House Bill 0465e1

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                                        CS/HB 465, First Engrossed



  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; requiring rulemaking by

  7         the Department of Agriculture and Consumer

  8         Services; 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 "certified

22         home inspector" under certain circumstances and

23         requiring notice thereof to potential clients;

24         providing for the filing of complaints;

25         requiring maintenance of records regarding

26         complaints and compilation of statistics

27         regarding such complaints; providing an

28         effective date.

29

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

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                                        CS/HB 465, First Engrossed



  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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                                        CS/HB 465, First Engrossed



  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; STANDARDS OF

17  PRACTICE.--The minimum standards of practice for all home

18  inspection services shall be developed and adopted by rule by

19  the Department of Agriculture and Consumer Services.  The

20  minimum requirements for a home inspector to advertise as a

21  "certified home inspector" shall also be developed and adopted

22  by rule by the department, which rules may require the

23  successful passage of an examination and experience

24  requirements.  In promulgating these rules, the department is

25  directed to consult with representatives of the Florida home

26  inspection industry, the Florida Building Code Administrators

27  and Inspectors Board, the Construction Industry Licensing

28  Board, and the Electrical Contractors' Licensing Board.  The

29  administrative rules required by this subsection are to be

30  promulgated and adopted by July 1, 2001.

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                                        CS/HB 465, First Engrossed



  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.

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20  These exemptions shall not apply to a person who holds himself

21  or herself out as a person providing home inspection services.

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

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

24  home inspector must provide the following to any person, or

25  the person's representative, who will enter into a contract to

26  have a home inspection and who, as a client of the inspector,

27  has requested the inspection:

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

29  credentials.

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                                        CS/HB 465, First Engrossed



  1         (b)  Whether the home inspector has had a professional

  2  license, issued under part XII of chapter 468, chapter 471, or

  3  chapter 481, suspended or revoked.

  4         (c)  A caveat in conspicuous type that states:

  5         "AN INSPECTION IS INTENDED TO ASSIST IN EVALUATION OF

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

  7  OBSERVATION OF THE VISIBLE AND APPARENT CONDITION OF THE

  8  BUILDING AND ITS MECHANICAL AND PHYSICAL COMPONENTS ON THE

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

10  ARE NOT INTENDED TO MAKE ANY REPRESENTATION REGARDING LATENT

11  OR CONCEALED DEFECTS THAT MAY EXIST. IT SHOULD BE UNDERSTOOD

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

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

14  NECESSARILY A PROFESSIONAL WITH LICENSES AUTHORIZING THE

15  RENDERING OF DETAILED OPINIONS REGARDING ANY OR ALL OF THE

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

17  SEEK AN OPINION FROM AN APPROPRIATELY LICENSED PROFESSIONAL AS

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

19         (d)  A written disclosure to the client of any conflict

20  of interest or relationship of the home inspector which may

21  affect the client.

22         (e)  A written statement or agreement declaring the

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

24  conditions regarding the home inspection.

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

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

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

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

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

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

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                                        CS/HB 465, First Engrossed



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

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

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

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

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

  6  inspector which relates to the inspection or conditions

  7  reported by the home inspector.

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

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

10  inspector which relates to the inspection.

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

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

13  preceding 12 months.

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

15  home inspection report to any person other than the client or

16  the client's representative.

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

18  inspector to comply with any provision of this section

19  constitutes a deceptive and unfair trade practice for which a

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

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

22  court may enjoin any person who has substantially failed to

23  comply with this section from using the title "certified home

24  inspector" for a reasonable period of time and may require

25  such person to inform any potential client of the existence of

26  such injunction.

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

28  inspector subject to the provisions of this section may be

29  referred to the Division of Consumer Services of the

30  Department of Agriculture and Consumer Services. The division

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                                        CS/HB 465, First Engrossed



  1  shall maintain records regarding complaints and shall compile

  2  statistics regarding such complaints.

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

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