who fails
to attend three meetings in 18 months shall forfeit the member's
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seat unless the commissioner, upon written request from the
member, finds that the member should be excused from a meeting
because of illness or the death of a family member.
(k) Training seminars.--A public member who fails to attend
two consecutive statutorily mandated training seminars in
accordance with section 813(e) of the act of April 9, 1929 (P.L.
177, No.175) , known as The Administrative Code of 1929, shall
forfeit the member's seat unless the commissioner, upon written
request from the public member, finds that the public member
should be excused from a meeting because of illness or the death
of a family member.
(l) Frequency of meetings.--The board shall meet at least
four times per year in the City of Harrisburg and at additional
times as may be necessary to conduct the business of the board.
§ 75A04. Powers and duties of board.
The board shall have the following powers and duties:
(1) To provide for and regulate the licensing of
individuals engaged in home inspection.
(2) To issue licenses, renew licenses, reinstate
licenses or refuse to renew, suspend and revoke licenses as
provided under this chapter.
(3) To administer and enforce the provisions of this
chapter.
(4) To review applications for licensure and to
determine the eligibility of an individual applying for
licensure.
(5) To promote educational initiatives to protect
consumers who contract for home inspection services.
(6) To promulgate and enforce regulations, not
inconsistent with this chapter, as necessary only to carry
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out the provisions of this chapter. This paragraph includes
the setting of fees and the adoption of standards for
certification of home inspectors. Regulations shall be
adopted in conformity with the provisions of the act of July
31, 1968 (P.L.769, No.240) , referred to as the Commonwealth
Documents Law and the act of June 25, 1982 (P.L.633, No.181) ,
known as the Regulatory Review Act.
(7) To keep minutes and records of all proceedings.
(8) To submit annually to the department an estimate of
financial requirements of the board for its administrative,
legal and other expenses.
(9) To submit annually a report to the Consumer
Protection and Professional Licensure Committee of the Senate
and the Professional Licensure Committee of the House of
Representatives. The report shall include a description of
the types of complaints received, status of cases, the action
which has been taken and the length of time from initial
complaint to final resolution.
(10) To submit annually to the Appropriations Committee
of the Senate and the Appropriations Committee of the House
of Representatives, 15 days after the Governor has submitted
a budget to the General Assembly, a copy of the budget
request for the upcoming fiscal year which the board
previously submitted to the department.
(11) To prescribe the form of licenses, applications and
other documents that are required for home inspectors to be
licensed under this chapter.
(12) To grant, deny, suspend and revoke approval of
examinations and courses of study regarding home inspections,
establish standards for continuing home inspection education,
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including the subject matter and content of courses of study
and the selection of instructors and approve other equivalent
educational programs, and establish procedures for the
issuance of credit upon satisfactory proof of the completion
of these programs.
(13) To establish and maintain a current list of home
inspectors who are licensed. This list shall be available for
public inspection, including on an Internet website.
(14) To establish continuing education requirements of
not less than 32 hours biennially for licensees in accordance
with this chapter.
(15) To require all fee-paid home inspections to be
conducted in accordance with the standards of practice
established by the board.
(16) To adopt standards of practice for licensees.
§ 75A05. Licensure.
(a) General rule.--An individual may not perform home
inspections, offer himself for employment as an individual who
performs home inspections or hold himself out as a home
inspector unless licensed by the board or as otherwise
consistent with this chapter .
(b) Business entities.--An individual, corporation,
partnership, firm or other entity shall not employ an individual
to perform a home inspection or allow or direct an individual to
perform a home inspection unless the individual is licensed
under this chapter.
§ 75A06. Qualifications.
(a) General rule.--To be eligible to apply for licensure, an
applicant must fulfill all of the following requirements:
(1) Be of good moral character.
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(2) Be 18 years of age or older.
(3) Have successfully completed high school or its
equivalent.
(4) Satisfactorily complete a board-approved training
program or course of study involving the performance of home
inspections; such study program shall be for no less than 120
hours of instruction and include no less than 40 hours of
actual in-field training.
(5) Satisfactorily complete a board-approved examination
that is designed to test competence in home inspection
practices. The board shall contract with a professional
testing organization for the examination of qualified
applicants for licensure. All written, oral and practical
examinations shall be prepared and administered by a
qualified and approved professional testing organization in
the manner prescribed for written examinations by section
812.1 of the act of April 9, 1929 (P.L.177, No.175) , known as
The Administrative Code of 1929.
