SB186: Bill Text

1997 Senate BILL 186

April 30, 1997 - Introduced by Senators Wineke, Welch, Risser, Rude, Moore, Fitzgerald, Wirch, Plache, Weeden, Roessler, Zien and Schultz, cosponsored by Representatives Vrakas, Foti, Sykora, Hanson, Kedzie, Travis, Freese, Jensen, Kaufert, Olsen, Plale, Meyer, Hasenohrl, Kelso, Powers, Albers, Harsdorf, Huebsch, Riley, Rutkowski, Handrick, Hoven, Lazich, Nass, Ott, Ward, Duff, Porter, M. Lehman, Hutchison, Dobyns, Musser, Ainsworth, Murat, Huber and Walker. Referred to Committee on Economic Development, Housing and Government Operations.

SB186,1,4 An Act to create 440.08 (2) (a) 38g. and subchapter X of chapter 440 [precedes 440.97] of the statutes; relating to: the regulation of home inspectors, providing an exemption from emergency rule procedures, granting rule-making authority and providing penalties.

Analysis by the Legislative Reference Bureau

This bill establishes requirements for the registration of home inspectors with the department of regulation and licensing (DORL). The bill does not require an individual to be registered as a home inspector in order to conduct home inspections for compensation, but the bill does restrict the use of the title "Wisconsin registered home inspector" to individuals who are registered as home inspectors by DORL. The bill also prohibits an individual who is not registered as a home inspector from using any other title or description which represents or may tend to represent the individual to be registered as a home inspector.

The bill requires an individual to pass an examination in order to qualify for registration as a Wisconsin registered home inspector and specifies other requirements for initial registration and for renewal of a certificate of registration. DORL may, by rule, establish continuing education requirements for Wisconsin registered home inspectors. In addition, the bill:

1. Allows a business entity to use, in connection with the name or signature of the business entity, Wisconsin "registered home inspectors" to describe its service if at least one business representative (for example, an officer, director or partner) of the business entity is a Wisconsin registered home inspector.

2. Specifies that a Wisconsin registered home inspector must perform a reasonably competent and diligent inspection to detect observable conditions of an improvement to residential real property that he or she is inspecting.

3. Requires DORL to promulgate rules establishing standards of practice for home inspectors, subject to certain standards established in the bill concerning, for example, what a Wisconsin registered home inspector must include in a home inspection report and what things a Wisconsin registered home inspector is not required to do and may not do as part of a home inspection.

4. Prohibits a Wisconsin registered home inspector from disclaiming liability, or limiting the amount of his or her liability, for negligence or intentional wrongdoing. The bill also establishes a 2-year period for a person to bring a cause of action for damages resulting from an act or omission of a Wisconsin registered home inspector in conducting a home inspection. Finally, a Wisconsin registered home inspector is not liable to a person for damages that arise from an act or omission relating to a home inspection conducted by the Wisconsin registered home inspector if the person is not a party to the transaction for which the home inspection was conducted.

5. Authorizes DORL to reprimand a Wisconsin registered home inspector or to deny, limit, suspend or revoke a certificate of registration as a Wisconsin registered home inspector if the applicant or Wisconsin registered home inspector has engaged in unprofessional conduct.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB186, s. 1 Section 1. 440.08 (2) (a) 38g. of the statutes is created to read:

SB186,2,2 440.08 (2) (a) 38g. Home inspector: January 1 of each odd-numbered year; $41.

SB186, s. 2 Section 2. Subchapter X of chapter 440 [precedes 440.97] of the statutes is created to read:

SB186,2,5 Chapter 440

SB186,2,7 Subchapter X Registry of Home inspectors

SB186,2,8 440.97 Definitions. In this subchapter:

SB186,2,10 (1) "Client" means a person who contracts with a home inspector for a home inspection.

SB186,3,2 (2) "Compensation" means direct or indirect payment, including the expectation of payment whether or not actually received.

SB186,3,6 (3) "Dwelling unit" means a structure or that part of a structure that is used or intended to be used as a home, residence or sleeping place by one person or by 2 or more persons who are maintaining a common household, to the exclusion of all others.

SB186,3,9 (4) "Home inspection" means the inspection and analysis of the condition of the improvements to residential real property, including the mechanical or structural components of those improvements.

