Originally Posted By: bmalouf
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BILL NUMBER: AB 293 AMENDED
AMENDED IN ASSEMBLY APRIL 28, 2005
AMENDED IN ASSEMBLY APRIL 20, 2005
AMENDED IN ASSEMBLY MARCH 17, 2005
INTRODUCED BY Assembly Member Maze
FEBRUARY 9, 2005
An act to amend Section 7197 of, and to add Section 7197.5 to, the
Business and Professions Code, relating to home inspections.
LEGISLATIVE COUNSEL'S DIGEST
AB 293, as amended, Maze. Home inspections.
Existing law regulates persons who perform home inspections for a
fee in connection with a property transfer, as defined. Existing law
defines terms related to home inspections, establishes a standard of
care for home inspectors, and prohibits certain inspections in which
an inspector or the inspector's employer has a financial interest.
This bill would provide that a home inspector may name a seller,
real estate broker, or a real estate salesperson as an additional
insured in a liability insurance policy.
This bill would require a home inspector or a company
that employs home inspectors to provide a specified written
disclosure to the party on whose behalf the inspection is being
This bill would make it an unfair business practice for
a home inspector or a company that employs home inspectors to fail
to make those disclosures or to disclose personal identifying
information of a person involved in an inspection.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7197 of the Business and Professions Code is
amended to read:
(a) It is an unfair business practice for a home inspector, a
company that employs the inspector, or a company that is controlled
by a company that also has a financial interest in a company
employing a home inspector, to do any of the following:
(1) To perform or offer to perform, for an additional fee, any
repairs to a structure on which the inspector, or the inspector's
company, has prepared a home inspection report in the past 12 months.
(2) Inspect for a fee any property in which the inspector, or the
inspector's company, has any financial interest or any interest in
the transfer of the property.
(3) To offer or deliver any compensation, inducement, or reward to
the owner of the inspected property, the broker, or agent, for the
referral of any business to the inspector or the inspection company.
(4) Accept an engagement to make an inspection or to prepare a
report in which the employment itself or the fee payable for the
inspection is contingent upon the conclusions in the report,
preestablished findings, or the close of escrow.
(5) A home protection company that is affiliated with or that
retains the home inspector does not violate this section if it
performs repairs pursuant to claims made under the home protection
(6) To fail to disclose or misrepresent any item required to be
disclosed in Section 7197.5.
(7) To disclose personal identifying information, including, but
not limited to, the name, address, telephone number, state or federal
driver's license number, social security number, or taxpayer
identification number, of a buyer, seller, tenant, or others involved
in the inspection without the approval of the individual or
(b) This section shall not affect the ability of a structural pest
control operator to perform repairs pursuant to Section 8505 as a
result of a structural pest control inspection.
(c) Nothing in this section shall prevent a home inspector from
naming a seller, a real estate broker, or a real estate salesperson
as an additional insured in a liability insurance policy maintained
by the home inspector.
SEC. 2. Section 7197.5 is added to the Business and Professions
Code, to read:
(a) As soon as it is commercially feasible and prior to commencing
a home inspection, a home inspector shall provide a written
disclosure to the party , or the party's agent, on whose
behalf the home inspection is being performed that includes the
(1) Whether the home inspector maintains professional liability
(2) Whether the home inspector maintains general business
(3) The approximate number of home inspections the home inspector
has performed for a fee, or a statement of the home inspector's
experience and education, including the number of years of his or her
experience as a home inspector, and his or her education related to
home inspection, specifically including the number of educational
hours completed and the educational facility or facilities he or she
(4) Affiliations with any professional and nonprofit trade
(5) A list of any home inspection-specific examinations the home
inspector has passed.
(6) Any state-issued licenses he or she possesses that may be
applicable to home inspections.
(7) A statement that home inspectors are not required to be
licensed by state law.
(b) Instead of the written disclosure specified in subdivision
(a), a company that employs more than one home inspector may provide
one written disclosure that includes all of the following:
(1) The number of years of service the company has been providing
(2) The approximate number of home inspections completed by the
(3) The minimum number of hours of education and training the
company's home inspectors receive before they are permitted to
conduct home inspections.
(4) Whether the company or any of its employees belong to any
professional or nonprofit trade associations.
(5) Whether the company or any of its employees possess any
applicable state licenses.