1Amending Title 68 (Real and Personal Property) of the
2Pennsylvania Consolidated Statutes, repealing provisions 
3relating to home inspections; providing for home inspections; 
4establishing the Pennsylvania Board of Home Inspectors; 
5providing for licensure of home inspectors and for 
6disciplinary proceedings by the Pennsylvania Board of Home 
7Inspectors; and making an appropriation.

8The General Assembly of the Commonwealth of Pennsylvania
9hereby enacts as follows:

10Section 1.  Chapter 75 heading and sections 7501, 7502, 7503,
117504, 7505, 7506, 7507, 7508, 7509, 7510, 7511, 7512 and 7513 of
12Title 68 of the Pennsylvania Consolidated Statutes are repealed:

13[CHAPTER 75

14HOME INSPECTIONS

15§ 7501.  Short title of chapter.

16This chapter shall be known and may be cited as the Home
17Inspection Law.

18§ 7502.  Definitions and index of definitions.

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

1in this chapter shall have the meanings given to them in this
2section unless the context clearly indicates otherwise:

3"Home inspection."  A noninvasive visual examination of some 
4combination of the mechanical, electrical or plumbing systems or 
5the structural and essential components of a residential 
6dwelling designed to identify material defects in those systems 
7and components and performed for a fee in connection with or 
8preparation for a proposed or possible residential real estate 
9transfer. The term also includes any consultation regarding the 
10property that is represented to be a home inspection or that is 
11described by any confusingly similar term. The term does not 
12include an examination of a single system or component of a 
13residential dwelling such as, for example, its electrical or 
14plumbing system or its roof. The term also does not include an 
15examination that is limited to inspection for or of one or more 
16of the following: wood destroying insects, underground tanks and 
17wells, septic systems, swimming pools and spas, alarm systems, 
18air and water quality, tennis courts and playground equipment, 
19pollutants, toxic chemicals and environmental hazards.

20"Home inspection report."  A written report on the results of 
21a home inspection.

22"Home inspector."  An individual who performs a home 
23inspection.

24"National home inspectors association."  Any national 
25association of home inspectors that:

26(1)  Is operated on a not-for-profit basis and is not
27operated as a franchise.

28(2)  Has members in more than ten states.

29(3)  Requires that a person may not become a full member
30unless the person has performed or participated in more than

1100 home inspections and has passed a recognized or
2accredited examination testing knowledge of the proper
3procedures for conducting a home inspection.

4(4)  Requires that its members comply with a code of
5conduct and attend continuing professional education classes
6as an ongoing condition of membership.

7(b)  Index of other definitions.--The following is a
8nonexclusive list of other definitions applying to this chapter
9and the sections in which they appear:

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

11"Agreement of transfer."  Section 7102 (relating to 
12definitions).

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

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

15"Residential real estate transfer."  Section 7103 (relating 
16to application of part).

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

18§ 7503.  Relationship to other laws.

19(a)  General rule.--Nothing in this chapter shall be
20construed to allow a home inspector who is not registered or
21licensed under one or more of the following laws to perform any
22activity that would constitute the practice of the profession
23regulated by that law:

24(1)  The act of May 23, 1945 (P.L.913, No.367), known as 
25the Engineer, Land Surveyor and Geologist Registration Law.

26(2)  The act of January 24, 1966 (1965 P.L.1535, No.537), 
27known as the Pennsylvania Sewage Facilities Act.

28(3)  The act of March 1, 1974 (P.L.90, No.24), known as 
29the Pennsylvania Pesticide Control Act of 1973.

30(4)  The act of December 14, 1982 (P.L.1227, No.281), 

1known as the Architects Licensure Law.

2(5)  The act of July 9, 1987 (P.L.238, No.43), known as 
3the Radon Certification Act.

4(6)  The act of July 10, 1990 (P.L.404, No.98), known as 
5the Real Estate Appraisers Certification Act.

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

7(1)  Apply to a person registered or licensed under an
8act referred to in subsection (a) when acting pursuant to his
9registration or license.

10(2)  Apply to an officer or employee of a municipality or
11local authority when acting in his official capacity.

12(3)  Affect the obligations or immunities of a person 
13licensed under the act of February 19, 1980 (P.L.15, No.9), 
14known as the Real Estate Licensing and Registration Act, that 
15are imposed or provided by that act or Chapter 73 (relating 
16to seller disclosures) when the person is acting pursuant to 
17his license.

18(4)  Affect the obligations or immunities of a person
19certified under the Real Estate Appraisers Certification Act
20when the person is acting pursuant to the person's license.

21§ 7504.  Duty of care of home inspectors.

22(a)  General rule.--It is the duty of a home inspector to
23conduct a home inspection with the degree of care that a
24reasonably prudent home inspector would exercise.

25(b)  Standard.--In ascertaining the degree of care that would
26be exercised by a reasonably prudent home inspector, the court
27shall consider the standards of practice and codes of ethics of
28national home inspector associations.

29§ 7505.  Consumer remedies.

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

1service that is subject to the act of December 17, 1968 (P.L.

21224, No.387), known as the Unfair Trade Practices and Consumer 
3Protection Law.

4(b)  Prohibited acts.--Any of the following acts engaged in
5by a home inspector, an employer of a home inspector or another
6business or person that controls or has a financial interest in
7the employer of a home inspector shall be deemed to be an unfair
8or deceptive act or practice as defined by section 2(4)(i)
9through (xxi) of the Unfair Trade Practices and Consumer
10Protection Law:

11(1)  Performing or offering to perform for an additional
12fee any repairs to a structure with respect to which the home
13inspector, the employer of the home inspector or such other
14business or person has prepared a home inspection report
15within the preceding 12 months, except that this paragraph
16shall not apply to remediation for radon or wood destroying
17insects.

18(2)  Inspecting for a fee any property in which the home
19inspector, the employer of the home inspector or such other
20business or person has any financial interest or any interest
21in the transfer of the property, including without limitation
22receipt of a commission as an agent, unless the financial
23interest or interest in the transfer of the property is
24disclosed in writing to the buyer before the home inspection
25is performed and the buyer signs an acknowledgment of receipt
26of the disclosure.

