QUESTION: What is a “home inspection?

ANSWER: A home inspection is “a noninvasive visual examination of some combination of the mechanical, electrical or plumbing systems or the structural 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 also includes any consultation regarding the property that is represented to be a home inspection or that is described by any confusingly similar term. The term does not include an examination of a single system or component of a residential dwelling such as, for example, its electrical or plumbing system or its roof. The term also does not include an examination that is limited to inspection for, or of, one or more of the following: wood destroying insects, underground tanks and wells, septic systems, swimming pools and spas, alarm systems, air and water quality, tennis courts and playground equipment, pollutants, toxic chemicals and environmental hazards.”

QUESTION: What is a “material defect?”

ANSWER: A material defect is “a problem with a residential real property or 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 a structural element, system or subsystem is near, at or beyond the end of a normal useful life of such a structural element, system or subsystem is not by itself a material defect.

QUESTION: What is a “national home inspection association?”

ANSWER: As defined by the law, a national home inspection association: (1) is operated on a not-for-profit basis and not operated as a franchise; (2) has members in more than 10 states; (3) requires that a person may not be a full member unless the person has performed or participated in more than 100 home inspections and has passed a recognized or accredited examination testing knowledge of the proper procedures for conducting a home inspection; and (4) requires that its members comply with a code of conduct and attend continuing professional education classes as an ongoing condition of membership.

QUESTION: When does this law apply?

ANSWER: In general, the Home Inspection Law applies to any “residential real estate transfer,” which is defined as a transfer of not less than one or more than four residential dwelling units. Note that new construction is not excluded from the scope of the Home Inspection Law, nor is a mixed-use commercial transaction involving one to four residential dwelling units.

QUESTION: Who may conduct a home inspection?

ANSWER: In general, any home inspector may conduct a home inspection. HOWEVER, where the inspection is conducted as part of a contingency in an Agreement of Sale (i.e., where the results of the inspection may trigger certain duties to repair or renegotiate), the inspection must be conducted by “a full member in good standing of a national home inspection association” or by an inspector who is not a full member but is supervised by a full member who signs the inspection report.

QUESTION: How can one verify that a home inspector is a full member of a national home inspection association?

ANSWER: Get it in writing. The law states that “A buyer shall be entitled to rely in good faith, without independent investigation, on a written representation by a home inspector that the home inspector is a full member in good standing of a national home inspection association.”

QUESTION: Who defines the scope of the home inspection?

ANSWER: The scope of a home inspection, the services to be performed, and the systems and conditions to be inspected or excluded from inspection may be defined by a contract between the home inspector and the client.

QUESTION: What specific information must a home inspection report include?

ANSWER: A home inspection report must be in writing and include: (1) a description of the scope of the inspection with an identification of the structural elements, systems and subsystems covered in the report; (2) a description of the material defects noted during the inspection with the recommendation that certain experts be retained to determine the extent of the defects and any corrective action that should be taken.

QUESTION: Who has access to the home inspection report?

ANSWER: Unless otherwise required by law, a home inspector may not deliver a report to anyone other than the inspector’s client without the client’s consent. A seller has the right, upon request, to receive without charge a copy of the home inspection report from the person for whom it was prepared.

QUESTION: May a home inspector give an estimate to repair any defects revealed in the home inspection report?

ANSWER: A certified home inspector may not express, either orally or in writing, an estimate of the cost to repair any defect found during a home inspection unless: (1) the report identifies the source of the estimate; (2) the estimate is stated as a range of costs; and (3) the report states that the parties should consider obtaining an estimate from a contractor who performs the type of repair involved.

QUESTION: May a home inspector conduct other property examinations, such as a real estate appraisal or a radon inspection, that are excluded from the definition of “home inspection?”

ANSWER: A home inspector may conduct any property examinations and engage in any other activities for which they are qualified and properly licensed. Unless the home inspector is registered or licensed under one or more of the following laws, they are not allowed to perform any activity that would constitute the practice of that profession: the Engineer, Land Surveyor and Geologist Registration Law; the Pennsylvania Sewage Facilities Act; the Pennsylvania Pesticide Control Act of 1973; the Architects Licensure Law; the Radon Certification Act; the Real Estate Appraisers Certification Act.

QUESTION: Are home inspectors prohibited from engaging in any inspection-related activities?

ANSWER: A home inspector and their employers, may not: (1) Offer to perform for a fee repairs to a structure for which the inspector has prepared a home inspection report within the last year. (2) Inspect for a fee any property in which the home inspector or the employer of the home inspector has any financial interest or any interest in the transfer of the property, unless the financial interest is disclosed in writing and the buyer acknowledges this disclosure in writing. (3) Offer any compensation to the seller or to an agent for the referral of any business to the inspector. (4) Perform a home inspection where the fee is contingent upon the content of the report, or the closing of the transaction.

QUESTION: How will the Home Inspection Law be enforced?

ANSWER: The law is self-enforcing. As such, the parties in a real estate transaction must ascertain the membership status of a home inspector who will perform an inspection pursuant to a contingency provision in an agreement of sale.

QUESTION: Is there a time limit in order to recover damages arising from a home inspection report?

ANSWER: Any action to recover damages arising from a home inspection report must be commenced within one year after the date the report is delivered.