SB 907 — An Act amending the act of February 19, 1980 (P.L.15, No.9), entitled "An act establishing the State Real Estate Commission and providing for the licensing of real estate brokers and salesmen," in definitions, further providing for definitions and for State Real Estate Commission; in application of the act and penalties, further providing for unlawful to conduct business without license or registration certificate, for civil suits, for criminal penalties and for civil penalty; in powers and duties of the State Real Estate Commission - general, further providing for duty to issue licenses and registration certificates and for approval of schools, providing for continuing education for licensed home inspectors and further providing for administration and enforcement; in qualifications and applications for licenses and registration certificates, further providing for reputation and inactive licensee and revoked license and providing for home inspector license and home inspector-in-training registration; in duties of licensees, further providing for reciprocal licenses and for broker price opinion; making a repeal; and making an editorial change.

* * * (5) Performing an act or omitting an act when such performance or omission involves dishonesty, fraud or 20250SB0907PN1032 - 15 - misrepresentation with intent to substantially benefit the registrant, certificateholder or licensee in his profession or with the intent to substantially injure another person.

(1) Deny the application for registration, certification or licensure or for renewal of registration, certification or 20250SB0907PN1692 - 16 - licensure.

(5) Restore a suspended registration, certificate or 20250SB0907PN1032 - 16 - license and impose any disciplinary or corrective measure which it might originally have imposed.

20250SB0907PN1692 - 17 - Any appraiser certified in this Commonwealth who is also certified or licensed to perform appraisals in any other state, territory or country shall report this information to the board on the biennial renewal application.

Any disciplinary action taken in any other state, territory or country shall be reported to the board on the biennial renewal application, or within 90 days of 20250SB0907PN1032 - 17 - disposition, whichever is sooner.

* * * (b) Civil penalty.--In addition to any other civil remedy or criminal penalty provided for in this act, the board, by a vote of the majority of the maximum number of the authorized membership of the board as provided by law, or by a vote of the majority of the duly qualified and confirmed membership or a 20250SB0907PN1692 - 18 - minimum of three members, whichever is greater, may levy a civil penalty of up to $10,000 on any certificateholder [or], licensee or registrant who violates any provision of this act [or], any noncertificateholder who holds himself out as a real estate appraiser in this Commonwealth or who performs an appraisal for which certification or licensure is required under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (Public Law 101-73, 103 Stat.

183) an appraisal in any federally related or nonfederally related transaction or any other appraisal[.] or any nonlicensed individual who holds himself out 20250SB0907PN1032 - 18 - as a home inspector in this Commonwealth or who performs a home inspection for which certification or licensure is required.

(a) Unfair Trade Practices and Consumer Protection Law.--The 20250SB0907PN1692 - 19 - performance of a home inspection is a service subject to the act of December 17, 1968 (P.L.1224, No.387), known as the Unfair Trade Practices and Consumer Protection Law.

(1) Performing or offering to perform for an additional 20250SB0907PN1032 - 19 - fee any repairs to a structure with respect to which the home inspector, the employer of the home inspector or other business or person has prepared a home inspection report within the preceding 12 months, except that this paragraph shall not apply to remediation for radon or wood-destroying insects.

(4) Accepting an engagement to perform a home inspection 20250SB0907PN1692 - 20 - or to prepare a home inspection report in which the employment itself or the fee payable for the inspection is contingent upon the conclusions in the report, preestablished or prescribed findings or the closing of the transaction.

(d) Other remedies.--In addition to other remedies available under the Unfair Trade Practices and Consumer Protection Law or 20250SB0907PN1032 - 20 - other applicable provision of law, the owner of a property on which repairs are performed in violation of subsection (b)(1) shall be entitled to a full refund of money paid for those repairs, and a promissory note or another obligation to pay given to the person performing those repairs shall be void.

(1) A limitation on the liability of the home inspector 20250SB0907PN1692 - 21 - for gross negligence or willful misconduct.

(2) A description of material defects noted during the 20250SB0907PN1032 - 21 - inspection, along with a recommendation that certain experts be retained to determine the extent of the defects and the corrective action that should be taken.

20250SB0907PN1692 - 22 - (iii) If the person conducting your home inspection is not a licensed structural engineer or other professional whose license authorizes the rendering of an opinion as to the structural integrity of a building or the building's other component parts, you may be advised to seek a professional opinion as to any defects or concerns mentioned in the report.

20250SB0907PN1032 - 22 - (b) Delivery of report.--Except as otherwise required by this subsection or by law, a home inspector may not deliver a home inspection report to a person other than the client of the home inspector without the client's consent.

(d) Limitation period.--An action to recover damages arising from a home inspection report must be commenced within one year after the date the report is delivered regardless of when the 20250SB0907PN1692 - 23 - claim is discovered by the client.

The board shall report, within 60 days of the effective date of this section and every 30 days thereafter, on the status of the 20250SB0907PN1032 - 23 - regulations to the Consumer Protection and Professional Licensure Committee of the Senate and the Professional Licensure Committee of the House of Representatives.

SECTION20250SB0907PN1032 1.- 24 -

THE DEFINITIONS OF "LICENSE" AND "SCHOOL" IN <-- SECTION 201 OF THE ACT OF FEBRUARY 19, 1980 (P.L.15, NO.9), KNOWN AS THE REAL ESTATE LICENSING AND REGISTRATION ACT, ARE AMENDED AND THE SECTION IS AMENDED BY ADDING DEFINITIONS TO READ:

SECTION 201.

DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL HAVE, UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE, THE MEANINGS GIVEN TO THEM IN THIS SECTION:

20250SB0907PN1692 - 24 - * * * "CLIENT." WHEN THE TERM IS APPLIED TO A HOME INSPECTOR, A PERSON OR PERSON ACTING THROUGH A LEGAL REPRESENTATIVE WHO CONTRACTS WITH A LICENSED HOME INSPECTOR TO OBTAIN A HOME INSPECTION AND SUBSEQUENT WRITTEN HOME INSPECTION REPORT.

* * * "HOME INSPECTION." A NONINVASIVE VISUAL EXAMINATION OF THE SYSTEMS AND ESSENTIAL COMPONENTS OF A RESIDENTIAL DWELLING DESIGNED TO IDENTIFY MATERIAL DEFECTS IN THOSE SYSTEMS AND COMPONENTS AND PERFORMED FOR A FEE IN CONNECTION WITH OR PREPARATION FOR A PROPOSED OR POSSIBLE RESIDENTIAL REAL ESTATE TRANSFER.

THE TERM:

(1) INCLUDES A CONSULTATION REGARDING THE PROPERTY THAT IS REPRESENTED TO BE A HOME INSPECTION OR THAT IS DESCRIBED BY A CONFUSINGLY SIMILAR TERM SUCH AS A HOME SURVEY, HOME ASSESSMENT, BUILDING SURVEY, HOME WALK-THROUGH OR DWELLING EXAMINATION.

(2) DOES NOT INCLUDE:

(I) AN EXAMINATION OF A SINGLE SYSTEM OR COMPONENT OF A RESIDENTIAL DWELLING, SUCH AS AN ELECTRICAL OR PLUMBING SYSTEM OR ROOF.

(II) AN EXAMINATION THAT IS LIMITED TO INSPECTION FOR OR OF ONE OR MORE OF THE FOLLOWING:

(A) WOOD DESTROYING INSECTS.

(B) UNDERGROUND TANKS AND WELLS.

(C) SEPTIC SYSTEMS.

(D) SWIMMING POOLS AND SPAS.

