Originally Posted By: Scott Nuxoll This post was automatically imported from our archived forum.
Hi all,
Very interested in this topic. I recently passed the on line test and I am planning on joining your ranks in the near future.
I have a ton of questions, but will try to keep them to the appropriate forums.
The last reply was in August. Is there anything "new" reference legislation? Are they going to make it almost impossible for a "newbie" to get into the business? Quite frankly, I am looking at this as a second job to add a little scratch to the check book AND have something to do when I retire from my full time job.
I went to and read all the links from this area and have seen nothing new. Is the issue still shelved until next year?
My next Question involves the legal aspects of this profession but will start another thread. Any help will be greatly appreciated.
Originally Posted By: rray This post was automatically imported from our archived forum.
Hey, Scott.
Welcome.
The way legislation works in the committees is that anyone can make a motion to bring it up for discussion. The Chair of the committee has the power to put legislation in the "inactive file," regardless of how many motions or people want to discuss it. That's why Chairs are so powerful, here and in D.C.
Someone tries to bring it up occasionally, and the Chair keeps putting it back in the inactive file. Right now, I think everyone in Sacramento is more worried about the Governator than anything else.
The legislation as is stands now would make it very difficult for people to enter the profession, putting into place a substantial number of artificial barriers to entry.
Originally Posted By: rray This post was automatically imported from our archived forum.
It means you can’t limit your professional negligence to the cost of the home inspection. However, I put the limitation of liability clause in my agreement anyway because it tends to help put a stop to all the nuisance callbacks from everyone wanting money. It definitely will not protect you against any gross negligence (i.e., expensive claims).
Originally Posted By: rray This post was automatically imported from our archived forum.
Well, for the past several days someone has been trying to bring the home inspector legislation up for discussion, but the Chair has continued to keep it in the inactive file.
Originally Posted By: rray This post was automatically imported from our archived forum.
Our S.B. 31 might be coming out of the inactive file with the new year for discussion in the Business and Professions Committee. Will keep informed. The current version is a piece of carp for the ASHI/CREIA inspectors here.
Originally Posted By: rray This post was automatically imported from our archived forum.
I received a private email saying that SB 31 was moving forward with the ASHI language removed. Wrong!
Here's what Section 7195 of our Business and Professions Code currently says:
Quote
(d) A "home inspector" is any individual who performs a home
inspection.
Unquote
Here's what SB 31 says, as amended 4/3/03:
Quote
An act to amend Sections 7195 and 7197 of, and to add Sections
7195.5, 7196.2, 7197.5, 7197.7, and
7198.5 to, the Business and Professions Code, relating to home
inspections.
. . .
This bill would require a certified home inspector to conduct
a home inspection with the degree of care that a reasonably prudent
certified home inspector would recognize. The bill would
prohibit a person from holding himself or herself out as or using the
title "certified home inspector" or other words implying he or she
is a certified home inspector without fulfilling certain
requirements. The bill would define a home inspection professional
association and specify its duties in certifying home inspectors. The
bill would require, on or after July 1, 2004, a home inspector to
make disclosures in writing as to his or her qualifications, whether
the home inspector carries general and professional liability
insurance, and whether the home inspector is certified prior to
commencing a home inspection. The bill would also add items to the
list of unfair business practices for a home inspector.
. . .
(d) A "home inspector" is any individual who performs a home
inspection.
. . .
(f) A "certified home inspector" means a person who meets both of
the following requirements:
(1) Has demonstrated to a home inspection professional association
that he or she has fulfilled one of the following:
(A) Performed at least 200 home inspections for which a fee was
paid.
(B) Performed at least 100 home inspections for which a fee was
paid and completed at least 45 classroom hours of relevant home
inspection education provided by a school accredited
approved by the Council
Bureau for Private Postsecondary and Vocational Education, a
governmental agency, a community college, or an educational provider
recognized by a home inspection professional association which has
been providing home inspection education to home inspectors for at
least two years.
(C) Performed at least 50 home inspections for which a fee was
paid and completed at least 90 classroom hours of relevant home
inspection education provided by a school accredited
approved by the Council
Bureau for Private Postsecondary and Vocational Education, a
governmental agency, a community college, or an educational provider
recognized by a home inspection professional association which has
been providing home inspection education to home inspectors for at
least two years.
(2) Within the previous five years, has passed a knowledge,
skills, and aptitude examination endorsed by a home inspection
professional association. The examination shall test competence in
home inspection practice, as determined by recognized role definition
methodology, and be developed and administered in a manner
consistent with the American Educational Research Association's
"Standards for Educational and Psychological Testing," the Equal
Employment Opportunity Commission's "Uniform Guidelines for Employee
Selection Procedures," the Civil Rights Act of 1991, and the
Americans with Disabilities Act of 1990.