27(3)  Offering or delivering any commission, referral fee
28or kickback to the seller of the inspected property or to an
29agent for either or both of the seller and the buyer for the
30referral of any business to the home inspector, the employer

1of the home inspector or such other business or person.

2(4)  Accepting an engagement to perform a home inspection
3or to prepare a home inspection report in which the
4employment itself or the fee payable for the inspection is
5contingent upon the conclusions in the report, preestablished
6or prescribed findings or the closing of the transaction.

7(c)  Exception.--A home warranty company that is affiliated
8with or retains the home inspector does not violate subsection
9(b) if the home warranty company performs repairs pursuant to
10claims made under a home warranty contract.

11(d)  Remedies.--In addition to any other remedies available
12under the Unfair Trade Practices and Consumer Protection Law or
13other applicable provision of law, the owner of a property on
14which repairs are performed in violation of subsection (b)(1)
15shall be entitled to a full refund of any moneys paid for those
16repairs, and any promissory note or other obligation to pay
17given to the person performing those repairs shall be void.

18§ 7506.  Required contractual provision regarding home
19inspections.

20Except as provided in this section, a provision of an
21agreement of transfer regarding the right of the buyer to obtain
22a home inspection report and providing for the consequences, if
23any, shall provide that the home inspection be performed by a
24full member in good standing of a national home inspection
25association in accordance with the ethical standards and code of
26conduct or practice of that association, provided that a home
27inspection performed by a person who has not attained full
28membership in a national home inspection association satisfies
29the requirements of this section if the person is:

30(1)  licensed or registered as a professional engineer 

1under the act of May 23, 1945 (P.L.913, No.367), known as the 
2Engineer, Land Surveyor and Geologist Registration Law;

3(2)  licensed or registered under the act of December 14, 
41982 (P.L.1227, No.281), known as the Architects Licensure 
5Law; or

6(3)  supervised by a full member in good standing of a
7national home inspection association who agrees to be
8responsible for the home inspection report by signing the
9report.

10§ 7507.  Contracts with home inspectors.

11(a)  Prohibited provisions.--The following types of
12provisions in a contract with a home inspector for the
13performance of a home inspection are contrary to public policy
14and shall be void:

15(1)  a limitation on the liability of the home inspector
16for gross negligence or willful misconduct;

17(2)  a waiver or modification of any provision of this
18chapter.

19(b)  Scope of inspection.--The scope of a home inspection,
20the services to be performed and the systems and conditions to
21be inspected or excluded from inspection may be defined by a
22contract between the home inspector and the client.

23§ 7508.  Home inspection reports.

24(a)  Required contents.--A home inspection report must be in
25writing and shall include:

26(1)  A description of the scope of the inspection,
27including without limitation an identification of the
28structural elements, systems and subsystems covered by the
29report.

30(2)  A description of any material defects noted during

1the inspection, along with any recommendation that certain
2experts be retained to determine the extent of the defects
3and any corrective action that should be taken. A "material
4defect" as defined in section 7102 (relating to definitions)
5that poses an unreasonable risk to people on the property
6shall be conspicuously identified as such.

7(3)  The following statements, set forth conspicuously:

8"A home inspection is intended to assist in evaluation of
9the overall condition of the dwelling. The inspection is
10based on observation of the visible and apparent condition of
11the structure and its components on the date of inspection."

12"The results of this home inspection are not intended to
13make any representation regarding the presence or absence of
14latent or concealed defects that are not reasonably
15ascertainable in a competently performed home inspection. No
16warranty or guaranty is expressed or implied."

17"If the person conducting your home inspection is not a
18licensed structural engineer or other professional whose
19license authorizes the rendering of an opinion as to the
20structural integrity of a building or its other component
21parts, you may be advised to seek a professional opinion as
22to any defects or concerns mentioned in the report."

23"This home inspection report is not to be construed as an 
24appraisal and may not be used as such for any purpose."

25(b)  Confidentiality.--Except as otherwise required by law, a
26home inspector shall not deliver a home inspection report to any
27person other than the client of the home inspector without the
28client's consent. The seller shall have the right, upon request,
29to receive without charge a copy of a home inspection report
30from the person for whom it was prepared.

1(c)  Repair estimates prohibited.--A home inspector shall not
2express either orally or in writing an estimate of the cost to
3repair any defect found during a home inspection, except that
4such an estimate may be included in a home inspection report if:

5(1)  the report identifies the source of the estimate;

6(2)  the estimate is stated as a range of costs; and

7(3)  the report states that the parties should consider
8obtaining an estimate from a contractor who performs the type
9of repair involved.

10§ 7509.  Liability insurance.

11(a)  Required insurance.--A home inspector shall maintain
12insurance against errors and omissions in the performance of a
13home inspection and general liability, with coverages of not
14less than $100,000 per occurrence and $500,000 in the aggregate
15and with deductibles of not more than $2,500.

16(b)  Term.--

17(1)  Except as set forth in paragraph (2), a home
18inspector shall maintain insurance under subsection (a) for
19at least one year after the latest home inspection report the
20home inspector delivers.

21(2)  Paragraph (1) shall not apply to a home inspection
22report that was delivered prior to the effective date of this
23section.

24§ 7510.  Reliance by buyer.

25A buyer shall be entitled to rely in good faith, without
26independent investigation, on a written representation by a home
27inspector that the home inspector is:

28(1)  licensed or registered as a professional engineer 
29under the act of May 23, 1945 (P.L.913, No.367), known as the 
30Engineer, Land Surveyor and Geologist Registration Law;

1(2)  licensed or registered under the act of December 14, 
21982 (P.L.1227, No.281), known as the Architects Licensure 
3Law; or

4(3)  a full member in good standing of a national home
5inspection association.

6§ 7511.  Penalties.

7(a)  Criminal penalty.--A person who violates section 7509
8(relating to liability insurance) or who provides a false
9representation under section 7510 (relating to reliance by
10buyer) commits a summary offense and, upon conviction thereof
11for a first offense, shall be sentenced to pay a fine not
12exceeding $500 or to imprisonment for not more than three
13months, or both, and for a second or subsequent offense commits
14a misdemeanor of the third degree and, upon conviction thereof,
15shall be sentenced to pay a fine of not less than $2,000 but not
16more than $5,000 or to imprisonment for not less than one year
17but not more than two years, or both.