(E) ALARM AND SMART HOME SYSTEMS.

(F) AIR AND WATER QUALITY.

(G) TENNIS COURTS AND PLAYGROUND EQUIPMENT.

20250SB0907PN1692 - 25 - (H) POLLUTANTS, TOXIC CHEMICALS AND ENVIRONMENTAL HAZARDS.

(III) AN EXAMINATION ASSOCIATED WITH MOVING INTO OR OUT OF A LEASED HOME.

"HOME INSPECTION REPORT." A TYPEWRITTEN REPORT ON THE RESULTS OF A HOME INSPECTION.

"HOME INSPECTOR-IN-TRAINING." A CANDIDATE FOR LICENSURE AS A LICENSED HOME INSPECTOR WHO HAS BEEN GRANTED A REGISTRATION AS A HOME INSPECTOR-IN-TRAINING.

"LICENSE." THE TERM INCLUDES BOTH A STANDARD LICENSE AND A RECIPROCAL LICENSE, OR IN THE CONTEXT OF HOME INSPECTION, A HOME INSPECTOR LICENSE.

"LICENSED HOME INSPECTOR." AN INDIVIDUAL LICENSED BY THE COMMISSION TO PERFORM HOME INSPECTIONS.

THE TERM DOES NOT INCLUDE AN INDIVIDUAL LICENSED UNDER ANY OF THE FOLLOWING LAWS WHEN ACTING UNDER THE INDIVIDUAL'S REGISTRATION OR LICENSE:

(1) THE ACT OF MAY 23, 1945 (P.L.913, NO.367), KNOWN AS THE ENGINEER, LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW, AS A PROFESSIONAL ENGINEER, PROFESSIONAL LAND SURVEYOR AND PROFESSIONAL GEOLOGIST.

(2) THE ACT OF JANUARY 24, 1966 (1965 P.L.1535, NO.537), KNOWN AS THE PENNSYLVANIA SEWAGE FACILITIES ACT.

(3) THE ACT OF MARCH 1, 1974 (P.L.90, NO.24), KNOWN AS THE PENNSYLVANIA PESTICIDE CONTROL ACT OF 1973.

(4) THE ACT OF DECEMBER 14, 1982 (P.L.1227, NO.281), KNOWN AS THE ARCHITECTS LICENSURE LAW.

(5) THE ACT OF JULY 9, 1987 (P.L.238, NO.43), KNOWN AS THE RADON CERTIFICATION ACT.

* * * "MATERIAL DEFECT." A PROBLEM WITH A RESIDENTIAL PROPERTY OR 20250SB0907PN1692 - 26 - ANY PORTION OF IT THAT WOULD HAVE A SIGNIFICANT ADVERSE IMPACT ON THE VALUE OF THE PROPERTY OR THAT INVOLVES AN UNREASONABLE RISK TO PEOPLE ON THE PROPERTY.

THE FACT THAT AN ESSENTIAL COMPONENT, SYSTEM OR SUBSYSTEM IS NEAR, AT OR BEYOND THE END OF ITS NORMAL USEFUL LIFE IS NOT BY ITSELF A MATERIAL DEFECT.

* * * "SCHOOL." ANY PERSON WHO CONDUCTS CLASSES IN REAL ESTATE SUBJECTS, INCLUDING HOME INSPECTION, BUT IS NOT A COLLEGE, UNIVERSITY OR INSTITUTE OF HIGHER LEARNING DULY ACCREDITED BY THE MIDDLE STATES ASSOCIATION OF COLLEGES AND SECONDARY SCHOOLS OR EQUIVALENT ACCREDITATION.

* * * SECTION 2.

SECTION 202(A), (B) AND (C) OF THE ACT ARE AMENDED AND THE SECTION IS AMENDED BY ADDING A SUBSECTION TO READ:

SECTION 202.

STATE REAL ESTATE COMMISSION.

(A) THE STATE REAL ESTATE COMMISSION IS HEREBY CREATED AND SHALL CONSIST OF THE COMMISSIONER OF PROFESSIONAL AND OCCUPATIONAL AFFAIRS;

THE DIRECTOR OF THE BUREAU OF CONSUMER PROTECTION, OR [HIS] THE DIRECTOR'S DESIGNEE;

THREE MEMBERS WHO SHALL BE PERSONS REPRESENTING THE PUBLIC AT LARGE;

[FIVE] SIX OTHER PERSONS, EACH OF WHOM SHALL AT THE TIME OF [HIS] APPOINTMENT BE A LICENSED AND QUALIFIED REAL ESTATE BROKER UNDER THE EXISTING LAW OF THIS COMMONWEALTH, AND SHALL HAVE BEEN ENGAGED IN THE REAL ESTATE BUSINESS IN THIS COMMONWEALTH FOR A PERIOD OF NOT LESS THAN TEN YEARS IMMEDIATELY PRIOR TO [HIS] THE APPOINTMENT;

TWO SHALL BE QUALIFIED HOME INSPECTORS;

AND ONE OTHER PERSON WHO SHALL HAVE BEEN LICENSED AS A REAL ESTATE BROKER, OR CEMETERY BROKER, FOR A PERIOD OF AT LEAST FIVE YEARS AND SHALL HAVE BEEN ENGAGED IN SELLING CEMETERY LOTS FOR AT 20250SB0907PN1692 - 27 - LEAST TEN YEARS IMMEDIATELY PRIOR TO [HIS] APPOINTMENT.

EACH OF SAID MEMBERS OF THE COMMISSION SHALL BE APPOINTED BY THE GOVERNOR.

FOR A MEMBER TO QUALIFY AS A HOME INSPECTOR, THE MEMBER MUST MEET THE REQUIREMENTS OF A LICENSED HOME INSPECTOR EVEN IF THE LICENSE HAS NOT BEEN GRANTED, BUT MUST OBTAIN A LICENSE WITHIN ONE MONTH OF THE LICENSE BEING AVAILABLE TO REMAIN ON THE COMMISSION.

(A.1) WITHIN 90 DAYS OF THE EFFECTIVE DATE OF THIS SUBSECTION, THE GOVERNOR SHALL NOMINATE TWO QUALIFIED HOME INSPECTORS TO SERVE.

(B) THE TERM OF OFFICE OF EACH OF SAID MEMBERS SHALL BE FIVE YEARS FROM [HIS] THE APPOINTMENT, OR UNTIL [HIS] A SUCCESSOR HAS BEEN APPOINTED AND QUALIFIED BUT NOT LONGER THAN SIX MONTHS BEYOND THE FIVE-YEAR PERIOD.

IN THE EVENT THAT ANY OF SAID MEMBERS SHALL DIE OR RESIGN DURING [HIS] THE TERM OF OFFICE, [HIS] A SUCCESSOR SHALL BE APPOINTED IN THE SAME WAY AND WITH THE SAME QUALIFICATIONS AS ABOVE SET FORTH AND SHALL HOLD OFFICE FOR THE UNEXPIRED TERM.

NO MEMBER SHALL BE ELIGIBLE TO SERVE MORE THAN TWO CONSECUTIVE TERMS.

(C) A MAJORITY OF THE MEMBERS CURRENTLY SERVING ON THE COMMISSION SHALL CONSTITUTE A QUORUM.

THE COMMISSION SHALL ELECT A CHAIRMAN, VICE-CHAIRMAN AND SECRETARY FROM AMONG ITS MEMBERS.

