H0021B0959A02801 AJM:CDM 09/17/19 #90 A02801
AMENDMENTS TO HOUSE BILL NO. 21
Sponsor: REPRESENTATIVE HICKERNELL
Printer's No. 959
Amend Bill, page 1, lines 1 through 17, by striking out all
of said lines and inserting
Amending the act of July 10, 1990 (P.L.404, No.98), entitled
"An act providing for the certification of real estate
appraisers; specifying requirements for certification;
providing for sanctions and penalties; and making an
appropriation," further providing for title of act, for
definitions, for State Board of Certified Real Estate
Appraisers, for powers and duties of board and for
application and qualifications; providing for application and
qualifications of home inspectors and home inspectors-in-
training, for conduct of home inspection and for firm or
corporation; further providing for reciprocity, for
certification renewal, licensure renewal and records, for
disciplinary and corrective measures, for reinstatement of
certificate or license, for reporting of multiple
certification, for surrender of suspended or revoked
certificate or license, for penalties and for injunctive
relief; providing for remedies for home inspection services
consumers, for home inspection contracts and for home
inspection reports; and making a related repeal.
Amend Bill, page 1, lines 20 through 24; pages 2 through 32,
lines 1 through 30; page 33, lines 1 through 14; by striking out
all of said lines on said pages and inserting
Section 1. The title of the act of July 10, 1990 (P.L.404,
No.98), known as the Real Estate Appraisers Certification Act,
is amended to read:
AN ACT
Providing for the certification of real estate appraisers and
licensure of home inspectors; specifying requirements for
certification and licensure; providing for sanctions and
penalties; and making an appropriation.
Section 2. Section 2 of the act is amended by adding
definitions to read:
Section 2. Definitions.
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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:
* * *
"Client." When the term is applied to a home inspector, a
person or person acting through a legal representative who
contracts with a licensed home inspector to obtain a home
inspection and subsequent written home inspection report.
"Home inspection." A noninvasive visual examination of the
systems 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:
(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.
(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 State Board
of Certified Real Estate Appraisers to perform home inspections.
The term does not include an individual licensed under any of
the following laws when acting under the individual's
registration or license:
(1) The act of May 23, 1945 (P.L.913, No.367), known as
the Engineer, Land Surveyor and Geologist Registration Law,
as to professional engineers, professional land surveyors and
professional geologists.
(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.
"Home inspector-in-training." A candidate for licensure as a
home inspector who has been granted a registration as a home
inspector-in-training.
"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.
* * *
Section 3. Section 4(a) and (k) of the act are amended to
read:
Section 4. State Board of Certified Real Estate Appraisers.
(a) Creation.--There is hereby created the State Board of
Certified Real Estate Appraisers as a departmental
administrative board in the Department of State. The board shall
consist of the following members:
(1) The Secretary of the Commonwealth or a designee.
(2) The Attorney General or a designee.
(3) The Secretary of Banking or a designee.
(4) [Eight] Twelve members who are citizens of the
United States and who have been residents of this
Commonwealth for a two-year period immediately prior to
appointment, two of whom shall be public members [and six]
eight of whom shall be persons who are State-certified real
estate appraisers[.], one of whom shall be a tax assessor and
one of whom shall be a person who is a licensed and qualified
home inspector under this act, except that the home inspector
initially appointed pursuant to this paragraph need not be
licensed by the board but, at the time of appointment, must
have satisfied the education and experience requirements of
this act for licensure as a home inspector.
* * *
(k) Notice.--Reasonable notice of all meetings shall be
given in conformity with [the act of July 3, 1986 (P.L.388,
No.84), known as the Sunshine Act] 65 Pa.C.S. Ch. 7 (relating to
open meetings).
* * *
Section 4. Sections 5(1), (3) and (6) and 6 heading of the
act are amended to read:
Section 5. Powers and duties of board.
The board shall have the following powers and duties:
(1) To pass upon the qualifications and fitness of
applicants for certification or licensure and to adopt and
revise rules and regulations requiring applicants for
certification or licensure to pass examinations relating to
their qualifications for certification or licensure.
* * *
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(3) To examine for, deny, approve, issue, revoke,
suspend or renew certificates of appraisers, registrations of
home inspectors-in-training and licenses of appraiser
trainees and home inspectors pursuant to this act and to
conduct hearings in connection therewith.
* * *
(6) To establish fees for the operation of the board,
including fees for the issuance and renewal of registrations,
certificates and licenses and for examinations.
* * *
Section 6. Application and qualifications of certified real
estate appraisers.