18(b)  Fine.--A person who violates any provision of section
197508 (relating to home inspection reports) shall, upon
20conviction in a summary proceeding before a magisterial district
21judge, be sentenced to pay a fine not exceeding $500.

22§ 7512.  Statute of limitations.

23An action to recover damages arising from a home inspection
24report must be commenced within one year after the date the
25report is delivered.

26§ 7513.  Engineers and architects.

27Notwithstanding section 7503(b)(1) (relating to relationship 
28to other laws), the following sections: 7505 (relating to 
29consumer remedies), 7507(a)(1) and (b) (relating to contracts 
30with home inspectors), 7508 (relating to home inspection 

1reports) and 7509 (relating to liability insurance) shall apply 
2to a person licensed or registered as a professional engineer 
3under the act of May 23, 1945 (P.L.913, No.367), known as the 
4Engineer, Land Surveyor and Geologist Registration Law, or a 
5person licensed or registered under the act of December 14, 1982 
6(P.L.1227, No.281), known as the Architects Licensure Law, when 
7performing a home inspection.]

8Section 2.  Title 68 is amended by adding a chapter to read:

9CHAPTER 75A

10HOME INSPECTIONS

11Sec.

1275A01.  Scope.

1375A02.  Definitions.

1475A03.  Pennsylvania Board of Home Inspectors.

1575A04.  Powers and duties of board.

1675A05.  Licensure.

1775A06.  Qualifications.

1875A07.  (Reserved).

1975A08.  Home inspection reports.

2075A09.  Liability insurance.

2175A10.  Home inspectors in other states, territories or Dominion
22of Canada.

2375A11.  Duration of license.

2475A12.  Reporting of multiple licensure.

2575A13.  Relationship to other laws.

2675A14.  Unfair Trade Practices and Consumer Protection Law
27remedies.

2875A15.  Contracts with home inspectors.

2975A16.  Fees, fines and civil penalties.

3075A17.  Violation.

175A18.  Refusal, suspension or revocation of license.

275A19.  Suspensions and revocations.

375A20.  Temporary and automatic suspensions.

475A21.  Reinstatement of license.

575A22.  (Reserved).

675A23.  Injunction.

775A24.  Subpoenas and oaths.

875A25.  Statute of limitations.

975A26.  Engineers and architects.

10§ 75A01.  Scope.

11This chapter relates to home inspections.

12§ 75A02.  Definitions.

13(a)  Definitions.--The following words and phrases when used
14in this chapter shall have the meanings given to them in this
15section unless the context clearly indicates otherwise:

16"Agent."  Any broker, associate broker or salesperson, as 
17defined in the act of February 19, 1980 (P.L.15, No.9), known as 
18the Real Estate Licensing and Registration Act.

19"Agreement of transfer."  A contract between a buyer and 
20seller setting forth the terms of a residential real estate 
21transfer.

22"Applicant."  An individual who applies for a license as a 
23home inspector.

24"Board."  The Pennsylvania Board of Home Inspectors.

25"Bureau."  The Bureau of Professional and Occupational 
26Affairs in the Department of State.

27"Buyer."  Any person receiving any estate or interest in real 
28property in a transfer subject to this part.

29"Client."  An individual on whose behalf a contract is
30entered with a licensee under this chapter, or his employer, to

1obtain a home inspection and subsequent home inspection report.

2"Commissioner."  The Commissioner of the Bureau of 
3Professional and Occupational Affairs in the Department of 
4State.

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

6"Home inspection."  A noninvasive visual examination of some 
7combination of the mechanical, electrical or plumbing systems or 
8the structural and essential components of a residential 
9dwelling designed to identify material defects in those systems 
10and components and performed for a fee in connection with or 
11preparation for a proposed or possible residential real estate 
12transfer. The term includes any consultation regarding the 
13property that is represented to be a home inspection or that is 
14described by any similar term. The term does not include any of 
15the following:

16(1)  An examination of a single system or component of a
17residential dwelling such as its electrical or plumbing
18system or its roof.

19(2)  An examination that is limited to inspection for or
20of one or more of the following ancillary services:

21(i)  Wood-destroying insects.

22(ii)  Underground tanks and wells.

23(iii)  Septic systems.

24(iv)  Swimming pools and spas.

25(v)  Alarm systems.

26(vi)  Air and water quality.

27(vii)  Tennis courts and playground equipment.

28(viii)  Pollutants.

29(ix)  Toxic chemicals.

30(x)  Environmental hazards.

1(xi)  Mold.

2(xii)  Biological organisms.

3"Home inspection report."  A report as required under section 
475A08 (relating to home inspection reports).

5"Home inspector."  An individual who performs a home 
6inspection and is licensed under this chapter.

7"Material defect."  A problem with a residential real 
8property or any portion of it that would have a significant 
9adverse impact on the value of the property or that involves an 
10unreasonable risk to people on the property. The fact that a 
11structural element, system or subsystem is near, at or beyond 
12the end of the normal useful life of such a structural element, 
13system or subsystem is not by itself a material defect.

14"Residential dwelling."  A structure consisting of at least 
15one but not more than four units, each designed for occupancy by 
16a single family, whether the unit or units are occupied or 
17unoccupied.

18"Residential real estate transfer."  As defined under section
197103 (relating to application of part).

20"Seller."  Any person transferring any estate or interest in 
21residential real property in a transfer subject to this part.

22"Wood destroying insect."  The term includes termites, 
23carpenter ants, carpenter bees and reinfesting wood boring 
24beetles.

25§ 75A03.  Pennsylvania Board of Home Inspectors.

26(a)  Establishment.--There is established the Pennsylvania
27Board of Home Inspectors within the bureau.

28(b)  Composition.--The board shall consist of the following
29members:

30(1)  The commissioner or a designee.

1(2)  The following members, who shall be citizens of the
2United States and residents of this Commonwealth, appointed
3by the Governor with the advice and consent of the Senate:

4(i)  Two members representing the public at large.