A COMMISSION MEMBER WHO FAILS TO ATTEND THREE CONSECUTIVE MEETINGS SHALL FORFEIT [HIS] THE MEMBER'S SEAT UNLESS THE COMMISSIONER OF PROFESSIONAL AND OCCUPATIONAL AFFAIRS, UPON WRITTEN REQUEST FROM THE MEMBER, FINDS THAT THE MEMBER SHOULD BE EXCUSED FROM A MEETING BECAUSE OF ILLNESS OR THE DEATH OF A FAMILY MEMBER.

* * * SECTION 3.

SECTIONS 301, 302, 303, 305, 401, 402 AND 404.1 20250SB0907PN1692 - 28 - HEADING OF THE ACT ARE AMENDED TO READ:

SECTION 301.

UNLAWFUL TO CONDUCT BUSINESS WITHOUT LICENSE OR REGISTRATION CERTIFICATE.

IT SHALL BE UNLAWFUL FOR ANY PERSON, DIRECTLY OR INDIRECTLY, TO ENGAGE IN OR CONDUCT, OR TO ADVERTISE OR HOLD [HIMSELF] ONESELF OUT AS ENGAGING IN OR CONDUCTING THE BUSINESS, OR ACTING IN THE CAPACITY OF A BROKER OR SALESPERSON, CEMETERY BROKER, CEMETERY SALESPERSON, CAMPGROUND MEMBERSHIP SALESPERSON, TIME- SHARE SALESPERSON, BUILDER-OWNER SALESPERSON, RENTAL LISTING REFERRAL AGENT, LICENSED HOME INSPECTOR, HOME INSPECTOR-IN- TRAINING OR CEMETERY COMPANY WITHIN THIS COMMONWEALTH WITHOUT FIRST BEING LICENSED OR REGISTERED AS PROVIDED IN THIS ACT, UNLESS [HE] THE PERSON IS EXEMPTED FROM OBTAINING A LICENSE OR REGISTRATION CERTIFICATE UNDER THE PROVISIONS OF SECTION 304 OR 599.1(C).

SECTION 302.

CIVIL SUITS.

NO ACTION OR SUIT SHALL BE INSTITUTED, NOR RECOVERY BE HAD, IN ANY COURT OF THIS COMMONWEALTH BY ANY PERSON FOR COMPENSATION FOR ANY ACT DONE OR SERVICE RENDERED, THE DOING OR RENDERING OF WHICH IS PROHIBITED UNDER THE PROVISIONS OF THIS ACT BY A PERSON OTHER THAN A LICENSED BROKER, SALESPERSON, CEMETERY BROKER, CEMETERY SALESPERSON, CAMPGROUND MEMBERSHIP SALESPERSON, TIME- SHARE SALESPERSON, BUILDER-OWNER SALESPERSON OR RENTAL LISTING REFERRAL AGENT, UNLESS SUCH PERSON WAS DULY LICENSED AND REGISTERED HEREUNDER AS BROKER OR SALESPERSON AT THE TIME OF OFFERING TO PERFORM ANY SUCH ACT OR SERVICE OR PROCURING ANY PROMISE OR CONTRACT FOR THE PAYMENT OF COMPENSATION FOR ANY SUCH CONTEMPLATED ACT OR SERVICE OR THE PERSON IS A LICENSED HOME INSPECTOR PROVIDING HOME INSPECTION SERVICES.

SECTION 303.

CRIMINAL PENALTIES.

20250SB0907PN1692 - 29 - ANY PERSON WHO SHALL ENGAGE IN OR CARRY ON THE BUSINESS, OR ACT IN THE CAPACITY OF A BROKER, SALESPERSON, CEMETERY BROKER, CEMETERY SALESPERSON, CAMPGROUND MEMBERSHIP SALESPERSON, TIME- SHARE SALESPERSON, BUILDER-OWNER SALESPERSON, RENTAL LISTING REFERRAL AGENT, LICENSED HOME INSPECTOR, HOME INSPECTOR-IN- TRAINING OR CEMETERY COMPANY, WITHIN THIS COMMONWEALTH, WITHOUT A LICENSE OR REGISTRATION CERTIFICATE, OR SHALL CARRY ON OR CONTINUE BUSINESS AFTER THE SUSPENSION OR REVOCATION OF ANY SUCH LICENSE OR REGISTRATION CERTIFICATE ISSUED TO [HIM] THE PERSON, OR SHALL EMPLOY ANY PERSON AS A SALESPERSON OR CEMETERY SALESPERSON TO WHOM A LICENSE HAS NOT BEEN ISSUED, OR WHOSE LICENSE OR REGISTRATION CERTIFICATE AS SUCH SHALL HAVE BEEN REVOKED OR SUSPENDED, SHALL BE GUILTY OF A SUMMARY OFFENSE AND UPON CONVICTION THEREOF FOR A FIRST OFFENSE SHALL BE SENTENCED TO PAY A FINE NOT EXCEEDING $500 OR SUFFER IMPRISONMENT, NOT EXCEEDING THREE MONTHS, OR BOTH AND FOR A SECOND OR SUBSEQUENT OFFENSE SHALL BE GUILTY OF A FELONY OF THE THIRD DEGREE AND UPON CONVICTION THEREOF, SHALL BE SENTENCED TO PAY A FINE OF NOT LESS THAN $2,000 BUT NOT MORE THAN $5,000 OR TO IMPRISONMENT FOR NOT LESS THAN ONE YEAR BUT NOT MORE THAN TWO YEARS, OR BOTH.

SECTION 305.

CIVIL PENALTY.

IN ADDITION TO ANY OTHER CIVIL REMEDY OR CRIMINAL PENALTY PROVIDED FOR IN THIS ACT, THE COMMISSION, BY A VOTE OF THE MAJORITY OF THE MAXIMUM NUMBER OF THE AUTHORIZED MEMBERSHIP OF THE COMMISSION AS PROVIDED BY LAW, OR BY A VOTE OF THE MAJORITY OF THE DULY QUALIFIED AND CONFIRMED MEMBERSHIP OR A MINIMUM OF FIVE MEMBERS, WHICHEVER IS GREATER, MAY LEVY A CIVIL PENALTY OF UP TO $1,000 ON ANY CURRENT LICENSEE WHO VIOLATES ANY PROVISION OF THIS ACT OR ON ANY PERSON WHO PRACTICES REAL ESTATE OR AS A LICENSED HOME INSPECTOR OR HOME INSPECTOR-IN-TRAINING WITHOUT 20250SB0907PN1692 - 30 - BEING PROPERLY LICENSED OR REGISTERED TO DO SO UNDER THIS ACT.

THE COMMISSION SHALL LEVY THIS PENALTY ONLY AFTER AFFORDING THE ACCUSED PARTY THE OPPORTUNITY FOR A HEARING, AS PROVIDED IN TITLE 2 OF THE PENNSYLVANIA CONSOLIDATED STATUTES (RELATING TO ADMINISTRATIVE LAW AND PROCEDURE).

SECTION 401.

DUTY TO ISSUE LICENSES AND REGISTRATION CERTIFICATES.

IT SHALL BE THE DUTY OF THE DEPARTMENT TO ISSUE LICENSES AND REGISTRATION CERTIFICATES TO ANY PERSON WHO SHALL COMPLY WITH THE PROVISIONS OF THIS ACT.

THE COMMISSION MAY ESTABLISH LIMITS ON THE NUMBER OF TIMES A HOME INSPECTOR-IN-TRAINING MAY RENEW A REGISTRATION.

SECTION 402.

APPROVAL OF SCHOOLS.

