An Act amending the act of February 19, 1980 (P.L.15, No.9), known as the Real Estate Licensing and Registration Act, in definitions, further providing for definitions and for State Real Estate Commission; in application of the act and penalties, further providing for unlawful to conduct business without license or registration certificate, for civil suits, for criminal penalties and for civil penalty; in powers and duties of the State Real Estate Commission - general, further providing for duty to issue licenses and registration certificates and for approval of schools, providing for continuing education for licensed home inspectors and further providing for administration and enforcement; in qualifications and applications for licenses and registration certificates, further providing for reputation and inactive licensee and revoked license, repealing provisions relating to qualifications for license and to application for license and providing for home inspector license and home inspector-in-training registration; in duties of licensees, further providing for duty of brokers, cemetery brokers and rental listing referral agents to maintain office, for reciprocal licenses, for employment of associate brokers, salesperson and for broker price opinion; making a repeal; and making an editorial change.

PRIOR PRINTER'S NO. 3641 PRINTER'S NO. 3689
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2645
Session of
2026
INTRODUCED BY T. DAVIS, BRENNAN, GUENST, McNEILL, PROBST,
SANCHEZ, RIVERA, NEILSON, MERSKI, McANDREW, M. MACKENZIE,
SHUSTERMAN, D. WILLIAMS, STEELE, DEASY, CIRESI, WARREN,
MENTZER AND BOYD, JUNE 17, 2026
AS REPORTED FROM COMMITTEE ON PROFESSIONAL LICENSURE, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 24, 2026
AN ACT
Amending the act of February 19, 1980 (P.L.15, No.9), entitled
"An act establishing the State Real Estate Commission and
providing for the licensing of real estate brokers and
salesmen," in definitions, further providing for definitions
and for State Real Estate Commission; in application of the
act and penalties, further providing for unlawful to conduct
business without license or registration certificate, for
civil suits, for criminal penalties and for civil penalty; in
powers and duties of the State Real Estate Commission -
general, further providing for duty to issue licenses and
registration certificates and for approval of schools,
providing for continuing education for licensed home
inspectors and further providing for administration and
enforcement; in qualifications and applications for licenses
and registration certificates, further providing for
reputation and inactive licensee and revoked license,
REPEALING PROVISIONS RELATING TO QUALIFICATIONS FOR LICENSE
AND TO APPLICATION FOR LICENSE and providing for home
inspector license and home inspector-in-training
registration; in duties of licensees, further providing for
DUTY OF BROKERS, CEMETERY BROKERS AND RENTAL LISTING REFERRAL
AGENTS TO MAINTAIN OFFICE, FOR reciprocal licenses, FOR
EMPLOYMENT OF ASSOCIATE BROKERS, SALESPERSON and for broker
price opinion; making a repeal; and making an editorial
change.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "license" and "school" in <--
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section 201 of the act of February 19, 1980 (P.L.15, No.9),
known as the Real Estate Licensing and Registration Act, are
amended and the section is amended by adding definitions to
read:
SECTION 1. THE DEFINITIONS OF "CAMPGROUND MEMBERSHIP
SALESPERSON," "LICENSE," "SALESPERSON," "SCHOOL" AND "TIME-SHARE
SALESPERSON" IN SECTION 201 OF THE ACT OF FEBRUARY 19, 1980
(P.L.15, NO.9), KNOWN AS THE REAL ESTATE LICENSING AND
REGISTRATION ACT, AMENDED JULY 8, 2024 (P.L.545, NO.52), ARE
AMENDED AND THE SECTION IS AMENDED BY ADDING DEFINITIONS TO
READ:
Section 201. Definitions.