5(ii)  Five professional members. Professional members
6shall have completed no less than 400 fee-paid home
7inspections in this Commonwealth over the five years
8immediately preceding appointment to the board. Except as
9set forth under subsection (f), professional members
10shall be licensed under this chapter as home inspectors.

11(3)  The Attorney General or a designee.

12(c)  Meeting.--The board shall meet within 30 days after the
13appointment of the initial members and shall do all of the
14following:

15(1)  Establish procedures for the board's operation and
16administration of this chapter.

17(2)  Develop application forms for licensure.

18(3)  Circulate application forms.

19(4)  Create program guidelines to educate the public
20regarding licensure requirements under this chapter.

21(d)  Term of membership.--Except as provided under subsection
22(e), professional and public members shall serve a term of four
23years or until a successor has been appointed and qualified but
24in no event longer than six months beyond the four-year period.
25In the event that a member dies or resigns or otherwise is
26disqualified during the term of office, a successor shall be
27appointed in the same way and with the same qualifications and
28shall hold office for an unexpired term. A professional or
29public member shall not be eligible to hold more than two
30consecutive terms.

1(e)  Initial appointments.--For professional and public
2members first appointed to the board under this chapter, the
3term of office shall be as follows:

4(1)  Three members shall serve for a term of four years.

5(2)  Two members shall serve for a term of three years.

6(3)  One member shall serve for a term of two years.

7(f)  Professional members and first appointments.--

8(1)  A professional member initially appointed to the
9board under this chapter need not be licensed at the time of
10appointment but at the time of appointment must have
11satisfied eligibility requirements for licensure. All
12professional members subsequently appointed shall possess the
13required license.

14(2)  A board member that becomes a home inspector shall
15obtain the requisite license within six months of the date
16the initial licenses are issued. If a board member does not
17obtain the requisite license within six months of the
18effective date of this section, the board member shall be
19considered to have resigned from the board on that date.

20(g)  Quorum.--A majority of the members of the board shall
21constitute a quorum. A member may not be counted as part of a
22quorum or vote on any issue unless the member is physically in
23attendance at the meeting.

24(h)  Chairperson.--The board shall select annually a
25chairperson from among its members.

26(i)  Expenses.--With the exception of the commissioner and
27the Attorney General, each member of the board shall receive $60
28per diem when actually attending to the work of the board. A
29member shall also receive the amount of reasonable traveling,
30hotel and other necessary expenses incurred in the performance

1of the member's duties in accordance with Commonwealth
2regulations.

3(j)  Forfeiture.--A professional or public member who fails
4to attend three meetings in 18 months shall forfeit the member's
5seat unless the commissioner, upon written request from the
6member, finds that the member should be excused from a meeting
7because of illness or the death of a family member.

8(k)  Training seminars.--A public member who fails to attend 
9two consecutive statutorily mandated training seminars in 
10accordance with section 813(e) of the act of April 9, 1929 (P.L.

11177, No.175), known as The Administrative Code of 1929, shall 
12forfeit the member's seat unless the commissioner, upon written 
13request from the public member, finds that the public member 
14should be excused from a meeting because of illness or the death 
15of a family member.

16(l)  Frequency of meetings.--The board shall meet at least
17four times per year in the City of Harrisburg and at additional
18times as may be necessary to conduct the business of the board.

19§ 75A04.  Powers and duties of board.

20The board shall have the following powers and duties:

21(1)  To provide for and regulate the licensing of
22individuals engaged in home inspection.

23(2)  To issue licenses, renew licenses, reinstate
24licenses, refuse to renew, suspend and revoke licenses as
25provided under this chapter.

26(3)  To administer and enforce the provisions of this
27chapter.

28(4)  To review applications for licensure and to
29determine the eligibility of an individual applying for
30licensure.

1(5)  To promote educational initiatives to protect
2consumers who contract for home inspection services.

3(6)  To promulgate and enforce regulations, not 
4inconsistent with this chapter, as necessary only to carry 
5out the provisions of this chapter. This paragraph includes 
6the setting of fees and the adoption of standards for 
7certification of home inspectors. Regulations shall be 
8adopted in conformity with the provisions of the act of July 
931, 1968 (P.L.769, No.240), referred to as the Commonwealth 
10Documents Law and the act of June 25, 1982 (P.L.633, No.181), 
11known as the Regulatory Review Act.

12(7)  To keep minutes and records of all proceedings.

13(8)  To submit annually to the department an estimate of
14financial requirements of the board for its administrative,
15legal and other expenses.

16(9)  To submit annually a report to the Consumer
17Protection and Professional Licensure Committee of the Senate
18and the Professional Licensure Committee of the House of
19Representatives. The report shall include a description of
20the types of complaints received, status of cases, the action
21which has been taken and the length of time from initial
22complaint to final resolution.

23(10)  To submit annually to the Appropriations Committee
24of the Senate and the Appropriations Committee of the House
25of Representatives, 15 days after the Governor has submitted
26a budget to the General Assembly, a copy of the budget
27request for the upcoming fiscal year which the board
28previously submitted to the department.

29(11)  To prescribe the form of licenses, applications and
30other documents that are required for home inspectors to be

1licensed under this chapter.

2(12)  To grant, deny, suspend and revoke approval of
3examinations and courses of study regarding home inspections,
4establish standards for continuing home inspection education,
5including the subject matter and content of courses of study
6and the selection of instructors and approve other equivalent
7educational programs and establish procedures for the
8issuance of credit upon satisfactory proof of the completion
9of these programs.

10(13)  To establish and maintain a current list of home
11inspectors who are licensed. This list shall be available for
12public inspection, including on an Internet website.

13(14)  To establish continuing education requirements of
14not less than 32 hours biennially for licensees in accordance
15with this chapter.

16(15)  To require all fee-paid home inspections to be
17conducted in accordance with the standards of practice
18established by the board.

19(16)  To adopt standards of practice for licensees.

20§ 75A05.  Licensure.

21(a)  General rule.--An individual may not perform home
22inspections, offer himself for employment as an individual who
23performs home inspections or hold himself out as a home
24inspector unless licensed by the board or as otherwise 
25consistent with this chapter.

26(b)  Business entities.--An individual, corporation,
27partnership, firm or other entity shall not employ an individual
28to perform a home inspection or allow or direct an individual to
29perform a home inspection unless the individual is licensed
30under this chapter.