(6) Pay the fee set by the board.
(b) Ancillary services.--In the event that an ancillary
service is performed by a licensed home inspector, the inspector
shall be licensed or certified to perform that service as
required by State regulation. Inspectors found to be performing
ancillary inspections for the home-buying public without the
required license or certification shall be subject to discipline
by the board.
§ 75A07. Home inspection reports.
(a) Required contents.--A home inspection report must be in
writing and shall include:
(1) A description of the scope of the inspection,
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including without limitation an identification of the
structural elements, systems and subsystems of the
residential dwelling covered by the report.
(2) A description of any material defects noted during
the inspection, along with any recommendation that certain
experts be retained to determine the extent of the defects
and any corrective action that should be taken. A material
defect that poses an unreasonable risk to people on the
property shall be conspicuously identified as such.
(3) The following statements, set forth conspicuously:
A home inspection is intended to assist in evaluation
of the overall condition of the r esidential dwelling .
The inspection is based on observation of the visible
and apparent condition of the residential dwelling
and its components on the date of inspection.
The results of this home inspection are not intended
to make any representation regarding the presence or
absence of latent or concealed defects that are not
reasonably ascertainable in a competently performed
home inspection. No warranty or guaranty is expressed
or implied.
If the person conducting your home inspection is not
a licensed structural engineer or other professional
whose license authorizes the rendering of an opinion
as to the structural integrity of a r esidential
dwelling or its other component parts, you may be
advised to seek a professional opinion as to any
defects or concerns mentioned in the report.
This home inspection report is not to be construed as
an appraisal and may not be used as such for any
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purpose.
(b) Confidentiality.--Except as otherwise required by law, a
home inspector shall not deliver a home inspection report to any
person other than the client of the home inspector without the
client's consent.
(c) Repair estimates prohibited.--A home inspector shall not
express either orally or in writing an estimate of the cost to
repair any defect found during a home inspection , except that
such an estimate may be included in a home inspection report if
the home inspector is so qualified and:
(1) the report identifies the source of the estimate;
(2) the estimate is stated as a range of costs from
verifiable price sources; and
(3) the report states that the parties should consider
obtaining an estimate from a contractor who performs the type
of repair involved.
§ 75A08. Liability insurance.
(a) Required insurance.--A home inspector shall maintain
professional liability insurance in the performance of a home
inspection, with coverages of not less than $100,000 per
occurrence and $500,000 in the aggregate.
(b) Term.--
(1) Except as set forth in paragraph (2), a home
inspector shall maintain insurance under subsection (a) for
at least one year after the latest home inspection report was
delivered.
(2) Paragraph (1) shall not apply to a home inspection
report that was delivered prior to December 20, 2001.
§ 75A09. Home inspectors in other states, territories or
Dominion of Canada.
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The board may issue a license to an individual who has
licensure or its equivalent as a home inspector in any other
state or territory of the United States or the Dominion of
Canada if all of the following requirements are met:
(1) The other jurisdiction grants the same privileges to
licensees of Pennsylvania as the Commonwealth grants to
licensees of that other jurisdiction.
(2) The person is licensed or its equivalent in the
other jurisdiction and has successfully passed the
examination.
(3) The licensing requirements of the other jurisdiction
are substantially similar to the licensing requirements of
this chapter.
(4) The person provides a notarized statement that the
person has studied, is familiar with and will abide by the
provisions of this chapter and the administrative regulations
promulgated by the board.
(5) The individual pays the required fee.
§ 75A10. Duration of license.
(a) Duration of license.--A license issued under this
chapter shall be on a biennial basis. The biennial expiration
date shall be established by the board. Application for renewal
of a license shall biennially be forwarded to an individual
holding a current license prior to the expiration date of the
current renewal biennium.
(b) Inactive status.--An individual licensed under this
chapter may request an application for inactive status. The
application form may be completed and returned to the board.
Upon receipt of an application, the individual shall be
maintained on inactive status without fee and shall be entitled
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to apply for a licensure renewal at any time after complying
with the requirements for continuing education. An individual
who requests that the board activate the individual's license
and who has been on inactive status for a period of three
consecutive years shall, prior to receiving an active license,
satisfy the requirements of the board's regulations for ensuring
continued competence, including holding current certification
and remitting the required fee. The board shall promulgate
regulations to carry out the provisions of this subsection.
§ 75A11. Reporting of multiple licensure.