The following words and phrases when used in this act shall
have, unless the context clearly indicates otherwise, the
meanings given to them in this section:
* * *
"CAMPGROUND MEMBERSHIP SALESPERSON." A PERSON WHO EITHER AS
AN EMPLOYEE OR AN INDEPENDENT CONTRACTOR SELLS OR OFFERS TO SELL
CAMPGROUND MEMBERSHIPS. [SUCH PERSON SHALL SELL CAMPGROUND
MEMBERSHIPS UNDER THE ACTIVE SUPERVISION OF A BROKER. A PERSON
LICENSED AS A BROKER, AS A SALESPERSON OR AS A TIME-SHARE
SALESPERSON SHALL NOT BE REQUIRED TO BE LICENSED AS A CAMPGROUND
MEMBERSHIP SALESPERSON AS A CONDITION FOR SELLING OR OFFERING TO
SELL CAMPGROUND MEMBERSHIPS.]
* * *
"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.
* * *
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"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 such as a home survey, home
assessment, building survey, home walk-through or dwelling
examination.
(2) Does not include:
(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 and smart home 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.
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"Home inspector-in-training." A candidate for licensure as a
licensed home inspector who has been granted a registration as a
home inspector-in-training.
"License." The term includes both a standard license and a
reciprocal license, or in the context of home inspection, a home
inspector license.
"Licensed home inspector." An individual licensed by the
commission 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 a professional engineer, professional land surveyor and
professional geologist.
(2) The act of January 24, 1966 (1965 P.L.1535, No.537),
known as the Pennsylvania Sewage Facilities Act.
(3) The act of March 1, 1974 (P.L.90, No.24), known as
the Pennsylvania Pesticide Control Act of 1973.
(4) The act of December 14, 1982 (P.L.1227, No.281),
known as the Architects Licensure Law.
(5) The act of July 9, 1987 (P.L.238, No.43), known as
the Radon Certification Act.
* * *
"Material defect." A problem with a residential 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.
* * *
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"SALESPERSON." ANY PERSON EMPLOYED BY A LICENSED REAL ESTATE
BROKER TO PERFORM COMPARATIVE MARKET ANALYSES OR TO LIST FOR
SALE, SELL OR OFFER FOR SALE, TO BUY OR OFFER TO BUY OR TO
NEGOTIATE THE PURCHASE OR SALE OR EXCHANGE OF REAL ESTATE OR TO
NEGOTIATE A LOAN ON REAL ESTATE OR TO LEASE OR RENT OR OFFER TO
LEASE, RENT OR PLACE FOR RENT ANY REAL ESTATE OR COLLECT OR
OFFER OR ATTEMPT TO COLLECT RENT FOR THE USE OF REAL ESTATE OR
ENGAGE OR ATTEMPT TO ENGAGE IN A WHOLESALE TRANSACTION FOR OR IN
BEHALF OF SUCH REAL ESTATE BROKER. NO PERSON EMPLOYED BY A
BROKER TO PERFORM DUTIES OTHER THAN THOSE ACTIVITIES AS DEFINED
HEREIN UNDER "BROKER" SHALL BE REQUIRED TO BE LICENSED AS A
SALESPERSON. NO PERSON WHO PERFORMS ONLY THE DUTIES OF A
CAMPGROUND MEMBERSHIP SALESPERSON, RENTAL LISTING REFERRAL AGENT
OR TIME-SHARE SALESPERSON SHALL BE REQUIRED TO BE LICENSED AS A
SALESPERSON.
"School." Any person who conducts classes in real estate
subjects, including home inspection, but is not a college,
university or institute of higher learning duly accredited by
the Middle States Association of Colleges and Secondary Schools
or equivalent accreditation.
* * *
"TIME-SHARE SALESPERSON." A PERSON WHO EITHER AS AN EMPLOYEE
OR INDEPENDENT CONTRACTOR SELLS OR OFFERS TO SELL TIME SHARES.
[SUCH PERSON SHALL SELL TIME SHARES UNDER THE ACTIVE SUPERVISION
OF A BROKER. A PERSON LICENSED AS A BROKER OR AS A SALESPERSON
SHALL NOT BE REQUIRED TO BE LICENSED AS A TIME-SHARE SALESPERSON
AS A CONDITION FOR SELLING OR OFFERING TO SELL TIME SHARES.]
