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A02647
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1001
Session of
2017
INTRODUCED BY HELM, KORTZ, BIZZARRO, BOBACK, BRIGGS, R. BROWN,
V. BROWN, BULLOCK, BURNS, CHARLTON, CORBIN, D. COSTA, DAVIS,
DEASY, DeLUCA, DONATUCCI, DRISCOLL, GALLOWAY, GILLEN,
GODSHALL, GOODMAN, GREINER, HEFFLEY, HENNESSEY, HICKERNELL,
HILL-EVANS, IRVIN, JOZWIAK, KNOWLES, LONGIETTI, MAHER,
MARSICO, MATZIE, McNEILL, MENTZER, MILLARD, D. MILLER, MOUL,
MURT, NEILSON, O'NEILL, PETRI, M. QUINN, RAVENSTAHL,
READSHAW, RYAN, SAYLOR, SCHWEYER, SIMMONS, SNYDER, THOMAS,
TOEPEL, WARD, WARREN, WATSON, PHILLIPS-HILL, MACKENZIE,
BOYLE, ENGLISH AND WHEELAND, MARCH 28, 2017
AS REPORTED FROM COMMITTEE ON PROFESSIONAL LICENSURE, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 21, 2017
AN ACT
Regulating home inspectors; establishing the Home Inspection
Licensing Board; providing for licensure and practice, for
disciplinary action, for remedies and for penalties; making
an appropriation; and repealing provisions relating to home
inspections.
TABLE OF CONTENTS
Chapter 1. Preliminary Provisions
Section 101. Short title.
Section 102. Declaration of policy.
Section 103. Definitions.
Chapter 3. Board
Section 301. Board established.
Section 302. Powers and duties of board.
Chapter 5. Licensure
Section 501. Requirements for licensure.
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Section 502. License status and continuing education.
Section 503. Examinations.
Section 504. Manufactured and modular housing certificate
LIMITATION ON LIABILITY.
Section 505. Licensure by reciprocity.
Section 506. Licensure by endorsement.
Section 507. Registration or licensing of home inspectors by
political subdivisions.
Section 508. Professional liability insurance.
Section 509. Statute of limitations.
Section 510. Refusal, suspension and revocation of licenses.
Section 511. Reinstatement of license.
Section 512. License renewal, records and fees.
Chapter 7. Administration and Enforcement
Section 701. Unlawful practice.
Section 702. Violation of act.
Section 703. Degree of care of home inspectors.
Section 704. Consumer remedies.
Chapter 9. Practice of Home Inspection
Section 901. Home inspection contracts.
Section 902. Home inspection reports.
Chapter 21. Miscellaneous Provisions
Section 2101. Relationship to other laws.
Section 2102. Regulations.
Section 2103. Repeal.
Section 2104. Appropriation.
Section 2105. Effective date.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
CHAPTER 1
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PRELIMINARY PROVISIONS
Section 101. Short title.
This act shall be known and may be cited as the Home
Inspector Licensing Act.
Section 102. Declaration of policy.
The General Assembly finds and declares as follows:
(1) Home inspections may not identify safety issues if
the practice is not subject to responsible regulation.
(2) Reasonable regulation is in the furtherance of
public health, safety and welfare interests.
(3) Regulation is necessary to set educational standards
within the profession and to protect the public from
unqualified home inspectors and unscrupulous individuals.
(4) Consumer protection with respect to both health and
economic matters will be afforded the public through the
regulation and associated legal remedies provided for in this
act.
Section 103. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Account." The Professional Licensure Augmentation Account.
"Applicant." An individual who applies for a license as a
home inspector.
"Board." The Home Inspection Licensing Board.
"Bureau." The Bureau of Occupational and Industrial Safety
in the Department of Labor and Industry.
"Client." A person or person acting through a legal
representative who contracts with a licensee to obtain a home
inspection and subsequent written home inspection report.
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"Convicted." Includes a judgment, admission of guilt or a
plea of nolo contendere, or receiving probation without verdict,
disposition in lieu of trial or an Accelerated Rehabilitative
Disposition of the disposition of felony charges.
"Department." The Department of Labor and Industry of the
Commonwealth.
"Home inspection." A noninvasive visual examination of the
systems and the 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 or lease. The term:
(1) Includes a consultation regarding the property that
is represented to be a home inspection or that is described
by a confusingly similar term.