(g) A "home inspection professional association" means an
organization that meets all of the following requirements:
(1) Has at least 200 members who are home inspectors in
California.
(2) Has been in existence for at least 10 years.
(3) Operates pursuant to Section 501(c) of the Internal Revenue
Code.
(4) Certifies that a home inspector has met the criteria set forth
in subdivision (f) without requiring membership in the association.
SEC. 2. Section 7195.5 is added to the Business and
Professions Code, to read:
7195.5. It is the duty of a home inspector who is certified
pursuant to this chapter and who is not licensed as a general
contractor, structural pest control operator, or architect, or
registered as a professional engineer, to conduct a home inspection
with the degree of care that a reasonably prudent certified home
inspector would exercise.
SEC. 3. Section 7196.2 is added to the Business and
Professions Code, to read:
7196.2. A person representing himself or herself as a home
inspector shall comply with the requirements of subdivision (d) of
Section 8550.
SEC. 3.
SEC. 4. Section 7197 of the Business and Professions Code is
amended to read:
. . .
(e) On or after July 1, 2004, to hold oneself out or use the title
"certified home inspector" or some other term that infers that the
person is certified to perform a home inspection without meeting the
requirements of subdivision (f) of Section 7195.
(f) To state or advertise a registration or license number unless
the license or registration is specified by a statute, regulation, or
ordinance.
(g) To state or advertise that he or she is certified, registered,
or licensed by a governmental agency to perform home inspections.
(h) To fail to disclose or misrepresent any item required to be
disclosed in Section 7197.5.
. . .
SEC. 5. Section 7197.5 is added to the Business and
Professions Code, to read:
7197.5. As soon as it is commercially feasible and prior to
commencing a home inspection, a home inspector shall disclose in
writing to the party on whose behalf the home inspection is being
done, all of the following:
(a) The name, address, and telephone number of the home inspection
professional association that certified the home inspector, and the
date the home inspector was certified, unless the home inspector is
not a certified home inspector.
(b) A statement disclosing whether the home inspector maintains
professional liability insurance.
(c) A statement disclosing whether the home inspector maintains
general business liability insurance.
(d) The approximate number of home inspections the home inspector
has performed for a fee.
(e) 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.
SEC. 5. Section 7197.7 is added to the Business and Professions
Code, to read:
7197.7. (a) It is the intent of the Legislature to recognize the
special requirement of mandated insurance for certified home
inspectors in this section in order to protect buyers. This special
insurance mandate recognizes the difference between certified home
inspectors and the other listed categories of experts in Section
1102.4 of the Civil Code. The other listed experts reflect
occupations that are accomplished by either a degree from an
institute of higher learning such as a four-year college or licensure
by the State of California, neither of which is applicable to
certified home inspectors. Therefore a mandated insurance
requirement applicable to certified home inspectors is necessary to
protect the public.
(b) A home inspection report shall be deemed a report by an "other
expert" for purposes of paragraph (1) of subdivision (c) of Section
1102.4 of the Civil Code if all of the following requirements are
met:
(1) The home inspection report deals with matters within the scope
of the certified home inspector's certification.
(2) The home inspection report is prepared by a certified home
inspector who is certified pursuant to this chapter and meets all of
the requirements in subdivision (f) of Section 7195.
(3) The report expressly specifies an understanding by the
certified home inspector that the information provided will be used
in fulfilling the requirements of Section 1102.6 of the Civil Code.
(4) The certified home inspector's certification is in good
standing.
(5) The certified home inspector has a valid policy of errors and
omissions insurance applicable to the transaction in an amount of not
less than seventy-five thousand dollars ($75,000).
(6) Beginning January 1, 2009, and on every fifth anniversary
thereafter, the minimum face amount of the errors and omissions
insurance specified in this subdivision shall be adjusted for the
following five-year period by multiplying the product of one plus .01
times the change in the Consumer Price Index for San Francisco,
California, between January 2004, and the Consumer Price Index for
the anniversary year multiplied by seventy-five thousand dollars
($75,000).
SEC. 6. Section 7198.5 is added to the Business and Professions
Code, to read:
7198.5. (a) Nothing in this chapter shall prohibit a licensed
contractor from performing a home inspection.
(b) Nothing in this chapter shall be construed to require an agent
or broker to refer a certified home inspector rather than a
noncertified home inspector when making a referral.
Unquote
Note the use of "certified" throughout. And what are the only organizations that meet the definition of an organization capable of "certifying" a home inspector: ASHI and CREIA. And while the legislation specifically states that ASHI and CREIA cannot require membership in their organizations in order to certify the inspector (thankfully), they obviously can charge a fee for the certification exam or process.