* * *
Section 2. Section 202(a), (b) and (c) of the act are
amended and the section is amended by adding a subsection to
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read:
Section 202. State Real Estate Commission.
(a) The State Real Estate Commission is hereby created and
shall consist of the Commissioner of Professional and
Occupational Affairs; the Director of the Bureau of Consumer
Protection, or [his] the director's designee; three members who
shall be persons representing the public at large; [five] six
other persons, each of whom shall at the time of [his]
appointment be a licensed and qualified real estate broker under
the existing law of this Commonwealth, and shall have been
engaged in the real estate business in this Commonwealth for a
period of not less than ten years immediately prior to [his] the
appointment; two shall be qualified home inspectors; and one
other person who shall have been licensed as a real estate
broker, or cemetery broker, for a period of at least five years
and shall have been engaged in selling cemetery lots for at
least ten years immediately prior to [his] appointment. Each of
said members of the commission shall be appointed by the
Governor. For a member to qualify as a home inspector, the
member must meet the requirements of a licensed home inspector
even if the license has not been granted, but must obtain a
license within one month of the license being available to
remain on the commission.
(a.1) Within 90 days of the effective date of this
subsection, the Governor shall nominate two qualified home
inspectors to serve .
(b) The term of office of each of said members shall be five
years from [his] the appointment, or until [his] a successor has
been appointed and qualified but not longer than six months
beyond the five-year period. In the event that any of said
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members shall die or resign during [his] the term of office,
[his] a successor shall be appointed in the same way and with
the same qualifications as above set forth and shall hold office
for the unexpired term. No member shall be eligible to serve
more than two consecutive terms.
(c) A majority of the members currently serving on the
commission shall constitute a quorum. The commission shall elect
a chairman, vice-chairman and secretary from among its members.
A commission member who fails to attend three consecutive
meetings shall forfeit [his] the member's seat unless the
Commissioner of Professional and Occupational Affairs, upon
written request from the member, finds that the member should be
excused from a meeting because of illness or the death of a
family member.
* * *
Section 3. Sections 301, 302, 303, 305, 401, 402 and 404.1
heading of the act are amended to read:
Section 301. Unlawful to conduct business without license or
registration certificate.
It shall be unlawful for any person, directly or indirectly,
to engage in or conduct, or to advertise or hold [himself]
oneself out as engaging in or conducting the business, or acting
in the capacity of a broker or salesperson, cemetery broker,
cemetery salesperson, [campground membership salesperson, time-
share salesperson,] builder-owner salesperson[, rental listing
referral agent], licensed home inspector, home inspector-in-
training or cemetery company within this Commonwealth without
first being licensed or registered as provided in this act,
unless [he] the person is exempted from obtaining a license or
registration certificate under the provisions of section 304 or
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599.1(c).
Section 302. Civil suits.
No action or suit shall be instituted, nor recovery be had,
in any court of this Commonwealth by any person for compensation
for any act done or service rendered, the doing or rendering of
which is prohibited under the provisions of this act by a person
other than a licensed broker, salesperson, cemetery broker,
cemetery salesperson[, campground membership salesperson, time-
share salesperson,] OR builder-owner salesperson [or rental
listing referral agent], unless such person was duly licensed
and registered hereunder as broker or salesperson at the time of
offering to perform any such act or service or procuring any
promise or contract for the payment of compensation for any such
contemplated act or service or the person is a licensed home
inspector providing home inspection services.
Section 303. Criminal penalties.
