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First Substitute S.B. 44
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7 LONG TITLE
8 General Description:
9 This bill creates requirements for home inspections and inspectors.
10 Highlighted Provisions:
11 This bill:
12 . defines terms;
13 . describes home inspection requirements;
14 . prohibits certain conduct by inspectors and others;
15 . limits the time in which an action may be brought for a violation of inspection
16 standards and other provisions;
17 . requires an associate home inspector to use the term "associate home inspector" on
18 various materials, including inspection reports and advertising; and
19 . requires inspectors to register with the Division of Real Estate.
20 Monies Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 None
24 Utah Code Sections Affected:
25 ENACTS:
26 61-2e-101, Utah Code Annotated 1953
27 61-2e-102, Utah Code Annotated 1953
28 61-2e-201, Utah Code Annotated 1953
29 61-2e-202, Utah Code Annotated 1953
30 61-2e-203, Utah Code Annotated 1953
31 61-2e-204, Utah Code Annotated 1953
32 61-2e-301, Utah Code Annotated 1953
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34 Be it enacted by the Legislature of the state of Utah:
35 Section 1. Section 61-2e-101 is enacted to read:
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38 61-2e-101. Title.
39 This chapter is known as "Utah Home Inspection Trade Practices."
40 Section 2. Section 61-2e-102 is enacted to read:
41 61-2e-102. Definitions.
42 As used in this chapter:
43 (1) "Associate home inspector" means an inspector who:
44 (a) has performed fewer than 200 home inspections for a fee;
45 (b) performs a home inspection in accordance with this chapter;
46 (c) is a member in good standing of a home inspector association; and
47 (d) passes a comprehensive home inspector competency examination approved by the
48 Division of Real Estate.
49 (2) "Home inspection" means a limited, visual, noninvasive examination, performed
50 for a fee, of the readily accessible components of a residential dwelling, including:
51 (a) any mechanical system, such as plumbing, electrical, heating, or cooling;
52 (b) the dwelling's structure; or
53 (c) any other of the dwelling's essential components.
54 (3) "Home inspection report" means a written report prepared for a fee that is issued
55 after a home inspection:
56 (a) describing and identifying any inspected mechanical system, structure, or other
57 components;
58 (b) describing any material defects identified during the home inspection;
59 (c) describing any recommendation concerning the conditions observed by the
60 inspector; and
61 (d) making any recommendation for further evaluation by an appropriate professional.
62 (4) "Home inspector" means any person who:
63 (a) has performed 200 or more home inspections for a fee;
64 (b) performs a home inspection in accordance with this chapter;
65 (c) is a member in good standing of a home inspector association; and
66 (d) (i) passes a comprehensive home inspector competency examination approved by
67 the Division of Real Estate; or
68 (ii) before January 1, 2007, passes a home inspector association proctored competency
69 examination for which the person paid a fee.
70 (5) "Home inspector association" means an association:
71 (a) requiring that a member:
72 (i) meet annual continuing education requirements; and
73 (ii) adhere to standards of practice and a code of ethics in the performance of a home
74 inspection to maintain membership in good standing; and
75 (b) that has existed for three years.
76 (6) (a) "Inspector" means an associate home inspector or home inspector who performs
77 a home inspection in accordance with this chapter.
78 (b) "Inspector" does not mean a person hired to conduct any type of inspection on
79 behalf of a governmental entity.
80 (7) (a) "Material defect" means a condition that significantly affects the value,
81 desirability, habitability, or safety of a residential dwelling.
82 (b) "Material defect" does not include style or aesthetic qualities.
83 (8) "Readily accessible" means available for visual inspection without requiring
84 dismantling, destructive measures, the movement of personal property, or any action likely
85 involving risk to a person or property.
86 Section 3. Section 61-2e-201 is enacted to read:
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88 61-2e-201. Home inspection requirements.
89 (1) An inspector shall perform a home inspection in accordance with the standards of
90 practice and code of ethics of the home inspector association of which the inspector is a
91 member.
92 (2) Nothing in this chapter prevents an inspector from:
93 (a) including inspection services, systems, or components other than those minimally
94 required by the applicable standards of practice and code of ethics; or
95 (b) excluding a system or component from the home inspection if the inspector's client
96 requests the exclusion.
97 (3) A person may not perform a home inspection unless the person is a home inspector
98 or an associate home inspector.
99 Section 4. Section 61-2e-202 is enacted to read:
100 61-2e-202. Prohibited conduct -- Exceptions.
101 (1) It is a class C misdemeanor for an inspector, an inspector's employer, or a person
102 with a financial interest in a business employing an inspector to knowingly or intentionally:
103 (a) inspect or allow an employee to inspect, for a fee any property in which the
104 inspector or the inspector's employer has a financial interest or an interest in the property's
105 transfer;
106 (b) offer or deliver any compensation, inducement, or reward to the owner of the
107 inspected property or a broker or agent for the referral of any business to the inspector or the
108 inspector's employer;
109 (c) accept an engagement to make a home inspection or to prepare a home inspection
110 report if the employment or fee for the inspection is contingent upon the conclusions of the
111 home inspection report; or
112 (d) perform, or offer to perform, for an additional fee any repairs covered by a home
113 inspector association's standards of practice within 12 months after the date of a home
114 inspection performed by that inspector, or that inspector's employer.
115 (2) (a) A person providing warranty-type home protection services that is affiliated
116 with, or that employs, an inspector does not violate this section if the person performs repairs
117 based on a claim made on a contract for warranty-type home protection services.
118 (b) A structural pest control operator may perform repairs without violating this
119 chapter.
120 Section 5. Section 61-2e-203 is enacted to read:
121 61-2e-203. Limitation of action.
122 A person damaged by an inspector's, or other person's, violation of this chapter shall
123 commence an action under this chapter no later than one year after the day on which the home
124 inspection was performed.
125 Section 6. Section 61-2e-204 is enacted to read:
126 61-2e-204. Associate home inspectors' advertising.
127 An associate home inspector shall use the term "associate home inspector" on:
128 (1) any inspection contract;
129 (2) the signature found on the home inspection report;
130 (3) all business correspondence; and
131 (4) all advertising materials, including the associate home inspector's Internet site.
132 Section 7. Section 61-2e-301 is enacted to read:
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134 61-2e-301. Division of Real Estate -- Registration -- Business license --
135 Examination.
136 (1) (a) The Division of Real Estate shall establish procedures to allow inspectors to
137 register with the division.
138 (b) To register with the Division of Real Estate, a person shall include proof that:
139 (i) the person has passed the examination approved under Subsection (3); and
140 (ii) the person is a current member of a home inspector association.
141 (2) A municipality or other entity may not issue a business license to, or renew a
142 business license for, a person whose business includes the performance of a home inspection
143 unless the person has first registered as an inspector with the Division of Real Estate.
144 (3) The Division of Real Estate shall approve a comprehensive home inspector
145 competency examination that is developed and administered consistent with:
146 (a) guidelines established by the:
147 (i) Council on Licensing, Enforcement and Regulation;
148 (ii) American Education Research Association; and
149 (iii) federal Equal Employment Opportunity Commission's "Uniform Guidelines for
150 Employee Selection Procedures;
151 (b) the federal Civil Rights Act of 1991; and
152 (c) the federal Americans with Disabilities Act of 1990.
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