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| 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 | |||
| 16 | Be It Enacted by the Legislature of the State of Florida: | ||
| 17 | |||
| 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 Agriculture and | ||
| 32 | Consumer Services. | ||
| 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. | ||