Senate Bill sb1902

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    Florida Senate - 2003                                  SB 1902

    By Senator Bennett





    21-997-03

  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; limiting the authority of the

  9         Department of Agriculture and Consumer Services

10         to license home inspectors or to impose fees on

11         or file administrative complaints against home

12         inspectors; providing exemptions; requiring,

13         before inspection, provision of inspector

14         credentials, a caveat, a disclosure of

15         conflicts of interest and certain

16         relationships, and a statement or agreement of

17         scope, limitations, terms, and conditions;

18         requiring a report to the client on the results

19         of the inspection and requiring provision of

20         relevant portions thereof to homeowners under

21         certain circumstances; prohibiting certain acts

22         for which there are civil penalties; providing

23         that failure to comply is a deceptive and

24         unfair trade practice; providing for injunction

25         against use of the title "board-certified home

26         inspector" under certain circumstances and

27         requiring notice thereof to potential clients;

28         providing for the filing of complaints;

29         requiring maintenance of records regarding

30         complaints and compilation of statistics

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    Florida Senate - 2003                                  SB 1902
    21-997-03




 1         regarding such complaints; providing an

 2         effective date.

 3  

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

 5  

 6         Section 1.  Section 501.935, Florida Statutes, is

 7  created to read:

 8         501.935  Home inspection services; qualifications and

 9  standards; exemptions; required disclosures prior to

10  inspection; report on inspection results; prohibited acts;

11  failure to comply; complaints.--

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

13  performance of a home inspection requires certain unique

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

15  an engineering analysis, the practice of engineering, the

16  practice of architecture, an evaluation of compliance with

17  construction codes, a code enforcement inspection, contracting

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

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

20  require the disclosure of information useful to assist

21  consumers in choosing a qualified home inspector, to inform

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

23  actions that conflict with the best interests of a home

24  inspector's client.

25         (2)  DEFINITIONS.--As used in this section, the term:

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

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

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

29  at least 10-point type. When conspicuous type is required, it

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

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    Florida Senate - 2003                                  SB 1902
    21-997-03




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

 2  except when required by law.

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

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

 5  quadruplex, condominium unit, or cooperative unit. The term

 6  includes the structure, fixtures, appliances, and mechanical

 7  systems, but does not include offsite amenities or common

 8  areas of a condominium or cooperative.

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

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

11  compensation.

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

13  compensation, of the mechanical and physical components of a

14  home through visual means and operation of normal user

15  controls, without necessarily the use of any mathematical or

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

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

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

19  roofing, plumbing, insulation and ventilation, cladding

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

21  and fireplaces.

22         (3)  HOME INSPECTION SERVICES; STANDARDS OF PRACTICE.--

23         (a)  The Department of Agriculture and Consumer

24  Services shall adopt and incorporate by rule the Standards of

25  Practice of the American Society of Home Inspectors in effect

26  on January 1, 2003, or any other consensus-based home

27  inspection standard deemed equivalent by the Department of

28  Agriculture and Consumer Services, including minimum standards

29  required for a home inspector to claim to be a "certified home

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

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    Florida Senate - 2003                                  SB 1902
    21-997-03




 1  inspector have experience and have successfully passed an

 2  examination regarding home inspections.

 3         (b)  In adopting the rules required by this subsection,

 4  the department shall consult with representatives of the

 5  Florida home inspection industry, the Florida Building Code

 6  Administrators and Inspectors Board, the Construction Industry

 7  Licensing Board, and the Electrical Contractors' Licensing

 8  Board.

 9         (c)  The purpose and intent of this subsection is not

10  to create or impose a bureau or other state agency to regulate

11  the affairs of home inspectors. Accordingly, the Department of

12  Agriculture and Consumer Services shall not license a home

13  inspector, collect fees from a home inspector for licensure,

14  or file an administrative complaint against a home inspector

15  for a violation of this section or for a violation of rules

16  adopted under this section.

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

18  required to comply with this section with regard to any

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

20  rendered within the scope of practice authorized by such

21  license:

22         (a)  A construction contractor licensed under chapter

23  489.

24         (b)  An architect licensed under chapter 481.

25         (c)  An engineer licensed under chapter 471.

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

27  building code inspector licensed under part XII of chapter

28  468.

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

30  estate appraiser, or registered assistant real estate

31  appraiser licensed under part II of chapter 475.

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    Florida Senate - 2003                                  SB 1902
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 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.

 4         (5)  DISCLOSURE.--Before entering into a contract for

 5  home inspection and before performing any home inspection, a

 6  home inspector must provide the following to any person who

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

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

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

10  credentials, including whether or not the inspector is board

11  certified.

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

13         "AN INSPECTION IS INTENDED TO ASSIST IN EVALUATION OF

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

15  OBSERVATION OF THE VISIBLE AND APPARENT CONDITION OF THE

16  BUILDING AND ITS MECHANICAL AND PHYSICAL COMPONENTS ON THE

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

18  ARE NOT INTENDED TO MAKE ANY REPRESENTATION REGARDING LATENT

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

20  GUARANTEE IS EXPRESSED OR IMPLIED.  IT SHOULD BE UNDERSTOOD

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

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

23  NECESSARILY A PROFESSIONAL WITH LICENSES AUTHORIZING THE

24  RENDERING OF DETAILED OPINIONS REGARDING ANY OR ALL OF THE

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

26  SEEK AN OPINION FROM AN APPROPRIATELY LICENSED PROFESSIONAL AS

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

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

29  of interest or relationship of the home inspector which may

30  affect the client.

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    Florida Senate - 2003                                  SB 1902
    21-997-03




 1         (d)  A written statement or agreement declaring the

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

 3  conditions regarding the home inspection.

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

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

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

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

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

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

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

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

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

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

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

15  inspector which relates to the inspection or conditions

16  reported by the home inspector.

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

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

19  inspector which offer relates to the inspection.

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

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

22  preceding 12 months.

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

24  home inspection report to a person other than the client.

25         (e)  Perform an inspection of any home that has not

26  previously been sold.

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

28  inspector to comply with any provision of this section

29  constitutes a deceptive and unfair trade practice for which a

30  cause of action under part II of this chapter may be

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

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    Florida Senate - 2003                                  SB 1902
    21-997-03




 1  court may enjoin any person who has substantially failed to

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

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

 4  require such person to inform any potential client of the

 5  existence of such injunction.

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

 7  inspector subject to the provisions of this section may be

 8  referred to the Division of Consumer Services of the

 9  Department of Agriculture and Consumer Services. The division

10  shall maintain records regarding complaints and shall compile

11  statistics regarding such complaints.

12         Section 2.  This act shall take effect July 1, 2003.

13  

14            *****************************************

15                          SENATE SUMMARY

16    Provides requirements relating to home inspection
      services. Provides legislative intent and definitions.
17    Requires the Department of Agriculture and Consumer
      Services to adopt standards of practice for home
18    inspectors. Prohibits the department from issuing
      licenses or imposing fees or filing complaints against a
19    home inspector. Provides exemptions. Requires, before
      inspection, the disclosure of inspector credentials, a
20    caveat, conflicts of interest and certain relationships,
      and a statement or agreement of scope, limitations,
21    terms, and conditions. Requires a report on the results
      of the inspection. Prohibits certain acts, for which
22    there are civil penalties. Provides that failure to
      comply is a deceptive and unfair trade practice and
23    provides penalties. Provides for an injunction against
      use of the title "board-certified home inspector" under
24    certain circumstances. Requires the Division of Consumer
      Services to maintain a record of complaints concerning
25    home inspection services.

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