Any person who shall engage in or carry on the business, or
act in the capacity of a broker, salesperson, cemetery broker,
cemetery salesperson, [campground membership salesperson, time-
share salesperson,] builder-owner salesperson, [rental listing
referral agent], licensed home inspector, home inspector-in-
training or cemetery company, within this Commonwealth, without
a license or registration certificate, or shall carry on or
continue business after the suspension or revocation of any such
license or registration certificate issued to [him] the person,
or shall employ any person as a salesperson or cemetery
salesperson to whom a license has not been issued, or whose
license or registration certificate as such shall have been
revoked or suspended, shall be guilty of a summary offense and
upon conviction thereof for a first offense shall be sentenced
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to pay a fine not exceeding $500 or suffer imprisonment, not
exceeding three months, or both and for a second or subsequent
offense shall be guilty of a felony of the third degree and upon
conviction thereof, shall be sentenced to pay a fine of not less
than $2,000 but not more than $5,000 or to imprisonment for not
less than one year but not more than two years, or both.
Section 305. Civil penalty.
In addition to any other civil remedy or criminal penalty
provided for in this act, the commission, by a vote of the
majority of the maximum number of the authorized membership of
the commission as provided by law, or by a vote of the majority
of the duly qualified and confirmed membership or a minimum of
five members, whichever is greater, may levy a civil penalty of
up to $1,000 on any current licensee who violates any provision
of this act or on any person who practices real estate or as a
licensed home inspector or home inspector-in-training without
being properly licensed or registered to do so under this act.
The commission shall levy this penalty only after affording the
accused party the opportunity for a hearing, as provided in
Title 2 of the Pennsylvania Consolidated Statutes (relating to
administrative law and procedure).
Section 401. Duty to issue licenses and registration
certificates.
It shall be the duty of the department to issue licenses and
registration certificates to any person who shall comply with
the provisions of this act. The commission may establish limits
on the number of times a home inspector-in-training may renew a
registration.
Section 402. Approval of schools.
Any school which shall offer or conduct any course or courses
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of study in real estate or home inspection shall first obtain
approval from, and thereafter abide by the rules and regulations
of the commission covering such schools.
Section 404.1. Continuing education for real estate brokers and
real estate salespersons.
* * *
Section 4. The act is amended by adding a section to read:
Section 404.2. Continuing education for licensed home
inspectors.
A licensed home inspector shall be required to obtain 32
hours of continuing education during the biennial renewal
period. Continuing education hours may be earned by completion
of continuing education courses in the field of home inspection
during the immediately preceding two years as approved by the
commission. Three of the total required hours of continuing
education must focus on the difference between 42 U.S.C. Ch. 70
(relating to manufactured home construction and safety
standards) 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.
Section 5. Section 406 406(3) of the act is amended AND THE
SECTION IS AMENDED by adding a paragraph to read:
Section 406. Administration and enforcement.
The commission shall have the power and its duty shall be to
administer and enforce the laws of the Commonwealth relating to:
* * *
[(3) THOSE ACTIVITIES INVOLVING CAMPGROUND MEMBERSHIPS
FOR WHICH LICENSING IS REQUIRED UNDER THIS ACT AND TO
INSTRUCT AND REQUIRE ITS AGENTS TO BRING PROSECUTIONS FOR
UNAUTHORIZED OR UNLAWFUL ACTIVITIES.]
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(4) Those activities involving home inspection for which
licensing or registration is required under this act and to
instruct and require its agents to bring prosecutions for
unauthorized or unlawful activities.
Section 6. Section 501(a) and (c) of the act are amended to
read:
Section 501. Reputation; inactive licensee; revoked license.
(a) Licenses shall be granted only to and renewed only for
persons who bear a good reputation for honesty, trustworthiness,
integrity and competence to transact the business of broker,
salesperson, cemetery broker, cemetery salesperson, [campground
membership salesperson, time-share salesperson,] builder-owner
salesperson, licensed home inspector , OR home inspector-in-
training [or rental listing referral agent], in such manner as
to safeguard the interest of the public, and only after
satisfactory proof of such qualifications has been presented to
the commission as it shall by regulation require. An applicant
for renewal of a reciprocal license shall provide evidence that
the applicant continues to hold a current license in the state
where the applicant's principal place of business is located.
* * *
(c) Unless ordered to do so by Commonwealth Court, the
commission shall not reinstate the license or registration,
within five years of the date of revocation, of any person whose
license or registration has been revoked under this act. Any
person whose license or registration has been revoked may
reapply for a license or registration at the end of the five-
year period but must meet all of the licensing or registration
qualifications of this act for the license or registration
applied for, to include the examination requirement.