ANY SCHOOL WHICH SHALL OFFER OR CONDUCT ANY COURSE OR COURSES OF STUDY IN REAL ESTATE OR HOME INSPECTION SHALL FIRST OBTAIN APPROVAL FROM, AND THEREAFTER ABIDE BY THE RULES AND REGULATIONS OF THE COMMISSION COVERING SUCH SCHOOLS.

SECTION 404.1.

CONTINUING EDUCATION FOR REAL ESTATE BROKERS AND REAL ESTATE SALESPERSONS.

* * * SECTION 4.

THE ACT IS AMENDED BY ADDING A SECTION TO READ:

SECTION 404.2.

CONTINUING EDUCATION FOR LICENSED HOME INSPECTORS.

A LICENSED HOME INSPECTOR SHALL BE REQUIRED TO OBTAIN 32 HOURS OF CONTINUING EDUCATION DURING THE BIENNIAL RENEWAL PERIOD.

CONTINUING EDUCATION HOURS MAY BE EARNED BY COMPLETION OF CONTINUING EDUCATION COURSES IN THE FIELD OF HOME INSPECTION DURING THE IMMEDIATELY PRECEDING TWO YEARS AS APPROVED BY THE COMMISSION.

THREE OF THE TOTAL REQUIRED HOURS OF CONTINUING EDUCATION MUST FOCUS ON THE DIFFERENCE BETWEEN 42 U.S.C.

CH.

70 20250SB0907PN1692 - 31 - (RELATING TO MANUFACTURED HOME CONSTRUCTION AND SAFETY STANDARDS) AND THE ACT OF MAY 11, 1972 (P.L.286, NO.70), KNOWN AS THE INDUSTRIALIZED HOUSING ACT, AND THE INSTALLATION OF MANUFACTURED AND MODULAR HOMES.

SECTION 5.

SECTION 406 OF THE ACT IS AMENDED BY ADDING A PARAGRAPH TO READ:

SECTION 406.

ADMINISTRATION AND ENFORCEMENT.

THE COMMISSION SHALL HAVE THE POWER AND ITS DUTY SHALL BE TO ADMINISTER AND ENFORCE THE LAWS OF THE COMMONWEALTH RELATING TO:

* * * (4) THOSE ACTIVITIES INVOLVING HOME INSPECTION FOR WHICH LICENSING OR REGISTRATION IS REQUIRED UNDER THIS ACT AND TO INSTRUCT AND REQUIRE ITS AGENTS TO BRING PROSECUTIONS FOR UNAUTHORIZED OR UNLAWFUL ACTIVITIES.

SECTION 6.

SECTION 501(A) AND (C) OF THE ACT ARE AMENDED TO READ:

SECTION 501.

REPUTATION;

INACTIVE LICENSEE;

REVOKED LICENSE.

(A) LICENSES SHALL BE GRANTED ONLY TO AND RENEWED ONLY FOR PERSONS WHO BEAR A GOOD REPUTATION FOR HONESTY, TRUSTWORTHINESS, INTEGRITY AND COMPETENCE TO TRANSACT THE BUSINESS OF BROKER, SALESPERSON, CEMETERY BROKER, CEMETERY SALESPERSON, CAMPGROUND MEMBERSHIP SALESPERSON, TIME-SHARE SALESPERSON, BUILDER-OWNER SALESPERSON, LICENSED HOME INSPECTOR, HOME INSPECTOR-IN-TRAINING OR RENTAL LISTING REFERRAL AGENT, IN SUCH MANNER AS TO SAFEGUARD THE INTEREST OF THE PUBLIC, AND ONLY AFTER SATISFACTORY PROOF OF SUCH QUALIFICATIONS HAS BEEN PRESENTED TO THE COMMISSION AS IT SHALL BY REGULATION REQUIRE.

AN APPLICANT FOR RENEWAL OF A RECIPROCAL LICENSE SHALL PROVIDE EVIDENCE THAT THE APPLICANT CONTINUES TO HOLD A CURRENT LICENSE IN THE STATE WHERE THE APPLICANT'S PRINCIPAL PLACE OF BUSINESS IS LOCATED.

20250SB0907PN1692 - 32 - * * * (C) UNLESS ORDERED TO DO SO BY COMMONWEALTH COURT, THE COMMISSION SHALL NOT REINSTATE THE LICENSE OR REGISTRATION, WITHIN FIVE YEARS OF THE DATE OF REVOCATION, OF ANY PERSON WHOSE LICENSE OR REGISTRATION HAS BEEN REVOKED UNDER THIS ACT.

ANY PERSON WHOSE LICENSE OR REGISTRATION HAS BEEN REVOKED MAY REAPPLY FOR A LICENSE OR REGISTRATION AT THE END OF THE FIVE- YEAR PERIOD BUT MUST MEET ALL OF THE LICENSING OR REGISTRATION QUALIFICATIONS OF THIS ACT FOR THE LICENSE OR REGISTRATION APPLIED FOR, TO INCLUDE THE EXAMINATION REQUIREMENT.

SECTION 7.

CHAPTER 5 OF THE ACT IS AMENDED BY ADDING A SUBCHAPTER TO READ:

SUBCHAPTER K HOME INSPECTOR LICENSE AND HOME INSPECTOR-IN-TRAINING REGISTRATION SECTION 599.1.

QUALIFICATIONS FOR LICENSURE.

(A) QUALIFICATIONS.--AN APPLICANT SHALL BE CONSIDERED TO BE QUALIFIED FOR A LICENSE AS A HOME INSPECTOR IF THE APPLICANT SUBMITS PROOF SATISFACTORY TO THE COMMISSION OF ALL OF THE FOLLOWING:

(1) THE APPLICANT IS OF A GOOD MORAL CHARACTER.

IN ASSESSING THE MORAL CHARACTER OF AN APPLICANT WITH A CRIMINAL CONVICTION, THE COMMISSION SHALL CONDUCT AN INDIVIDUALIZED ASSESSMENT IN ACCORDANCE WITH 63 PA.C.S.

§ 3113 (RELATING TO CONSIDERATION OF CRIMINAL CONVICTIONS).

(2) THE APPLICANT IS AT LEAST 18 YEARS OF AGE.

(3) THE APPLICANT HAS A HIGH SCHOOL DIPLOMA OR ITS EQUIVALENT OR EQUIVALENT LIFE OR OCCUPATIONAL EXPERIENCE.

(4) THE APPLICANT:

(I) HAS COMPLETED NO LESS THAN 80 HOURS OF 20250SB0907PN1692 - 33 - COMMISSION-APPROVED INSTRUCTION;

(II) IS REGISTERED AS A HOME INSPECTOR-IN-TRAINING;

AND (III) HAS COMPLETED NO LESS THAN 50 MENTORED HOME INSPECTIONS COMPLETED IN THE PRESENCE AND UNDER THE DIRECT SUPERVISION OF A LICENSED HOME INSPECTOR IN THIS COMMONWEALTH.

A HOME INSPECTION REPORT PREPARED BY A HOME INSPECTOR-IN-TRAINING SHALL BE USED FOR TRAINING PURPOSES ONLY AND MAY NOT BE PROVIDED TO A CLIENT.

(5) THE APPLICANT HAS PASSED A PSYCHOMETRICALLY SOUND LICENSING EXAMINATION, WHICH HAS BEEN COMMISSION-APPROVED AND DOCUMENTED AS PSYCHOMETRICALLY SOUND, ADMINISTERED PURSUANT TO SECTION 812.1 OF THE ACT OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS THE ADMINISTRATIVE CODE OF 1929.

