House Bill 0465e2

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                                   CS/HB 465, Second Engrossed/ntc



  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, Second Engrossed/ntc



  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, Second Engrossed/ntc



  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 PRACTICE.--

17         (a)  The Department of Agriculture and Consumer

18  Services shall adopt, by incorporation, one or more nationally

19  recognized minimum standards of practice for home inspection

20  services.

21         (b)  The department shall adopt, by incorporation, one

22  or more nationally recognized minimum standards of practice

23  for home inspector to claim to be a "certified home

24  inspector."  Any such standard shall require that a home

25  inspector have experience requirements and have successfully

26  passed an examination regarding home inspections.

27         (c)  In adopting the rules required by this subsection,

28  the department is not to promulgate specific rules setting

29  forth standards, but to simply adopt by incorporation

30  standards developed by nationally recognized organizations.

31  In adopting the rules required  by this subsection, the


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                                   CS/HB 465, Second Engrossed/ntc



  1  department shall consult with representatives of the Florida

  2  home inspection industry, the Florida Building Code

  3  Administrators and Inspectors Board, the Construction Industry

  4  Licensing Board, and the Electrical Contractors' Licensing

  5  Board.

  6         (d)  The purpose and intent to this legislation is not

  7  to create or impose a bureau or other agency of state

  8  government to regulate the affairs of home inspectors.

  9  Accordingly, the Department of Agriculture and Consumer

10  Services shall not license a home inspector, collect fees from

11  a home inspector for licensure, or file an administrative

12  complaint against a home inspector for violation of this

13  section or for violation of administrative code and rules

14  promulgated pursuant to this section.

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

16  required to comply with this section with regard to any

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

18  rendered within the scope of practice authorized by such

19  license:

20         (a)  A construction contractor licensed under chapter

21  489.

22         (b)  An architect licensed under chapter 481.

23         (c)  An engineer licensed under chapter 471.

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

25  building code inspector licensed under part XII of chapter

26  468.

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

28  estate appraiser, or registered assistant real estate

29  appraiser licensed under part II of chapter 475.

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                                   CS/HB 465, Second Engrossed/ntc



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

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

  3  Administration or the Veterans Administration.

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

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

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

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

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

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

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

12  has requested the inspection:

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

14  credentials.

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

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

17  chapter 481, suspended or revoked.

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

19         "AN INSPECTION IS INTENDED TO ASSIST IN EVALUATION OF

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

21  OBSERVATION OF THE VISIBLE AND APPARENT CONDITION OF THE

22  BUILDING AND ITS MECHANICAL AND PHYSICAL COMPONENTS ON THE

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

24  ARE NOT INTENDED TO MAKE ANY REPRESENTATION REGARDING LATENT

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

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

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

28  NECESSARILY A PROFESSIONAL WITH LICENSES AUTHORIZING THE

29  RENDERING OF DETAILED OPINIONS REGARDING ANY OR ALL OF THE

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

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                                   CS/HB 465, Second Engrossed/ntc



  1  SEEK AN OPINION FROM AN APPROPRIATELY LICENSED PROFESSIONAL AS

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

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

  4  of interest or relationship of the home inspector which may

  5  affect the client.

  6         (e)  A written statement or agreement declaring the

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

  8  conditions regarding the home inspection.

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

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

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

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

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

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

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

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

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

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

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

20  inspector which relates to the inspection or conditions

21  reported by the home inspector.

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

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

24  inspector which relates to the inspection.

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

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

27  preceding 12 months.

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

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

30  the client's representative.

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                                   CS/HB 465, Second Engrossed/ntc



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

  2  inspector to comply with any provision of this section

  3  constitutes a deceptive and unfair trade practice for which a

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

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

  6  court may enjoin any person who has substantially failed to

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

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

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

10  such injunction.

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

12  inspector subject to the provisions of this section may be

13  referred to the Division of Consumer Services of the

14  Department of Agriculture and Consumer Services. The division

15  shall maintain records regarding complaints and shall compile

16  statistics regarding such complaints.

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

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