Senate Bill sb1830c1

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    Florida Senate - 2005                           CS for SB 1830

    By the Committee on Regulated Industries; and Senator
    Argenziano




    580-2269-05

  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.

11  

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

13  

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
    580-2269-05




 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

31  

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    Florida Senate - 2005                           CS for SB 1830
    580-2269-05




 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.

31  

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    Florida Senate - 2005                           CS for SB 1830
    580-2269-05




 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

31  

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    Florida Senate - 2005                           CS for SB 1830
    580-2269-05




 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.

30  

31  

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    Florida Senate - 2005                           CS for SB 1830
    580-2269-05




 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.

 8  

 9          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
10                         Senate Bill 1830

11                                 

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.
14  
    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."
19  
    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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