| 1 | The Business Regulation Committee recommends the following: |
| 2 |
|
| 3 | Council/Committee Substitute |
| 4 | Remove the entire bill and insert: |
| 5 | A bill to be entitled |
| 6 | An act relating to home inspection services; creating s. |
| 7 | 501.935, F.S.; providing definitions; providing |
| 8 | requirements for practice; providing exemptions; providing |
| 9 | prohibited acts and penalties; requiring liability |
| 10 | insurance; exempting from duty to provide repair cost |
| 11 | estimates; providing limitations; providing for |
| 12 | enforcement of violations; providing an effective date. |
| 13 |
|
| 14 | Be It Enacted by the Legislature of the State of Florida: |
| 15 |
|
| 16 | Section 1. Section 501.935, Florida Statutes, is created |
| 17 | to read: |
| 18 | 501.935 Home inspection services; requirements; |
| 19 | exemptions; prohibited acts and penalties; insurance; |
| 20 | limitations and enforcement.-- |
| 21 | (1) DEFINITIONS.--As used in this section, the term: |
| 22 | (a) "Home" means any residential real property, or |
| 23 | manufactured or modular home, that is a single-family dwelling, |
| 24 | duplex, triplex, quadruplex, condominium unit, or cooperative |
| 25 | unit. The term does not include the common areas of condominiums |
| 26 | or cooperatives. |
| 27 | (b) "Home inspector" means any person who provides or |
| 28 | offers to provide a home inspection for a fee or other |
| 29 | compensation. |
| 30 | (c) "Home inspection" means a limited visual examination |
| 31 | of one or more of the readily accessible installed systems and |
| 32 | components of a home, including the structure, electrical |
| 33 | system, HVAC system, roof covering, plumbing system, interior |
| 34 | components, exterior components, and site conditions that affect |
| 35 | the structure, for the purposes of providing a written |
| 36 | professional opinion of the condition of the home. |
| 37 | (2) REQUIREMENTS FOR PRACTICE.-- |
| 38 | (a) A person shall not work as a home inspector unless he |
| 39 | or she has evidence of membership in and adherence to the |
| 40 | ethical standards of a national association of home inspectors |
| 41 | that: |
| 42 | 1. Is operated on a not-for-profit basis and is not |
| 43 | operated as a franchise. |
| 44 | 2. Has members in more than 10 states. |
| 45 | 3. Requires that a person may not become a full member |
| 46 | unless the person has performed or participated in more than 100 |
| 47 | home inspections and has passed a recognized or accredited |
| 48 | examination testing knowledge of the proper procedures for |
| 49 | conducting a home inspection. |
| 50 | 4. Requires that its members comply with a code of conduct |
| 51 | and attend continuing professional education classes as an |
| 52 | ongoing condition of membership. |
| 53 | 5. Has received written confirmation from the Department |
| 54 | of Legal Affairs that the association meets the criteria in this |
| 55 | paragraph. |
| 56 | (b) A business entity may not provide or offer to provide |
| 57 | home inspection services unless each of the home inspectors |
| 58 | employed by the business entity satisfies all the requirements |
| 59 | of this section. |
| 60 | (c) A business entity may not use, in connection with the |
| 61 | name or signature of the business entity, the title "home |
| 62 | inspectors" to describe the business entity's services unless |
| 63 | each of the home inspectors employed by the business entity |
| 64 | satisfies all the requirements of this section. |
| 65 | (3) EXEMPTIONS.--The following persons are not required to |
| 66 | comply with this section with regard to any valuation condition, |
| 67 | report, survey, evaluation, or estimate rendered within the |
| 68 | scope of practice authorized by such license, except when such |
| 69 | persons are operating within the scope of this section: |
| 70 | (a) A construction contractor licensed under chapter 489. |
| 71 | (b) An architect licensed under chapter 481. |
| 72 | (c) An engineer licensed under chapter 471. |
| 73 | (d) A building code administrator, plans examiner, or |
| 74 | building code inspector licensed under part XII of chapter 468. |
| 75 | (e) A certified real estate appraiser, licensed real |
| 76 | estate appraiser, or registered real estate appraiser licensed |
| 77 | under part II of chapter 475. |
| 78 | (f) An inspector whose report is being provided to, and is |
| 79 | solely for the benefit of, the Federal Housing Administration or |
| 80 | the Veterans Administration. |
| 81 | (g) An inspector conducting inspections for wood- |
| 82 | destroying organisms on behalf of a licensee under chapter 482. |
| 83 | (h) A firesafety inspector certified under s. 633.081. |
| 84 | (i) An insurance adjuster licensed under part VI of |
| 85 | chapter 626. |
| 86 | (j) An officer appointed by the court. |
| 87 | (k) A master septic tank contractor licensed under part |
| 88 | III of chapter 489. |
| 89 | (l) A certified energy auditor performing an energy audit |
| 90 | of any home or building conducted under chapter 366 or rules |
| 91 | adopted by the Public Service Commission. |
| 92 | (4) PROHIBITED ACTS; PENALTIES.-- |
| 93 | (a) A home inspector, a company that employs a home |
| 94 | inspector, or a company that is controlled by a company that |
| 95 | also has a financial interest in a company employing a home |
| 96 | inspector may not: |
| 97 | 1. Perform or offer to perform, prior to closing, for any |
| 98 | additional fee, any repairs to a home on which the inspector or |
| 99 | the inspector's company has prepared a home inspection report. |
| 100 | This paragraph does not apply to a home warranty company that is |
| 101 | affiliated with or retains a home inspector to perform repairs |
| 102 | pursuant to a claim made under a home warranty contract. |
| 103 | 2. Inspect for a fee any property in which the inspector |
| 104 | or the inspector's company has any financial or transfer |
| 105 | interest. |
| 106 | 3. Offer or deliver any compensation, inducement, or |
| 107 | reward to the owner of the inspected property, or any broker or |
| 108 | agent therefor, for the referral of any business to the |
| 109 | inspector or the inspection company. |
| 110 | 4. Accept an engagement to make an omission or prepare a |
| 111 | report in which the inspection itself, or the fee payable for |
| 112 | the inspection, is contingent upon either the conclusions in the |
| 113 | report, preestablished findings, or the close of escrow. |
| 114 | (b) Any person who violates any provision of this |
| 115 | subsection commits: |
| 116 | 1. A misdemeanor of the second degree for a first |
| 117 | violation, punishable as provided in s. 775.082 or s. 775.083. |
| 118 | 2. A misdemeanor of the first degree for a second |
| 119 | violation, punishable as provided in s. 775.082 or s. 775.083. |
| 120 | 3. A felony of the third degree for a third or subsequent |
| 121 | violation, punishable as provided in s. 775.082, s. 775.083, or |
| 122 | s. 775.084. |
| 123 | (5) INSURANCE.--A home inspector must maintain a |
| 124 | commercial general liability insurance policy in an amount of |
| 125 | not less that $300,000. |
| 126 | (6) REPAIR COST ESTIMATES.--Home inspectors are not |
| 127 | required to provide estimates related to the cost of repair of |
| 128 | an inspected property. |
| 129 | (7) STATUTE OF LIMITATIONS.--Chapter 95 governs when an |
| 130 | action to enforce an obligation, duty, or right arising under |
| 131 | this section must be commenced. |
| 132 | (8) ENFORCEMENT OF VIOLATIONS.--Any violation of this |
| 133 | section constitutes a deceptive and unfair trade practice, |
| 134 | punishable as provided in part II of this chapter. |
| 135 | Section 2. This act shall take effect July 1, 2005. |