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STATE OF IOWA
KIM REYNOLDS
GOVERNOR
April 18, 2025
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretary,
I hereby transmit:
Senate File 460, an Act relating to home inspections, including persons authorized to
perform home inspections and requirements for independent home inspection reports,
providing penalties, and making penalties applicable.
The above Senate File is hereby approved on this date.
Sincerely,
imsj^gynold!
Governor of Iowa"
cc: Secretary of the Senate
Clerk of the House
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 TAX 515.725.3527 WWW.GOVERNOR.IOWA.GOV
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GENERAL ASSEMBLY
Senate Pile 460
AN ACT
RELATING TO HOME INSPECTIONS, INCLUDING PERSONS AUTHORIZED TO
PERFORM HOME INSPECTIONS AND REQUIREMENTS FOR INDEPENDENT
HOME INSPECTION REPORTS, PROVIDING PENALTIES, AND MAKING
PENALTIES APPLICABLE.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. NEW SECTION. 558A.4A Independent home inspection
report — persons authorized to issue.
1. A person shall not issue an independent home inspection
report unless the person is a home inspector, a person who
holds a license or registration in good standing to perform
home inspections in another state, an architect licensed
pursuant to chapter 544A, or a professional engineer licensed
pursuant to chapter 542B.
2. A home inspector shall conduct a home inspection with the
degree of care that a reasonably prudent home inspector would
exercise, which shall be based on the standards of practice and
code of ethics of a national home inspectors association.
3. a, A home inspector, employer of a home inspector, or a
person who controls or has a financial interest in the employer
of a home inspector, who does any of the following commits an
unlawful practice under section 714.16, subsection 2, paragraph
a :
(1) Performs or offers to perform for an additional fee any
repairs to a structure with respect to which the home inspector
has prepared a home inspection report within the preceding
Senate File 460, p. 2
twelve months. This subparagraph does not apply to remediation
for radon or wood-destroying insects.
(2) Inspects for a fee any property in which the home
inspector, the employer of the home inspector, or person
who controls or has a financial interest in the employer
of a home inspector has an interest in the transfer of the
property, including but not limited to receipt of a commission
as a licensee under chapter 543B, unless the 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) Offers or delivers a commission, referral fee, or
kickback to the seller of the inspected property or to a
licensee under chapter 543B for either or both of the seller
and the buyer for the referral of business to the home
inspector, the employer of the home inspector, or person who
controls or has a financial interest in the employer of a home
inspector.
(4) Accepts an engagement to perform a home inspection or
to prepare a home inspection report in which the engagement
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.
b. Paragraph does not apply to a home warranty company
that is affiliated with or retains a home inspector if the home
warranty company performs repairs pursuant to claims made under
a home warranty contract.
c» In addition to any remedies available for a violation
of section 714.16, subsection 2, paragraph the owner
of a property on which repairs are performed in violation of
paragraph '^a^t subparagraph (1), shall be entitled to a full
refund of any moneys paid for those repairs, and any promissory
note or other obligation to pay given to the person performing
those repairs shall be void.
4. An independent home inspection report must be in writing
and must include all of the following;
a. A description of the scope of the inspection, including
an identification of the structural elements, systems, and
subsystems covered by the report.
Senate File 450, p. 3
b» A description of any material defects noted during the
inspection, along with any recommendation that certain experts
be retained to determine the extent of the defects and any
corrective action that should be taken. A material defect that
poses an unreasonable risk to people on the property must be
conspicuously identified as such.
c. All of the following statements, set forth conspicuously:
(1) ^^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."
(2) ^^The results of this home inspection are not intended
to make any representation regarding the presence or absence
of latent or concealed defects that are not reasonably
ascertainable in a competently performed home inspection. No
warranty or guarantee is expressed or implied."
(3) ^If the person conducting your home inspection is not
a licensed structural engineer or other professional whose
license authorizes the rendering of an opinion as to the
structural integrity of a building or its other component
parts, you may be advised to seek a professional opinion as to
any defects or concerns mentioned in the report."
(4) ^^The home inspection report is not to be construed as an
appraisal and may not be used as such for any purpose."
