Senate Bill sb1830c1
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Florida Senate - 2005 CS for SB 1830
By the Committee on Regulated Industries; and Senator
Argenziano
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1 A bill to be entitled
2 An act relating to home inspection services;
3 creating s. 501.935, F.S.; providing
4 definitions; providing requirements for
5 practice; providing exemptions; providing
6 prohibited acts and penalties; requiring
7 liability insurance; exempting from duty to
8 provide repair cost estimates; providing
9 limitations; providing for enforcement of
10 violations; providing an effective date.
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12 Be It Enacted by the Legislature of the State of Florida:
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14 Section 1. Section 501.935, Florida Statutes, is
15 created to read:
16 501.935 Home inspection services; requirements;
17 exemptions; prohibited acts and penalties; insurance;
18 limitations and enforcement.--
19 (1) DEFINITIONS.--As used in this section, the term:
20 (a) "Home" means any residential real property, or
21 manufactured or modular home, that is a single-family
22 dwelling, duplex, triplex, quadruplex, condominium unit, or
23 cooperative unit. The term does not include the common areas
24 of condominiums or cooperatives.
25 (b) "Home inspector" means any person who provides or
26 offers to provide a home inspection for a fee or other
27 compensation.
28 (c) "Home inspection" means a limited visual
29 examination of one or more of the readily accessible installed
30 systems and components of a home, including the structure,
31 electrical system, HVAC system, roof covering, plumbing
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Florida Senate - 2005 CS for SB 1830
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1 system, interior components, exterior components, and site
2 conditions that affect the structure, for the purposes of
3 providing a written professional opinion of the condition of
4 the home.
5 (2) REQUIREMENTS FOR PRACTICE.--
6 (a) A person shall not work as a home inspector unless
7 he or she:
8 1. Has successfully completed a course of study in
9 home inspections which requires a passing score on a valid
10 examination and is provided through a nonprofit organization
11 or a community college or university, which is not less than
12 80 hours, and which includes, but is not limited to, each of
13 the following components of a home: structure, electrical
14 system, roof covering, plumbing system, interior components,
15 exterior components, site conditions that affect the
16 structure, and heating, ventilation, and cooling systems.
17 2. Annually completes 8 hours of continuing education,
18 provided through a nonprofit organization or a community
19 college or university, related to home inspections.
20 3. Discloses each of the following to the consumer in
21 writing prior to contracting for or commencing a home
22 inspection:
23 a. The home inspector meets the education and
24 examination requirements of this subsection;
25 b. The home inspector maintains the commercial general
26 liability insurance policy required by this section;
27 c. The scope and any exclusions of the home
28 inspection; and
29 d. A statement of experience which shall include
30 either the approximate number of home inspections the home
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Florida Senate - 2005 CS for SB 1830
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1 inspector has performed for a fee or the number of years of
2 experience as a home inspector.
3 4. Home inspectors are not regulated by any state
4 agency, but any violation of this section may be an unfair and
5 deceptive trade practice under part II of chapter 501.
6 (b) A business entity may not provide or offer to
7 provide home inspection services unless each of the home
8 inspectors employed by the business entity satisfies all the
9 requirements of this section.
10 (c) A business entity may not use, in connection with
11 the name or signature of the business entity, the title "home
12 inspectors" to describe the business entity's services unless
13 each of the home inspectors employed by the business entity
14 satisfies all the requirements of this section.
15 (3) EXEMPTIONS.--The following persons are not
16 required to comply with this section when acting within the
17 scope of practice authorized by such license, except when such
18 persons are conducting, producing, disseminating, or charging
19 a fee for a home inspection or otherwise operating within the
20 scope of this section:
21 (a) A construction contractor licensed under chapter
22 489.
23 (b) An architect licensed under chapter 481.
24 (c) An engineer licensed under chapter 471.
25 (d) A building code administrator, plans examiner, or
26 building code inspector licensed under part XII of chapter
27 468.
