Senate Bill 1288c1

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    Florida Senate - 2000                           CS for SB 1288

    By the Committee on Comprehensive Planning, Local and Military
    Affairs; and Senator Sullivan




    316-1775-00

  1                      A bill to be entitled

  2         An act relating to home inspection services;

  3         creating s. 501.935, F.S.; providing

  4         requirements relating to home inspection

  5         services; providing legislative intent;

  6         providing definitions; providing certain

  7         inspector qualifications and practice

  8         standards; providing exemptions; requiring,

  9         prior to inspection, provision of inspector

10         credentials, a caveat, a disclosure of

11         conflicts of interest and certain

12         relationships, and a statement or agreement of

13         scope, limitations, terms, and conditions;

14         requiring a report to the client on the results

15         of the inspection and requiring provision of

16         relevant portions thereof to homeowners under

17         certain circumstances; prohibiting certain

18         acts, for which there are civil penalties;

19         providing that failure to comply is a deceptive

20         and unfair trade practice; providing for

21         injunction against use of the title

22         "board-certified home inspector" under certain

23         circumstances and requiring notice thereof to

24         potential clients; providing for the filing of

25         complaints; requiring maintenance of records

26         regarding complaints and compilation of

27         statistics regarding such complaints; providing

28         an effective date.

29

30  Be It Enacted by the Legislature of the State of Florida:

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    Florida Senate - 2000                           CS for SB 1288
    316-1775-00




  1         Section 1.  Section 501.935, Florida Statutes, is

  2  created to read:

  3         501.935  Home inspection services; qualifications and

  4  standards; exemptions; required disclosures prior to

  5  inspection; report on inspection results; prohibited acts;

  6  failure to comply; complaints.--

  7         (1)  INTENT.--The Legislature recognizes that the

  8  performance of a home inspection requires certain unique

  9  skills and that a home inspection should not be confused with

10  an engineering analysis, the practice of engineering, the

11  practice of architecture, an evaluation of compliance with

12  construction codes, a code enforcement inspection, contracting

13  as defined in chapter 489, or an appraisal as defined in

14  chapter 475. Therefore, it is in the public interest to

15  require the disclosure of information useful to assist

16  consumers in choosing a qualified home inspector, to inform

17  them of the limitations of a home inspection, and to prohibit

18  actions that conflict with the best interests of a home

19  inspector's client.

20         (2)  DEFINITIONS.--For the purposes of this section:

21         (a)  "Conspicuous type" means type in capital letters

22  at least 2 points larger than the largest type, exclusive of

23  headings, on the page on which it appears and, in all cases,

24  at least 10-point type. Where conspicuous type is required, it

25  must be separated on all sides from other type and print.

26  Conspicuous type may not be used in a disclosure or contract

27  except where required by law.

28         (b)  "Home" means any improved residential real

29  property that is a single-family dwelling, duplex, triplex,

30  quadruplex, condominium unit, or cooperative unit. "Home"

31  includes the structure, fixtures, appliances, and mechanical

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    Florida Senate - 2000                           CS for SB 1288
    316-1775-00




  1  systems, but does not include offsite amenities or common

  2  areas of a condominium or cooperative.

  3         (c)  "Home inspector" means any person who provides or

  4  offers to provide a home inspection for a fee or other

  5  compensation.

  6         (d)  "Home inspection" means an examination, done for

  7  compensation, of the mechanical and physical components of a

  8  home through visual means and operation of normal user

  9  controls, without necessarily the use of any mathematical or

10  engineering science. The inspection may include, but is not

11  limited to, examination of the readily visible portions of the

12  structural, electrical, heating, central air-conditioning,

13  roofing, plumbing, insulation and ventilation, and cladding

14  systems, doors and windows, interior surfaces, and chimneys

15  and fireplaces.

16         (3)  HOME INSPECTION SERVICES; QUALIFICATIONS;

17  STANDARDS.--

18         (a)  No person shall offer home inspection services as

19  a board-certified home inspector, or represent himself or

20  herself as a board-certified home inspector, unless such

21  person has passed the National Home Inspector Examination,

22  offered by the Examination Board of Professional Home

23  Inspectors, or any other examination deemed to be

24  psychometrically valid by the Secretary of Business and

25  Professional Regulation.

26         (b)  The minimum standard of practice for home

27  inspection shall be the version of the Standards of Practice

28  of the American Society of Home Inspectors effective January

29  1, 2000, or any other consensus-based home inspection standard

30  deemed equivalent by the Secretary of Business and

31  Professional Regulation.

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    Florida Senate - 2000                           CS for SB 1288
    316-1775-00




  1         (4)  EXEMPTIONS.--The following persons are not

  2  required to comply with this section with regard to any

  3  valuation condition, report, survey, evaluation, or estimate

  4  rendered within the scope of practice authorized by such

  5  license:

  6         (a)  A construction contractor licensed under chapter

  7  489.

  8         (b)  An architect licensed under chapter 481.

  9         (c)  An engineer licensed under chapter 471.

10         (d)  A building code administrator, plans examiner, or

11  building code inspector licensed under part XII of chapter

12  468.

