Senate Bill sb1902c1

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    Florida Senate - 2003                           CS for SB 1902

    By the Committee on Regulated Industries; and Senator Bennett





    315-2298-03

  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                           CS for SB 1902
    315-2298-03




 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                           CS for SB 1902
    315-2298-03




 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         (e)  "Code certified" means that the inspector has

23  passed either the One and Two Family Dwelling Inspector

24  examination or International Residential Code Inspector

25  examination as administered by a recognized model code

26  organization, such as SBCCI, ICBO, or ICC, or has passed the

27  examinations as administered by a recognized model code

28  organization in all of the following categories: BUILDING

29  INSPECTOR, PLUMBING INSPECTOR, ELECTRICAL INSPECTOR, and

30  MECHANICAL INSPECTOR, thus demonstrating that the inspector

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    Florida Senate - 2003                           CS for SB 1902
    315-2298-03




 1  has a fundamental knowledge of the codes relating to the

 2  construction of homes.

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

 4         (a)  The Department of Agriculture and Consumer

 5  Services shall adopt and incorporate by rule the Standards of

 6  Practice of the American Society of Home Inspectors in effect

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

 8  inspection standard deemed equivalent by the Department of

 9  Agriculture and Consumer Services, including minimum standards

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

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

12  inspector have experience and have successfully passed an

13  examination regarding home inspections.

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

15  the department shall consult with representatives of the

16  Florida home inspection industry, the Florida Building Code

17  Administrators and Inspectors Board, the Construction Industry

18  Licensing Board, and the Electrical Contractors' Licensing

19  Board.

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

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

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

23  Agriculture and Consumer Services shall not license a home

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

25  or file an administrative complaint against a home inspector

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

27  adopted under this section.

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

29  required to comply with this section with regard to any

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

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    Florida Senate - 2003                           CS for SB 1902
    315-2298-03




 1  rendered within the scope of practice authorized by such

 2  license:

 3         (a)  A construction contractor licensed under chapter

 4  489.

 5         (b)  An architect licensed under chapter 481.

 6         (c)  An engineer licensed under chapter 471.

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

 8  building code inspector licensed under part XII of chapter

 9  468.

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

11  estate appraiser, or registered assistant real estate

12  appraiser licensed under part II of chapter 475.

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

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

15  Administration or the Veterans Administration.

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

17  home inspection and before performing any home inspection, a

18  home inspector must provide the following to any person who

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

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

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

22  credentials, including whether or not the inspector is board

23  certified.

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

25         "AN INSPECTION IS INTENDED TO ASSIST IN EVALUATION OF

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

27  OBSERVATION OF THE VISIBLE AND APPARENT CONDITION OF THE

28  BUILDING AND ITS MECHANICAL AND PHYSICAL COMPONENTS ON THE

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

30  ARE NOT INTENDED TO MAKE ANY REPRESENTATION REGARDING LATENT

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

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    Florida Senate - 2003                           CS for SB 1902
    315-2298-03




 1  GUARANTEE IS EXPRESSED OR IMPLIED.  IT SHOULD BE UNDERSTOOD

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

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

 4  NECESSARILY A PROFESSIONAL WITH LICENSES AUTHORIZING THE

 5  RENDERING OF DETAILED OPINIONS REGARDING ANY OR ALL OF THE

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

 7  SEEK AN OPINION FROM AN APPROPRIATELY LICENSED PROFESSIONAL AS

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

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

10  of interest or relationship of the home inspector which may

11  affect the client.

12         (d)  A written statement or agreement declaring the

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

14  conditions regarding the home inspection.

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

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

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

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

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

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

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

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

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

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

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

26  inspector which relates to the inspection or conditions

27  reported by the home inspector.

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

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

30  inspector which offer relates to the inspection.

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    Florida Senate - 2003                           CS for SB 1902
    315-2298-03




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

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

 3  preceding 12 months.

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

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

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

 7  previously been issued a certificate of occupancy unless that

 8  home inspector is code certified.

 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 this chapter 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, 2003.

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    Florida Senate - 2003                           CS for SB 1902
    315-2298-03




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                             SB 1902

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 4  Adds a definition for "Code Certified".

 5  Clarifies that a home inspector may not perform an inspection
    of any home that has not previously received a certificate of
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