A home inspector who is also licensed to perform home
inspections in any other state, territory or possession of the
United States or any other country shall report this information
to the board on the biennial registration application. A
licensee shall report any disciplinary action regarding a
license taken in another state, territory, possession of the
United States or any other country to the board on the biennial
registration application or within 90 days of final disposition,
whichever is sooner. Multiple licensure shall be noted by the
board on the home inspector's record, and the state, territory,
possession or country shall be notified of any disciplinary
actions taken by the board against the licensee in this
Commonwealth.
§ 75A12. Relationship to other laws.
(a) General rule.--Nothing in this chapter shall be
construed to allow a home inspector who is not registered or
licensed under one or more of the following laws to perform any
activity that would constitute the practice of the profession
regulated by that law:
(1) The act of May 23, 1945 (P.L.913, No.367) , known as
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the Engineer, Land Surveyor and Geologist Registration Law.
(2) The act of January 24, 1966 (1965 P.L.1535, No.537) ,
known as the Pennsylvania Sewage Facilities Act.
(3) The act of March 1, 1974 (P.L.90, No.24) , known as
the Pennsylvania Pesticide Control Act of 1973.
(4) The act of December 14, 1982 (P.L.1227, No.281) ,
known as the Architects Licensure Law.
(5) The act of July 9, 1987 (P.L.238, No.43) , known as
the Radon Certification Act.
(6) The act of July 10, 1990 (P.L.404, No.98) , known as
the Real Estate Appraisers Certification Act.
(b) Exclusions.--This chapter shall not:
(1) Apply to a person registered or licensed under an
act referred to in subsection (a) when acting pursuant to his
registration or license.
(2) Apply to an officer or employee of a municipality or
local authority when acting in his official capacity.
(3) Affect the obligations or immunities of a person
licensed under the act of February 19, 1980 (P.L.15, No.9) ,
known as the Real Estate Licensing and Registration Act, that
are imposed or provided by that act or Chapter 73 (relating
to seller disclosures) when the person is acting pursuant to
his license.
(4) Affect the obligations or immunities of a person
certified under the Real Estate Appraisers Certification Act
when the person is acting pursuant to the person's license.
§ 75A13. Unfair Trade Practices and Consumer Protection Law
remedies.
(a) General rule.--The performance of a home inspection is a
service that is subject to the act of December 17, 1968 (P.L.
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1224, No.387) , known as the Unfair Trade Practices and Consumer
Protection Law.
(b) Prohibited acts.--Any of the following acts engaged in
by a home inspector, an employer of a home inspector or another
business or person that controls or has a financial interest in
the employer of a home inspector shall be deemed to be an unfair
or deceptive act or practice as defined by section 2(4)(i)
through (xxi) of the Unfair Trade Practices and Consumer
Protection Law:
(1) Performing or offering to perform for an additional
fee any repairs to a residential dwelling with respect to
which the home inspector, the employer of the home inspector
or such other business or person has prepared a home
inspection report within the preceding 12 months, except that
this paragraph shall not apply to remediation for radon or
wood destroying insects.
(2) Inspecting for a fee any property in which the home
inspector, the employer of the home inspector or such other
business or person has any financial interest or any interest
in the transfer of the property, including without limitation
receipt of a commission as an agent, unless the financial
interest or interest in the transfer of the property is
disclosed in writing to the buyer before the home inspection
is performed and the buyer signs an acknowledgment of receipt
of the disclosure.
(3) Offering or delivering any commission, referral fee
or kickback to the seller of the inspected property or to an
agent for either or both of the seller and the buyer for the
referral of any business to the home inspector, the employer
of the home inspector or such other business or person.
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(4) Accepting an engagement to perform a home inspection
or to prepare a home inspection report in which the
employment itself or the fee payable for the inspection is
contingent upon the conclusions in the report, preestablished
or prescribed findings or the closing of the transaction.
(c) Exception.--A home warranty company that is affiliated
with or retains the home inspector does not violate subsection
(b) if the home warranty company performs repairs pursuant to
claims made under a home warranty contract and discloses its
affiliation .
(d) Consumer remedies.--In addition to any other remedies
available under the Unfair Trade Practices and Consumer
Protection Law or other applicable provision of law, the owner
of a property on which repairs are performed in violation of
subsection (b)(1) shall be entitled to a full refund of any
moneys paid for those repairs, and any promissory note or other
obligation to pay given to the person performing those repairs
shall be void.
