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PRIOR PRINTER'S NO. 1032 PRINTER'S NO. 1692
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 907
Session of
2025
INTRODUCED BY FARRY, PENNYCUICK, VOGEL AND FONTANA, JULY 8, 2025
SENATOR STEFANO, CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
AS AMENDED, MAY 6, 2026
AN ACT
Amending the act of July 10, 1990 (P.L.404, No.98), entitled "An
act providing for the certification of real estate
appraisers; specifying requirements for certification;
providing for sanctions and penalties; and making an
appropriation," further providing for title of act, for
definitions, for State Board of Certified Real Estate
Appraisers, for powers and duties of board and for
application and qualifications; providing for application and
qualifications of home inspectors and home inspectors-in-
training and for conduct of home inspection; further
providing for reciprocity, for certification renewal,
licensure renewal and records, for disciplinary and
corrective measures, for reinstatement of certificate or
license, for reporting of multiple certification, for
surrender of suspended or revoked certificate or license, for
penalties and for injunctive relief; providing for remedies
for home inspection services consumers, for home inspection
contracts and for home inspection reports; and making a
repeal.
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
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REPUTATION AND INACTIVE LICENSEE AND REVOKED LICENSE AND
PROVIDING FOR HOME INSPECTOR LICENSE AND HOME INSPECTOR-IN-
TRAINING REGISTRATION; IN DUTIES OF LICENSEES, FURTHER
PROVIDING FOR RECIPROCAL LICENSES 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 title of the act of July 10, 1990 (P.L.404,
No.98), known as the Real Estate Appraisers Certification Act,
is amended to read:
AN ACT
Providing for the certification of real estate appraisers and
licensure of home inspectors; specifying requirements for
certification and licensure; providing for sanctions and
penalties; and making an appropriation.
Section 2. Section 2 of the act is amended by adding
definitions to read:
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Client." When the term is applied to a home inspector, a
person or person acting through a legal representative who
contracts with a licensed home inspector to obtain a home
inspection and subsequent written home inspection report.
"Home inspection." A noninvasive visual examination of the
systems and essential components of a residential dwelling
designed to identify material defects in those systems and
components and performed for a fee in connection with or
preparation for a proposed or possible residential real estate
transfer. The term:
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(1) Includes a consultation regarding the property that
is represented to be a home inspection or that is described
by a confusingly similar term.
(2) Does not include:
(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.
"Home inspector." An individual licensed by the board to
perform home inspections. The term does not include an
individual licensed under any of the following laws when acting
under the individual's registration or license:
(1) The act of May 23, 1945 (P.L.913, No.367), known as
the Engineer, Land Surveyor and Geologist Registration Law,
as to professional engineers, professional land surveyors and
professional geologists.
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(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.
"Home inspector-in-training." A candidate for licensure as a
home inspector who has been granted a registration as a home
inspector-in-training.
"Material defect." A problem with a residential real
property or any portion of it that would have a significant
adverse impact on the value of the property or that involves an
unreasonable risk to people on the property. The fact that an
essential component, system or subsystem is near, at or beyond
the end of its normal useful life is not by itself a material
defect.
* * *
Section 3. Section 4(a), (b), (c.1) and (k) of the act are
amended and the section is amended by adding a subsection to
read:
Section 4. State Board of Certified Real Estate Appraisers.
(a) Creation.--There is hereby created the State Board of
Certified Real Estate Appraisers as a departmental
administrative board in the Department of State. The board shall
consist of the following members:
(1) The Secretary of the Commonwealth or a designee.
(2) The Attorney General or a designee.
(3) The Secretary of Banking or a designee.
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(4) [Ten members who are citizens of the United States
and who have been residents of this Commonwealth for a two-
year period immediately prior to appointment. Six of the
members shall be State-certified real estate appraisers, two
of the members shall be certified Pennsylvania evaluators and
two of the members shall be public members. Nothing in this
paragraph shall prohibit the appointment of a professional
member who is a certified Pennsylvania evaluator and also a
State-certified real estate appraiser, except that the
appointment shall specify in which capacity the member is
being appointed.] Fourteen members who are citizens of the
United States and who have been residents of this
Commonwealth for a two-year period immediately prior to
appointment. Eight of the members shall be State-certified
real estate appraisers, two of the members shall be certified
Pennsylvania evaluators, two of the members shall be
qualified home inspectors and two of the members shall be
public members. If a member is qualified in more than one
profession specified in this paragraph, the appointment shall
specify in which capacity the member is being appointed.