1§ 75A06.  Qualifications.

2(a)  General rule.--To be eligible to apply for licensure, an
3applicant must fulfill all of the following requirements:

4(1)  Be of good moral character.

5(2)  Be 18 years of age or older.

6(3)  Have successfully completed high school or its
7equivalent.

8(4)  Satisfactorily complete a board-approved training
9program or course of study involving the performance of home
10inspections; such study program shall be for no less than 120
11hours of instruction and include no less than 40 hours of
12actual in-field training.

13(5)  Satisfactorily complete a board-approved examination 
14that is designed to test competence in home inspection 
15practices. The board shall contract with a professional 
16testing organization for the examination of qualified 
17applicants for licensure. All written, oral and practical 
18examinations shall be prepared and administered by a 
19qualified and approved professional testing organization in 
20the manner prescribed for written examinations by section 
21812.1 of the act of April 9, 1929 (P.L.177, No.175), known as 
22The Administrative Code of 1929.

23(6)  Pay the fee set by the board.

24(b)  Ancillary services.--In the event that an ancillary 
25service is performed by a licensed home inspector, the inspector 
26shall be licensed or certified to perform that service as
27required by State regulation. Inspectors found to be performing
28ancillary inspections for the home-buying public without the
29required license or certification shall be subject to discipline
30by the board.

1§ 75A07.  (Reserved).

2§ 75A08.  Home inspection reports.

3(a)  Required contents.--A home inspection report must be in
4writing and shall include:

5(1)  A description of the scope of the inspection,
6including without limitation an identification of the
7structural elements, systems and subsystems of the 
8residential dwelling covered by the report.

9(2)  A description of any material defects noted during
10the inspection, along with any recommendation that certain
11experts be retained to determine the extent of the defects
12and any corrective action that should be taken. A material
13defect that poses an unreasonable risk to people on the
14property shall be conspicuously identified as such.

15(3)  The following statements, set forth conspicuously:

16A home inspection is intended to assist in evaluation of
17the overall condition of the residential dwelling. The
18inspection is based on observation of the visible and
19apparent condition of the residential dwelling and its
20components on the date of inspection.

21The results of this home inspection are not intended to
22make any representation regarding the presence or absence of
23latent or concealed defects that are not reasonably
24ascertainable in a competently performed home inspection. No
25warranty or guaranty is expressed or implied.

26If the person conducting your home inspection is not a 
27licensed structural engineer or other professional whose 
28license authorizes the rendering of an opinion as to the 
29structural integrity of a residential dwelling or its other 
30component parts, you may be advised to seek a professional 

1opinion as to any defects or concerns mentioned in the
2report.

3This home inspection report is not to be construed as an
4appraisal and may not be used as such for any purpose.

5(b)  Confidentiality.--Except as otherwise required by law, a
6home inspector shall not deliver a home inspection report to any
7person other than the client of the home inspector without the
8client's consent.

9(c)  Repair estimates prohibited.--A home inspector shall not
10express either orally or in writing an estimate of the cost to
11repair any defect found during a home inspection, except that 
12such an estimate may be included in a home inspection report if 
13the home inspector is so qualified and:

14(1)  the report identifies the source of the estimate;

15(2)  the estimate is stated as a range of costs from
16verifiable price sources; and

17(3)  the report states that the parties should consider
18obtaining an estimate from a contractor who performs the type
19of repair involved.

20§ 75A09.  Liability insurance.

21(a)  Required insurance.--A home inspector shall maintain
22professional liability insurance in the performance of a home
23inspection, with coverages of not less than $100,000 per
24occurrence and $500,000 in the aggregate.

25(b)  Term.--

26(1)  Except as set forth in paragraph (2), a home
27inspector shall maintain insurance under subsection (a) for
28at least one year after the latest home inspection report was
29delivered.

30(2)  Paragraph (1) shall not apply to a home inspection

1report that was delivered prior to December 20, 2001.

2§ 75A10.  Home inspectors in other states, territories or
3Dominion of Canada.

4The board may issue a license to an individual who has
5licensure or its equivalent as a home inspector in any other
6state or territory of the United States or the Dominion of
7Canada if all of the following requirements are met:

8(1)  The other jurisdiction grants the same privileges to
9licensees of Pennsylvania as the Commonwealth grants to
10licensees of that other jurisdiction.

11(2)  The person is licensed or its equivalent in the
12other jurisdiction and has successfully passed the exam.

13(3)  The licensing requirements of the other jurisdiction
14are substantially similar to the licensing requirements of
15this chapter.

16(4)  The person provides a notarized statement that the
17person has studied, is familiar with and will abide by the
18provisions of this chapter and the administrative regulations
19promulgated by the board.

20(5)  The individual pays the required fee.

21§ 75A11.  Duration of license.

22(a)  Duration of license.--A license issued under this
23chapter shall be on a biennial basis. The biennial expiration
24date shall be established by the board. Application for renewal
25of a license shall biennially be forwarded to an individual
26holding a current license prior to the expiration date of the
27current renewal biennium.

28(b)  Inactive status.--An individual licensed under this 
29chapter may request an application for inactive status. The 
30application form may be completed and returned to the board. 

1Upon receipt of an application, the individual shall be
2maintained on inactive status without fee and shall be entitled 
3to apply for a licensure renewal at any time after complying 
4with the requirements for continuing education. An individual 
5who requests the board to activate the individual's license and 
6who has been on inactive status for a period of three 
7consecutive years shall, prior to receiving an active license, 
8satisfy the requirements of the board's regulations for ensuring 
9continued competence, including holding current certification 
10and remitting the required fee. The board shall promulgate 
11regulations to carry out the provisions of this subsection.

12§ 75A12.  Reporting of multiple licensure.

13A home inspector who is also licensed to perform home
14inspections in any other state, territory or possession of the
15United States or any other country shall report this information
16to the board on the biennial registration application. A
17licensee shall report any disciplinary action regarding a
18license taken in another state, territory, possession of the
19United States or any other country to the board on the biennial
20registration application or within 90 days of final disposition,
21whichever is sooner. Multiple licensure shall be noted by the
22board on the home inspector's record, and the state, territory,
23possession or country shall be notified of any disciplinary
24actions taken by the board against the licensee in this
25Commonwealth.

