HB 1001 – Home Inspection law, prohibited acts

Soon to be voted on, HB1001 outlines prohibited acts that a licensed home inspector in Pennsylvania shall not engage in. They are summed up as follows:

(1)  Performing any repairs to a structure for an additional fee for which the home inspector has prepared a home inspection report within the preceding 12 months. Except for radon or wood-destroying insects work.

(2)  Inspecting for a fee any property in which the home inspector has a financial interest in the transfer of the property including commissions as an agent unless the financial interest is disclosed in writing 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 for the referral of business to the home inspector.

(4)  Accepting an engagement to perform a home inspection 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, pre-established or prescribed findings or the closing of the transaction.

There is one notable exception –A home warranty company that is affiliated with or retains the home inspector does not violate subsection if the home warranty company performs repairs in accordance with claims made under a home warranty contract.

A good home inspector will have his own code of ethics to which he subscribes such as this.

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