(b) Term of office.--The professional and public members
shall serve four-year terms, except as provided in subsection
(c) or [(c.1)] (c.2), and shall be appointed by the Governor by
and with the advice and consent of a majority of the members
elected to the Senate.
* * *
[(c.1) Initial appointments of certified Pennsylvania
evaluators.--Within 90 days of the effective date of this
subsection, the Governor shall nominate one certified
Pennsylvania evaluator to serve a two-year term and one
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certified Pennsylvania evaluator to serve a four-year term.]
(c.2) Appointments of certified Pennsylvania evaluators and
qualified home inspectors.--Within 90 days of the effective date
of this subsection, the Governor shall nominate one certified
Pennsylvania evaluator and one qualified home inspector to serve
a two-year term and one certified Pennsylvania evaluator and one
qualified home inspector to serve a four-year term.
* * *
(k) Notice.--Reasonable notice of all meetings shall be
given in conformity with [the act of July 3, 1986 (P.L.388,
No.84), known as the Sunshine Act] 65 Pa.C.S. Ch. 7 (relating to
open meetings).
* * *
Section 4. Sections 5(1), (3) and (6) and 6 heading of the
act are amended to read:
Section 5. Powers and duties of board.
The board shall have the following powers and duties:
(1) To pass upon the qualifications and fitness of
applicants for certification or licensure and to adopt and
revise rules and regulations requiring applicants for
registration, certification or licensure to pass examinations
relating to their qualifications for registration,
certification or licensure.
* * *
(3) To examine for, deny, approve, issue, revoke,
suspend or renew certificates of appraisers, registrations of
home inspectors-in-training and licenses of appraiser
trainees and home inspectors pursuant to this act and to
conduct hearings in connection therewith.
* * *
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(6) To establish fees for the operation of the board,
including fees for the issuance and renewal of registrations,
certificates and licenses and for examinations.
* * *
Section 6. Application and qualifications of certified real
estate appraisers.
* * *
Section 5. The act is amended by adding sections to read:
Section 6.1. Application and qualifications of home inspectors
and home inspectors-in-training.
(a) Qualifications.--An applicant shall be considered to be
qualified for a license as a home inspector if the applicant
submits proof satisfactory to the board of all of the following:
(1) The applicant is of a good moral character. In
assessing the moral character of an applicant with a criminal
conviction, the board 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 board-
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 home inspector licensed in this
Commonwealth. A home inspection report prepared by a home
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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 valid
licensing examination, which has been board-approved and
documented as psychometrically valid, to be administered
pursuant to section 812.1 of the act of April 9, 1929
(P.L.177, No.175), known as The Administrative Code of 1929.
(6) The application is accompanied by the application
fee as established by the board by regulation.
(7) The applicant is not addicted to the habitual use of
alcohol, narcotics or other habit-forming drugs.
(8) There is no criminal history which would impede the
applicant's eligibility, determined by the board 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 board
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 board shall issue a license as
a home inspector to an applicant who applies within two years of
the effective date of this subsection and complies with all of
the following:
(1) Is an active home inspector.
(2) Meets the qualifications described in subsection (a)
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(2), (3), (6), (7) and (8).
(3) Submits proof satisfactory to the board that the
applicant has:
(i) been in active, continuous practice for at least
five years immediately preceding the effective date of
this section; or
(ii) performed or participated in 100 home
inspections and has passed a recognized or accredited
examination testing knowledge of the proper procedures
for conducting a home inspection.
(c) Practice of home inspection.--An individual may not
practice home inspection or hold himself out as a home inspector
unless licensed by the board except for the following:
(1) An individual licensed as a professional engineer
under the act of May 23, 1945 (P.L.913, No.367), known as the
Engineer, Land Surveyor and Geologist Registration Law.
