LRBs0339/6
MDK&TNF:jlg&kaf:hmh
1997 - 1998 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 1997 ASSEMBLY BILL 334
February 4, 1998 - Offered by
Committee on Housing.
AB334-ASA1,1,4
1An Act to create 440.08 (2) (a) 38g. and subchapter X of chapter 440 [precedes
2440.97] of the statutes;
relating to: the regulation of home inspectors,
3providing an exemption from emergency rule procedures, granting
4rule-making authority and providing penalties.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB334-ASA1, s. 1
5Section
1. 440.08 (2) (a) 38g. of the statutes is created to read:
AB334-ASA1,1,66
440.08
(2) (a) 38g. Home inspector: January 1 of each odd-numbered year; $41.
AB334-ASA1, s. 2
7Section
2. Subchapter X of chapter 440 [precedes 440.97] of the statutes is
8created to read:
AB334-ASA1,1,1110
Subchapter X
11
Home inspectors
AB334-ASA1,1,12
12440.97 Definitions. In this subchapter:
AB334-ASA1,2,2
1(1) "Client" means a person who contracts with a home inspector for a home
2inspection.
AB334-ASA1,2,4
3(2) "Compensation" means direct or indirect payment, including the
4expectation of payment whether or not actually received.
AB334-ASA1,2,8
5(3) "Dwelling unit" means a structure or that part of a structure that is used
6or intended to be used as a home, residence or sleeping place by one person or by 2
7or more persons who are maintaining a common household, to the exclusion of all
8others.
AB334-ASA1,2,11
9(4) "Home inspection" means the process by which a home inspector examines
10the observable systems and components of improvements to residential real property
11that are readily accessible.
AB334-ASA1,2,13
12(5) "Home inspection report" means a written opinion of a home inspector
13concerning all of the following:
AB334-ASA1,2,1514
(a) The condition of the improvements to residential real property that contains
15not more than 4 dwelling units.
AB334-ASA1,2,1716
(b) The condition of mechanical and structural components of the
17improvements specified in par. (a).
AB334-ASA1,2,19
18(6) "Home inspector" means an individual who, for compensation, conducts a
19home inspection.
AB334-ASA1,2,22
20(7) "Technically exhaustive" means the extensive use of measurements,
21instruments, testing, calculations and other means to develop scientific or
22engineering findings, conclusions or recommendations.
AB334-ASA1,2,24
23440.971 Registry established. The department shall establish a registry of
24home inspectors.
AB334-ASA1,3,5
1440.9712 Registration required. (1) Except as provided in s. 440.9715, no
2individual may act as a home inspector, use the title "home inspector", use any title
3or description that implies that he or she is a home inspector or represent himself or
4herself to be a home inspector unless the individual is registered under this
5subchapter.
AB334-ASA1,3,8
6(1m) No business entity may provide home inspection services unless each of
7the home inspectors employed by the business entity is registered under this
8subchapter.
AB334-ASA1,3,12
9(2) No business entity may use, in connection with the name or signature of the
10business entity, the title "home inspectors" to describe the business entity's services,
11unless each of the home inspectors employed by the business entity is registered
12under this subchapter.
AB334-ASA1,3,14
13440.9715 Applicability. A registration is not required under this subchapter
14for any of the following:
AB334-ASA1,3,17
15(1) An individual who conducts a home inspection while lawfully practicing
16within the scope of a license, permit or certificate granted to that individual by a state
17governmental agency.
AB334-ASA1,3,23
18(2) An individual who constructs, repairs or maintains improvements to
19residential real property, if the individual conducts home inspections only as part of
20his or her business of constructing, repairing or maintaining improvements to real
21property and if the individual does not describe himself or herself as a registered
22home inspector or convey the impression that he or she is a registered home
23inspector.
AB334-ASA1,3,25
24(3) An individual who conducts home inspections in the normal course of his
25or her employment as an employe of a federal, state or local governmental agency.