(2) Does not include any of the following:
(i) An examination of a single system or component
of a residential dwelling, such as an electrical or
plumbing system or roof.
(ii) An examination that is limited to inspection
for or of one or more of the following:
(A) Wood destroying insects.
(B) Underground tanks and wells.
(C) Septic systems.
(D) Swimming pools and spas.
(E) Alarm systems.
(F) Air and water quality.
(G) Tennis courts and playground equipment.
(H) Pollutants, toxic chemicals and
environmental hazards.
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(iii) An examination associated with moving into or
out of a leased home.
"Home inspection report." A typewritten report on the
results of a home inspection.
"Home inspector." An individual licensed by the board to
perform home inspections.
"License." A license to practice home inspection under this
act.
"Licensee." An individual who holds a license to practice
home inspection.
"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 an
essential component, system or subsystem is near, at or beyond
the end of its normal useful life is not by itself a material
defect.
"Secretary." The Secretary of Labor and Industry of the
Commonwealth.
CHAPTER 3
BOARD
Section 301. Board established.
(a) Establishment.--The Home Inspector Licensing Board is
established within the bureau. The board shall be composed of
the following members:
(1) The secretary or a designee of the secretary.
(2) The Attorney General or a designee of the Attorney
General.
(3) Members appointed by the secretary GOVERNOR WITH THE
ADVICE AND CONSENT OF THE SENATE as follows:
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(i) Six members who shall be home inspectors
licensed in this Commonwealth. For an initial
appointment, a home inspector must qualify for licensure
and obtain a license immediately upon availability.
(ii) Three members who shall be members of the
general public without expertise or training as a home
inspector.
(iii) One member who shall be a real estate agent or
broker licensed in this Commonwealth.
(iv) One member who shall be a professional engineer
or architect licensed in this Commonwealth.
(b) Term of office.--
(1) Except as set forth in paragraph (2), the term of
office for home inspector members and general public members
shall be four years.
(2) Three of the home inspector members and three of the
general public members shall be initially appointed to a two-
year term.
(c) Compensation.--The members of the board shall be paid a
per diem at the rate determined by the bureau for each day of
actual service in the performance of their duties under this
act.
(d) Meetings.--Meetings shall be called by the chairperson
of the board elected by a majority of the board members. A
quorum of the board shall consist of seven members.
Section 302. Powers and duties of board.
(a) General rule.--The board has the following powers and
duties:
(1) To pass upon the qualifications and fitness of
applicants for licenses and reciprocal licenses and to
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promulgate regulations requiring applicants to pass
examinations relating to qualifications as a prerequisite to
the issuance of a license.
(2) To promulgate regulations consistent with this act.
(3) To examine, deny, approve, issue, revoke, suspend or
renew licenses of home inspectors under this act and to
conduct hearings in connection with those powers and duties.
(4) To conduct hearings upon complaints concerning
violations of this act and the regulations promulgated under
this act and to seek the prosecution and enjoinder of
violations.
(5) To promulgate regulations establishing requirements
for continuing education under this act.
(6) To expend money necessary to the proper carrying out
of assigned duties.
(7) 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 containing a description of the types of
complaints received, status of the cases, board action which
has been taken and the length of time from the initial
complaint to final board resolution.
(8) To submit annually to the Appropriations Committee
of the Senate and the Appropriations Committee of the House
of Representatives, within 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 bureau
previously submitted to the department.
(9) To establish and maintain a current list of home
inspectors who are licensed. The list shall be available for
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public inspection, including by electronic means.
(10) To establish fees as set forth in this act. All
fees or other money collected by the board under this act
shall be used for the sole purpose of administration and
regulation of licensing under this act.
(b) Bureau support.--The bureau shall provide sufficient
staff, space, equipment and supplies for the board to discharge
its duties.
CHAPTER 5
LICENSURE
Section 501. Requirements for licensure.
(a) Applicants.--An applicant shall be considered to be
qualified for a license if the applicant submits proof
satisfactory to the board of all of the following:
(1) The applicant is of good moral character.
(2) The applicant is at least 18 years of age.
(3) The applicant has a high school diploma or its
equivalent or equivalent life or occupational experience.
