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  • PART I ADMINISTRATION OF THE GOVERNMENT
  • TITLE XVI PUBLIC HEALTH
  • CHAPTER 112 REGISTRATION OF CERTAIN PROFESSIONS AND OCCUPATIONS
  • Section 225 Complaints against licensed home inspectors; proof of errors and omissions insurance policy; time limitation; liability

Section 225. The board shall establish procedures for the filing of complaints regarding home inspectors who are subject to requirements for licensure.

A licensed home inspector and associate home inspector engaged in the practice of home inspection shall secure, maintain and file with the board satisfactory proof of a certificate of an errors and omissions policy which shall be in a minimum amount of $250,000 in the aggregate. Every proof of an errors and omissions policy shall stipulate that cancellation or nonrenewal of the policy shall not be effective until at least ten days’ notice of intention to cancel or not renew has been received in writing by the board. No home inspector or associate may supervise or perform a home inspection unless his performance of the inspection is covered by an errors and omissions policy of at least $250,000 in the aggregate. Such proof shall be deemed satisfactory if the policy is carried by the licensed company, partnership or franchise for which the home inspector or associate home inspector is a contracted employee and the home inspector or associate home inspector is specifically covered by such policy.

A licensed home inspector and associate home inspector shall promptly report to the insurance company any complaint filed against either the inspector or the inspector’s company in a court of competent jurisdiction when the claim in the complaint is greater than the deductible on the inspector’s errors and omissions insurance policy.

Any action arising from a home inspection shall be commenced only within three years after the date of a completed written report of a home inspection by a home inspector.

Said board shall investigate all complaints filed with the board relating to the proper practice of home inspection and all complaints relating to a violation of this chapter or any rule or regulation of said board.

Said board may, by a majority vote, after a hearing held subject to chapter 30A, deny, refuse renewal, limit, suspend or revoke the license of a home inspector or an associate home inspector upon proof to the satisfaction of the board that the holder thereof has:

(1) committed fraud or misrepresentation in obtaining a license;

(2) been guilty of criminal conduct which the board determines to be of such a nature as to render such a person unfit to practice as a licensed home inspector or associate home inspector, as evidenced by criminal proceedings which resulted in a conviction, guilty plea or plea of nolo contendere or an admission of sufficient facts;

(3) failed to report a claim forthwith to the insurance carrier as provided in this section;

(4) violated any rule or regulation of the board;

(5) failed to fulfill any continuing education requirements set out by the board;

(6) violated any ethical standard which the board determines to be of such a nature as to render such person unfit to practice as a home inspector or associate home inspector, such as:

(i) disclosing information concerning the results of the home inspection without the approval of a client or the client’s representative;

(ii) accepting compensation from more than one interested party for the same service without the consent of all interested parties;

(iii) accepting commissions or allowances, directly or indirectly, from parties other than the client in connection with work for which the licensee is responsible to the client;

(iv) failing to promptly disclose to a client or potential client information about any business interest of the licensee which may affect the client or potential client in connection with the home inspection;

(v) attempting to limit liability for negligent or wrongful errors or omissions by use of a clause within a performance contract that limits the cost of damages for negligent or wrongful errors or omissions; or

(vi) conducting a home inspection without the appropriate errors and omissions insurance coverage;

(7) failed to provide a written report of the completed home inspection;

(8) reported on the market value of the property or its marketability; or

(9) reported on the advisability or inadvisability of the purchase of the property.