SB186,3,11 (5) "Home inspection report" means a written opinion of a home inspector concerning all of the following:

SB186,3,13 (a) The condition of the improvements to residential real property that contains not more than 4 dwelling units.

SB186,3,15 (b) The condition of the mechanical or structural components of the improvements specified in par. (a).

SB186,3,17 (6) "Home inspector" means an individual who, for compensation, conducts a home inspection.

SB186,3,20 (7) "Technically exhaustive" means the extensive use of measurements, instruments, testing, calculations and other means to develop scientific or engineering findings, conclusions or recommendations.

SB186,3,22 (8) "Wisconsin registered home inspector" means an individual who is registered as a home inspector under this subchapter.

SB186,3,24 440.971 Registry established. The department shall establish a registry of home inspectors.

SB186,4,4 440.9712 Use of title. (1) No individual may use the title "Wisconsin registered home inspector", use any title or description that implies that he or she is registered under this subchapter or represent himself or herself to be registered under this subchapter unless the individual is registered under this subchapter.

SB186,4,8 (2) A business entity may use, in connection with the name or signature of the business entity, the title "Wisconsin registered home inspectors" to describe the business entity's services, if one business representative of the business entity is registered under this subchapter.

SB186,4,10 440.972 Registration requirements. (1) The department shall register an individual under this subchapter if the individual does all of the following:

SB186,4,12 (a) Submits an application for registration to the department on a form provided by the department.

SB186,4,13 (b) Pays the fee specified in s. 440.05 (1).

SB186,4,15 (c) Subject to ss. 111.321, 111.322 and 111.335, submits evidence satisfactory to the department that he or she does not have an arrest or conviction record.

SB186,4,16 (d) Passes an examination under s. 440.973 (1).

SB186,4,18 (2) The renewal date and renewal fee for certificates granted under this section are specified under s. 440.08 (2) (a) 38g.

SB186,4,20 440.973 Examinations. (1) No person may be registered under this subchapter unless he or she passes an examination approved by the department.

SB186,4,23 (2) The department shall conduct examinations for home inspector registration at least semiannually at times and places determined by the department.

SB186,5,3 (3) An individual is not eligible for examination unless the individual has satisfied the requirements for registration under s. 440.972 (1) (a) to (c) at least 30 days before the date of the examination.

SB186,5,5 440.974 Rules. (1) The department shall promulgate rules necessary to administer this subchapter, including rules to establish all of the following:

SB186,5,7 (a) Standards for acceptable examination performance by an applicant for registration.

SB186,5,9 (b) Subject to s. 440.975, standards for the practice of home inspection by Wisconsin registered home inspectors.

SB186,5,12 (c) Subject to s. 440.975, the information that a Wisconsin registered home inspector is required to provide to a client concerning the results of the home inspection conducted by the Wisconsin registered home inspector.

SB186,5,17 (2) The department may promulgate rules establishing continuing education requirements for individuals registered under this subchapter. The rules promulgated under this subsection may require continuing education either if it is necessary to preserve the public health, safety or welfare or as a part of the disciplinary process to ensure competency.

SB186,5,20 440.975 Standards of practice. (1) In this section, "reasonably competent and diligent inspection" means an inspection that complies with the standards established under this subchapter or the rules promulgated under this subchapter.

SB186,5,24 (2) A Wisconsin registered home inspector shall perform a reasonably competent and diligent inspection to detect observable conditions of an improvement to residential real property that he or she is inspecting. A reasonably competent and diligent inspection is not required to be technically exhaustive.

SB186,6,2 (3) After completing a home inspection, a Wisconsin registered home inspector shall submit a written report to a client that does all of the following:

SB186,6,5 (a) Lists the components of an improvement to residential real property that the home inspector is required to inspect under the rules promulgated under s. 440.964 (1) (b).

SB186,6,7 (b) Lists the components of an improvement to residential real property that the Wisconsin registered home inspector has inspected.

SB186,6,12 (c) Describes any condition of an improvement to residential real property or of any component of an improvement to residential real property that is detected by the Wisconsin registered home inspector during his or her home inspection and that, if not repaired, will have a significant adverse effect on the life expectancy of the improvement or the component of the improvement.