AB334-ASA1,4,3
1440.972 Registration of home inspectors. (1) The department shall
2register an individual under this subchapter if the individual does all of the
3following:
AB334-ASA1,4,54
(a) Submits an application for registration to the department on a form
5provided by the department.
AB334-ASA1,4,66
(b) Pays the fee specified in s. 440.05 (1).
AB334-ASA1,4,107
(c) Submits evidence satisfactory to the department that he or she is not subject
8to a pending criminal charge, or has not been convicted of a felony, misdemeanor or
9other offense, the circumstances of which substantially relate to the practice of home
10inspection.
AB334-ASA1,4,1111
(d) Passes an examination under s. 440.973 (1).
AB334-ASA1,4,13
12(2) The renewal date and renewal fee for certificates granted under this section
13are specified under s. 440.08 (2) (a) 38g.
AB334-ASA1,4,18
14440.973 Examinations. (1) No person may be registered under this
15subchapter unless he or she passes an examination approved by the department. In
16approving an examination under this subsection, the department shall consider the
17use of an examination that is similar to an examination that is required for
18membership in the American Society of Home Inspectors.
AB334-ASA1,4,21
19(2) The department shall conduct examinations for home inspector
20registration at least semiannually at times and places determined by the
21department.
AB334-ASA1,4,24
22(3) An individual is not eligible for examination unless the individual has
23satisfied the requirements for registration under s. 440.972 (1) (a) to (c) at least 30
24days before the date of the examination.
AB334-ASA1,5,2
1440.974 Rules. (1) The department shall promulgate rules necessary to
2administer this subchapter, including rules to establish all of the following:
AB334-ASA1,5,43
(a) Standards for acceptable examination performance by an applicant for
4registration.
AB334-ASA1,5,95
(b) Subject to s. 440.975, standards for the practice of home inspection by home
6inspectors and standards for specifying the mechanical and structural components
7of improvements to residential real property that are included in a home inspection.
8The rules promulgated under this paragraph may not require a home inspector to
9use a specified form for the report required under s. 440.975 (3).
AB334-ASA1,5,1210
(c) Subject to s. 440.975, the information that a home inspector is required to
11provide to a client concerning the results of the home inspection conducted by the
12home inspector.
AB334-ASA1,5,16
13(2) The department shall promulgate rules establishing continuing education
14requirements for individuals registered under this subchapter. The rules
15promulgated under this subsection shall require the completion of at least 20 hours
16of continuing education during each calendar year.
AB334-ASA1,5,19
17440.975 Standards of practice. (1) In this section, "reasonably competent
18and diligent inspection" means an inspection that complies with the standards
19established under this subchapter or the rules promulgated under this subchapter.
AB334-ASA1,6,2
20(2) A home inspector shall perform a reasonably competent and diligent
21inspection to detect observable conditions of an improvement to residential real
22property. Except for removing an access panel that is normally removed by an
23occupant of residential real property, this subsection does not require a home
24inspector to disassemble any component of an improvement to residential real
1property. A reasonably competent and diligent inspection under this subsection is
2not required to be technically exhaustive.
AB334-ASA1,6,4
3(3) After completing a home inspection, a home inspector shall submit a
4written report to a client that does all of the following:
AB334-ASA1,6,75
(a) Lists the components of an improvement to residential real property that
6the home inspector is required to inspect under the rules promulgated under s.
7440.974 (1) (b).
AB334-ASA1,6,98
(b) Lists the components of an improvement to residential real property that
9the home inspector has inspected.
AB334-ASA1,6,1410
(c) Describes any condition of an improvement to residential real property or
11of any component of an improvement to residential real property that is detected by
12the home inspector during his or her home inspection and that, if not repaired, will
13have a significant adverse effect on the life expectancy of the improvement or the
14component of the improvement.