* * *
Section 5. The act is amended by adding sections to read:
Section 6.1. Application and qualifications of home inspectors
and home inspectors-in-training.
(a) Qualifications.--An applicant shall be considered to be
qualified for a license as a home inspector 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:
(i) has completed no less than 120 hours of board-
approved classroom instruction, which includes 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;
(ii) is registered as a home inspector-in-training; and
(iii) has completed no less than 75 mentored home
inspections completed in the presence and under the direct
supervision of a home inspector licensed in this
Commonwealth. A home inspection report prepared by a home
inspector-in-training shall be used for training purposes
only and may not be provided to a client.
(5) The applicant has passed a board -approved
psychometrically valid licensing examination to be
administered pursuant to section 812.1 of the act of April 9,
1929 (P.L.177, No.175), known as The Administrative Code of
1929.
(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
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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 applicant otherwise satisfies the qualifications
contained in this act and:
(i) at least five years have elapsed from the date
of conviction; or
(ii) the applicant satisfactorily demonstrates to
the board that the applicant has made significant
progress in personal rehabilitation since the conviction
such that licensure of the applicant should not be
expected to create a substantial risk of harm to the
health and safety of clients or the public, in which case
the board may issue a probationary license for the
remainder of the five years required in subparagraph (i).
(b) Issuance of license.--The board shall issue a license as
a home inspector 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 home inspector.
(2) Meets the qualifications described in subsection (a)
(1), (2), (3), (6), (7) and (8).
(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) Practice of home inspection.--An individual may not
practice home inspection or hold himself out as a home inspector
unless licensed by the board except for the following:
(1) 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,
1982 (P.L.1227, No.281), known as the Architects Licensure
Law.
(3) A home inspector-in-training practicing home
inspection in the presence and under the direct supervision
of a home inspector licensed in this Commonwealth, provided
the home inspector-in-training does not hold himself out as a
home inspector.
(d) Compliance.--Notwithstanding subsection (c), 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 subsection (i) and sections 6.2, 17.1,
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17.2 and 17.3 when performing a home inspection. A person
licensed or registered as a professional engineer, or licensed
or registered as an architect, who violates this subsection
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.
(e) Use of 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 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.
(f) Nontransferability of license.--A license under this
section is not transferable.
(g) Examination not required.--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 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 applicant otherwise satisfies the
qualifications contained in this act and:
(i) at least five years have elapsed from the date
of conviction; or
(ii) the applicant satisfactorily demonstrates to
the board that the applicant has made significant
progress in personal rehabilitation since the conviction
such that licensure of the applicant should not be
expected to create a substantial risk of harm to the
health and safety of clients or the public, in which case
the board may issue a probationary license for the
remainder of the five years required in subparagraph (i).
(h) Prohibitions.--No agency or political subdivision of
this Commonwealth, other than the board, shall impose the
following on individuals licensed under this section:
(1) A registration or licensing requirement for
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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.
(i) Insurance.--A person licensed as 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 $250,000 per occurrence and $500,000
in the aggregate and with deductibles of not more than $15,000.
An applicant must provide proof that the applicant has obtained
professional liability insurance. It is sufficient if the
applicant files with the 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. A home inspector shall
maintain professional liability insurance for at least one year
after the latest home inspection report the home inspector
delivers, unless the home inspection report was delivered prior
to the effective date of this section.
(j) Construction.--Nothing in this act shall be construed to
allow a home inspector who is not licensed under any of the
following laws to perform any activity that would constitute the
practice of the profession regulated by that law:
(1) The Engineer, Land Surveyor and Geologist
Registration Law, as to the practice of engineering, land
surveying or geology.
(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 Architects Licensure Law.
(5) The act of July 9, 1987 (P.L.238, No.43), known as
the Radon Certification Act.
(k) Other licensees.--The requirements of this act relating
to the licensing of home inspectors shall not affect the
obligations or immunities of an individual licensed as other
than a home inspector under this act that are imposed or
provided under this act or 68 Pa.C.S. Ch. 73 (relating to seller
disclosures) when the individual is acting under the
individual's license, nor the obligations or immunities of an
individual certified under this act as a real estate appraiser
when the individual is acting under the individual's license.
(l) Home inspector-in-training registrant.--
(1) The board shall, upon application and payment of the
application fee established by the board, issue a home
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inspector-in-training registration, without examination, to
any person who meets the home inspector-in-training
educational requirements set by the board.
(2) A home inspector-in-training registrant shall keep a
record of the mentored home inspections completed, which
shall, at a minimum, include the following information:
(i) Date and time of the inspection.