26§ 75A13.  Relationship to other laws.

27(a)  General rule.--Nothing in this chapter shall be
28construed to allow a home inspector who is not registered or
29licensed under one or more of the following laws to perform any
30activity that would constitute the practice of the profession

1regulated by that law:

2(1)  The act of May 23, 1945 (P.L.913, No.367), known as 
3the Engineer, Land Surveyor and Geologist Registration Law.

4(2)  The act of January 24, 1966 (1965 P.L.1535, No.537), 
5known as the Pennsylvania Sewage Facilities Act.

6(3)  The act of March 1, 1974 (P.L.90, No.24), known as 
7the Pennsylvania Pesticide Control Act of 1973.

8(4)  The act of December 14, 1982 (P.L.1227, No.281), 
9known as the Architects Licensure Law.

10(5)  The act of July 9, 1987 (P.L.238, No.43), known as 
11the Radon Certification Act.

12(6)  The act of July 10, 1990 (P.L.404, No.98), known as 
13the Real Estate Appraisers Certification Act.

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

15(1)  Apply to a person registered or licensed under an
16act referred to in subsection (a) when acting pursuant to his
17registration or license.

18(2)  Apply to an officer or employee of a municipality or
19local authority when acting in his official capacity.

20(3)  Affect the obligations or immunities of a person 
21licensed under the act of February 19, 1980 (P.L.15, No.9), 
22known as the Real Estate Licensing and Registration Act, that 
23are imposed or provided by that act or Chapter 73 (relating 
24to seller disclosures) when the person is acting pursuant to 
25his license.

26(4)  Affect the obligations or immunities of a person
27certified under the Real Estate Appraisers Certification Act
28when the person is acting pursuant to the person's license.

29§ 75A14.  Unfair Trade Practices and Consumer Protection Law
30remedies.

1(a)  General rule.--The performance of a home inspection is a 
2service that is subject to the act of December 17, 1968 (P.L.

31224, No.387), known as the Unfair Trade Practices and Consumer 
4Protection Law.

5(b)  Prohibited acts.--Any of the following acts engaged in
6by a home inspector, an employer of a home inspector or another
7business or person that controls or has a financial interest in
8the employer of a home inspector shall be deemed to be an unfair
9or deceptive act or practice as defined by section 2(4)(i)
10through (xxi) of the Unfair Trade Practices and Consumer
11Protection Law:

12(1)  Performing or offering to perform for an additional
13fee any repairs to a residential dwelling with respect to
14which the home inspector, the employer of the home inspector
15or such other business or person has prepared a home
16inspection report within the preceding 12 months, except that
17this paragraph shall not apply to remediation for radon or
18wood destroying insects.

19(2)  Inspecting for a fee any property in which the home
20inspector, the employer of the home inspector or such other
21business or person has any financial interest or any interest
22in the transfer of the property, including without limitation
23receipt of a commission as an agent, unless the financial
24interest or interest in the transfer of the property is
25disclosed in writing to the buyer before the home inspection
26is performed and the buyer signs an acknowledgment of receipt
27of the disclosure.

28(3)  Offering or delivering any commission, referral fee
29or kickback to the seller of the inspected property or to an
30agent for either or both of the seller and the buyer for the

1referral of any business to the home inspector, the employer
2of the home inspector or such other business or person.

3(4)  Accepting an engagement to perform a home inspection
4or to prepare a home inspection report in which the
5employment itself or the fee payable for the inspection is
6contingent upon the conclusions in the report, preestablished
7or prescribed findings or the closing of the transaction.

8(c)  Exception.--A home warranty company that is affiliated
9with or retains the home inspector does not violate subsection
10(b) if the home warranty company performs repairs pursuant to
11claims made under a home warranty contract and discloses its 
12affiliation.

13(d)  Consumer remedies.--In addition to any other remedies
14available under the Unfair Trade Practices and Consumer
15Protection Law or other applicable provision of law, the owner
16of a property on which repairs are performed in violation of
17subsection (b)(1) shall be entitled to a full refund of any
18moneys paid for those repairs, and any promissory note or other
19obligation to pay given to the person performing those repairs
20shall be void.

21§ 75A15.  Contracts with home inspectors.

22(a)  Prohibited provisions.--Any of the following types of
23provisions in a contract with a home inspector for the
24performance of a home inspection are contrary to public policy
25and shall be void:

26(1)  A limitation on the liability of the home inspector
27for gross negligence or willful misconduct.

28(2)  A waiver or modification of any provision of this
29chapter.

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

1the services to be performed and the systems and conditions to
2be inspected or excluded from inspection may be defined by a
3contract between the home inspector and the client.

4(c)  Required contractual provision regarding home
5inspections.--

6(1)  Except as provided under paragraph (2), a provision
7of an agreement of transfer regarding the right of the buyer
8to obtain a home inspection report and providing for the
9consequences, if any, shall provide that the home inspection
10be performed by a licensed home inspector.

11(2)  A home inspection satisfies the requirements of this
12section if the person is:

13(i)  licensed or registered as a professional 
14engineer under the act of May 23, 1945 (P.L.913, No.367), 
15known as the Engineer, Land Surveyor and Geologist 
16Registration Law; or

17(ii)  licensed or registered under the act of 
18December 14, 1982 (P.L.1227, No.281), known as the 
19Architects Licensure Law.

20§ 75A16.  Fees, fines and civil penalties.

21(a)  Fees.--All fees required under this chapter shall be 
22fixed by the board by regulation and shall be subject to the act 
23of June 25, 1982 (P.L.633, No.181), known as the Regulatory 
24Review Act. If the revenues raised by the fees, fines and civil 
25penalties imposed under this chapter are not sufficient to meet 
26expenditures over a two-year period, the board shall increase 
27those fees by regulation so that projected revenues will meet or 
28exceed projected expenditures.

29(b)  Deposit of fees.--All fees, fines and civil penalties
30imposed in accordance with this chapter shall be paid into the

1Professional Licensure Augmentation Account.