(4) The applicant has completed a board-approved
training program or course of study involving the performance
of home inspections which shall be no CONSIST OF THE
FOLLOWING:
(I) NO less than 120 hours of classroom instruction
and WHICH INCLUDE SIX HOURS OF EDUCATION PROVIDING THE
BASIC KNOWLEDGE ON THE DIFFERENCES BETWEEN THE NATIONAL
MANUFACTURED HOUSING CONSTRUCTION AND SAFETY STANDARDS
ACT OF 1974 (PUBLIC LAW 93-383, 42 U.S.C. § 5401 ET SEQ.)
AND THE ACT OF MAY 11, 1972 (P.L.286, NO.70), KNOWN AS
THE INDUSTRIALIZED HOUSING ACT, AND THE INSTALLATION OF
MANUFACTURED AND MODULAR HOMES.
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(II) NO LESS THAN 75 mentored home inspections
completed in the presence of and under the direct
supervision of a home inspector licensed in this
Commonwealth who oversees and takes full responsibility
for the home inspection and any report provided to the
client.
(5) The applicant has passed a board-approved
examination.
(6) The application is accompanied by the application
fee as established by the board by regulation.
(7) The applicant is not addicted to the habitual use of
alcohol, narcotics or other habit-forming drugs.
(8) The applicant has not been convicted 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
of an offense under the laws of another jurisdiction which if
committed in this Commonwealth would be a felony under The
Controlled Substance, Drug, Device and Cosmetic Act, unless
the following apply:
(i) At least 10 years have elapsed from the date of
conviction.
(ii) The applicant satisfactorily demonstrates to
the board that the applicant has made significant
progress in personal rehabilitation since the conviction
and that licensure of the applicant should not be
expected to create a substantial risk of harm to the
public or a substantial risk of further criminal
violations.
(iii) The applicant otherwise satisfies the
qualifications required under this act.
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(b) Existing practitioners.--The board shall issue a license
to an applicant who applies within two years of the effective
date of this subsection and complies with all of the following:
(1) Is an active professional home inspector.
(2) Meets the qualifications described in subsection (a)
(1), (2), (3), (6), (7) and (8) and section 504.
(3) Submits proof satisfactory to the board that the
applicant has:
(i) been in active, continuous practice for at least
five years immediately preceding the effective date of
this section; or
(ii) has performed or participated in 100 home
inspections and has passed a recognized or accredited
examination testing knowledge of the proper procedures
for conducting a home inspection.
(c) Transferability.--A license is not transferable.
Section 502. License status and continuing education.
(a) Duration of license.--A license shall be issued on a
biennial basis. The biennial expiration date shall be
established by regulation of 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) Procedure.--To renew a license, a licensee must do all
of the following:
(1) File a renewal application with the board. The
licensee must successfully complete 32 hours of continuing
education in the field of home inspection during the
immediately preceding two years as approved by the board.
THREE OF THE TOTAL REQUIRED HOURS OF CONTINUING EDUCATION
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MUST FOCUS ON THE DIFFERENCES BETWEEN THE NATIONAL
MANUFACTURED HOUSING CONSTRUCTION AND SAFETY STANDARDS ACT OF
1974 (PUBLIC LAW 93-383, 42 U.S.C. § 5401 ET SEQ.) AND THE
ACT OF MAY 11, 1972 (P.L.286, NO.70), KNOWN AS THE
INDUSTRIALIZED HOUSING ACT, AND THE INSTALLATION OF
MANUFACTURED AND MODULAR HOMES.
(2) Pay a fee established by regulation of the board.
(c) Information change notification.--A licensee shall
notify the board within 30 days of:
(1) a change of name;
(2) a change of name under which the licensee conducts
business;
(3) a change of business address;
(4) a lapse, change or cancellation of insurance
coverage; or
(5) a misdemeanor or felony conviction, finding of guilt
or plea of nolo contendere or receiving probation without
verdict or Accelerated Rehabilitative Disposition.
(d) Inactive status.--A licensee may request an application
for inactive status. The application form must 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 to apply for a licensure renewal at any
time. An individual who requests the board to activate the
person's license and who has been on inactive status for less
than five consecutive years must, prior to receiving an active
license, satisfy the board's regulations for ensuring continued
education and remitting the required fee. A licensee who fails
to activate a licensee's license after five years must retake
the examination specified for initial licensure.
