1 | A bill to be entitled |
2 | An act relating to home inspection services; creating s. |
3 | 501.935, F.S.; providing for licensure of persons |
4 | providing home inspection services; providing legislative |
5 | intent and definitions; providing standards of practice; |
6 | creating the Florida Home Inspection Advisory Council; |
7 | providing licensure requirements, including grandfathering |
8 | provisions; providing exemptions; providing prohibited |
9 | acts and penalties; providing for complaints and |
10 | discipline; providing fees; requiring liability insurance; |
11 | exempting from duty to provide repair cost estimates; |
12 | providing for reciprocity; providing continuing education |
13 | requirements; providing limitations; providing for |
14 | enforcement of violations; providing an effective date. |
15 |
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16 | Be It Enacted by the Legislature of the State of Florida: |
17 |
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18 | Section 1. Section 501.935, Florida Statutes, is created |
19 | to read: |
20 | 501.935 Home inspection services; advisory council; |
21 | licensure requirements; exemptions; prohibited acts and |
22 | penalties; complaints and discipline; fees and insurance; |
23 | continuing education; reciprocity; limitations and |
24 | enforcement.-- |
25 | (1) INTENT.--It is the intent of this section to require |
26 | the licensing of home inspectors and to ensure that consumers of |
27 | home inspection services can rely on the competence of home |
28 | inspectors, as determined by educational and experience |
29 | requirements and testing. |
30 | (2) DEFINITIONS.--As used in this section, the term: |
31 | (a) "Department" means the Department of Business and |
32 | Professional Regulation. |
33 | (b) "Home" means any residential real property, or |
34 | manufactured or modular home, that is a single-family dwelling, |
35 | duplex, triplex, quadruplex, condominium unit, or cooperative |
36 | unit. The term does not include the common areas of condominiums |
37 | or cooperatives. |
38 | (c) "Home inspector" means any person who provides or |
39 | offers to provide a home inspection for a fee or other |
40 | compensation. |
41 | (d) "Home inspection" means a limited visual examination |
42 | of one or more of the readily accessible installed systems and |
43 | components of a home, including the structure, electrical |
44 | system, HVAC system, roof covering, plumbing system, interior |
45 | components, exterior components, and site conditions that affect |
46 | the structure, for the purposes of providing a written |
47 | professional opinion of the condition of the home. |
48 | (3) STANDARDS OF PRACTICE.--The department, in |
49 | consultation with the Florida Home Inspection Advisory Council, |
50 | shall adopt by rule pursuant to ss. 120.536(1) and 120.54 the |
51 | minimum standards of practice for home inspectors, which shall |
52 | be based on nationally recognized industry standards of practice |
53 | for home inspectors. |
54 | (4) FLORIDA HOME INSPECTION ADVISORY COUNCIL.-- |
55 | (a) The department shall appoint a Florida Home Inspection |
56 | Advisory Council to consist of eight members who are home |
57 | inspectors having a minimum of 5 years' experience each, one |
58 | consumer member, and one nonvoting member from the staff of the |
59 | department. |
60 | (b) The mission of the advisory council is to provide |
61 | industry input to the department and assist the department in |
62 | developing standards of practice and rules pursuant to this |
63 | section. |
64 | (c) The advisory council shall assist the department in |
65 | the review of complaints filed against home inspectors. |
66 | (d) The advisory council shall meet at least three times |
67 | each year. |
68 | (5) EXEMPTIONS.--The following persons are not required to |
69 | comply with this section with regard to any valuation condition, |
70 | report, survey, evaluation, or estimate rendered within the |
71 | scope of practice authorized by such license, except when such |
72 | persons are operating within the scope of this section: |
73 | (a) A construction contractor licensed under chapter 489. |
74 | (b) An architect licensed under chapter 481. |
75 | (c) An engineer licensed under chapter 471. |
76 | (d) A building code administrator, plans examiner, or |
77 | building code inspector licensed under part XII of chapter 468. |
78 | (e) A certified real estate appraiser, licensed real |
79 | estate appraiser, or registered real estate appraiser licensed |
80 | under part II of chapter 475. |
81 | (f) An inspector whose report is being provided to, and is |
82 | solely for the benefit of, the Federal Housing Administration or |
83 | the Veterans Administration. |
84 | (g) An inspector conducting inspections for wood- |
85 | destroying organisms on behalf of a licensee under chapter 482. |
86 | (h) A firesafety inspector certified under s. 633.081. |
87 | (i) An insurance adjuster licensed under part VI of |
88 | chapter 626. |
89 | (j) An officer appointed by the court. |
90 | (6) LICENSE CRITERIA.-- |
91 | (a) A person may not provide or represent himself or |
92 | herself as able to perform a professional home inspection for |
93 | compensation unless the person is licensed in accordance with |
94 | this section. |
95 | (b) A business entity may not provide or offer to provide |
96 | home inspection services unless each of the home inspectors |
97 | employed by the business entity is licensed in accordance with |
98 | this section. |
99 | (c) A business entity may not use, in connection with the |
100 | name or signature of the business entity, the title "home |
101 | inspectors" to describe the business entity's services unless |
102 | each of the home inspectors employed by the business entity is |
103 | licensed in accordance with this section. |
104 | (7) ELIGIBILITY.--To be eligible for a license as a home |
105 | inspector, an applicant must: |
106 | (a) Be of good moral character. |
107 | (b) Have successfully completed high school or its |
108 | equivalent. |
109 | (c) Have completed a course of study of no less than 90 |
110 | hours that covers all of the following components of a home: |
111 | structure, electrical system, HVAC system, roof covering, |
112 | plumbing system, interior components, exterior components, and |
113 | site conditions that affect the structure. |
114 | (d) Pass an examination that is psychometrically valid and |