(2) An individual licensed under the act of December 14,
1982 (P.L.1227, No.281), known as the Architects Licensure
Law.
(3) A home inspector-in-training practicing home
inspection in the presence and under the direct supervision
of a home inspector licensed in this Commonwealth, provided
the home inspector-in-training does not hold himself out as a
home inspector.
(d) Compliance.--Notwithstanding subsection (c), a person
licensed or registered as a professional engineer under the
Engineer, Land Surveyor and Geologist Registration Law, or a
person licensed or registered under the Architects Licensure
Law, must comply with subsection (i) and sections 6.2, 17.1,
17.2 and 17.3 when performing a home inspection. A person
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licensed or registered as a professional engineer, or licensed
or registered as an architect, who violates this subsection
shall be subject to disciplinary action, including license or
registration suspension and revocation, and penalties under the
Engineer, Land Surveyor and Geologist Registration Law and the
Architects Licensure Law, respectively.
(e) Use of title.--An individual who holds a license or is
maintained on inactive status may use the title "Licensed Home
Inspector" and the abbreviation "L.H.I." No other individual may
use the title "Licensed Home Inspector" or the title "Home
Inspector" or hold himself out to others as a home inspector.
This subsection includes advertising as a home inspector and
adopting or using a title or description, or a derivative of
"Licensed Home Inspector" or "Home Inspector" and their related
abbreviations, which implies directly or indirectly that home
inspection services are being provided.
(f) Nontransferability of license.--A license under this
section is not transferable.
(g) Examination not required.--The board may issue a home
inspector license without examination to an applicant holding a
home inspector license in another state who submits proof
satisfactory to the board of all of the following:
(1) The applicant is of a good moral character. In
assessing the moral character of an applicant with a criminal
conviction, the board 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.
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(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 board 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
preceding the date of application, a report to the board
of Federal criminal identification and crime records
under 28 U.S.C. § 534(a)(4).
(h) Prohibitions.--No agency or political subdivision of
this Commonwealth, other than the board, shall impose the
following on individuals licensed under this section:
(1) A registration or licensing requirement for
conducting home inspections.
(2) A license fee to obtain a local license, except that
this prohibition shall not prevent a local government from
imposing an occupational license tax on a person operating as
a home inspector within the jurisdiction of the local
government.
(i) Insurance.--A person licensed as a home inspector shall
maintain insurance against errors and omissions in the
performance of a home inspection and general liability, with
coverages of not less than $250,000 per occurrence and $500,000
in the aggregate and with deductibles of not more than $15,000.
An applicant must provide proof that the applicant has obtained
professional liability insurance. It is sufficient if the
applicant files with the application a copy of a letter from the
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applicant's professional liability insurance carrier indicating
that the applicant will be covered against professional
liability in the required amounts effective upon the issuance of
the applicant's license to practice home inspection in this
Commonwealth. Upon issuance of the license, the licensee must,
within 30 days, submit to the board the certificate of insurance
or a copy of the policy declaration page. A home inspector shall
maintain professional liability insurance for at least one year
after the latest home inspection report the home inspector
delivers, unless the home inspection report was delivered prior
to the effective date of this section.
(j) Construction.--Nothing in this act shall be construed to
allow a home inspector who is not licensed under any of the
following laws to perform any activity that would constitute the
practice of the profession regulated by that law:
(1) The Engineer, Land Surveyor and Geologist
Registration Law, as to the practice of engineering, land
surveying or geology.
(2) The act of January 24, 1966 (1965 P.L.1535, No.537),
known as the Pennsylvania Sewage Facilities Act.
(3) The act of March 1, 1974 (P.L.90, No.24), known as
the Pennsylvania Pesticide Control Act of 1973.
(4) The Architects Licensure Law.
(5) The act of July 9, 1987 (P.L.238, No.43), known as
the Radon Certification Act.
(k) Other licensees.--The requirements of this act relating
to the licensing of home inspectors shall not affect the
obligations or immunities of an individual licensed as other
than a home inspector under this act that are imposed or
provided under this act or 68 Pa.C.S. Ch. 73 (relating to seller
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disclosures) when the individual is acting under the
individual's license, nor the obligations or immunities of an
individual certified under this act as a real estate appraiser
when the individual is acting under the individual's license.