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(e) Reporting of multiple licensure.--A licensee who is also
licensed to practice home inspection in another jurisdiction
shall report this information to the board on the biennial
registration application. Disciplinary action taken in another
jurisdiction shall be reported to the board on the biennial
registration application or within 90 days of final disposition,
whichever is sooner. The board shall note multiple licensures on
the licensee's record, and the board shall notify other
licensing jurisdictions of disciplinary actions taken against
the licensee in this Commonwealth.
Section 503. Examinations.
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.
Section 504. Manufactured and modular housing certificate.
(a) Certificate required.--In addition to a home inspector
license, a manufactured and modular housing certificate is
required to perform home inspections on manufactured or modular
housing.
(b) Applicants.--An applicant shall be considered to be
qualified for a manufactured and modular housing certificate if
the applicant submits proof satisfactory to the board that the
applicant has:
(1) satisfied all of the licensure requirements set forth in
section 501; and
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(2) completed a six-hour board-approved training program
providing basic knowledge on the differences between the
National Manufactured Housing Construction and Safety Standards
Act of 1974 (Public Law 93-383, 42 U.S.C. § 5401 et seq.) and
the act of May 11, 1972 (P.L.286, No.70), known as the
Industrialized Housing Act, and knowledge pertaining to the
installation of manufactured and modular homes.
(c) Continuing education.--In addition to the requirements
set forth in section 502(b), to renew a manufactured and modular
housing certificate, a licensee must do all of the following:
(1) File a renewal application with the board.
(2) Successfully complete three hours of continuing
education pertaining to basic knowledge on the differences
between the National Manufactured Housing Construction and
Safety Standards Act of 1974 and the Industrialized Housing
Act and knowledge pertaining to the installation of
manufactured and modular homes during the immediately
preceding two years as approved by the board.
(3) Pay a fee established by regulation of the board.
LIMITATION ON LIABILITY.
A HOME INSPECTOR SHALL NOT BE HELD LIABLE FOR THE
CONTENTS OR OMISSIONS OF A HOME INSPECTION REPORT IF RELIED
UPON BY ANY INDIVIDUAL OR PERSON OTHER THAN THE CLIENT AS
IDENTIFIED BY THE EXECUTED CONTRACT FOR THE SPECIFIC HOME
INSPECTION.
Section 505. Licensure by reciprocity.
The board may grant a reciprocal license to an applicant who
is licensed or certified as a home inspector or similar practice
in another state and has demonstrated qualifications which equal
or exceed those required under this act in the determination of
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the board. The board shall not grant a license under this
section to an applicant unless the state in which the applicant
is licensed affords reciprocal treatment to individuals who are
residents of this Commonwealth and who are licensed under this
act. The applicant must also submit a notarized statement that
the applicant has studied, is familiar with and will abide by
this act and regulations promulgated by the board.
Section 506. Licensure by endorsement.
(a) Issuance.--The board may issue a home inspector license
without examination to an applicant holding a home inspector
license in another state who submits proof satisfactory to the
board of all of the following:
(1) The applicant is of good moral character.
(2) The applicant holds an unrestricted and active home
inspector license from another state whose licensure
requirements are substantially equivalent to the requirements
for licensure in this Commonwealth.
(3) The applicant has submitted an application
accompanied by the application fee.
(4) The applicant has not been convicted 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
an offense under the laws of another jurisdiction, which, if
committed in this Commonwealth, would be a felony under The
Controlled Substance, Drug, Device and Cosmetic Act, unless:
(i) at least 10 years have elapsed from the date of
conviction;
(ii) the applicant satisfactorily demonstrates to
the board that the applicant has made significant
progress in personal rehabilitation since the conviction
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such that licensure of the applicant should not be
expected to create a substantial risk of harm to the
health and safety of the applicant's clients or the
public or a substantial risk of further criminal
violation; and
(iii) the applicant otherwise satisfies the
qualifications contained in or authorized by this act.
(B) (RESERVED).
Section 507. Registration or licensing of home inspectors by
political subdivisions.
No agency or political subdivision of this Commonwealth,
other than the board, shall impose the following on individuals
licensed under this chapter:
(1) A registration or licensing requirement for
conducting home inspections.
(2) A license fee to obtain a local license, except that
this prohibition shall not prevent a local government from
imposing an occupational license tax on a person operating as
a home inspector within the jurisdiction of the local
government.
Section 508. Professional liability insurance.