(ii) Address of the residence inspected.
(iii) Business name of the supervising inspector.
(iv) Name of the supervising inspector.
(v) License number of the supervising inspector.
(vi) Signature of the supervising inspector.
(m) Definition.--As used in this section, the term
"convicted" includes a judgment, an admission of guilt or a plea
of nolo contendere.
Section 6.2. Conduct of home inspection.
(a) General rule.--A home inspector shall conduct a home
inspection with the degree of care that a reasonably prudent
home inspector would exercise. In ascertaining the degree of
care that would be exercised by a reasonably prudent home
inspector, a court shall consider the standards of practice and
codes of ethics as established by the board by regulation.
(b) Immediate threat to health or safety.--If an immediate
threat to health or safety is observed during the course of a
home inspection and the home is occupied, the home inspector
shall disclose the immediate threat 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 6. Section 7 of the act is amended to read:
Section 7. Reciprocity.
The board shall have the power to grant a reciprocal
certification to an applicant who is certified as an appraiser
or licensed as an appraiser trainee or home inspector in another
state and has demonstrated qualifications which equal or exceed
those required pursuant to this act in the determination of the
board.
Section 7. Section 10(a) and (c) of the act are amended and
the section is amended by adding a subsection to read:
Section 10. Certification renewal, licensure renewal and
records.
(a) Renewal term.--
(1) Except as provided under paragraph (2), renewal of
registration, certification or licensure shall be on a
biennial basis for persons in good standing.
(2) The board may prescribe limitations on the number of
times a registered home inspector-in-training and a licensed
appraiser trainee may renew a registration or license.
* * *
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(b.3) Continuing education for home inspectors.--A home
inspector shall be required to obtain 32 hours of continuing
education during the biennial renewal period. Continuing
education hours may be earned by c ompletion of continuing
education courses 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 must focus
on the difference 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.
(c) Records.--A record of all persons licensed as appraiser
trainees [and] or home inspectors, all persons certified as real
estate appraisers and all persons registered as home inspectors-
in-training in this Commonwealth shall be kept in the office of
the board, shall be open to public inspection and copying upon
payment of a nominal fee for copying the record and shall be
accessible on the board's Internet website. Each registrant,
certificateholder and licensee shall advise the board of the
address of his or her principal place of business.
Section 8. Sections 11(a)(1), (3), (5) and (15) and (b), 12,
13, 14, 15(b) and 17(a) of the act are amended to read:
Section 11. Disciplinary and corrective measures.
(a) Authority of board.--The board may deny, suspend or
revoke registrations, certificates or licenses, or limit,
restrict or reprimand a registrant, certificateholder or
licensee for any of the following causes:
(1) Procuring or attempting to procure a registration,
certificate or license or renewal of a registration,
certificate or license pursuant to this act by knowingly
making a false statement, submitting false information or
refusing to provide complete information in response to a
question in an application for registration, certification or
licensure or renewal of registration, certification or
licensure through any form of fraud or misrepresentation.
* * *
(3) Paying, or offering to pay, any valuable
consideration other than provided for by this act to any
member or employee of the board to procure a registration,
certificate or license under this act.
* * *
(5) Performing an act or omitting an act when such
performance or omission involves dishonesty, fraud or
misrepresentation with intent to substantially benefit the
registrant, certificateholder or licensee in his profession
or with the intent to substantially injure another person.
* * *
(15) Having a license or certificate to perform
appraisals or home inspections suspended, revoked or refused
by an appraisal licensure or certification authority of
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another state, territory or country, or receiving other
disciplinary actions by the appraisal or home inspection
licensure or certification authority of another state,
territory or country.
* * *
(b) Board action.--When the board finds that the
registration, certificate or license, application for
registration, certification or licensure or renewal of
registration, certification or licensure of any person may be
denied, revoked, restricted or suspended under the terms of
subsection (a), the board may:
(1) Deny the application for registration, certification
or licensure or for renewal of registration, certification or
licensure.
(2) Administer a public reprimand.
(3) Revoke, suspend, limit or otherwise restrict a
registration, certificate or license as determined by the
board.
(4) Suspend enforcement of its findings thereof and
place a registrant, certificateholder or licensee on
probation with the right to vacate the probationary order for
noncompliance.
(5) Restore a suspended registration, certificate or
license and impose any disciplinary or corrective measure
which it might originally have imposed.
* * *
Section 12. Reinstatement of certificate or license.