5. Except as otherwise required by law, a home inspector
shall not deliver a home inspection report to any person other
than the client of the home inspector without the client's
consent. The seller shall have the right, upon request, to
receive without charge a copy of a home inspection report from
the person for whom it was prepared.
6. A home inspector shall not express either orally or
in writing an estimate of the cost to repair a defect found
during a home inspection, except that such an estimate may be
included in an independent home inspection report if all of the
following apply:
a» The report identifies the source of the estimate.
b» The estimate is stated as a range of costs.
c. The report states that the parties should consider
obtaining an estimate from a contractor who performs the type
Senate File 460, p. 4
of repair involved.
7. 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 one hundred
thousand dollars per occurrence and five hundred thousand
dollars in the aggregate, and with deductibles of not more than
two thousand five hundred dollars.
a. Except as provided in paragraph a home inspector
shall maintain insurance under this subsection for at least one
year after the latest home inspection report the home inspector
delivers.
b. Paragraph does not apply to a home inspection report
that was delivered prior to the effective date of this Act.
8, A buyer shall be entitled to rely in good faith, without
independent investigation, on a written representation that a
person is a home inspector, a person who holds a license or
registration in good standing to perform home inspections in
another state, an architect licensed pursuant to chapter 544A,
or a professional engineer licensed pursuant to chapter 542B.
9. A contract with a person to provide a home inspection
shall not limit the liability of the person providing the home
inspection for gross negligence or willful misconduct, or waive
or modify a provision of this section. However, the scope of a
home inspection, the services to be performed, and the systems
and conditions to be inspected or excluded from inspection may
be defined by a contract between the person providing the home
inspection and the client.
10, a, A home inspector who does not maintain insurance in
violation of subsection 7 or who falsely represents that the
person is a home inspector, a person who holds a license or
registration in good standing to perform home inspections in
another state, an architect licensed pursuant to chapter 544A,
or a professional engineer licensed pursuant to chapter 542B,
is guilty of the following:
(1) For a first offense, a simple misdemeanor.
(2) For a second or subsequent offense, a serious
misdemeanor.
b, A person who violates a provision of subsection 4 is
guilty of a simple misdemeanor punishable by a fine not to
Senate File 460, p. 5
exceed five hundred dollars.
11. For purposes of this section:
^Home inspection'" means a noninvasive visual examination
of some combination of the mechanical, electrical, or plumbing
systems or the structural and essential components of a
residential dwelling, that is intended to identify material
defects in those systems and components and is performed for
a fee in connection with or in preparation for a proposed or
possible residential real estate transfer. "'Home inspection"
includes a consultation regarding the property that is
represented to be a home inspection or that is described by a
similar term. ""Home inspection" does not include an examination
of a single system or component of a residential dwelling or an
examination that is limited to inspection for or of one or more
of the following:
(1) Wood-destroying insects.
(2) Underground tanks and wells.
(3) Septic systems.
(4) Swimming pools and spas.
(5) Alarm systems.
(6) Air and water quality.
(7) Tennis courts and playground equipment.
(8) Pollutants.
(9) Toxic chemicals and environmental hazards.
b. ""Home inspection report" means a written report of the
results of a home inspection.
c. "'Home inspector" means a member in good standing of a
national home inspectors association, or a person supervised
by a member in good standing of a national home inspectors
association who agrees to be responsible for the contents of
any home inspection report produced by the person.
d. "^National home inspectors association" means a national
association of home inspectors that meets all of the following
requirements:
(1) Operates on a nonprofit basis and does not operate as a
franchise.
(2) Has members in more than ten states.
(3) Requires that a person shall not become a full member
unless the person has performed or participated in more than
Senate File 460, p, 6
one hundred home inspections and has passed a psychometrically
sound examination testing knowledge of the proper procedures
for conducting a home inspection.
(4) Requires that its members comply with a code of conduct
and attend continuing professional education classes as an
ongoing_condition of membership.
AMY SINCLAIR
President of the Senate
PAT GRASSL]
Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 460, Ninety-first General Assembly.
Approved 2025
W. CHARLES SMITHSON
Secretliry oA^the Senate
Governor