§ 75A14. Contracts with home inspectors.
(a) Prohibited provisions.--Any of the following types of
provisions in a contract with a home inspector for the
performance of a home inspection are contrary to public policy
and shall be void:
(1) A limitation on the liability of the home inspector
for gross negligence or willful misconduct.
(2) A waiver or modification of any provision of this
chapter.
(b) Scope of inspection.--The scope of a home inspection,
the services to be performed and the systems and conditions to
be inspected or excluded from inspection may be defined by a
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contract between the home inspector and the client.
(c) Required contractual provision regarding home
inspections.--
(1) Except as provided under paragraph (2), a provision
of an agreement of transfer regarding the right of the buyer
to obtain a home inspection report and providing for the
consequences, if any, shall provide that the home inspection
be performed by a licensed home inspector.
(2) A home inspection satisfies the requirements of this
section if the person is:
(i) licensed or registered as a professional
engineer under the act of May 23, 1945 (P.L.913, No.367) ,
known as the Engineer, Land Surveyor and Geologist
Registration Law; or
(ii) licensed or registered under the act of
December 14, 1982 (P.L.1227, No.281) , known as the
Architects Licensure Law.
§ 75A15. Fees, fines and civil penalties.
(a) Fees.--All fees required under this chapter shall be
fixed by the board by regulation and shall be subject to the act
of June 25, 1982 (P.L.633, No.181) , known as the Regulatory
Review Act. If the revenues raised by the fees, fines and civil
penalties imposed under this chapter are not sufficient to meet
expenditures over a two-year period, the board shall increase
those fees by regulation so that projected revenues will meet or
exceed projected expenditures.
(b) Deposit of fees.--All fees, fines and civil penalties
imposed in accordance with this chapter shall be paid into the
Professional Licensure Augmentation Account.
(c) Permitted fees.--The board may charge a fee, as set by
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the board by regulation, for licensure, for renewing licensure
and for other services of the board as permitted under this
chapter or by regulation.
§ 75A16. Violation.
(a) Criminal penalty.--A person violating a provision of
this chapter commits a misdemeanor of the third degree and
shall, upon conviction, be sentenced to pay a fine of not more
than $2,500 or to imprisonment for not more than six months for
the first violation. A person convicted of a second or
subsequent violation shall be sentenced to pay a fine of not
more than $5,000 or to imprisonment for not less than six months
or more than one year, or both.
(b) Civil penalty.--In addition to any other civil remedy or
criminal penalty provided for under this chapter, the board, by
a vote of the majority of the maximum number of the authorized
membership of the board as provided by law or by a vote of the
majority of the duly qualified and confirmed membership or a
minimum of five members, whichever is greater, may levy a civil
penalty of up to $10,000 on any of the following:
(1) A home inspector who violates a provision of this
chapter.
(2) An individual who performs home inspections without
a license, as required by this chapter.
(c) Procedure.--The board shall levy the civil penalty under
subsection (b) only after affording the accused the opportunity
for a hearing as provided under 2 Pa.C.S. (relating to
administrative law and procedure).
§ 75A17. Refusal, suspension or revocation of license.
(a) General rule.--The board shall have the authority to
refuse, suspend or revoke a license or discipline for unlicensed
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activity in a case where the board finds any of the following:
(1) The licensee is negligent or incompetent in
performing a home inspection.
(2) The licensee has willfully or repeatedly violated
any of the provisions of this chapter or a regulation of the
board.
(3) The licensee or individual has committed fraud or
deceit in any of the following:
(i) Performing home inspections.
(ii) Securing licensure or certification.
(iii) Advertising.
(iv) Performing or offering to perform home
inspections for compensation without being licensed as a
home inspector and without being exempt from licensure
under this chapter.
(v) Presenting as the individual's own license, the
license of another.
(vi) Intentionally giving false or materially
misleading information to the board or to a board or
staff member in connection with a licensing matter.
(vii) Using an expired, suspended, revoked or
otherwise restricted license.
(viii) Performing or offering to perform for an
additional fee any repairs to a residential dwelling with
respect to which the home inspector, the employer of the
home inspector or other business or person affiliated
with the home inspector has prepared a home inspection
report within the preceding 12 months, except that this
subparagraph shall not apply to remediation for radon or
wood-destroying insects.
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(ix) Participation with any real estate broker or
agent, directly or indirectly, in an action in which the
home inspector pays or receives a direct or indirect
consideration for receiving leads toward providing home
inspection services.