(a) Requirement.-- A person holding a license under this act
shall maintain insurance against errors and omissions in the
performance of a home inspection and general liability, with
coverages of not less than $250,000 per occurrence and $500,000
in the aggregate and with deductibles of not more than $5,000
$15,000.
(b) Proof.--An applicant must provide proof that the
applicant has obtained professional liability insurance under
subsection (a). It is sufficient if the applicant files with the
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application a copy of a letter from the applicant's professional
liability insurance carrier indicating that the applicant will
be covered against professional liability in the required
amounts effective upon the issuance of the applicant's license
to practice home inspection in this Commonwealth. Upon issuance
of the license, the licensee must, within 30 days, submit to the
board the certificate of insurance or a copy of the policy
declaration page.
(c) Term.--
(1) Except as set forth in paragraph (2), a home
inspector shall maintain insurance under subsection (a) for
at least two years 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.
Section 509. 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 CLAIM IS DISCOVERED
BY THE CLIENT.
Section 510. Refusal, suspension and revocation of licenses.
(a) General rule.--The board may refuse, suspend or revoke a
license in a case where the board finds:
(1) The licensee is negligent or incompetent in
performing home inspections.
(2) The licensee is unable to perform home inspections
with reasonable skill and safety by reason of mental or
physical illness or condition or physiological or
psychological dependence upon alcohol, hallucinogenic or
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narcotic drugs or other drugs which tend to impair judgment
or coordination, so long as the dependence continues. In
enforcing this paragraph, the board shall, upon probable
cause, have authority to compel a licensee to submit to a
mental or physical examination as designated by the board.
After notice and hearing, adjudication and appeal, failure of
a licensee to submit to an examination when directed shall
constitute an admission of the allegations unless failure is
due to circumstances beyond the licensee's control,
consequent upon which a default and final order may be
entered without the taking of testimony or presentation of
evidence. A licensee affected under this paragraph shall at
reasonable intervals be afforded the opportunity to
demonstrate that the licensee can resume competent, safe and
skillful performance of home inspections.
(3) The licensee has willfully or repeatedly violated
this act or a regulation of the board.
(4) The licensee has committed fraud or deceit in:
(i) performing home inspections; or
(ii) securing licensure.
(5) The licensee has been convicted of a felony or a
crime of moral turpitude, or received probation without
verdict, disposition in lieu of trial or an Accelerated
Rehabilitative Disposition in the disposition of felony
charges in the courts of this Commonwealth or another
jurisdiction.
(6) The licensee has had the licensee's license
suspended or revoked or has received other disciplinary
action by the proper licensing authority in another
jurisdiction.
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(7) With respect to the performance of home inspections,
the licensee has acted in a manner to present an immediate
and clear danger to health, safety or property.
(8) The licensee possessed, used, acquired or
distributed a controlled substance.
(9) The licensee has been found guilty of unprofessional
conduct. Unprofessional conduct includes departure from or
failing to conform to operating practices or professional
standards as adopted by the board by regulation. In
proceedings based on this paragraph, actual injury to a
person or damage to property need not be established.
(10) The licensee falsely advertised or made misleading,
deceptive, untrue or fraudulent material representations
regarding licensure, certification or performance of a home
inspection.
(b) Board action.--If the board finds that the license or
application for license may be refused, revoked, restricted or
suspended under the terms of subsection (a), the board may do
any of the following:
(1) Deny the application for license.
(2) Administer a public reprimand.
(3) Revoke, suspend, limit or otherwise restrict a
license.
(4) Require a licensee to submit to the care, counseling
or treatment of a physician designated by the board.
(5) Suspend enforcement of the board's findings and
place a licensee on probation with the right to vacate the
probationary order for noncompliance.
(6) Restore a suspended license and impose a
disciplinary or corrective measure which it might originally
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have imposed.
(c) Administrative agency law.--Actions of the board under
subsections (a) and (b) are subject to 2 Pa.C.S. Chs. 5 Subch. A
(relating to practice and procedure of Commonwealth agencies)
and 7 Subch. A (relating to judicial review of Commonwealth
agency action).
(d) Temporary suspension.--The board shall temporarily
suspend a license under circumstances as determined by the board
to be an immediate and clear danger to public health and safety.