13         (e)  A certified real estate appraiser, licensed real

14  estate appraiser, or registered assistant real estate

15  appraiser licensed under part II of chapter 475.

16         (f)  An inspector whose report is being provided to,

17  and is solely for the benefit of, the Federal Housing

18  Administration or the Veterans Administration.

19         (5)  DISCLOSURE.--Prior to entering into a contract for

20  home inspection and prior to performing any home inspection, a

21  home inspector must provide the following to any person who

22  will enter into a contract to have a home inspection and who,

23  as a client of the inspector, has requested the inspection:

24         (a)  A written list of the home inspector's

25  credentials, including whether or not the inspector is board

26  certified.

27         (b)  A caveat in conspicuous type that states:

28         "AN INSPECTION IS INTENDED TO ASSIST IN EVALUATION OF

29  THE OVERALL CONDITION OF A HOME.  THE INSPECTION IS BASED ON

30  OBSERVATION OF THE VISIBLE AND APPARENT CONDITION OF THE

31  BUILDING AND ITS MECHANICAL AND PHYSICAL COMPONENTS ON THE

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    Florida Senate - 2000                           CS for SB 1288
    316-1775-00




  1  DATE OF THE INSPECTION.  THE RESULTS OF THIS HOME INSPECTION

  2  ARE NOT INTENDED TO MAKE ANY REPRESENTATION REGARDING LATENT

  3  OR CONCEALED DEFECTS THAT MAY EXIST, AND NO WARRANTY OR

  4  GUARANTEE IS EXPRESSED OR IMPLIED.  IT SHOULD BE UNDERSTOOD

  5  THAT A HOME INSPECTION IS A GENERAL OVERVIEW OF THE CONDITION

  6  OF THE BUILDING AND COMPONENTS.  THE HOME INSPECTOR IS NOT

  7  NECESSARILY A PROFESSIONAL WITH LICENSES AUTHORIZING THE

  8  RENDERING OF DETAILED OPINIONS REGARDING ANY OR ALL OF THE

  9  ITEMS OR SYSTEMS INCLUDED IN THE INSPECTION.  YOU MAY WISH TO

10  SEEK AN OPINION FROM AN APPROPRIATELY LICENSED PROFESSIONAL AS

11  TO ANY DEFECTS OR CONCERNS MENTIONED IN THE REPORT."

12         (c)  A written disclosure to the client of any conflict

13  of interest or relationship of the home inspector which may

14  affect the client.

15         (d)  A written statement or agreement declaring the

16  home inspector's scope of services, limitations, terms, and

17  conditions regarding the home inspection.

18         (6)  REPORT.--A home inspector must provide to the

19  client, within 3 working days after the date of the home

20  inspection or at any other time agreed upon by both parties, a

21  written report of the results of the home inspection. The

22  relevant part of the report shall be provided by the buyer to

23  the owner of the home upon request if a home inspection report

24  is used by the buyer as a reason to void, modify, or refuse to

25  close on a contract for sale and purchase of the home.

26         (7)  PROHIBITIONS.--A home inspector may not:

27         (a)  Accept any commission, allowance, gift, or other

28  thing of value from another party dealing with a client of the

29  inspector which relates to the inspection or conditions

30  reported by the home inspector.

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    Florida Senate - 2000                           CS for SB 1288
    316-1775-00




  1         (b)  Offer any commission, allowance, gift, or other

  2  thing of value to another party dealing with a client of the

  3  inspector which relates to the inspection.

  4         (c)  Perform, or offer to perform, for a fee, remedial

  5  work on a property which the inspector has inspected in the

  6  preceding 12 months.

  7         (d)  Disclose, without the client's written consent, a

  8  home inspection report to any person other than the client.

  9         (8)  FAILURE TO COMPLY.--The failure of a home

10  inspector to comply with any provision of this section

11  constitutes a deceptive and unfair trade practice for which a

12  cause of action under part II of chapter 501 may be

13  prosecuted, in addition to any other remedy provided by law. A

14  court may enjoin any person who has substantially failed to

15  comply with this section from using the title "board-certified

16  home inspector" for a reasonable period of time and may

17  require such person to inform any potential client of the

18  existence of such injunction.

19         (9)  COMPLAINTS.--Complaints concerning a home

20  inspector subject to the provisions of this section may be

21  referred to the Division of Consumer Services of the

22  Department of Agriculture and Consumer Services. The division

23  shall maintain records regarding complaints and shall compile

24  statistics regarding such complaints.

25         Section 2.  This act shall take effect July 1, 2000.

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    Florida Senate - 2000                           CS for SB 1288
    316-1775-00




  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                             SB 1288

  3

  4  The CS makes the following changes to the bill:

  5  exempts certified, licensed, and registered assistant real
    estate appraisers from the requirements of the bill;
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    exempts inspectors whose report is provided for the benefit of
  7  the Federal Housing Administration or Veteran's
    Administration;
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    requires the inspector's report be provided to the home owner
  9  in certain conditions;

10  clarifies the penalties for failure to comply with the act;
    and
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    allows complaints to be registered with Division of Consumer
12  Services of the Department of Agriculture.

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