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SECTION 6.1. SECTIONS 561, 581, 582, 591 AND 592 OF THE ACT
ARE REPEALED.
[SECTION 561. QUALIFICATIONS FOR LICENSE.
THE QUALIFICATION FOR LICENSURE AS A RENTAL LISTING REFERRAL
AGENT SHALL BE THE SAME AS THOSE SET FORTH IN SECTIONS 521 AND
522 EXCEPT THAT THE APPLICANT NEED NOT BE AFFILIATED WITH A
BROKER.
SECTION 581. QUALIFICATIONS FOR LICENSE.
(A) THE APPLICANT FOR A CAMPGROUND SALESPERSON'S LICENSE
SHALL BE AT LEAST 18 YEARS OF AGE.
(B) THE APPLICANT SHALL HAVE SUCCESSFULLY COMPLETED 15 HOURS
IN THE FOLLOWING AREAS OF STUDY:
(1) BASIC CONTRACT LAW.
(2) SALES PRACTICES AND PROCEDURES.
(3) SALES ETHICS.
(4) BASIC THEORY OF CAMPGROUND MEMBERSHIPS.
(C) THE APPLICANT SHALL UNDERGO NOT LESS THAN 30 DAYS OF
ONSITE TRAINING AT A CAMPGROUND MEMBERSHIP FACILITY.
SECTION 582. APPLICATION FOR LICENSE.
(A) AN APPLICATION FOR A LICENSE AS A CAMPGROUND MEMBERSHIP
SALESPERSON SHALL BE MADE IN WRITING TO THE DEPARTMENT UPON A
FORM PROVIDED FOR THE PURPOSE BY THE DEPARTMENT AND SHALL
CONTAIN SUCH INFORMATION AS TO THE APPLICANT AS THE COMMISSION
SHALL REQUIRE.
(B) THE APPLICANT FOR A LICENSE SHALL SUBMIT A SWORN
AFFIDAVIT BY A BROKER CERTIFYING THAT THE BROKER WILL ACTIVELY
SUPERVISE AND TRAIN THE APPLICANT AND CERTIFYING THE TRUTH AND
ACCURACY OF THE CERTIFICATION OF THE APPLICANT.
(C) A LICENSE SHALL BE RENEWED BIENNIALLY.
(D) THE COMMISSION SHALL ESTABLISH AN APPLICATION FEE AND A
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BIENNIAL RENEWAL FEE BY REGULATION.
SECTION 591. QUALIFICATIONS FOR LICENSE.
(A) THE APPLICANT FOR A TIME-SHARE SALESPERSON'S LICENSE
SHALL BE AT LEAST 18 YEARS OF AGE.
(B) THE APPLICANT SHALL HAVE SUCCESSFULLY COMPLETED 30 HOURS
OF INSTRUCTION IN THE FOLLOWING AREAS OF STUDY:
(1) BASIC CONTRACT LAW.
(2) SALES PRACTICES AND PROCEDURES.
(3) SALES ETHICS.
(4) BASIC THEORY OF RESORT TIME SHARING.
(C) THE APPLICANT SHALL UNDERGO NOT LESS THAN 30 DAYS OF
ONSITE TRAINING AT A TIME-SHARE FACILITY.
SECTION 592. APPLICATION FOR LICENSE.
(A) AN APPLICATION FOR A LICENSE AS A TIME-SHARE SALESPERSON
SHALL BE MADE IN WRITING TO THE DEPARTMENT UPON A FORM PROVIDED
FOR THE PURPOSE BY THE DEPARTMENT AND SHALL CONTAIN SUCH
INFORMATION AS TO THE APPLICANT AS THE COMMISSION SHALL REQUIRE.