Unless ordered to do so by Commonwealth Court or an appeal
therefrom, the board shall not reinstate the certificate [or],
license or registration of a person to practice as a certified
real estate appraiser or as an appraiser trainee or as a
licensed home inspector or as a registered home inspector-in-
training, pursuant to this act, which has been revoked. Any
person whose certificate [or], license or registration has been
revoked may apply for reinstatement, after a period of at least
five years, but must meet all of the certification [or],
licensure or registration qualifications of this act, including
the examination requirement, if he or she desires to hold
himself or herself out or to practice as a real estate appraiser
or home inspector or home inspector-in-training pursuant to this
act at any time after such revocation.
Section 13. Reporting of multiple certification or licensure.
Any appraiser certified in this Commonwealth who is also
certified or licensed to perform appraisals in any other state,
territory or country shall report this information to the board
on the biennial renewal application. Any home inspector licensed
in this Commonwealth who is also certified or licensed to
perform home inspections in any other state, territory or
country shall report this information to the board on the
biennial renewal application. Any disciplinary action taken in
any other state, territory or country shall be reported to the
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board on the biennial renewal application, or within 90 days of
disposition, whichever is sooner. Multiple licensure or
certification shall be noted by the board on the certified
appraiser's or licensed home inspector's record, and such state,
territory or country shall be notified by the board of any
disciplinary actions taken against said certified appraiser or
licensed home inspector in this Commonwealth.
Section 14. Surrender of suspended or revoked registration,
certificate or license.
The board shall require a person whose registration,
certificate or license has been suspended or revoked to return
the registration, certificate or license in such manner as the
board directs. Failure to do so shall be a misdemeanor of the
third degree.
Section 15. Penalties.
* * *
(b) Civil penalty.--In addition to any other civil remedy or
criminal penalty provided for in this act, 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 three members, whichever is greater, may levy a civil
penalty of up to $10,000 on any certificateholder [or], licensee
or registrant who violates any provision of this act [or], any
noncertificateholder who holds himself out as a real estate
appraiser in this Commonwealth or who performs an appraisal for
which certification or licensure is required under the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989
(Public Law 101-73, 103 Stat. 183) an appraisal in any federally
related or nonfederally related transaction or any other
appraisal[.] or any nonlicensed individual who holds himself out
as a home inspector in this Commonwealth or who performs a home
inspection for which certification or licensure is required. The
board shall levy this penalty only after affording the accused
party the opportunity for a hearing, as provided in 2 Pa.C.S.
(relating to administrative law and procedure).
* * *
Section 17. Injunctive relief.
(a) Injunction.--A violation of section 3 or 6(c) or (e) may
be enjoined by the courts upon petition of the secretary or the
board. In any proceeding under this section, it shall not be
necessary to show that any person is individually injured by the
actions complained of. If the court finds that the respondent
has violated section 3 or 6.1(c) or (e), it shall enjoin him or
her from so practicing or holding himself or herself out until
he or she has been duly certified or licensed. Procedure in such
cases shall be the same as in any other injunction suit.
* * *
Section 9. The act is amended by adding sections to read:
Section 17.1. Remedies for home inspection services consumers.
(a) Unfair Trade Practices and Consumer Protection Law.--The
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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) Wrongful acts.--The followi ng 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) 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 board 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) Home warranty company.--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 with claims made under a home warranty contract.
(d) Other 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.
Section 17.2. Home inspection contracts.
(a) Required provisions.--A home inspection contract must be
typewritten and include all of the following:
(i) Signature of client.
(ii) Scope of home inspection.
(iii) Fee charged to client.
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(iv) Contact information of home inspector.
(v) License number of home inspector.
(vi) 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 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
section or section 6.2, 17.1 or 17.3.
Section 17.3. Home inspection reports.
(a) 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 the presence of interior mold, the home inspector
must disclose in the home inspection report the visible
evidence and the location and advise the client to obtain a
professional evaluation.
(4) The following statements, set forth conspicuously:
(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) Delivery of report.--Except as otherwise required by
this subsection or by law, a home inspector may not deliver a
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home inspection report to a person other than the client of the
home inspector without the client's consent. 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. 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) Cost of repairs.--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.
(d) 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.
(e) Limitation period.--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 10. 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 11. The State Board of Certified Real Estate
Appraisers 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.
Section 12. This act shall take effect as follows:
(1) The following provisions shall take effect
immediately:
(i) This section.
(ii) Section 11 of this act.
(iii) The amendment of section 4(a) of the act.
(2) The remainder of this act shall take effect in two
years.
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