(6) THE APPLICATION IS ACCOMPANIED BY THE APPLICATION FEE AS ESTABLISHED BY THE COMMISSION BY REGULATION.

(7) THE APPLICANT IS NOT ADDICTED TO THE HABITUAL USE OF ALCOHOL, NARCOTICS OR OTHER HABIT-FORMING DRUGS.

(8) THERE IS NO CRIMINAL HISTORY WHICH WOULD IMPEDE THE APPLICANT'S ELIGIBILITY, DETERMINED BY THE COMMISSION BASED ON THE APPLICANT'S SUBMISSION OF THE FOLLOWING:

(I) A REPORT OF THE APPLICANT'S CRIMINAL HISTORY RECORD INFORMATION UNDER 18 PA.C.S.

§ 9121(B) (RELATING TO GENERAL REGULATIONS).

(II) IF THE APPLICANT HAS RESIDED OUTSIDE THIS COMMONWEALTH FOR ANY TIME IN THE FIVE YEARS IMMEDIATELY PRECEDING THE DATE OF APPLICATION, A REPORT TO THE COMMISSION OF FEDERAL CRIMINAL IDENTIFICATION AND CRIME RECORDS UNDER 28 U.S.C.

§ 534(A)(4) (RELATING TO ACQUISITION, PRESERVATION, AND EXCHANGE OF IDENTIFICATION 20250SB0907PN1692 - 34 - RECORDS AND INFORMATION;

APPOINTMENT OF OFFICIALS).

(B) ISSUANCE OF LICENSE.--THE COMMISSION SHALL ISSUE A LICENSE AS A HOME INSPECTOR TO AN APPLICANT WHO APPLIES WITHIN TWO YEARS OF THE EFFECTIVE DATE OF THIS SUBSECTION AND COMPLIES WITH ALL OF THE FOLLOWING:

(1) IS AN ACTIVE HOME INSPECTOR.

(2) MEETS THE QUALIFICATIONS DESCRIBED IN SUBSECTION (A) (2), (3), (6), (7) AND (8).

(3) SUBMITS PROOF SATISFACTORY TO THE COMMISSION THAT THE APPLICANT HAS:

(I) BEEN IN ACTIVE, CONTINUOUS PRACTICE FOR AT LEAST FIVE YEARS IMMEDIATELY PRECEDING THE EFFECTIVE DATE OF THIS SECTION;

OR (II) PERFORMED OR PARTICIPATED IN 100 HOME INSPECTIONS AND HAS PASSED A RECOGNIZED OR ACCREDITED EXAMINATION TESTING KNOWLEDGE OF THE PROPER PROCEDURES FOR CONDUCTING A HOME INSPECTION.

(C) PRACTICE OF HOME INSPECTION.--AN INDIVIDUAL MAY NOT PRACTICE HOME INSPECTION OR HOLD ONESELF OUT AS A HOME INSPECTOR UNLESS LICENSED BY THE COMMISSION EXCEPT FOR THE FOLLOWING:

(1) AN INDIVIDUAL LICENSED AS A PROFESSIONAL ENGINEER UNDER THE ACT OF MAY 23, 1945 (P.L.913, NO.367), KNOWN AS THE ENGINEER, LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW.

(2) AN INDIVIDUAL LICENSED UNDER THE ACT OF DECEMBER 14, 1982 (P.L.1227, NO.281), KNOWN AS THE ARCHITECTS LICENSURE LAW.

(3) A HOME INSPECTOR-IN-TRAINING PRACTICING HOME INSPECTION IN THE PRESENCE AND UNDER THE DIRECT SUPERVISION OF A LICENSED HOME INSPECTOR IN THIS COMMONWEALTH, PROVIDED THE HOME INSPECTOR-IN-TRAINING DOES NOT HOLD ONESELF OUT AS A 20250SB0907PN1692 - 35 - HOME INSPECTOR.

(D) COMPLIANCE.--NOTWITHSTANDING SUBSECTION (C), A PERSON LICENSED OR REGISTERED AS A PROFESSIONAL ENGINEER UNDER THE ENGINEER, LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW, OR A PERSON LICENSED OR REGISTERED UNDER THE ARCHITECTS LICENSURE LAW, MUST COMPLY WITH SUBSECTION (I) AND SECTIONS 599.2, 599.3, 599.4 AND 599.5 WHEN PERFORMING A HOME INSPECTION.

A PERSON LICENSED OR REGISTERED AS A PROFESSIONAL ENGINEER, OR LICENSED OR REGISTERED AS AN ARCHITECT, WHO VIOLATES THIS SUBSECTION SHALL BE SUBJECT TO DISCIPLINARY ACTION, INCLUDING LICENSE OR REGISTRATION SUSPENSION AND REVOCATION, AND PENALTIES UNDER THE ENGINEER, LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW AND THE ARCHITECTS LICENSURE LAW, RESPECTIVELY.

(E) USE OF TITLE.--AN INDIVIDUAL WHO HOLDS A LICENSE OR IS MAINTAINED ON INACTIVE STATUS MAY USE THE TITLE "LICENSED HOME INSPECTOR" AND THE ABBREVIATION "L.H.I." NO OTHER INDIVIDUAL MAY USE THE TITLE "LICENSED HOME INSPECTOR" OR THE TITLE "HOME INSPECTOR" OR HOLD ONESELF OUT TO OTHERS AS A HOME INSPECTOR.

THIS SUBSECTION SHALL INCLUDE ADVERTISING AS A HOME INSPECTOR AND ADOPTING OR USING A TITLE OR DESCRIPTION, OR A DERIVATIVE OF "LICENSED HOME INSPECTOR" OR "HOME INSPECTOR" AND THEIR RELATED ABBREVIATIONS, WHICH IMPLIES DIRECTLY OR INDIRECTLY THAT HOME INSPECTION SERVICES ARE BEING PROVIDED.

(F) NONTRANSFERABILITY OF LICENSE.--A LICENSE UNDER THIS SECTION IS NOT TRANSFERABLE.

(G) EXAMINATION NOT REQUIRED.--THE COMMISSION MAY ISSUE A HOME INSPECTOR LICENSE WITHOUT EXAMINATION TO AN APPLICANT HOLDING A HOME INSPECTOR LICENSE IN ANOTHER STATE WHO SUBMITS PROOF SATISFACTORY TO THE COMMISSION OF ALL OF THE FOLLOWING:

(1) THE APPLICANT IS OF A GOOD MORAL CHARACTER.

IN 20250SB0907PN1692 - 36 - ASSESSING THE MORAL CHARACTER OF AN APPLICANT WITH A CRIMINAL CONVICTION, THE COMMISSION SHALL CONDUCT AN INDIVIDUALIZED ASSESSMENT IN ACCORDANCE WITH 63 PA.C.S.

§ 3113.

(2) THE APPLICANT HOLDS AN UNRESTRICTED AND ACTIVE HOME INSPECTOR LICENSE FROM ANOTHER STATE WHOSE LICENSURE REQUIREMENTS ARE SUBSTANTIALLY EQUIVALENT TO THE REQUIREMENTS FOR LICENSURE IN THIS COMMONWEALTH.

(3) THE APPLICANT HAS SUBMITTED AN APPLICATION ACCOMPANIED BY THE APPLICATION FEE.

(4) THERE IS NO CRIMINAL HISTORY WHICH WOULD IMPEDE THE APPLICANT'S ELIGIBILITY, DETERMINED BY THE COMMISSION BASED ON THE APPLICANT'S SUBMISSION OF THE FOLLOWING:

(I) A REPORT OF THE APPLICANT'S CRIMINAL HISTORY RECORD INFORMATION UNDER 18 PA.C.S.