(B) THE APPLICANT SHALL SUBMIT A SWORN STATEMENT BY A BROKER
CERTIFYING THAT THE BROKER WILL ACTIVELY SUPERVISE AND TRAIN THE
APPLICANT AND CERTIFYING THE TRUTH AND ACCURACY OF THE
CERTIFICATION OF THE APPLICANT.
(C) A LICENSE SHALL BE RENEWED BIENNIALLY.
(D) THE COMMISSION SHALL ESTABLISH AN APPLICATION FEE AND A
BIENNIAL RENEWAL FEE BY REGULATION.]
Section 7. Chapter 5 of the act is amended by adding a
subchapter to read:
SUBCHAPTER K
HOME INSPECTOR LICENSE AND
HOME INSPECTOR-IN-TRAINING REGISTRATION
Section 599.1. Qualifications for licensure.
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(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 commission of all of the
following:
(1) The applicant is of a good moral character. In
assessing the moral character of an applicant with a criminal
conviction, the commission shall conduct an individualized
assessment in accordance with 63 Pa.C.S. § 3113 (relating to
consideration of criminal convictions).
(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 80 hours of
commission-approved instruction;
(ii) is registered as a home inspector-in-training;
and
(iii) has completed no less than 50 mentored home
inspections completed in the presence and under the
direct supervision of a licensed home inspector 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 psychometrically sound
licensing examination, which has been commission-approved and
documented as psychometrically sound, 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 commission by regulation.
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(7) The applicant is not addicted to the habitual use of
alcohol, narcotics or other habit-forming drugs.
(8) There is no criminal history which would impede the
applicant's eligibility, determined by the commission based
on the applicant's submission of the following:
(i) A report of the applicant's criminal history
record information under 18 Pa.C.S. § 9121(b) (relating
to general regulations).
(ii) If the applicant has resided outside this
Commonwealth for any time in the five years immediately
preceding the date of application, a report to the
commission of Federal criminal identification and crime
records under 28 U.S.C. § 534(a)(4) (relating to
acquisition, preservation, and exchange of identification
records and information; appointment of officials).
(b) Issuance of license.--The commission 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)
(2), (3), (6), (7) and (8).
(3) Submits proof satisfactory to the commission 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) performed or participated in 100 home
inspections and has passed a recognized or accredited
examination testing knowledge of the proper procedures
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for conducting a home inspection.
(c) Practice of home inspection.--An individual may not
practice home inspection or hold oneself out as a home inspector
unless licensed by the commission 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 licensed home inspector in this Commonwealth, provided
the home inspector-in-training does not hold oneself 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 599.2, 599.3,
599.4 and 599.5 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
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use the title "Licensed Home Inspector" or the title "Home
Inspector" or hold oneself out to others as a home inspector.
This subsection shall include 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 commission 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 commission of all of the following:
(1) The applicant is of a good moral character. In
assessing the moral character of an applicant with a criminal
conviction, the commission shall conduct an individualized
assessment in accordance with 63 Pa.C.S. § 3113.
(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) There is no criminal history which would impede the
applicant's eligibility, determined by the commission based
on the applicant's submission of the following:
(i) A report of the applicant's criminal history
record information under 18 Pa.C.S. § 9121(b).
(ii) If the applicant has resided outside this
Commonwealth for any time in the five years immediately
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preceding the date of application, a report to the
commission of Federal criminal identification and crime
records under 28 U.S.C. § 534(a)(4).
(h) Prohibitions.--No agency or political subdivision of the
Commonwealth, other than the commission, shall impose the
following on individuals licensed under this section:
(1) A registration or licensing requirement for
conducting home inspections.
(2) A license fee to obtain a local license, except that
this prohibition shall not prevent a local government from
imposing an occupational license tax on a person operating as
a licensed home inspector within the jurisdiction of the
local government.
(i) Insurance.--A licensed 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 commission the certificate of insurance or a copy
of the policy declaration page. A licensed home inspector shall
maintain professional liability insurance for at least one year
after the latest home inspection report the licensed home
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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 licensure of home inspectors shall not affect the
obligations or immunities of an individual licensed under
another provision of 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 the Real Estate Appraisers Certification Act when the
individual is acting under that certification.