The board shall issue an order to that effect without a hearing,
but upon notice to the licensee concerned at the licensee's last
known address, which must include a written statement of all
allegations against the licensee. Subsection (c) shall not apply
to temporary suspension. Upon issuance of an order under this
subsection, the board shall commence formal action to suspend,
revoke or restrict the license as otherwise provided for in this
act. Within 30 days following the issuance of an order
temporarily suspending a license, the board shall conduct a
preliminary hearing to determine that 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 physical evidence, call witnesses, offer
evidence and testimony and make a record of the proceedings. If
the board determines that there is not a prima facie case, the
board shall immediately restore the suspended license. The
temporary suspension shall remain in effect until vacated by the
board, but in no event longer than 180 days.
(e) Automatic suspension.--
(1) A license shall automatically be suspended upon the
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legal commitment of a licensee to an institution because of
mental incompetence from any cause upon filing with the board
a certified copy of the commitment.
(2) A license shall automatically be suspended upon
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 this
Commonwealth, would be a felony under The Controlled
Substance, Drug, Device and Cosmetic Act.
(3) Automatic suspension under this section shall not be
stayed pending an appeal.
(4) Reinstatement of a license shall be made under
section 511.
(5) Subsection (c) shall not apply to automatic
suspension.
Section 511. Reinstatement of license.
Unless ordered to do so by a court of competent jurisdiction,
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 the licensing requirements of this act.
Section 512. License renewal, records and fees.
(a) Records.--The board shall keep a record of licensees in
its office. The record shall be open to public inspection and
copying upon payment of a reasonable fee for copying the record.
(b) Fees.--If the revenue from fees, fines and civil
penalties imposed under this act is not sufficient to meet
expenditures over a two-year period, the board shall increase
fees by regulation so that the projected revenue will meet or
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exceed projected expenditures.
(c) Increases in fees.--If the board determines that the
fees established under subsection (b) are inadequate to meet the
minimum enforcement efforts required by this act, the board
shall increase the fees by regulation in an amount so that
adequate revenue is raised to meet the required enforcement
effort.
CHAPTER 7
ADMINISTRATION AND ENFORCEMENT
Section 701. Unlawful practice.
(a) General rule.--An individual may not practice home (A)
GENERAL RULE.--
(1) AN INDIVIDUAL MAY NOT PRACTICE HOME inspection or
hold himself or herself out as a home inspector unless
licensed by the board except for the following:
(1) An individual licensed as a professional engineer
(I) AN INDIVIDUAL LICENSED 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) An individual licensed under the act of December 14,
(II) AN INDIVIDUAL LICENSED UNDER THE ACT OF
DECEMBER 14, 1982 (P.L.1227, No.281), known as the
Architects Licensure Law.
(2) NOTWITHSTANDING PARAGRAPH (1), A PERSON LICENSED OR
REGISTERED AS A PROFESSIONAL ENGINEER UNDER THE ENGINEER,
LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW, OR A PERSON
LICENSED OR REGISTERED UNDER THE ARCHITECTS LICENSURE LAW,
MUST COMPLY WITH SECTIONS 508, 704, 901 AND 902 WHEN
PERFORMING A HOME INSPECTION. A PERSON LICENSED OR REGISTERED
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AS A PROFESSIONAL ENGINEER, OR LICENSED OR REGISTERED AS AN
ARCHITECT, WHO VIOLATES THIS PARAGRAPH SHALL BE SUBJECT TO
DISCIPLINARY ACTION, INCLUDING LICENSE OR REGISTRATION
SUSPENSION AND REVOCATION, AND PENALTIES UNDER THE ENGINEER,
LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW AND THE
ARCHITECTS LICENSURE LAW, RESPECTIVELY.
(b) Title.--An individual who holds a license or is
maintained on inactive status may use the title "Licensed Home
Inspector" and the abbreviation "L.H.I." No other individual may
use the title "Licensed Home Inspector" or the title "Home
Inspector" or hold himself or herself out to others as a home
inspector. This subsection includes advertising as a home
inspector and adopting or using a title or description, or a
derivative of "Licensed Home Inspector" or "Home Inspector" and
their related abbreviations, which implies directly or
indirectly that home inspection services are being provided.
(c) Employment.--An individual, corporation, partnership,
firm or other entity may not employ an individual in home
inspection unless the individual is licensed by the board.