(4) The licensee has been convicted of a felony or a
crime of moral turpitude.
(5) The licensee has had his license suspended or
revoked or has received other disciplinary action by the
proper licensing authority in another state, territory,
possession of the United States or any other country.
(6) The licensee falsely advertised or made misleading,
deceptive, untrue or fraudulent material representations
regarding licensure.
(b) Acts authorized.--If the board finds that the license of
a home inspector may be refused, revoked or suspended under
subsection (a), the board may do any of the following:
(1) Deny the application for a license.
(2) Administer a public reprimand.
(3) Revoke, suspend, limit or otherwise restrict a
license. The board shall require an individual whose license
has been suspended or revoked to return the license in the
manner as the board directs.
(4) Suspend enforcement of its finding and place a
licensee on probation with the right to vacate the
probationary order for noncompliance.
(5) Restore or reissue, in its discretion, a suspended
license and impose any disciplinary or corrective measure
which it might originally have imposed.
§ 75A18. Suspensions and revocations.
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Disciplinary action shall be imposed only in accordance with
the regulations of the board and only by majority vote of the
members of the board after a hearing. An action of the board
shall be taken subject to the right of notice, hearing and
adjudication, and the right of appeal, in accordance with 2
Pa.C.S. (relating to administrative law and procedure). The
board, by majority action, may reissue a license which has been
suspended. If a license has been revoked, the board shall
reissue a license only under section 75A20 (relating to
reinstatement of license).
§ 75A19. Temporary and automatic suspensions.
(a) Temporary suspensions.--
(1) A license issued under this chapter may be
temporarily suspended under circumstances as determined by
the board to be an immediate and clear danger to the public
health and safety. The board shall issue an order to that
effect without a hearing, but upon due notice to the licensee
concerned, at his last known address, which shall include a
written statement of all allegations against the licensee.
The board shall thereupon commence formal action to suspend,
revoke or restrict the license of a person concerned as
otherwise provided for in this chapter. All actions shall be
taken promptly and without delay.
(2) Within 30 days following the issuance of an order
temporarily suspending a license, the board shall conduct or
cause to be conducted a preliminary hearing to determine
whether there is a prima facie case supporting the
suspension. The licensee whose license has been temporarily
suspended may be present at the preliminary hearing and may
be represented by counsel, cross-examine witnesses, inspect
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physical evidence, call witnesses, offer evidence and
testimony and make a record of the proceedings.
(3) If it is determined that there is not a prima facie
case, the suspended license shall by immediately restored.
The temporary suspension shall remain in effect until vacated
by the board, but in no event longer than 180 days.
(b) Automatic suspension.--
(1) A license issued under this chapter shall
automatically be suspended upon the legal commitment to an
institution of a licensee because of mental incompetency from
any cause upon filing with the board a certified copy of such
commitment, conviction of a felony under the act of April 14,
1972 (P.L.233, No.64) , known as The Controlled Substance,
Drug, Device and Cosmetic Act, or conviction of an offense
under the laws of another jurisdiction, which if committed in
Pennsylvania, would be a felony under The Controlled
Substance, Drug, Device and Cosmetic Act.
(2) Automatic suspension under this subsection shall not
be stayed pending any appeal of a conviction. Restoration of
such license shall be made as provided in this chapter in the
case of revocation or suspension of such license.
(3) As used in this subsection, the term "conviction"
shall include a judgment, an admission of guilt or a plea of
nolo contendere.
(c) Notice of violations.--
(1) An attorney responsible for representing the
Commonwealth in disciplinary matters before the board shall
notify the board immediately upon receiving notification of
an alleged violation of this chapter.
(2) The board shall maintain current records of all
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reports of alleged violations and periodically review the
records for the purpose of determining that each alleged
violation has been resolved in a timely manner.
§ 75A20. Reinstatement of license.
Unless ordered to do so by the Commonwealth Court or an
appeal from the Commonwealth Court, the board shall not
reinstate the license of an individual which has been revoked.
An individual whose license has been revoked may reapply for a
license after a period of at least five years but must meet all
of the licensing requirements of this chapter.
§ 75A21. Injunction.