(l) Home inspector-in-training registration.--
(1) The commission shall, upon application and payment
of the application fee established by the commission, issue a
home inspector-in-training registration, without examination,
to any person who meets the home inspector-in-training
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educational requirements set by the commission.
(2) A home inspector-in-training 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) Reporting of multiple licensure.--A licensed home
inspector 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 commission on the
biennial renewal application. Any disciplinary action taken in
any other state, territory or country shall be reported to the
commission on the biennial renewal application, or within 90
days of disposition, whichever is sooner. Multiple licensure
shall be noted by the commission on the licensed home
inspector's record, and the state, territory or country shall be
notified by the commission of any disciplinary action taken
against the licensed home inspector in this Commonwealth.
Section 599.2. Conduct of home inspection.
(a) Ethics.--A licensed home inspector shall conduct a home
inspection with the degree of care that a reasonably prudent
licensed home inspector would exercise. In ascertaining the
degree of care that would be exercised by a reasonably prudent
licensed home inspector, a court shall consider the standards of
practice and codes of ethics as established by the commission by
regulation.
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(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 licensed 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 commission 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 599.3. Remedies for home inspection services clients.
(a) Unfair Trade Practices and Consumer Protection Law.--The
performance of a home inspection is a service subject to the act
of December 17, 1968 (P.L.1224, No.387), known as the Unfair
Trade Practices and Consumer Protection Law.
(b) Wrongful acts.--The following acts engaged in by a
licensed home inspector, an employer of a licensed home
inspector or another business or person that controls or has a
financial interest in the employer of a licensed 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
licensed home inspector, the employer of the licensed 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
licensed home inspector, the employer of the licensed home
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inspector or other business or person has a financial
interest or an interest in the transfer of the property,
including receipt of a commission as an agent, unless the
financial interest or interest in the transfer of the
property is disclosed in writing to the buyer before the home
inspection is performed and the buyer signs an acknowledgment
of receipt of the disclosure.
(3) Offering or delivering a commission, referral fee or
kickback to the seller of the inspected property or to an
agent for the seller or buyer for the referral of business to
the licensed home inspector, the employer of the licensed
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 licensed 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 599.4. Home inspection contracts.
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(a) Required provisions.--A home inspection contract must be
typewritten and include all of the following:
(1) Signature of client.
(2) Scope of home inspection.
(3) Fee charged to client.
(4) Contact information of the licensed home inspector.
(5) Signature of the licensed home inspector.
(6) License number of the licensed home inspector.
(7) A statement explaining the confidentiality between
the licensed home inspector and the client.
(b) Prohibited provisions.--The following types of
provisions in a contract with a licensed 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 licensed home
inspector for gross negligence or willful misconduct.
(2) A waiver or modification of any provision of this
section or section 599.2, 599.3 or 599.5.
Section 599.5. 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 licensed home
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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 defect or
concern 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 licensed home inspector may not
deliver a home inspection report to a person other than the
client of the licensed home inspector without the client's
consent. The property owner shall have the right, upon request,
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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 licensed home
inspector to disclose the immediate threats to health or safety
to the property owner and occupants of the property.
(c) Liability.--A licensed 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.
(d) 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 8. Sections 601 HEADING AND (A), 602(a) AND (I),
603(B) and 608.6(h) of the act are amended to read:
SECTION 601. DUTY OF BROKERS[,] AND CEMETERY BROKERS [AND
RENTAL LISTING REFERRAL AGENTS] TO MAINTAIN OFFICE.