§ 9121(B).

(II) IF THE APPLICANT HAS RESIDED OUTSIDE THIS COMMONWEALTH FOR ANY TIME IN THE FIVE YEARS IMMEDIATELY PRECEDING THE DATE OF APPLICATION, A REPORT TO THE COMMISSION OF FEDERAL CRIMINAL IDENTIFICATION AND CRIME RECORDS UNDER 28 U.S.C.

§ 534(A)(4).

(H) PROHIBITIONS.--NO AGENCY OR POLITICAL SUBDIVISION OF THE COMMONWEALTH, OTHER THAN THE COMMISSION, SHALL IMPOSE THE FOLLOWING ON INDIVIDUALS LICENSED UNDER THIS SECTION:

(1) A REGISTRATION OR LICENSING REQUIREMENT FOR CONDUCTING HOME INSPECTIONS.

(2) A LICENSE FEE TO OBTAIN A LOCAL LICENSE, EXCEPT THAT THIS PROHIBITION SHALL NOT PREVENT A LOCAL GOVERNMENT FROM IMPOSING AN OCCUPATIONAL LICENSE TAX ON A PERSON OPERATING AS A LICENSED HOME INSPECTOR WITHIN THE JURISDICTION OF THE LOCAL GOVERNMENT.

(I) INSURANCE.--A LICENSED HOME INSPECTOR SHALL MAINTAIN 20250SB0907PN1692 - 37 - INSURANCE AGAINST ERRORS AND OMISSIONS IN THE PERFORMANCE OF A HOME INSPECTION AND GENERAL LIABILITY, WITH COVERAGES OF NOT LESS THAN $250,000 PER OCCURRENCE AND $500,000 IN THE AGGREGATE AND WITH DEDUCTIBLES OF NOT MORE THAN $15,000.

AN APPLICANT MUST PROVIDE PROOF THAT THE APPLICANT HAS OBTAINED PROFESSIONAL LIABILITY INSURANCE.

IT IS SUFFICIENT IF THE APPLICANT FILES WITH THE APPLICATION A COPY OF A LETTER FROM THE APPLICANT'S PROFESSIONAL LIABILITY INSURANCE CARRIER INDICATING THAT THE APPLICANT WILL BE COVERED AGAINST PROFESSIONAL LIABILITY IN THE REQUIRED AMOUNTS EFFECTIVE UPON THE ISSUANCE OF THE APPLICANT'S LICENSE TO PRACTICE HOME INSPECTION IN THIS COMMONWEALTH.

UPON ISSUANCE OF THE LICENSE, THE LICENSEE MUST, WITHIN 30 DAYS, SUBMIT TO THE COMMISSION THE CERTIFICATE OF INSURANCE OR A COPY OF THE POLICY DECLARATION PAGE.

A LICENSED HOME INSPECTOR SHALL MAINTAIN PROFESSIONAL LIABILITY INSURANCE FOR AT LEAST ONE YEAR AFTER THE LATEST HOME INSPECTION REPORT THE LICENSED HOME INSPECTOR DELIVERS, UNLESS THE HOME INSPECTION REPORT WAS DELIVERED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION.

(J) CONSTRUCTION.--NOTHING IN THIS ACT SHALL BE CONSTRUED TO ALLOW A HOME INSPECTOR WHO IS NOT LICENSED UNDER ANY OF THE FOLLOWING LAWS TO PERFORM ANY ACTIVITY THAT WOULD CONSTITUTE THE PRACTICE OF THE PROFESSION REGULATED BY THAT LAW:

(1) THE ENGINEER, LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW, AS TO THE PRACTICE OF ENGINEERING, LAND SURVEYING OR GEOLOGY.

(2) THE ACT OF JANUARY 24, 1966 (1965 P.L.1535, NO.537), KNOWN AS THE PENNSYLVANIA SEWAGE FACILITIES ACT.

(3) THE ACT OF MARCH 1, 1974 (P.L.90, NO.24), KNOWN AS THE PENNSYLVANIA PESTICIDE CONTROL ACT OF 1973.

(4) THE ARCHITECTS LICENSURE LAW.

20250SB0907PN1692 - 38 - (5) THE ACT OF JULY 9, 1987 (P.L.238, NO.43), KNOWN AS THE RADON CERTIFICATION ACT.

(K) OTHER LICENSEES.--THE REQUIREMENTS OF THIS ACT RELATING TO THE LICENSURE OF HOME INSPECTORS SHALL NOT AFFECT THE OBLIGATIONS OR IMMUNITIES OF AN INDIVIDUAL LICENSED UNDER ANOTHER PROVISION OF THIS ACT THAT ARE IMPOSED OR PROVIDED UNDER THIS ACT OR 68 PA.C.S.

CH.

73 (RELATING TO SELLER DISCLOSURES) WHEN THE INDIVIDUAL IS ACTING UNDER THE INDIVIDUAL'S LICENSE, NOR THE OBLIGATIONS OR IMMUNITIES OF AN INDIVIDUAL CERTIFIED UNDER THE REAL ESTATE APPRAISERS CERTIFICATION ACT WHEN THE INDIVIDUAL IS ACTING UNDER THAT CERTIFICATION.

(L) HOME INSPECTOR-IN-TRAINING REGISTRATION.-- (1) THE COMMISSION SHALL, UPON APPLICATION AND PAYMENT OF THE APPLICATION FEE ESTABLISHED BY THE COMMISSION, ISSUE A HOME INSPECTOR-IN-TRAINING REGISTRATION, WITHOUT EXAMINATION, TO ANY PERSON WHO MEETS THE HOME INSPECTOR-IN-TRAINING EDUCATIONAL REQUIREMENTS SET BY THE COMMISSION.

(2) A HOME INSPECTOR-IN-TRAINING SHALL KEEP A RECORD OF THE MENTORED HOME INSPECTIONS COMPLETED, WHICH SHALL, AT A MINIMUM, INCLUDE THE FOLLOWING INFORMATION:

(I) DATE AND TIME OF THE INSPECTION.

(II) ADDRESS OF THE RESIDENCE INSPECTED.

(III) BUSINESS NAME OF THE SUPERVISING INSPECTOR (IV) NAME OF THE SUPERVISING INSPECTOR.

(V) LICENSE NUMBER OF THE SUPERVISING INSPECTOR.

(VI) SIGNATURE OF THE SUPERVISING INSPECTOR.

(M) REPORTING OF MULTIPLE LICENSURE.--A LICENSED HOME INSPECTOR IN THIS COMMONWEALTH WHO IS ALSO CERTIFIED OR LICENSED TO PERFORM HOME INSPECTIONS IN ANY OTHER STATE, TERRITORY OR COUNTRY SHALL REPORT THIS INFORMATION TO THE COMMISSION ON THE 20250SB0907PN1692 - 39 - BIENNIAL RENEWAL APPLICATION.

ANY DISCIPLINARY ACTION TAKEN IN ANY OTHER STATE, TERRITORY OR COUNTRY SHALL BE REPORTED TO THE COMMISSION ON THE BIENNIAL RENEWAL APPLICATION, OR WITHIN 90 DAYS OF DISPOSITION, WHICHEVER IS SOONER.

