The Founding Chapter




[Passed Both Houses]


[First Reprint]

ASSEMBLY, No. 3014





and Senator Martin

1 AN ACT providing for the licensing and regulation of home inspectors
2 and supplementing chapter 8 of Title 45 of the Revised Statutes.
4 BE IT ENACTED by the Senate and General Assembly of the State
5 of New Jersey:
7 1. This act shall be known and may be cited as the ‘Home
8 Inspection Professional Licensing Act."
10 2. As used in this act:
11 "Associate home inspector" means a person who is employed by a
12 licensed home inspector to conduct a home inspection of a residential
1 3 building under the direct supervision of the licensed home inspector
14 and is licensed pursuant to the provisions of this act.
15 "Board" means the State Board of Professional Engineers and Land
16 Surveyors.
17 "Client" means any person who engages, or seeks to engage, the
18 services of a home inspector for the purpose of obtaining inspection
19 of and written report upon the condition of a residential building.
20 "Committee" means the Home Inspection Advisory Committee
21 established pursuant to section 3 of this act.
22 "Home inspector" means any person licensed as a home inspector
23 pursuant to the provisions of this act.
24 "Home inspection" means an inspection and written evaluation of
25 the following components of a residential building: heating system,
26 cooling system, plumbing system, electrical system, structural
27 components, foundation, roof, masonry structure, exterior and interior


EXPLANATION - Matter enclosed in hold-faced brackets [thus] in the above bill is not enacted and intended to be omitted in the law.

Matter underlined thus is new matter.

Matter enclosed in superscript numerals has been adopted as follows:

‘Assembly ACP committee amendments adopted November 6, 1997.

A3014 [lR]


1 components or any other related residential housing component as
2 determined by the board by regulation.
3 "Residential building" means a structure consisting of from one to
4 four family dwelling units that has been occupied as such prior to the
5 time when a home inspection is requested or contracted for in
6 accordance with this act, but shall not include any such structure
7 newly constructed and not previously occupied.
9 3. a. There is created within the Division of Consumer Affairs in
10 the Department of Law and Public Safety, under the State Board of
11 Professional Engineers and Land Surveyors, a Home Inspection
12 Advisory Committee. The committee shall consist of five members
13 who are residents of the State and are licensed home inspectors who
14 have been actively engaged in the practice of home inspection in this
15 State for at least five years immediately preceding their appointment.
16 b. For a period of one year after the effective date of this act, and
17 notwithstanding any other provisions of this act to the contrary, the
18 first five home inspectors appointed as members of the committee shall
19 not be required, at the time of their first appointment, to be licensed
20 to practice home inspection.
21 c. The Governor shall appoint each committee member for a term
22 of three years, except that of the members first appointed, two shall
23 serve for terms of three years, two shall serve for terms of two years
24 and one shall serve for a term of one year. Each member shall hold
25 office until his successor has been qualified. Any vacancy in the
26 membership of the committee shall be filled for the unexpired term in
27 the manner provided for the original appointment. No member of the
28 committee may serve more than two successive terms in addition to
29 any unexpired term to which he has been appointed.
31 4. Members of the committee shall be compensated and reimbursed
32 for expenses and provided with office and meeting facilities and
33 personnel required for the proper conduct of the committee’s business.
35 5. The committee shall annually elect from among its members a
36 chairman and a vice-chairman and may appoint a secretary, who need
37 not be a member of the committee. The committee shall meet at least
38 twice a year and may hold additional meetings as necessary to
39 discharge its duties.
41 6. The committee shall have the following powers and duties:
42 a. Administer and enforce the provisions of this act;
43 b. Issue and renew licenses to home inspectors and associate home
44 inspectors pursuant to the provisions of this act;
45 c. Suspend, revoke or fail to renew the license of a home inspector
46 or an associate home inspector pursuant to the provisions of P.L. 1978,



1 c.73 (C.45:1-14 et seq.);
2 d. Establish standards for the continuing education of home
3 inspectors;
4 e. Adopt and publish a code of ethics and standards of practice for
5 licensed home inspectors; and
6 f. Prescribe or change the charges for examinations, licensures,
7 renewals and other services performed pursuant to P.L.1974, c.46
8 (C.45:1-3.1 et seq.).
10 7. No person shall provide, nor present, call or represent himself
11 as able to provide a home inspection for compensation unless licensed
12 in accordance with the provisions of this act.
14 8. To be eligible for licensure as a home inspector, an applicant
15 shall fulfill the following requirements:
16 a. Be of good moral character;
17 b. Have successfully completed high school or its equivalent;
18 c. Have been engaged as a licensed associate home inspector for
19 no less then one year, and have performed not less than 250 home
20 inspections for compensation; and
21 d. Have passed the examination offered by the American Society
22 of Home Inspectors (ASHI). The examination may have been passed
23 before the effective date of this act.
25 9. To be eligible for licensure as an associate home inspector, an
26 applicant shall fulfill the following requirements:
27 a. Be of good moral character;
28 b. Have successfully completed high school or its equivalent;
29 c. Have passed an approved course of study, as prescribed by the
30 board;
31 d. Have performed not less than 50 home inspections in the
32 presence of a licensed home inspector; and
33 e. Have passed the examination offered by the American Society of
34 Home Inspectors (ASHI). The examination may have been passed
35 before the effective date of this act.
37 10. The provisions of this act shall not apply to:
38 a. Any person who is employed as a code enforcement official by
39 the State or a political subdivision thereof when acting within the
40 scope of that government employment;
41 b. Any person regulated by the State as an architect, professional
42 engineer, electrical contractor or master plumber, who is acting within
43 the scope of practice of his profession or occupation;
44 c. Any real estate broker, broker-salesperson, or salesperson who
45 is licensed by the State when acting within the scope of his profession;
46 d. Any State licensed real estate appraiser or certified general or