SB186,6,17 (d) Describes any condition of an improvement to residential real property or of any component of an improvement to residential real property that is detected by the Wisconsin registered home inspector during his or her home inspection and that constitutes a significant health hazard to any occupant of the improvement inspected.

SB186,6,19 (4) A Wisconsin registered home inspector is not required to report on any of the following:

SB186,6,21 (a) The life expectancy of an improvement to residential real property or a component of an improvement to residential real property.

SB186,6,23 (b) The cause of the need for any major repair to an improvement to residential real property or a component of an improvement to residential real property.

SB186,6,25 (c) The method of making any repair or correction, the materials needed for any repair or correction or the cost of any repair or correction.

SB186,7,2 (d) The suitability for any specialized use of an improvement to residential real property.

SB186,7,5 (e) Whether an improvement to residential real property or a component of an improvement to residential real property complies with applicable regulatory requirements.

SB186,7,8 (f) The condition of any component of an improvement to residential real property that the Wisconsin registered home inspector was not required to inspect under the rules promulgated under s. 440.974 (1) (b).

SB186,7,10 (5) A Wisconsin registered home inspector may not report, either in writing or verbally, on any of the following:

SB186,7,11 (a) The market value or marketability of a property.

SB186,7,12 (b) Whether a property should or should not be purchased.

SB186,7,14 (6) This section does not require a Wisconsin registered home inspector to do any of the following:

SB186,7,15 (a) Offer a warranty or guarantee of any kind.

SB186,7,17 (b) Calculate the strength, adequacy or efficiency of any component of an improvement to residential real property.

SB186,7,21 (c) Enter any area or perform any procedure that may damage an improvement to residential real property or a component of an improvement to residential real property, or enter any area or perform any procedure that may be dangerous to the Wisconsin registered home inspector or to other persons.

SB186,7,23 (d) Operate any component of an improvement to residential real property that is inoperable.

SB186,7,25 (e) Operate any component of an improvement to residential real property that does not respond to normal operating controls.

SB186,8,4 (f) Disturb insulation or move personal items, furniture, equipment, vegetation, soil, snow, ice or debris that obstructs access to or visibility of an improvement to residential real property or a component of an improvement to residential real property.

SB186,8,7 (g) Determine the effectiveness of a component of an improvement to residential real property that was installed to control or remove suspected hazardous substances.

SB186,8,9 (h) Predict future conditions, including the failure of a component of an improvement to residential real property.

SB186,8,11 (i) Project or estimate the operating costs of a component of an improvement to residential real property.

SB186,8,13 (j) Evaluate acoustic characteristics of a component of an improvement to residential real property.

SB186,8,15 (k) Inspect for the presence or absence of pests, including rodents, insects and wood-damaging organisms.

SB186,8,17 (L) Inspect cosmetic items, underground items or items not permanently installed.

SB186,8,18 (7) A Wisconsin registered home inspector may not do any of the following:

SB186,8,19 (a) Perform or offer to perform any act or service contrary to law.

SB186,8,21 (b) Deliver a home inspection report to any person other than the client without the client's consent.

SB186,8,25 (c) Provide home inspection services to a client when the Wisconsin registered home inspector has a conflict of interest that may adversely affect the client's interests, unless the Wisconsin registered home inspector has the prior written consent of the client.

SB186,9,2 (8) This section does not prohibit a Wisconsin registered home inspector from doing any of the following:

SB186,9,4 (a) Reporting observations or conditions in addition to those required under this section or the rules promulgated under this section.

SB186,9,6 (b) Excluding a component of an improvement to residential real property from the inspection, if requested to do so by his or her client.

SB186,9,8 (c) Engaging in an activity that requires an occupation credential if he or she holds the necessary credential.

SB186,9,13 440.976 Disclaimers or limitation of liability. No Wisconsin registered home inspector may include, as a term or condition in an agreement to conduct a home inspection, any provision that disclaims the liability, or limits the amount of damages for liability, of the Wisconsin registered home inspector for his or her negligence or intentional wrongdoing.

SB186,9,18 440.977 Liability of Wisconsin registered home inspectors. (1) Notwithstanding s. 893.54, an action to recover damages for any act or omission of a Wisconsin registered home inspector relating to a home inspection that he or she conducts shall be commenced within 2 years after the cause of action accrues or be barred.