(l) Home inspector-in-training registrant.--
(1) The board shall, upon application and payment of the
application fee established by the board, issue a home
inspector-in-training registration, without examination, to
any person who meets the home inspector-in-training
educational requirements set by the board.
(2) A home inspector-in-training registrant shall keep a
record of the mentored home inspections completed, which
shall, at a minimum, include the following information:
(i) Date and time of the inspection.
(ii) Address of the residence inspected.
(iii) Business name of the supervising inspector.
(iv) Name of the supervising inspector.
(v) License number of the supervising inspector.
(vi) Signature of the supervising inspector.
Section 6.2. Conduct of home inspection.
(a) Ethics.--A home inspector shall conduct a home
inspection with the degree of care that a reasonably prudent
home inspector would exercise. In ascertaining the degree of
care that would be exercised by a reasonably prudent home
inspector, a court shall consider the standards of practice and
codes of ethics as established by the board by regulation.
(b) Immediate threat to health or safety.--If an immediate
threat to health or safety is observed during the course of a
home inspection and the home is occupied, the home inspector
shall disclose the immediate threat to health or safety to the
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property owner and occupants of the property at the conclusion
of the home inspection. Posting a notice on a form prescribed by
the board by regulation on the front door of the occupied home
in a position that ensures the occupants see the notice shall
constitute proper disclosure.
Section 6. Section 7 of the act is amended to read:
Section 7. Reciprocity.
The board shall have the power to grant a reciprocal
certification to an applicant who is certified as an appraiser
or licensed as an appraiser trainee or home inspector in another
state and has demonstrated qualifications which equal or exceed
those required pursuant to this act in the determination of the
board.
Section 7. Section 10(a) and (c) of the act are amended and
the section is amended by adding a subsection to read:
Section 10. Certification renewal, licensure renewal and
records.
(a) Renewal term.--
(1) Except as provided under paragraph (2), renewal of
registration, certification or licensure shall be on a
biennial basis for persons in good standing.
(2) The board may prescribe limitations on the number of
times a registered home inspector-in-training and a licensed
appraiser trainee may renew a registration or license.
* * *
(b.3) Continuing education for home inspectors.--A home
inspector shall be required to obtain 32 hours of continuing
education during the biennial renewal period. Continuing
education hours may be earned by c ompletion of continuing
education courses in the field of home inspection during the
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immediately preceding two years as approved by the board. 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.
(c) Records.--A record of all persons licensed as appraiser
trainees [and] or home inspectors, all persons certified as real
estate appraisers and all persons registered as home inspectors-
in-training in this Commonwealth shall be kept in the office of
the board, shall be open to public inspection and copying upon
payment of a nominal fee for copying the record and shall be
accessible on the board's Internet website. Each registrant,
certificateholder and licensee shall advise the board of the
address of his or her principal place of business.
Section 8. Sections 11(a) introductory paragraph, (1), (3),
(5) and (15) and (b), 12, 13, 14, 15(b) and 17(a) of the act are
amended to read:
Section 11. Disciplinary and corrective measures.
(a) Authority of board.--The board may deny, suspend or
revoke registrations, certificates or licenses, or limit,
restrict or reprimand a registrant, certificateholder or
licensee for any of the following causes:
(1) Procuring or attempting to procure a registration,
certificate or license or renewal of a registration,
certificate or license pursuant to this act by knowingly
making a false statement, submitting false information or
refusing to provide complete information in response to a
question in an application for registration, certification or
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licensure or renewal of registration, certification or
licensure through any form of fraud or misrepresentation.
* * *
(3) Paying, or offering to pay, any valuable
consideration other than provided for by this act to any
member or employee of the board to procure a registration,
certificate or license under this act.
* * *
(5) Performing an act or omitting an act when such
performance or omission involves dishonesty, fraud or
misrepresentation with intent to substantially benefit the
registrant, certificateholder or licensee in his profession
or with the intent to substantially injure another person.
* * *
(15) Having a license or certificate to perform
appraisals or home inspections suspended, revoked or refused
by an appraisal licensure or certification authority of
another state, territory or country, or receiving other
disciplinary actions by the appraisal or home inspection
licensure or certification authority of another state,
territory or country.
