EmR1822 Rule Text

This proposed rule updates the administrative code by adding the statutory citation for the meaning of the term home inspection “defect” and amends the home inspection report by using the defect term. This rule also provides that a written home inspection report is not required to use the term defect, but if the term is used, the written report must conform to the exact definition provided in the statutes.

Summary of, and comparison with, existing or proposed federal regulation:

Federal regulations do not govern home inspectors.

Comparison with rules in adjacent states:

Illinois: The state of Illinois uses the term, “significantly deficient” which means unsafe or not functioning. Illinois also uses the term, “unsafe” which they define as a condition in a system or component that poses a significant risk of personal injury or property damage during normal, day-to-day use. The risk, they include, may be due to damage, deterioration, improper installation or a change in accepted residential construction standards.

Iowa: The state of Iowa does not have licensing requirements for home inspectors. Generally, real estate agents are trained and certified in home inspection and are required to disclose material adverse facts.

Michigan: The state of Michigan does not have licensing requirements for home inspectors. Generally, real estate agents are trained and certified in home inspection and are required to disclose material adverse facts.

Minnesota: The state of Minnesota does not have licensing requirements for home inspectors. Generally, real estate agents are trained and certified in home inspection and are required to disclose material adverse facts.

Summary of factual data and analytical methodologies:

The basis for this rule is 2017 Wisconsin Act 338. The Wisconsin Association of Home Inspectors was contacted for additional background information.

Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis:

This rule is predicated on statutory requirements and does not exceed the change made in statutes.

Fiscal Estimate:

These rules are not anticipated to have a fiscal impact.

Effect on small business:

These proposed rules do not have an economic impact on small businesses, as defined in s. 227.114 (1), Stats. The Department’s Regulatory Review Coordinator may be contacted by email at [e-mail], or by calling [phone].

Agency contact person:

Greg DiMiceli, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, P.O. Box 8366, Madison, Wisconsin 53708; telephone [phone]; email at [e-mail].

Place where comments are to be submitted and deadline for submission:

Comments may be submitted to Greg DiMiceli, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, P.O. Box 8366, Madison, Wisconsin 53708, or by email to [e-mail]. Comments must be submitted by the date and time at which the public hearing on these rules is conducted. Information as to the place, date, and time of the public hearing will be published on the Department of Safety and Professional Services’ website and in the Wisconsin Administrative Register.

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TEXT OF RULE

Section 1. SPS 131.02 (6m) is created to read:

SPS 131.02 (6m). “Defect” has the meaning given in s. 440.97 (2m), Stats.

Section 2. SPS 131.33 (1) (d) is amended to read:

SPS 131.33 (1) (d). Describes the condition of any defect that is detected by the home inspector item identified in s. SPS 131.32 that, if not repaired, will have significant adverse effect on the life expectancy of the identified item.

Section 3. SPS 131.33 (2m) is created to read:

SPS 131.33 (2m). A home inspector is not required to use the term “defect” in describing a defect in the written home inspection report described in this section.

Section 4. SPS 131.33 (3m) is created to read:

SPS 131.33 (3m). A home inspector may not use the term “defect” in their written home inspection report unless that use is consistent with s. SPS 131.02 (6m).

Section 5. Effective Date. The rules adopted in this order shall take effect upon publication in the official state newspaper, pursuant to s. 227.22 (2) (c), Stats.

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(END OF TEXT OF RULE)

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Dated ____________     Agency ___________________________________

              Secretary,

          Department of Safety and Professional Services