So here's what I see this going (and I'm open to changing my mind): ASHI and/or CREIA develop a certification exam. Cost? Let's say $295 for members, $595 for non-members. Cost of annual membership in ASHI and/or CREIA? Well, I don't know what current membership fees are, but I expect them to change some. Let's say the bill passes and CREIA and ASHI adjust their membership fees to get more members because of the law. Let's say they adjust their membership fees to $400 for CREIA and $600 for ASHI (ASHI branding added in). Good marketing would say something like this:
ASHI/CREIA Certification Exam
$195 for current CREIA or ASHI members
$95 for inspectors with dual membership in CREIA and ASHI
$95 in conjunction with CREIA ($400) or ASHI ($600) membership application
$895 for non-members
Would most inspectors join CREIA or ASHI at the same time they took the exam to save as little as $200 (ASHI) and as much as $400 (CREIA). Absolutely.
That may be an extreme example, but CREIA and ASHI are not stupid. Charging the non-member more, possibly substantially more, only creates artificial barriers to entry for new home inspectors and puts money in the CREIA and ASHI coffers from people who don't necessarily want to be members of CREIA and ASHI. Money, of course, goes to continued lobbying, etc., on behalf of CREIA and ASHI, not on behalf of home inspectors or the public.
There is nothing in the bill stating any sort of costs relating to the certifying exam.
Originally Posted By: rray This post was automatically imported from our archived forum.
It looks like home inspector legislation was passed by the Assembly yesterday. A summary provided by David Pacheco of the Business and Professions Committee:
Quote
SUMMARY: Modifies provisions of law regulating home inspectors. Specifically, this bill :
1)Provides that it shall be an unfair business practice for a home inspector to:
a) State or advertise a registration or license number unless the license or registration is specified by a statute, regulation, or ordinance;
b) State or advertise that he or she is certified, registered, or licensed by a governmental agency to perform home inspections; and,
c) Fail to disclose or misrepresent specified information required by this bill.
2)Requires, as soon as it is commercially feasible, home inspectors to disclose to consumers the following:
a) A statement disclosing whether the home inspector maintains professional liability insurance;
b) A statement disclosing whether the home inspector maintains general business liability insurance;
c) The approximate number of home inspections the home inspector has performed for a fee; and,
d) A statement including specified information about the home inspector's experience and education.
3)Clarifies that nothing in this bill shall prohibit a licensed contractor from performing a home inspection.
EXISTING LAW defines:
1)"Home inspector" as any individual who performs home inspections.
2)"Home inspection" as a noninvasive, physical examination, performed for a fee in connection with a transfer of real property, mechanical, electrical, and plumbing systems and the structural and essential components of a residential dwelling designed to identify material defects in those systems, structures and components.
FISCAL EFFECT : Unknown
COMMENTS : According to the author, the purpose of this bill is to require home inspectors to disclose to clients the total number of previously conducted home inspections, related education and training, and whether or not they have professional liability insurance and/or general business insurance prior to conducting a home inspection. This bill states that the disclosure requirements be done "as soon as it is commercially feasible." Commercial feasibility is undefined.
This bill also makes it an unfair business practice for home inspectors to fail to make the specified disclosures or to state or advertise that they are certified, registered, or licensed by a government agency unless specified by statute, regulation or ordinance.
Unquote
Originally Posted By: rray This post was automatically imported from our archived forum.
For everyone in this state who hates the “low-ballers,” the requirement to carry “general professional liability insurance” (E&O insurance) and “general business liability insurance” will either cause them to raise their rates to cover the cost or get out of the business. Either way, I think the public and professional home inspectors win.
Originally Posted By: mcraig This post was automatically imported from our archived forum.
I am coming over to the So. Cal. meeting on the 15th. Nick I can’t wait to meet you in person and may be get some advice and help from other NACHI members on setting up the Arizona Chapter. So far I am getting good response from my fellow NACHI members here but no response from the State Board etc… see you all on the 15th.
Originally Posted By: rray This post was automatically imported from our archived forum.
A Committee member by the name of Chan–not the Committee Chair this time–has placed S.B. 31 back into the inactive file. It may not pass this year either. Maybe The Governator didn’t like it.
Originally Posted By: rray This post was automatically imported from our archived forum.
Well, I have absolutely no idea what’s going on! ! ! ! !
Here's what was introduced, read many times, voted on, and passed yesterday. Note how the whole flavor of S.B.31 changed in one day. Instead of the bill being about home inspectors, it has been retitled and now concerns check cashers. And it passed as amended. So apparently there now is no legislation pending in California concerning home inspectors. I can't believe CREIA and ASHI agreed to this.