Whenever in the judgment of the board a person has engaged in
an act or practice which is regulated under this chapter and
which constitutes or will constitute a violation of this
chapter, the board or its agents may make application to the
appropriate court for an order enjoining the act or practice,
and, upon a showing by the board that the person has engaged or
is about to engage in the act or practice, an injunction,
restraining order or other order as may be appropriate shall be
granted by the court. The remedy by injunction shall be in
addition to any other civil or criminal prosecution and
punishment.
§ 75A22. Subpoenas and oaths.
(a) Authority granted.--The board shall have the authority
to issue subpoenas, upon application of an attorney responsible
for representing the Commonwealth in disciplinary matters before
the board, for the purpose of investigating alleged violations
of this chapter or regulations of the board. The board shall
have the power to subpoena witnesses, to administer oaths, to
examine witnesses and to take testimony or compel the production
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of books, records, papers and documents as it may deem necessary
or proper in and pertinent to any proceeding, investigation or
hearing held or had by the board. The board is authorized to
apply to the Commonwealth Court to enforce its subpoenas. The
court may impose limitations on the scope of the subpoena as is
necessary to prevent unnecessary intrusion into client
confidential information.
(b) Disciplinary matters.--An attorney responsible for
representing the Commonwealth in disciplinary matters before the
board shall maintain current records of all reported alleged
violations and periodically review the records for the purpose
of determining that each alleged violation has been resolved in
a timely manner.
§ 75A23. Statute of limitations.
An action to recover damages arising from a home inspection
report must be commenced within one year after the date the
report is delivered, regardless of when the material defect was
discovered.
§ 75A24. Engineers and architects.
Notwithstanding section 75A12(b)(1) (relating to relationship
to other laws), the following sections shall apply to a person
licensed or registered as a professional engineer under the act
of May 23, 1945 (P.L.913, No.367) , known as the Engineer, Land
Surveyor and Geologist Registration Law, or a person licensed or
registered under the act of December 14, 1982 (P.L.1227, No.
281) , known as the Architects Licensure Law, when performing a
home inspection:
(1) Section 75A07 (relating to home inspection reports).
(2) Section 75A08 (relating to liability insurance).
(3) Section 75A13 (relating to Unfair Trade Practices
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and Consumer Protection Law remedies).
(4) Section 75A14(a)(1) and (b) (relating to contracts
with home inspectors).
Section 3. For one year from the publication in the
Pennsylvania Bulletin that the regulations required under
section 5 have been adopted and are in effect, an applicant who
meets all of the requirements of former 68 Pa.C.S. Ch. 75 and
this section may be licensed as a home inspector without having
to complete a board-approved training program or course of study
involving the performance of home inspections. The applicant
must:
(1) Be at least 18 years of age.
(2) Have passed a written examination to test competence
in home inspection practice.
(3) Have completed no less than 250 fee-paid inspections
over the three years immediately preceding publication in the
Pennsylvania Bulletin that the regulations required under
section 5 have been adopted and are in effect.
(4) Show proof of professional liability insurance
consistent with 68 Pa.C.S. § 75A08.
Section 4. The sum of $85,000, or as much thereof as may be
necessary, is hereby appropriated from the Professional
Licensure Augmentation Account to the Department of State for
the payment of costs associated with processing licenses and
renewing licenses, for the operation of the Pennsylvania Board
of Home Inspectors and for other costs associated with the
implementation of 68 Pa.C.S. Ch. 75A. The appropriation shall be
repaid by the board within three years of the beginning of
issuance of licenses by the board.
Section 5. Within 18 months of the effective date of this
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section, the Pennsylvania Board of Home Inspectors shall
promulgate regulations to carry out the provisions of 68 Pa.C.S.
Ch. 75A.
Section 6. The provisions of 68 Pa.C.S. Ch. 75A requiring
the licensure of home inspectors shall not apply until
publication in the Pennsylvania Bulletin that the regulations
required by section 5 have been adopted and are in effect.
Section 7. The addition of 68 Pa.C.S. Ch. 75A is a
continuation of former 68 Pa.C.S. Ch. 75. Except as otherwise
provided under Chapter 75A, all activities initiated under
former Chapter 75 shall continue and remain in full force and
effect and may be completed under Chapter 75A. Orders,
regulations, rules and decisions which were made under former
Chapter 75 and which are in effect on the effective date of this
section shall remain in full force and effect until revoked,
vacated or modified under Chapter 75A. Contracts, obligations
and collective bargaining agreements entered into under former
Chapter 75 are not affected nor impaired by the repeal of former
Chapter 75.
Section 8. This act shall take effect in 60 days.
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