2(c)  Permitted fees.--The board may charge a fee, as set by
3the board by regulation, for licensure, for renewing licensure
4and for other services of the board as permitted under this
5chapter or by regulation.

6§ 75A17.  Violation.

7(a)  Criminal penalty.--A person violating a provision of
8this chapter commits a misdemeanor of the third degree and
9shall, upon conviction, be sentenced to pay a fine of not more
10than $2,500 or to imprisonment for not more than six months for
11the first violation. A person convicted of a second or
12subsequent violation shall be sentenced to pay a fine of not
13more than $5,000 or to imprisonment for not less than six months
14or more than one year, or both.

15(b)  Civil penalty.--In addition to any other civil remedy or
16criminal penalty provided for under this chapter, the board, by
17a vote of the majority of the maximum number of the authorized
18membership of the board as provided by law or by a vote of the
19majority of the duly qualified and confirmed membership or a
20minimum of five members, whichever is greater, may levy a civil
21penalty of up to $10,000 on any of the following:

22(1)  A home inspector who violates a provision of this
23chapter.

24(2)  An individual who performs home inspections without
25a license, as required by this chapter.

26(c)  Procedure.--The board shall levy the civil penalty under 
27subsection (b) only after affording the accused the opportunity 
28for a hearing as provided under 2 Pa.C.S. (relating to 
29administrative law and procedure).

30§ 75A18.  Refusal, suspension or revocation of license.

1(a)  General rule.--The board shall have the authority to
2refuse, suspend or revoke a license or discipline for unlicensed
3activity in a case where the board finds any of the following:

4(1)  The licensee is negligent or incompetent in
5performing a home inspection.

6(2)  The licensee has willfully or repeatedly violated
7any of the provisions of this chapter or a regulation of the
8board.

9(3)  The licensee or individual has committed fraud or
10deceit in any of the following:

11(i)  Performing home inspections.

12(ii)  Securing licensure or certification.

13(iii)  Advertising.

14(iv)  Performing or offering to perform home
15inspections for compensation without being licensed as a
16home inspector and without being exempt from licensure
17under this chapter.

18(v)  Presenting as the individual's own license, the
19license of another.

20(vi)  Intentionally giving false or materially
21misleading information to the board or to a board or
22staff member in connection with a licensing matter.

23(vii)  Using an expired, suspended, revoked or
24otherwise restricted license.

25(viii)  Performing or offering to perform for an 
26additional fee any repairs to a residential dwelling with 
27respect to which the home inspector, the employer of the 
28home inspector or other business or person affiliated 
29with the home inspector has prepared a home inspection 
30report within the preceding 12 months, except that this 

1subparagraph shall not apply to remediation for radon or 
2wood destroying insects.

3(ix)  Participation with any real estate broker or
4agent, directly or indirectly, in an action in which the
5home inspector pays or receives a direct or indirect
6consideration for receiving leads toward providing home
7inspection services.

8(4)  The licensee has been convicted of a felony or a
9crime of moral turpitude.

10(5)  The licensee has had his license suspended or
11revoked or has received other disciplinary action by the
12proper licensing authority in another state, territory,
13possession of the United States or any other country.

14(6)  The licensee falsely advertised or made misleading,
15deceptive, untrue or fraudulent material representations
16regarding licensure.

17(b)  Acts authorized.--If the board finds that the license of
18a home inspector may be refused, revoked or suspended under
19subsection (a), the board may do any of the following:

20(1)  Deny the application for a license.

21(2)  Administer a public reprimand.

22(3)  Revoke, suspend, limit or otherwise restrict a
23license. The board shall require an individual whose license
24has been suspended or revoked to return the license in the
25manner as the board directs.

26(4)  Suspend enforcement of its finding and place a
27licensee on probation with the right to vacate the 
28probationary order for noncompliance.

29(5)  Restore or reissue, in its discretion, a suspended
30license and impose any disciplinary or corrective measure

1which it might originally have imposed.

2§ 75A19.  Suspensions and revocations.

3Disciplinary action shall be imposed only in accordance with 
4the regulations of the board and only by majority vote of the 
5members of the board after a hearing. An action of the board 
6shall be taken subject to the right of notice, hearing and 
7adjudication, and the right of appeal, in accordance with 2 
8Pa.C.S. (relating to administrative law and procedure). The 
9board, by majority action, may reissue a license which has been 
10suspended. If a license has been revoked, the board shall 
11reissue a license only under section 75A21 (relating to 
12reinstatement of license).

13§ 75A20.  Temporary and automatic suspensions.

14(a)  Temporary suspensions.--

15(1)  A license issued under this chapter may be
16temporarily suspended under circumstances as determined by
17the board to be an immediate and clear danger to the public
18health and safety. The board shall issue an order to that
19effect without a hearing, but upon due notice to the licensee
20concerned, at his last known address, which shall include a
21written statement of all allegations against the licensee.
22The board shall thereupon commence formal action to suspend,
23revoke or restrict the license of a person concerned as
24otherwise provided for in this chapter. All actions shall be
25taken promptly and without delay.

26(2)  Within 30 days following the issuance of an order 
27temporarily suspending a license, the board shall conduct or 
28cause to be conducted a preliminary hearing to determine 
29whether there is a prima facie case supporting the 
30suspension. The licensee whose license has been temporarily 

1suspended may be present at the preliminary hearing and may
2be represented by counsel, cross-examine witnesses, inspect 
3physical evidence, call witnesses, offer evidence and 
4testimony and make a record of the proceedings.

5(3)  If it is determined that there is not a prima facie
6case, the suspended license shall by immediately restored.
7The temporary suspension shall remain in effect until vacated
8by the board, but in no event longer than 180 days.

9(b)  Automatic suspension.--

10(1)  A license issued under this chapter shall 
11automatically be suspended upon the legal commitment to an 
12institution of a licensee because of mental incompetency from 
13any cause upon filing with the board a certified copy of such 
14commitment, conviction of a felony under the act of April 14, 
151972 (P.L.233, No.64), known as The Controlled Substance, 
16Drug, Device and Cosmetic Act, or conviction of an offense 
17under the laws of another jurisdiction, which if committed in 
18Pennsylvania, would be a felony under The Controlled 
19Substance, Drug, Device and Cosmetic Act.