MULTIPLE LICENSURE SHALL BE NOTED BY THE COMMISSION ON THE LICENSED HOME INSPECTOR'S RECORD, AND THE STATE, TERRITORY OR COUNTRY SHALL BE NOTIFIED BY THE COMMISSION OF ANY DISCIPLINARY ACTION TAKEN AGAINST THE LICENSED HOME INSPECTOR IN THIS COMMONWEALTH.

SECTION 599.2.

CONDUCT OF HOME INSPECTION.

(A) ETHICS.--A LICENSED HOME INSPECTOR SHALL CONDUCT A HOME INSPECTION WITH THE DEGREE OF CARE THAT A REASONABLY PRUDENT LICENSED HOME INSPECTOR WOULD EXERCISE.

IN ASCERTAINING THE DEGREE OF CARE THAT WOULD BE EXERCISED BY A REASONABLY PRUDENT LICENSED HOME INSPECTOR, A COURT SHALL CONSIDER THE STANDARDS OF PRACTICE AND CODES OF ETHICS AS ESTABLISHED BY THE COMMISSION BY REGULATION.

(B) IMMEDIATE THREAT TO HEALTH OR SAFETY.--IF AN IMMEDIATE THREAT TO HEALTH OR SAFETY IS OBSERVED DURING THE COURSE OF A HOME INSPECTION AND THE HOME IS OCCUPIED, THE LICENSED HOME INSPECTOR SHALL DISCLOSE THE IMMEDIATE THREAT TO HEALTH OR SAFETY TO THE PROPERTY OWNER AND OCCUPANTS OF THE PROPERTY AT THE CONCLUSION OF THE HOME INSPECTION.

POSTING A NOTICE ON A FORM PRESCRIBED BY THE COMMISSION BY REGULATION ON THE FRONT DOOR OF THE OCCUPIED HOME IN A POSITION THAT ENSURES THE OCCUPANTS SEE THE NOTICE SHALL CONSTITUTE PROPER DISCLOSURE.

SECTION 599.3.

REMEDIES FOR HOME INSPECTION SERVICES CLIENTS.

(A) UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW.--THE PERFORMANCE OF A HOME INSPECTION IS A SERVICE SUBJECT TO THE ACT OF DECEMBER 17, 1968 (P.L.1224, NO.387), KNOWN AS THE UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW.

20250SB0907PN1692 - 40 - (B) WRONGFUL ACTS.--THE FOLLOWING ACTS ENGAGED IN BY A LICENSED HOME INSPECTOR, AN EMPLOYER OF A LICENSED HOME INSPECTOR OR ANOTHER BUSINESS OR PERSON THAT CONTROLS OR HAS A FINANCIAL INTEREST IN THE EMPLOYER OF A LICENSED HOME INSPECTOR SHALL BE DEEMED TO BE AN UNFAIR OR DECEPTIVE ACT OR PRACTICE AS DEFINED BY SECTION 2(4) OF THE UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW:

(1) PERFORMING OR OFFERING TO PERFORM FOR AN ADDITIONAL FEE ANY REPAIRS TO A STRUCTURE WITH RESPECT TO WHICH THE LICENSED HOME INSPECTOR, THE EMPLOYER OF THE LICENSED HOME INSPECTOR OR OTHER BUSINESS OR PERSON HAS PREPARED A HOME INSPECTION REPORT WITHIN THE PRECEDING 12 MONTHS, EXCEPT THAT THIS PARAGRAPH SHALL NOT APPLY TO REMEDIATION FOR RADON OR WOOD-DESTROYING INSECTS.

(2) INSPECTING FOR A FEE ANY PROPERTY IN WHICH THE LICENSED HOME INSPECTOR, THE EMPLOYER OF THE LICENSED HOME INSPECTOR OR OTHER BUSINESS OR PERSON HAS A FINANCIAL INTEREST OR AN INTEREST IN THE TRANSFER OF THE PROPERTY, INCLUDING RECEIPT OF A COMMISSION AS AN AGENT, UNLESS THE FINANCIAL INTEREST OR INTEREST IN THE TRANSFER OF THE PROPERTY IS DISCLOSED IN WRITING TO THE BUYER BEFORE THE HOME INSPECTION IS PERFORMED AND THE BUYER SIGNS AN ACKNOWLEDGMENT OF RECEIPT OF THE DISCLOSURE.

(3) OFFERING OR DELIVERING A COMMISSION, REFERRAL FEE OR KICKBACK TO THE SELLER OF THE INSPECTED PROPERTY OR TO AN AGENT FOR THE SELLER OR BUYER FOR THE REFERRAL OF BUSINESS TO THE LICENSED HOME INSPECTOR, THE EMPLOYER OF THE LICENSED HOME INSPECTOR OR OTHER BUSINESS OR PERSON.

(4) ACCEPTING AN ENGAGEMENT TO PERFORM A HOME INSPECTION OR TO PREPARE A HOME INSPECTION REPORT IN WHICH THE 20250SB0907PN1692 - 41 - EMPLOYMENT ITSELF OR THE FEE PAYABLE FOR THE INSPECTION IS CONTINGENT UPON THE CONCLUSIONS IN THE REPORT, PREESTABLISHED OR PRESCRIBED FINDINGS OR THE CLOSING OF THE TRANSACTION.

(C) HOME WARRANTY COMPANY.--A HOME WARRANTY COMPANY THAT IS AFFILIATED WITH OR RETAINS THE LICENSED HOME INSPECTOR DOES NOT VIOLATE SUBSECTION (B) IF THE HOME WARRANTY COMPANY PERFORMS REPAIRS IN ACCORDANCE WITH CLAIMS MADE UNDER A HOME WARRANTY CONTRACT.

(D) OTHER REMEDIES.--IN ADDITION TO OTHER REMEDIES AVAILABLE UNDER THE UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW OR OTHER APPLICABLE PROVISION OF LAW, THE OWNER OF A PROPERTY ON WHICH REPAIRS ARE PERFORMED IN VIOLATION OF SUBSECTION (B)(1) SHALL BE ENTITLED TO A FULL REFUND OF MONEY PAID FOR THOSE REPAIRS, AND A PROMISSORY NOTE OR ANOTHER OBLIGATION TO PAY GIVEN TO THE PERSON PERFORMING THOSE REPAIRS SHALL BE VOID.

SECTION 599.4.

HOME INSPECTION CONTRACTS.

(A) REQUIRED PROVISIONS.--A HOME INSPECTION CONTRACT MUST BE TYPEWRITTEN AND INCLUDE ALL OF THE FOLLOWING:

(1) SIGNATURE OF CLIENT.

(2) SCOPE OF HOME INSPECTION.

(3) FEE CHARGED TO CLIENT.

(4) CONTACT INFORMATION OF THE LICENSED HOME INSPECTOR.

(5) SIGNATURE OF THE LICENSED HOME INSPECTOR.

(6) LICENSE NUMBER OF THE LICENSED HOME INSPECTOR.

(7) A STATEMENT EXPLAINING THE CONFIDENTIALITY BETWEEN THE LICENSED HOME INSPECTOR AND THE CLIENT.

(B) PROHIBITED PROVISIONS.--THE FOLLOWING TYPES OF PROVISIONS IN A CONTRACT WITH A LICENSED HOME INSPECTOR FOR THE PERFORMANCE OF A HOME INSPECTION ARE CONTRARY TO PUBLIC POLICY, AND THE CLAUSE SHALL BE UNENFORCEABLE AS IT RELATES TO:

20250SB0907PN1692 - 42 - (1) A LIMITATION ON THE LIABILITY OF THE LICENSED HOME INSPECTOR FOR GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

(2) A WAIVER OR MODIFICATION OF ANY PROVISION OF THIS SECTION OR SECTION 599.2, 599.3 OR 599.5.