28 (e) A certified real estate appraiser, licensed real
29 estate appraiser, or registered real estate appraiser licensed
30 under part II of chapter 475.
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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 (g) An inspector conducting inspections for
5 wood-destroying organisms on behalf of a licensee under
6 chapter 482.
7 (h) A firesafety inspector certified under s. 633.081.
8 (i) An insurance adjuster licensed under part VI of
9 chapter 626 or any person performing insurance underwriting
10 duties.
11 (j) An officer appointed by the court.
12 (k) A master septic tank contractor licensed under
13 part III of chapter 489.
14 (l) A certified energy auditor performing an energy
15 audit of any home or building conducted under chapter 366 or
16 rules adopted by the Public Service Commission.
17 (m) A mobile home manufacturer, dealer, or installer
18 regulated or licensed pursuant to the requirements of chapter
19 320 and any employees or agents of the manufacturer, dealer,
20 or installer.
21 (4) PROHIBITED ACTS; PENALTIES.--
22 (a) A home inspector, a company that employs a home
23 inspector, or a company that is controlled by a company that
24 also has a financial interest in a company employing a home
25 inspector may not:
26 1. Perform or offer to perform, prior to closing, for
27 any additional fee, any repairs to a home on which the
28 inspector or the inspector's company has prepared a home
29 inspection report. This paragraph does not apply to a home
30 warranty company that is affiliated with or retains a home
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1 inspector to perform repairs pursuant to a claim made under a
2 home warranty contract.
3 2. Inspect for a fee any property in which the
4 inspector or the inspector's company has any financial or
5 transfer interest.
6 3. Offer or deliver any compensation, inducement, or
7 reward to the owner of the inspected property, or any broker
8 or agent therefor, for the referral of any business to the
9 inspector or the inspection company.
10 4. Accept an engagement to make an omission or prepare
11 a report in which the inspection itself, or the fee payable
12 for the inspection, is contingent upon either the conclusions
13 in the report, preestablished findings, or the close of
14 escrow.
15 (b) Any person who violates any provision of this
16 subsection commits:
17 1. A misdemeanor of the second degree for a first
18 violation, punishable as provided in s. 775.082 or s. 775.083.
19 2. A misdemeanor of the first degree for a second
20 violation, punishable as provided in s. 775.082 or s. 775.083.
21 3. A felony of the third degree for a third or
22 subsequent violation, punishable as provided in s. 775.082, s.
23 775.083, or s. 775.084.
24 (5) INSURANCE.--A home inspector must maintain a
25 commercial general liability insurance policy in an amount of
26 not less that $300,000.
27 (6) REPAIR COST ESTIMATES.--Home inspectors are not
28 required to provide estimates related to the cost of repair of
29 an inspected property.
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1 (7) STATUTE OF LIMITATIONS.--Chapter 95 governs when
2 an action to enforce an obligation, duty, or right arising
3 under this section must be commenced.
4 (8) ENFORCEMENT OF VIOLATIONS.--Any violation of this
5 section constitutes a deceptive and unfair trade practice,
6 punishable as provided in part II of this chapter.
7 Section 2. This act shall take effect January 1, 2006.
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9 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
10 Senate Bill 1830
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12 The Committee Substitute (CS) deletes provisions providing for
an advisory council, licensure requirements, administrative
13 complaints and discipline, fees, continuing education and
reciprocity with other states.
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It provides that home inspectors are not regulated by any
15 state agency, but violations of the section may be actionable
as an unfair and deceptive trade practice under part II of ch.
16 501, F.S.
17 It provides for exemptions for certain licensed professionals,
requirements for liability insurance, training, continuing
18 education requirements, and restrictions on the use of the
term "home inspector."
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It provides for criminal penalties for certain violations of
20 the section; and
21 It provides that home inspectors are not required to provide
estimates related to the cost of repair of an inspected
22 property.
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