115 | meets the standards of the Council on Licensure, Enforcement, |
116 | and Regulation, as determined by the department. |
117 | (8) GRANDFATHERING.--For the first year after the |
118 | enactment of this section, to be eligible for a license as a |
119 | home inspector, an applicant must: |
120 | (a) Be of good moral character. |
121 | (b) Have successfully completed high school or its |
122 | equivalent. |
123 | (c) Have been engaged in the practice of home inspection |
124 | for compensation for not fewer than 3 years prior to the |
125 | effective date of this section. |
126 | (d) Have performed not fewer than 250 home inspections for |
127 | compensation. |
128 | (e) Have passed a psychometrically valid examination that |
129 | meets the standards in the Council on Licensure, Enforcement, |
130 | and Regulation publication "A Resource Brief on Licensure |
131 | Examinations," as determined by the department. |
132 | (9) PROHIBITED ACTS; PENALTIES.-- |
133 | (a) A home inspector, a company that employs a home |
134 | inspector, or a company that is controlled by a company that |
135 | also has a financial interest in a company employing a home |
136 | inspector may not: |
137 | 1. Perform or offer to perform, prior to closing, for any |
138 | additional fee, any repairs to a home on which the inspector or |
139 | the inspector's company has prepared a home inspection report. |
140 | This paragraph does not apply to a home warranty company that is |
141 | affiliated with or retains a home inspector to perform repairs |
142 | pursuant to a claim made under a home warranty contract. |
143 | 2. Inspect for a fee any property in which the inspector |
144 | or the inspector's company has any financial or transfer |
145 | interest. |
146 | 3. Offer or deliver any compensation, inducement, or |
147 | reward to the owner of the inspected property, or any broker or |
148 | agent therefor, for the referral of any business to the |
149 | inspector or the inspection company. |
150 | 4. Accept an engagement to make an omission or prepare a |
151 | report in which the inspection itself, or the fee payable for |
152 | the inspection, is contingent upon either the conclusions in the |
153 | report, preestablished findings, or the close of escrow. |
154 | (b) Any person who violates any provision of this |
155 | subsection commits a misdemeanor of the second degree, |
156 | punishable as provided in s. 775.082 or s. 775.083. |
157 | (10) COMPLAINTS; DISCIPLINE.-- |
158 | (a) Complaints concerning a home inspector subject to the |
159 | provisions of this section shall be referred to the department. |
160 | (b) In lieu of investigation, the department may place in |
161 | a registry a copy of a complaint received by the department |
162 | against a licensed home inspector, the inspector's response to |
163 | the complaint, and a copy of any records of the department |
164 | concerning the complaint. |
165 | (c) The department shall provide to the home inspector a |
166 | copy of the complaint no later than 30 days after the date the |
167 | complaint is received by the department alleging that the |
168 | inspector has engaged in conduct that is grounds for discipline. |
169 | (d) After receiving a copy of the complaint, the home |
170 | inspector may place in a registry a statement within 30 days |
171 | that describes the inspector's view of the correctness or |
172 | relevance of any of the information contained in the complaint. |
173 | (e) The department shall make the complaint and the home |
174 | inspector's response to the complaint available to the public. |
175 | (f) The department shall remove all complaints against and |
176 | other information concerning a home inspector from the registry |
177 | if, for a period of 2 years from the date of the most recent |
178 | complaint filed in the registry, no further complaints have been |
179 | filed against the inspector. |
180 | (g) Unworthy or frivolous complaints shall be discarded |
181 | and shall not be retained. |
182 | (h) The department may make investigations or conduct |
183 | hearings pursuant to chapter 120 to determine whether a |
184 | violation of this section has occurred. |
185 | (i) The department may refuse to grant a home inspector |
186 | license or may suspend or revoke a home inspector license upon |
187 | proof to the satisfaction of the department that the applicant |
188 | or licensee has participated in an unfair business practice |
189 | relating to the provision of home inspection services. |
190 | (11) FEES.--The department shall by rule establish the |
191 | fees for licensure, renewal of licensure, and other services |
192 | provided by the department under this section. Fees established |
193 | under this subsection may not exceed amounts sufficient to |
194 | defray the administrative costs to the state under this section |
195 | and shall be comparable to those charged for other similar, |
196 | regulated professions. |
197 | (12) INSURANCE.--A licensed home inspector must maintain a |
198 | commercial general liability insurance policy in an amount of |
199 | not less that $300,000. |
200 | (13) REPAIR COST ESTIMATES.--Home inspectors are not |
201 | required to provide estimates related to the cost of repair of |
202 | an inspected property. |
203 | (14) RECIPROCITY.--The department shall issue a home |
204 | inspector license to any person who holds a valid license, |
205 | certificate, or registration issued by another state, territory, |
206 | or possession of the United States or the District of Columbia |
207 | that has standards and licensing requirements substantially |
208 | equivalent to or exceeding those of this state, as determined by |
209 | the Florida Home Inspection Advisory Council, upon payment of |
210 | the fee imposed and submission of the written application |
211 | provided by the department. |
212 | (15) CONTINUING EDUCATION REQUIREMENTS.--A licensed home |
213 | inspector must complete at least 14 hours of continuing |
214 | education approved by the department during each calendar year |
215 | in order to maintain his or her license. |
216 | (16) STATUTE OF LIMITATIONS.--Chapter 95 governs when an |
217 | action to enforce an obligation, duty, or right arising under |
218 | this section must be commenced. |
219 | (17) ENFORCEMENT OF VIOLATIONS.--Any violation of this |
220 | section constitutes a deceptive and unfair trade practice, |
221 | punishable as provided in part II of this chapter. |
222 | Section 2. This act shall take effect July 1, 2004. |