AB334-ASA1,6,1615
(d) Provides any other information that the home inspector is required to
16provide under the rules promulgated under s. 440.974 (1) (c).
AB334-ASA1,6,17
17(4) A home inspector is not required to report on any of the following:
AB334-ASA1,6,1918
(a) The life expectancy of an improvement to residential real property or a
19component of an improvement to residential real property.
AB334-ASA1,6,2120
(b) The cause of the need for any major repair to an improvement to residential
21real property or a component of an improvement to residential real property.
AB334-ASA1,6,2322
(c) The method of making any repair or correction, the materials needed for any
23repair or correction or the cost of any repair or correction.
AB334-ASA1,6,2524
(d) The suitability for any specialized use of an improvement to residential real
25property.
AB334-ASA1,7,3
1(e) Whether an improvement to residential real property or a component of an
2improvement to residential real property complies with applicable regulatory
3requirements.
AB334-ASA1,7,64
(f) The condition of any component of an improvement to residential real
5property that the home inspector was not required to inspect under the rules
6promulgated under s. 440.974 (1) (b).
AB334-ASA1,7,8
7(5) A home inspector may not report, either in writing or verbally, on any of the
8following:
AB334-ASA1,7,99
(a) The market value or marketability of a property.
AB334-ASA1,7,1010
(b) Whether a property should or should not be purchased.
AB334-ASA1,7,11
11(6) This section does not require a home inspector to do any of the following:
AB334-ASA1,7,1212
(a) Offer a warranty or guarantee of any kind.
AB334-ASA1,7,1413
(b) Calculate the strength, adequacy or efficiency of any component of an
14improvement to residential real property.
AB334-ASA1,7,1815
(c) Enter any area or perform any procedure that may damage an improvement
16to residential real property or a component of an improvement to residential real
17property, or enter any area or perform any procedure that may be dangerous to the
18home inspector or to other persons.
AB334-ASA1,7,2019
(d) Operate any component of an improvement to residential real property that
20is inoperable.
AB334-ASA1,7,2221
(e) Operate any component of an improvement to residential real property that
22does not respond to normal operating controls.
AB334-ASA1,8,223
(f) Disturb insulation or move personal items, furniture, equipment,
24vegetation, soil, snow, ice or debris that obstructs access to or visibility of an
1improvement to residential real property or a component of an improvement to
2residential real property.
AB334-ASA1,8,53
(g) Determine the effectiveness of a component of an improvement to
4residential real property that was installed to control or remove suspected hazardous
5substances.
AB334-ASA1,8,76
(h) Predict future conditions, including the failure of a component of an
7improvement to residential real property.
AB334-ASA1,8,98
(i) Project or estimate the operating costs of a component of an improvement
9to residential real property.
AB334-ASA1,8,1110
(j) Evaluate acoustic characteristics of a component of an improvement to
11residential real property.
AB334-ASA1,8,1312
(k) Inspect for the presence or absence of pests, including rodents, insects and
13wood-damaging organisms.
AB334-ASA1,8,1514
(L) Inspect cosmetic items, underground items or items not permanently
15installed.
AB334-ASA1,8,1616
(m) Inspect for the presence of any hazardous substances.
AB334-ASA1,8,17
17(7) A home inspector may not do any of the following:
AB334-ASA1,8,1818
(a) Perform or offer to perform any act or service contrary to law.
AB334-ASA1,8,2019
(b) Deliver a home inspection report to any person other than the client without
20the client's consent.
AB334-ASA1,8,2521
(c) Perform a home inspection for a client with respect to a transaction if the
22home inspector, a member of the home inspector's immediate family or an
23organization or business entity in which the home inspector has an interest, is a
24party to the transaction and has an interest that is adverse to that of the client,
25unless the home inspector obtains the written consent of the client.
AB334-ASA1,9,3
1(d) Accept any compensation from more than one party to a transaction for
2which the home inspector has provided home inspection services without the written
3consent of all of the parties to the transaction.