1 residential real estate appraiser, who is acting within the scope of his
2 profession;
3 e. Any person regulated by the State as an insurance adjuster, who
4 is acting within the scope of his profession;
S f. Any person certified or registered as a pesticide applicator
6 pursuant to subchapters 6 or 8 of chapter 30 of Title 7 of the New
7 Jersey Administrative Code 1who is acting within the scope of the
8 practice for which he is certified or registered1 or
9 g. Any person making home inspections under the supervision of
10 a licensed home inspector for the purpose of meeting the requirements
11 of subsection d. of section 9 of this act to qualify for licensure as an
12 associate home inspector.
14 11. Upon payment to the board of a fee and the submission of a
15 written application provided by the board, the committee shall issue a
16 home inspector license to any person who 1[:
17 a. Holds] holds1 a valid license issued by another state or
18 possession of the United States or the District of Columbia which has
19 standards substantially equivalent to those of this State, as determined
20 by the committee 1
[; or
21 b. Is licensed in this State to practice architecture or professional
22 engineering, or both, as the case may be, provided that the person
23 meets the requirements set forth in subsections a., b., and d. of section
24 8 of this act]
26 12. During the first 360 days after the effective date of this act, the
27 committee shall issue to any individual upon application a home
28 inspector license, provided that the applicant meets the requirements
29 of subsections a., b., and d. of section 8 of this act and has been
30 engaged in the practice of home inspections for compensation for not
31 less than three years prior to the effective date of this act and has
32 performed not less than 300 home inspections for compensation.
34 13. a. The board shall by rule or regulation establish, prescribe or
35 change the fees for licenses, renewals of licenses or other services
36 provided by the board or the committee pursuant to the provisions of
37 this act. Licenses shall be issued for a period of two years and be
38 biennially renewable, except that the board may, in order to stagger
39 the expiration dates thereof, provide that those licenses first issued or
40 renewed after the effective date of this act shall expire or become void
41 on a date fixed by the board, not sooner than six months nor later than
42 29 months after the date of issue.
43 b. Fees shall be established, prescribed or changed by the
44 committee to the extent necessary to defray all proper expenses
45 incurred by the board or the committee, and any staff employed to
46 administer this act, except that fees shall not be fixed at a level that



1 will raise amounts in excess of the amount estimated to be so required.
2 c. All fees and any fines imposed by the board shall be paid to the
3 board and shall be forwarded to the State Treasurer and become part
4 of the General Fund.
6 14. In addition to the provisions of section 8 of P.L.1978, c.73
7 (C.45:l-21), the committee may refuse to grant or may suspend or
8 revoke a home inspector license or an associate home inspector license
9 upon proof to the satisfaction of the committee that the holder thereof
10 has:
11 a. Disclosed any information concerning the results of the home
12 inspection without the approval of a client or the client’s
13 representatives;
14 b. Accepted compensation from more than one interested party for
15 the same service without the consent of all interested parties;
16 c. Accepted commissions or allowances, directly or indirectly, from
17 other parties dealing with their client in connection with work for
18 which the licensee is responsible; or
19 d. Failed to disclose promptly to a client information about any
20 business interest of the licensee which may affect the client in
21 connection with the home inspection.
23 115 No person licensed as a home inspector pursuant to this act
24 shall engage in the Practice of architecture or the practice of
25 professional engineering.1
27 1[15.] 16.1 a. Every licensed home inspector and associate home
28 inspector who is engaged in home inspection shall secure, maintain and
29 file with the board proof of a certificate of an error and omissions
30 policy, which shall be in a minimum amount of $500,000 per
31 occurrence.
32 b. Every proof of an errors and omissions policy required to be
33 filed with the board shall 1 provide that cancellation or nonrenewal of
34 the policy shall1 not be effective unless and until at least 10 days’
35 notice of intention to cancel or nonrenew has been received in writing
36 by the board.
38 1 [16.] 17.1 The board, after consultation with the committee, shall
39 adopt rules and regulations pursuant to the "Administrative Procedure
40 Act," P.L.1968, c.410 (C.52:14B-l et seq.) necessary to effectuate the
41 purposes of this act.
43 1 [17.] 18.1 This act shall take effect on the 180th day following
44 enactment.



1 ____________________________
3 "Home Inspection Professional Licensing Act."



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