(d) Terminology.--A business entity may not utilize in
connection with a business name or activity the words "home
inspector," "home inspection" or a derivative of "home
inspector" or "home inspection" and abbreviations, which implies
directly or indirectly that home inspection services are being
provided, unless the services of the business are provided by
licensees.
(e) Injunction.--Unlawful practice may be enjoined by the
courts upon petition of the board. In a proceeding under this
section, it shall not be necessary to show that an individual
has been injured. If the court finds that the respondent has
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violated this section, it shall enjoin the respondent from
practicing until the respondent has been licensed.
(f) Remedy cumulative.--The injunctive remedy provided in
this section shall be in addition to any other civil or criminal
prosecution and punishment.
Section 702. Violation of act.
(a) Criminal.--A person that violates this act or a
regulation of the board commits a misdemeanor of the third
degree and shall, upon conviction, be sentenced to pay a fine of
not more than $1,000 or to imprisonment for not more than six
months for the first violation and to pay a fine of not more
than $2,000 or to imprisonment for not less than six months nor
more than one year, or both, for each subsequent violation.
(b) Administrative.--In addition to a criminal penalty under
subsection (a), the board, by a vote of the majority of the
maximum number of the authorized membership of the board or by a
vote of the majority of the qualified and confirmed membership
or a minimum of five members, whichever is greater, may levy an
administrative penalty of up to $1,000 for any of the following:
(1) A home inspector who violates a provision of this
act.
(2) A person that employs a home inspector in violation
of this act.
(3) An individual who holds himself or herself out as a
licensee without being properly licensed as provided in this
act.
(4) The responsible officer or employee of a
corporation, partnership, firm or other entity that violates
a provision of this act.
(c) Administrative agency law.--Action of the board under
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subsection (b) is subject to 2 Pa.C.S. Chs. 5 Subch. A (relating
to practice and procedure of Commonwealth agencies) and 7 Subch.
A (relating to judicial review of Commonwealth agency action).
Section 703. Degree of care of home inspectors.
(a) General rule.--The home inspector shall 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 as
established by the board by regulation.
(c) Immediate threat to health or safety.--If immediate
threats to health or safety are observed during the course of
the inspection AND THE HOME IS OCCUPIED, the home inspector
shall disclose the immediate threats to health or safety to the
property owner and occupants of the property at the conclusion
of the home inspection. POSTING A NOTICE ON A FORM PRESCRIBED BY
THE BOARD BY REGULATION ON THE FRONT DOOR OF THE OCCUPIED HOME
IN A POSITION THAT ENSURES THE OCCUPANTS SEE THE NOTICE SHALL
CONSTITUTE PROPER DISCLOSURE.
Section 704. Consumer remedies.
(a) General rule.--The performance of a home inspection is a
service subject to the act of December 17, 1968 (P.L.1224,
No.387), known as the Unfair Trade Practices and Consumer
Protection Law.
(b) Prohibited acts.--Any of the 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
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2(4) 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 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 other
business or person has a financial interest or an interest in
the transfer of the property, including 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 a commission, referral fee or
kickback to the seller of the inspected property or to an
agent for the seller or buyer for the referral of business to
the home inspector, the employer of the home inspector or
other business or person.
(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 in accordance
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with claims made under a home warranty contract.
(d) Remedies.--In addition to 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 money paid for those repairs, and a
promissory note or another obligation to pay given to the person
performing those repairs shall be void.
CHAPTER 9
PRACTICE OF HOME INSPECTION
Section 901. Home inspection contracts.
(a) Required provisions.--A home inspection contract must be
typewritten and include all of the following:
(1) Signature of client.
(2) Scope of home inspection.
(3) Fee charged to client.
(4) Contact information of home inspector.
(5) License number of home inspector.
(6) A statement explaining the confidentiality between
the home inspector and the client.
(b) 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 THE CLAUSE SHALL BE UNENFORCEABLE AS IT
RELATES TO:
(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.
Section 902. Home inspection reports.
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(a) Required contents.--A home inspection report must be
typewritten and include all of the following:
(1) A description of the scope of the inspection,
including identification of the essential components and
systems and subsystems covered by the report.
(2) A description of material defects noted during the
inspection, along with a recommendation that certain experts
be retained to determine the extent of the defects and the
corrective action that should be taken.