20(2)  Automatic suspension under this subsection shall not
21be stayed pending any appeal of a conviction. Restoration of
22such license shall be made as provided in this chapter in the
23case of revocation or suspension of such license.

24(3)  As used in this subsection, the term "conviction"
25shall include a judgment, an admission of guilt or a plea of
26nolo contendere.

27(c)  Notice of violations.--

28(1)  An attorney responsible for representing the
29Commonwealth in disciplinary matters before the board shall
30notify the board immediately upon receiving notification of

1an alleged violation of this chapter.

2(2)  The board shall maintain current records of all
3reports of alleged violations and periodically review the
4records for the purpose of determining that each alleged
5violation has been resolved in a timely manner.

6§ 75A21.  Reinstatement of license.

7Unless ordered to do so by the Commonwealth Court or an
8appeal from the Commonwealth Court, the board shall not
9reinstate the license of an individual which has been revoked.
10An individual whose license has been revoked may reapply for a
11license after a period of at least five years but must meet all
12of the licensing requirements of this chapter.

13§ 75A22.  (Reserved).

14§ 75A23.  Injunction.

15Whenever in the judgment of the board a person has engaged in
16an act or practice which is regulated under this chapter and
17which constitutes or will constitute a violation of this
18chapter, the board or its agents may make application to the
19appropriate court for an order enjoining the act or practice
20and, upon a showing by the board that the person has engaged or
21is about to engage in the act or practice, an injunction,
22restraining order or other order as may be appropriate shall be
23granted by the court. The remedy by injunction shall be in
24addition to any other civil or criminal prosecution and
25punishment.

26§ 75A24.  Subpoenas and oaths.

27(a)  Authority granted.--The board shall have the authority 
28to issue subpoenas, upon application of an attorney responsible 
29for representing the Commonwealth in disciplinary matters before 
30the board, for the purpose of investigating alleged violations 

1of this chapter or regulations of the board. The board shall 
2have the power to subpoena witnesses, to administer oaths, to 
3examine witnesses and to take testimony or compel the production 
4of books, records, papers and documents as it may deem necessary 
5or proper in and pertinent to any proceeding, investigation or 
6hearing held or had by the board. The board is authorized to 
7apply to the Commonwealth Court to enforce its subpoenas. The 
8court may impose limitations on the scope of the subpoena as is 
9necessary to prevent unnecessary intrusion into client 
10confidential information.

11(b)  Disciplinary matters.--An attorney responsible for
12representing the Commonwealth in disciplinary matters before the
13board shall maintain current records of all reported alleged
14violations and periodically review the records for the purpose
15of determining that each alleged violation has been resolved in
16a timely manner.

17§ 75A25.  Statute of limitations.

18An action to recover damages arising from a home inspection
19report must be commenced within one year after the date the
20report is delivered, regardless of when the material defect was
21discovered.

22§ 75A26.  Engineers and architects.

23Notwithstanding section 75A13(b)(1) (relating to relationship 
24to other laws), the following sections shall apply to a person 
25licensed or registered as a professional engineer under the act 
26of May 23, 1945 (P.L.913, No.367), known as the Engineer, Land 
27Surveyor and Geologist Registration Law, or a person licensed or 
28registered under the act of December 14, 1982 (P.L.1227, No.

29281), known as the Architects Licensure Law, when performing a 
30home inspection:

1(1)  Section 75A08 (relating to home inspection reports).

2(2)  Section 75A09 (relating to liability insurance).

3(3)  Section 75A14 (relating to Unfair Trade Practices
4and Consumer Protection Law remedies).

5(4)  Section 75A15(a)(1) and (b) (relating to contracts
6with home inspectors).

7Section 3.  For one year from the publication in the 
8Pennsylvania Bulletin that the regulations required under 
9section 5 have been adopted and are in effect, an applicant who 
10meets all of the requirements of former 68 Pa.C.S. Ch. 75 and 
11this section may be licensed as a home inspector without having 
12to complete a board-approved training program or course of study 
13involving the performance of home inspections. The applicant 
14must:

15(1)  Be at least 18 years of age.

16(2)  Have passed a written examination to test competence
17in home inspection practice.

18(3)  Have completed no less than 250 fee-paid inspections
19over the three years immediately preceding publication in the
20Pennsylvania Bulletin that the regulations required under
21section 5 have been adopted and are in effect.

22(4)  Show proof of professional liability insurance 
23consistent with 68 Pa.C.S. § 75A09.

24Section 4.  The sum of $85,000, or as much thereof as may be 
25necessary, is hereby appropriated from the Professional 
26Licensure Augmentation Account to the Department of State for 
27the payment of costs associated with processing licenses and 
28renewing licenses, for the operation of the Pennsylvania Board 
29of Home Inspectors and for other costs associated with the 
30implementation of 68 Pa.C.S. Ch. 75A. The appropriation shall be 

1repaid by the board within three years of the beginning of 
2issuance of licenses by the board.

3Section 5.  Within 18 months of the effective date of this 
4section, the Pennsylvania Board of Home Inspectors shall 
5promulgate regulations to carry out the provisions of 68 Pa.C.S. 
6Ch. 75A.

7Section 6.  The provisions of 68 Pa.C.S. Ch. 75A requiring 
8the licensure of home inspectors shall not apply until 
9publication in the Pennsylvania Bulletin that the regulations 
10required by section 5 have been adopted and are in effect.

11Section 7.  The addition of 68 Pa.C.S. Ch. 75A is a 
12continuation of former 68 Pa.C.S. Ch. 75. Except as otherwise 
13provided under Chapter 75A, all activities initiated under 
14former Chapter 75 shall continue and remain in full force and 
15effect and may be completed under Chapter 75A. Orders, 
16regulations, rules and decisions which were made under former 
17Chapter 75 and which are in effect on the effective date of this 
18section shall remain in full force and effect until revoked, 
19vacated or modified under Chapter 75A. Contracts, obligations 
20and collective bargaining agreements entered into under former 
21Chapter 75 are not affected nor impaired by the repeal of former 
22Chapter 75.

23Section 8.  This act shall take effect in 60 days.