(A) EACH BROKER (WHICH TERM IN THIS SECTION SHALL INCLUDE
CEMETERY BROKER) [AND RENTAL LISTING REFERRAL AGENT] WHO HOLDS A
STANDARD LICENSE SHALL MAINTAIN A FIXED OFFICE WITHIN THIS
COMMONWEALTH. THE CURRENT LICENSE OF SUCH A [RENTAL LISTING
REFERRAL AGENT OR] BROKER AND OF EACH LICENSEE EMPLOYED BY [SUCH
BROKER OR RENTAL LISTING REFERRAL AGENT] THE BROKER SHALL BE
PROMINENTLY DISPLAYED IN AN OFFICE OF THE BROKER [OR RENTAL
LISTING REFERRAL AGENT]. THE ADDRESS OF THE OFFICE SHALL BE
DESIGNATED ON THE CURRENT LICENSE. IN CASE OF REMOVAL OF A
BROKER'S OFFICE FROM THE DESIGNATED LOCATION, ALL LICENSEES
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REGISTERED AT THAT LOCATION SHALL MAKE APPLICATION TO THE
COMMISSION BEFORE SUCH REMOVAL OR WITHIN TEN DAYS THEREAFTER,
DESIGNATING THE NEW LOCATION OF THE OFFICE, AND SHALL PAY THE
REQUIRED FEES, WHEREUPON THE COMMISSION SHALL ISSUE A CURRENT
LICENSE AT THE NEW LOCATION FOR THE UNEXPIRED PERIOD, IF THE NEW
LOCATION COMPLIES WITH THE TERMS OF THIS ACT. EACH BROKER WHO
HOLDS A STANDARD LICENSE SHALL MAINTAIN A SIGN ON THE OUTSIDE OF
HIS OFFICE INDICATING THE PROPER LICENSED BROKERAGE NAME.
* * *
Section 602. Reciprocal licenses.
(a) Any person who holds a current license to provide real
estate services or home inspection services issued by another
state and whose principal place of business for the provision of
those services is outside of this Commonwealth may be issued a
reciprocal license under this act in accordance with this
section. The reciprocal license shall be the type of license
that the commission determines is most similar to the type of
license issued by the other state.
* * *
(I) AN ASSOCIATE BROKER[,] OR SALESPERSON[, CAMPGROUND
MEMBERSHIP SALESPERSON OR TIME-SHARE SALESPERSON] HOLDING A
RECIPROCAL LICENSE SHALL NOT CONDUCT BUSINESS IN THIS
COMMONWEALTH EXCEPT IN AFFILIATION WITH A BROKER HOLDING EITHER
A STANDARD OR A RECIPROCAL LICENSE.
* * *
SECTION 603. EMPLOYMENT OF ASSOCIATE BROKERS, SALESPERSON.
* * *
[(B) NO CAMPGROUND MEMBERSHIP SALESPERSON OR TIME-SHARE
SALESPERSON SHALL BE SUPERVISED BY ANY OTHER BROKER THAN IS
DESIGNATED UPON THE CURRENT LICENSE ISSUED TO SUCH SALESPERSON.
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WHENEVER A CAMPGROUND MEMBERSHIP SALESPERSON OR A TIME-SHARE
SALESPERSON DESIRES TO BE SUPERVISED BY A DIFFERENT BROKER, SUCH
LICENSEE AND THE COMMISSION SHALL FOLLOW THE PROCEDURE SPECIFIED
IN SUBSECTION (A) FOR REAL ESTATE SALESPERSONS.]
Section 608.6. Broker price opinion.
* * *
(h) A registered appraisal management company may recruit,
engage and negotiate fees with a broker to prepare broker price
opinions and may receive orders for and submit broker price
opinions to [clients] consumers.
* * *
Section 9. Repeals are as follows:
(1) The General Assembly declares that the repeal under
paragraph (2) is necessary to effectuate this act.
(2) 68 Pa.C.S. Ch. 75 is repealed.
Section 10. The State Real Estate Commission shall
promulgate final regulations to implement this act within 18
months of the effective date of this section.
Section 11. This act shall take effect as follows:
(1) The following provisions shall take effect
immediately:
(i) The amendment of section 202(a) and (b) of the
act.
(ii) Section 10 of this act.
(iii) This section.
(2) The remainder of this act shall take effect in two
years.
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