SECTION 599.5.

HOME INSPECTION REPORTS.

(A) CONTENTS.--A HOME INSPECTION REPORT MUST BE TYPEWRITTEN AND INCLUDE ALL OF THE FOLLOWING:

(1) A DESCRIPTION OF THE SCOPE OF THE INSPECTION, INCLUDING IDENTIFICATION OF THE ESSENTIAL COMPONENTS AND SYSTEMS AND SUBSYSTEMS COVERED BY THE REPORT.

(2) A DESCRIPTION OF MATERIAL DEFECTS NOTED DURING THE INSPECTION, ALONG WITH A RECOMMENDATION THAT CERTAIN EXPERTS BE RETAINED TO DETERMINE THE EXTENT OF THE DEFECTS AND THE CORRECTIVE ACTION THAT SHOULD BE TAKEN.

(3) IF, AT THE TIME OF THE INSPECTION, THERE IS VISIBLE EVIDENCE OF THE PRESENCE OF INTERIOR MOLD, THE LICENSED HOME INSPECTOR MUST DISCLOSE IN THE HOME INSPECTION REPORT THE VISIBLE EVIDENCE AND THE LOCATION AND ADVISE THE CLIENT TO OBTAIN A PROFESSIONAL EVALUATION.

(4) THE FOLLOWING STATEMENTS, SET FORTH CONSPICUOUSLY:

(I) A HOME INSPECTION IS INTENDED TO ASSIST IN EVALUATION OF THE OVERALL CONDITION OF THE DWELLING.

THE INSPECTION IS BASED ON OBSERVATION OF THE VISIBLE AND APPARENT CONDITION OF THE STRUCTURE AND ITS COMPONENTS ON THE DATE OF INSPECTION.

(II) THE RESULTS OF THIS HOME INSPECTION ARE NOT INTENDED TO MAKE A REPRESENTATION REGARDING THE PRESENCE OR ABSENCE OF LATENT OR CONCEALED DEFECTS THAT ARE NOT REASONABLY ASCERTAINABLE IN A COMPETENTLY PERFORMED HOME INSPECTION.

NO WARRANTY OR GUARANTY IS EXPRESSED OR 20250SB0907PN1692 - 43 - IMPLIED.

(III) IF THE PERSON CONDUCTING YOUR HOME INSPECTION IS NOT A LICENSED STRUCTURAL ENGINEER OR OTHER PROFESSIONAL WHOSE LICENSE AUTHORIZES THE RENDERING OF AN OPINION AS TO THE STRUCTURAL INTEGRITY OF A BUILDING OR THE BUILDING'S OTHER COMPONENT PARTS, YOU MAY BE ADVISED TO SEEK A PROFESSIONAL OPINION AS TO ANY DEFECT OR CONCERN MENTIONED IN THE REPORT.

(IV) THIS HOME INSPECTION REPORT IS NOT TO BE CONSTRUED AS AN APPRAISAL AND MAY NOT BE USED AS SUCH FOR ANY PURPOSE.

(B) DELIVERY OF REPORT.--EXCEPT AS OTHERWISE REQUIRED BY THIS SUBSECTION OR BY LAW, A LICENSED HOME INSPECTOR MAY NOT DELIVER A HOME INSPECTION REPORT TO A PERSON OTHER THAN THE CLIENT OF THE LICENSED HOME INSPECTOR WITHOUT THE CLIENT'S CONSENT.

THE PROPERTY OWNER SHALL HAVE THE RIGHT, UPON REQUEST, TO RECEIVE WITHOUT CHARGE A COPY OF A HOME INSPECTION REPORT FROM THE PERSON FOR WHOM THE HOME INSPECTION REPORT WAS PREPARED.

IF IMMEDIATE THREATS TO HEALTH OR SAFETY ARE OBSERVED DURING THE COURSE OF THE INSPECTION AND IF THE PREMISES ARE OCCUPIED, THE CLIENT HEREBY CONSENTS TO ALLOW THE LICENSED HOME INSPECTOR TO DISCLOSE THE IMMEDIATE THREATS TO HEALTH OR SAFETY TO THE PROPERTY OWNER AND OCCUPANTS OF THE PROPERTY.

(C) LIABILITY.--A LICENSED HOME INSPECTOR SHALL NOT BE HELD LIABLE FOR THE CONTENTS OR OMISSIONS OF A HOME INSPECTION REPORT IF RELIED UPON BY ANY INDIVIDUAL OR PERSON OTHER THAN THE CLIENT AS IDENTIFIED BY THE EXECUTED CONTRACT FOR THE SPECIFIC HOME INSPECTION.

(D) LIMITATION PERIOD.--AN ACTION TO RECOVER DAMAGES ARISING FROM A HOME INSPECTION REPORT MUST BE COMMENCED WITHIN ONE YEAR 20250SB0907PN1692 - 44 - AFTER THE DATE THE REPORT IS DELIVERED REGARDLESS OF WHEN THE CLAIM IS DISCOVERED BY THE CLIENT.

SECTION 8.

SECTIONS 602(A) AND 608.6(H) OF THE ACT ARE AMENDED TO READ:

SECTION 602.

RECIPROCAL LICENSES.

(A) ANY PERSON WHO HOLDS A CURRENT LICENSE TO PROVIDE REAL ESTATE SERVICES OR HOME INSPECTION SERVICES ISSUED BY ANOTHER STATE AND WHOSE PRINCIPAL PLACE OF BUSINESS FOR THE PROVISION OF THOSE SERVICES IS OUTSIDE OF THIS COMMONWEALTH MAY BE ISSUED A RECIPROCAL LICENSE UNDER THIS ACT IN ACCORDANCE WITH THIS SECTION.

THE RECIPROCAL LICENSE SHALL BE THE TYPE OF LICENSE THAT THE COMMISSION DETERMINES IS MOST SIMILAR TO THE TYPE OF LICENSE ISSUED BY THE OTHER STATE.

* * * SECTION 608.6.

BROKER PRICE OPINION.

* * * (H) A REGISTERED APPRAISAL MANAGEMENT COMPANY MAY RECRUIT, ENGAGE AND NEGOTIATE FEES WITH A BROKER TO PREPARE BROKER PRICE OPINIONS AND MAY RECEIVE ORDERS FOR AND SUBMIT BROKER PRICE OPINIONS TO [CLIENTS] CONSUMERS.

* * * SECTION 9.

REPEALS ARE AS FOLLOWS:

(1) THE GENERAL ASSEMBLY DECLARES THAT THE REPEAL UNDER PARAGRAPH (2) IS NECESSARY TO EFFECTUATE THIS ACT.

(2) 68 PA.C.S.

CH.

75 IS REPEALED.

SECTION 10.

THE STATE REAL ESTATE COMMISSION SHALL PROMULGATE FINAL REGULATIONS TO IMPLEMENT THIS ACT WITHIN 18 MONTHS OF THE EFFECTIVE DATE OF THIS SECTION.

SECTION 11.

THIS ACT SHALL TAKE EFFECT AS FOLLOWS:

(1) THE FOLLOWING PROVISIONS SHALL TAKE EFFECT 20250SB0907PN1692 - 45 - IMMEDIATELY:

(I) THE AMENDMENT OF SECTION 202(A) AND (B) OF THE ACT.

(II) SECTION 10 OF THIS ACT.

(III) THIS SECTION.

(2) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN TWO YEARS.

20250SB0907PN1692 - 46 -