* * *
(b) Board action.--When the board finds that the
registration, certificate or license, application for
registration, certification or licensure or renewal of
registration, certification or licensure of any person may be
denied, revoked, restricted or suspended under the terms of
subsection (a), the board may:
(1) Deny the application for registration, certification
or licensure or for renewal of registration, certification or
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licensure.
(2) Administer a public reprimand.
(3) Revoke, suspend, limit or otherwise restrict a
registration, certificate or license as determined by the
board.
(4) Suspend enforcement of its findings thereof and
place a registrant, certificateholder or licensee on
probation with the right to vacate the probationary order for
noncompliance.
(5) Restore a suspended registration, certificate or
license and impose any disciplinary or corrective measure
which it might originally have imposed.
* * *
Section 12. Reinstatement of registration, certificate or
license.
Unless ordered to do so by Commonwealth Court or an appeal
therefrom, the board shall not reinstate the certificate [or],
license or registration of a person to practice as a certified
real estate appraiser or as an appraiser trainee or as a
licensed home inspector or as a registered home inspector-in-
training, pursuant to this act, which has been revoked. Any
person whose certificate [or], license or registration has been
revoked may apply for reinstatement, after a period of at least
five years, but must meet all of the certification [or],
licensure or registration qualifications of this act, including
the examination requirement, if he or she desires to hold
himself or herself out or to practice as a real estate appraiser
or home inspector or home inspector-in-training pursuant to this
act at any time after such revocation.
Section 13. Reporting of multiple certification or licensure.
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Any appraiser certified in this Commonwealth who is also
certified or licensed to perform appraisals in any other state,
territory or country shall report this information to the board
on the biennial renewal application. Any home inspector licensed
in this Commonwealth who is also certified or licensed to
perform home inspections in any other state, territory or
country shall report this information to the board on the
biennial renewal application. Any disciplinary action taken in
any other state, territory or country shall be reported to the
board on the biennial renewal application, or within 90 days of
disposition, whichever is sooner. Multiple licensure or
certification shall be noted by the board on the certified
appraiser's or licensed home inspector's record, and such state,
territory or country shall be notified by the board of any
disciplinary actions taken against said certified appraiser or
licensed home inspector in this Commonwealth.
Section 14. Surrender of suspended or revoked registration,
certificate or license.
The board shall require a person whose registration,
certificate or license has been suspended or revoked to return
the registration, certificate or license in such manner as the
board directs. Failure to do so shall be a misdemeanor of the
third degree.
Section 15. Penalties.
* * *
(b) Civil penalty.--In addition to any other civil remedy or
criminal penalty provided for in this act, the board, by a vote
of the majority of the maximum number of the authorized
membership of the board as provided by law, or by a vote of the
majority of the duly qualified and confirmed membership or a
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minimum of three members, whichever is greater, may levy a civil
penalty of up to $10,000 on any certificateholder [or], licensee
or registrant who violates any provision of this act [or], any
noncertificateholder who holds himself out as a real estate
appraiser in this Commonwealth or who performs an appraisal for
which certification or licensure is required under the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989
(Public Law 101-73, 103 Stat. 183) an appraisal in any federally
related or nonfederally related transaction or any other
appraisal[.] or any nonlicensed individual who holds himself out
as a home inspector in this Commonwealth or who performs a home
inspection for which certification or licensure is required. The
board shall levy this penalty only after affording the accused
party the opportunity for a hearing, as provided in 2 Pa.C.S.
(relating to administrative law and procedure).
* * *
Section 17. Injunctive relief.
(a) Injunction.--A violation of section 3 or 6.1(c) or (e)
may be enjoined by the courts upon petition of the secretary or
the board. In any proceeding under this section, it shall not be
necessary to show that any person is individually injured by the
actions complained of. If the court finds that the respondent
has violated section 3 or 6.1(c) or (e), it shall enjoin him or
her from so practicing or holding himself or herself out until
he or she has been duly certified or licensed. Procedure in such
cases shall be the same as in any other injunction suit.
* * *
Section 9. The act is amended by adding sections to read:
Section 17.1. Remedies for home inspection services consumers.