(3) If, at the time of the inspection, there is visible
evidence of conditions conducive to the presence of mold,
INTERIOR MOLD, MILDEW OR fungi or related biologicals, the
home inspector must disclose in the home inspection report
the visible evidence and the mold's location and advise the
client to obtain a professional evaluation.
(4) 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 a 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
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to the structural integrity of a building or the
building's 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.
(I) 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.
(II) THE RESULTS OF THIS HOME INSPECTION ARE NOT
INTENDED TO MAKE A 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.
(III) 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
THE BUILDING'S OTHER COMPONENT PARTS, YOU MAY BE ADVISED
TO SEEK A PROFESSIONAL OPINION AS TO ANY DEFECTS OR
CONCERNS MENTIONED IN THE REPORT.
(IV) THIS HOME INSPECTION REPORT IS NOT TO BE
CONSTRUED AS AN APPRAISAL AND MAY NOT BE USED AS SUCH FOR
ANY PURPOSE.
(b) Confidentiality.--
(1) Except as otherwise required by this subsection or
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by law, a home inspector may not deliver a home inspection
report to a person other than the client of the home
inspector without the client's consent.
(2) The property owner shall have the right, upon
request, to receive without charge a copy of a home
inspection report from the person for whom the home
inspection report was prepared.
(3) If immediate threats to health or safety are
observed during the course of the inspection AND IF THE
PREMISES ARE OCCUPIED, the client hereby consents to allow
the home inspector to disclose the immediate threats to
health or safety to the property owner and occupants of the
property.
(c) Repair estimates prohibited.--
(1) Except as set forth in paragraph (2), a home
inspector may not express either orally or in writing an
estimate of the cost to repair a defect found during a home
inspection.
(2) A home inspector may include an estimate in a home
inspection report if:
(i) the report identifies the source of the
estimate;
(ii) the estimate is stated as a range of costs; and
(iii) the report states that the parties should
consider obtaining an estimate from a contractor who
performs the type of repair involved.
CHAPTER 21
MISCELLANEOUS PROVISIONS
Section 2101. Relationship to other laws.
(a) General rule.--Nothing in this act shall be construed to
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allow a home inspector who is not 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.
(5) The act of July 9, 1987 (P.L.238, No.43), known as
the Radon Certification Act.
(b) Exclusions.--This act shall not:
(1) Apply to a person licensed under an act referred to
in subsection (a) when acting under the person's registration
or license.
(2) Apply to an officer or employee of a municipality or
local authority when acting in the person's 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 under that act or 68 Pa.C.S. Ch. 73
(relating to seller disclosures) when the person is acting
under the person's license.
(4) Affect the obligations or immunities of a person
certified under the act of July 10, 1990 (P.L.404, No.98),
known as the Real Estate Appraisers Certification Act, when
the person is acting under the person's license.
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(5) Apply to an employee of the Federal Government when
acting in the person's official capacity.
(6) Apply to an employee of a property management entity
which performs rental property inspections.
Section 2102. Regulations.
The board shall promulgate final regulations to carry out
this act within 18 months of the effective date of this section.
The board shall report, within 60 days of the effective date of
this section and every 30 days thereafter, on the status of the
regulations to the Consumer Protection and Professional
Licensure Committee of the Senate and the Professional Licensure
Committee of the House of Representatives. The board shall
promulgate further regulations as necessary to carry out duties
as required in this act.
Section 2103. Repeal.
Repeals are as follows:
(1) The General Assembly declares that the repeal under
paragraph (2) is necessary to effectuate this act.
(2) The provisions of 68 Pa.C.S. Ch. 75 are repealed.
Section 2104. Appropriation.
The sum of $85,000, or as much of the sum as may be
necessary, is appropriated to the bureau for the payment of
costs associated with processing licenses and renewing licenses,
for the operation of the board and for other costs associated
with this act. The appropriation shall be repaid by the board
within three years of the beginning of issuance of licenses by
the board.
Section 2105. Effective date.
This act shall take effect as follows:
(1) The following provisions shall take effect
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immediately:
(i) Section 301.
(ii) Section 2102.
(iii) This section.
(2) The following provisions shall take effect in two
years:
(i) Chapter 5.
(ii) Except as set forth in paragraph (3), Chapters
7 and 21.
(3) Section 701(a) shall take effect 90 days after the
effective date of the initial regulations promulgated under
section 2102.
(4) The remainder of this act shall take effect in 60
days.
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