(a) Unfair Trade Practices and Consumer Protection Law.--The
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performance of a home inspection is a service subject to the act
of December 17, 1968 (P.L.1224, No.387), known as the Unfair
Trade Practices and Consumer Protection Law.
(b) Wrongful acts.--The followi ng acts engaged in by a home
inspector, an employer of a home inspector or another business
or person that controls or has a financial interest in the
employer of a home inspector shall be deemed to be an unfair or
deceptive act or practice as defined by section 2(4) of the
Unfair Trade Practices and Consumer Protection Law:
(1) Performing or offering to perform for an additional
fee any repairs to a structure with respect to which the home
inspector, the employer of the home inspector or other
business or person has prepared a home inspection report
within the preceding 12 months, except that this paragraph
shall not apply to remediation for radon or wood-destroying
insects.
(2) Inspecting for a fee any property in which the home
inspector, the employer of the home inspector or other
business or person has a financial interest or an interest in
the transfer of the property, including receipt of a board as
an agent, unless the financial interest or interest in the
transfer of the property is disclosed in writing to the buyer
before the home inspection is performed and the buyer signs
an acknowledgment of receipt of the disclosure.
(3) Offering or delivering a commission , referral fee or
kickback to the seller of the inspected property or to an
agent for the seller or buyer for the referral of business to
the home inspector, the employer of the home inspector or
other business or person.
(4) Accepting an engagement to perform a home inspection
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or to prepare a home inspection report in which the
employment itself or the fee payable for the inspection is
contingent upon the conclusions in the report, preestablished
or prescribed findings or the closing of the transaction.
(c) Home warranty company.--A home warranty company that is
affiliated with or retains the home inspector does not violate
subsection (b) if the home warranty company performs repairs in
accordance with claims made under a home warranty contract.
(d) Other remedies.--In addition to other remedies available
under the Unfair Trade Practices and Consumer Protection Law or
other applicable provision of law, the owner of a property on
which repairs are performed in violation of subsection (b)(1)
shall be entitled to a full refund of money paid for those
repairs, and a promissory note or another obligation to pay
given to the person performing those repairs shall be void.
Section 17.2. Home inspection contracts.
(a) Required provisions.--A home inspection contract must be
typewritten and include all of the following:
(1) Signature of client.
(2) Scope of home inspection.
(3) Fee charged to client.
(4) Contact information of home inspector.
(5) License number of home inspector.
(6) A statement explaining the confidentiality between
the home inspector and the client.
(b) Prohibited provisions.--The following types of
provisions in a contract with a home inspector for the
performance of a home inspection are contrary to public policy,
and the clause shall be unenforceable as it relates to:
(1) A limitation on the liability of the home inspector
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for gross negligence or willful misconduct.
(2) A waiver or modification of any provision of this
section or section 6.2, 17.1 or 17.3.
Section 17.3. Home inspection reports.
(a) Contents.--A home inspection report must be typewritten
and include all of the following:
(1) A description of the scope of the inspection,
including identification of the essential components and
systems and subsystems covered by the report.
(2) A description of material defects noted during the
inspection, along with a recommendation that certain experts
be retained to determine the extent of the defects and the
corrective action that should be taken.
(3) If, at the time of the inspection, there is visible
evidence of the presence of interior mold, the home inspector
must disclose in the home inspection report the visible
evidence and the location and advise the client to obtain a
professional evaluation.
(4) The following statements, set forth conspicuously:
(i) A home inspection is intended to assist in
evaluation of the overall condition of the dwelling. The
inspection is based on observation of the visible and
apparent condition of the structure and its components on
the date of inspection.
(ii) The results of this home inspection are not
intended to make a representation regarding the presence
or absence of latent or concealed defects that are not
reasonably ascertainable in a competently performed home
inspection. No warranty or guaranty is expressed or
implied.
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(iii) If the person conducting your home inspection
is not a licensed structural engineer or other
professional whose license authorizes the rendering of an
opinion as to the structural integrity of a building or
the building's other component parts, you may be advised
to seek a professional opinion as to any defects or
concerns mentioned in the report.
(iv) This home inspection report is not to be
construed as an appraisal and may not be used as such for
any purpose.
(b) Delivery of report.--Except as otherwise required by
this subsection or by law, a home inspector may not deliver a
home inspection report to a person other than the client of the
home inspector without the client's consent. The property owner
shall have the right, upon request, to receive without charge a
copy of a home inspection report from the person for whom the
home inspection report was prepared. If immediate threats to
health or safety are observed during the course of the
inspection and if the premises are occupied, the client hereby
consents to allow the home inspector to disclose the immediate
threats to health or safety to the property owner and occupants
of the property.
(c) Liability.--A home inspector shall not be held liable
for the contents or omissions of a home inspection report if
relied upon by any individual or person other than the client as
identified by the executed contract for the specific home
inspection.
(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
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claim is discovered by the client.
Section 10. Repeals are as follows:
(1) The General Assembly declares that the repeal under
paragraph (2) is necessary to effectuate this act.
(2) 68 Pa.C.S. Ch. 75 is repealed.
Section 11. The State Board of Certified Real Estate
Appraisers shall promulgate final regulations to carry out this
act within 18 months of the effective date of this section. The
board shall report, within 60 days of the effective date of this
section and every 30 days thereafter, on the status of the
regulations to the Consumer Protection and Professional
Licensure Committee of the Senate and the Professional Licensure
Committee of the House of Representatives.
Section 12. This act shall take effect as follows:
(1) The following provisions shall take effect
immediately:
The amendment of section 4(a) and (b) of the act.
Section 11 of this act.
This section.
(2) The remainder of this act shall take effect in two
years.
SECTION 1. THE DEFINITIONS OF "LICENSE" AND "SCHOOL" IN
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 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:
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* * *
"CLIENT." WHEN THE TERM IS APPLIED TO A HOME INSPECTOR, A
PERSON OR PERSON ACTING THROUGH A LEGAL REPRESENTATIVE WHO
CONTRACTS WITH A LICENSED HOME INSPECTOR TO OBTAIN A HOME
INSPECTION AND SUBSEQUENT WRITTEN HOME INSPECTION REPORT.
* * *
"HOME INSPECTION." A NONINVASIVE VISUAL EXAMINATION OF THE
SYSTEMS AND ESSENTIAL COMPONENTS OF A RESIDENTIAL DWELLING
DESIGNED TO IDENTIFY MATERIAL DEFECTS IN THOSE SYSTEMS AND
COMPONENTS AND PERFORMED FOR A FEE IN CONNECTION WITH OR
PREPARATION FOR A PROPOSED OR POSSIBLE RESIDENTIAL REAL ESTATE
TRANSFER. THE TERM:
(1) INCLUDES A CONSULTATION REGARDING THE PROPERTY THAT
IS REPRESENTED TO BE A HOME INSPECTION OR THAT IS DESCRIBED
BY A CONFUSINGLY SIMILAR TERM 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.
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(H) POLLUTANTS, TOXIC CHEMICALS AND
ENVIRONMENTAL HAZARDS.
(III) AN EXAMINATION ASSOCIATED WITH MOVING INTO OR
OUT OF A LEASED HOME.
"HOME INSPECTION REPORT." A TYPEWRITTEN REPORT ON THE
RESULTS OF A HOME INSPECTION.
"HOME INSPECTOR-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
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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.
* * *
"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.
* * *
SECTION 2. SECTION 202(A), (B) AND (C) OF THE ACT ARE
AMENDED AND THE SECTION IS AMENDED BY ADDING A SUBSECTION TO
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
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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
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
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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
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, 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.
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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
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
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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
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
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(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 OF THE ACT 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:
* * *
(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, 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.
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(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.
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.
(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
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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.
(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
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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
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
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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
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
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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
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
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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
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.
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(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
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
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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.
(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.
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(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
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
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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.
(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:
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(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
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
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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,
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
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AFTER THE DATE THE REPORT IS DELIVERED REGARDLESS OF WHEN THE
CLAIM IS DISCOVERED BY THE CLIENT.
SECTION 8. SECTIONS 602(A) AND 608.6(H) OF THE ACT ARE
AMENDED TO READ:
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.
* * *
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
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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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