18VAC15-40 Virginia Certified Home Inspectors Regulations

REGULATIONS

Vol. 25 Iss. 20 - June 08, 2009

TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING

VIRGINIA BOARD FOR ASBESTOS, LEAD, AND HOME INSPECTORS

Chapter 40

Proposed Regulation

Title of Regulation: 18VAC15-40. Virginia Certified Home Inspectors Regulations (amending 18VAC15-40-10, 18VAC15-40-30, 18VAC15-40-50, 18VAC15-40-80, 18VAC15-40-90, 18VAC15-40-100, 18VAC15-40-120, 18VAC15-40-130, 18VAC15-40-140, 18VAC15-40-190; adding 18VAC15-40-45, 18VAC15-40-48, 18VAC15-40-52, 18VAC15-40-72, 18VAC15-40-85, 18VAC15-40-105; repealing 18VAC15-40-70, 18VAC15-40-110).

Statutory Authority: § 54.1-201 and 54.1-501 of the Code of Virginia.

Public Hearing Information:

July 10, 2009 - 10 a.m. - Department of Professional and Occupational Regulation, 9960 Mayland Drive, Suite 200, Board Room 4, Richmond, VA

Public Comments: Public comments may be submitted until 5 p.m. on August 7, 2009.

Agency Contact: Justin Garofalo, Board Administrator, Virginia Board for Asbestos, Lead and Home Inspectors, 9960 Mayland Drive, Suite 400, Richmond, VA 23233, telephone [phone], FAX [phone], or email [e-mail].

Basis: Subdivision 7 of § 54.1-501 states that the board shall promulgate regulations regarding the professional qualifications of home inspectors applicants, the requirements necessary for passing home inspectors examinations in whole or in part, the proper conduct of its examinations, the proper conduct of the home inspectors certified by the board, the implementation of exemptions from certifications requirements, and the proper discharge of its duties.

The imperative form of the verb "shall" is used, making the board’s authority to regulate mandatory rather than discretionary.

Purpose: Purchasing a home is the largest financial decision and investment made by most Virginia citizens. A competent home inspection is critical to the purchase decision to avoid unexpected expenses thus protecting the welfare of Virginia's citizens.

The current regulations were the first to be promulgated under the statutory authority granted by the 2001 Session of the Virginia General Assembly and have been in effect since July 1, 2003, without amendment. The passing of four years since initial promulgation and the board’s experience with the current regulations led the board to conclude that a general review as well as consideration of continuing professional education (CPE) provisions is appropriate.

The board conducted a general review of its current regulation’s provisions with emphasis on the definitions, entry standards, experience requirements, standards of practice, and the need to add continuing professional education (CPE) requirements.

Substance: Sixteen hours of continuing professional education (CPE) will be required during each 24-month certificate renewal cycle beginning with the certificate renewal cycle that ends two years after the amendment becomes effective.

Two definitions are added to the definition section to clarify words used in the regulation language and two definitions are deleted because the terms are not used in the regulation text.

Two new entry standards are added to allow a home inspector certificate to be issued to individuals who have completed fewer home inspections when those inspections were completed under the direct supervision of a Virginia-certified home inspector.

Amendments are made to the language allowing applicants with 10 years of home inspection experience to qualify for a certificate without classroom training. The amendments require documentation of a minimum of 250 home inspections completed in substantial compliance with the board’s regulations in order to qualify.

Amendments are made to the certificate renewal procedure to specify that the act of submitting a renewal application is an affirmation that the renewal applicant maintains the required insurance, has completed the CPE requirements, and is in continued compliance with the board’s regulations. The current regulation is less specific. The board’s staff sends a renewal notice to expiring regulants stating that the act of returning the renewal notice is the renewal applicant’s certification that he continued to maintain the required insurance and is in continued compliance with the board’s regulations. Those that apply for renewal without returning the renewal application are sent a statement to sign indicating they are in compliance. The regulation amendment will streamline the renewal process for the regulant and for board staff by eliminating the need for documentation from the applicant to confirm compliance; renewal of the certification infers compliance.

Amendments are made to the home inspection contract section addressing the inspection for asbestos, lead-based paint, mold and radon, and the inspection of outbuildings as well as the presence of components involved in manufacturers’ recalls. An amendment is also made to allow the home inspection client’s authorized representative to sign the home inspection contract.

Amendments are made to the certified home inspection report section allowing the client to be represented by an authorized representative and emphasizing that the report must describe in writing the conditions of readily accessible components and readily observable defects. Amendments are also made to address certain components that are adjacent, but not attached, to the property being inspected, the inspection of garages and railings, the inspection of garage door openers, the inspection of arc fault interrupters, and the inspection of systems that are turned off, winterized, or otherwise secured.

Amendments are made to the conflict of interest section allowing certified home inspectors to perform certain types of inspections or refer clients to others only after the home inspector’s involvement or interest in the property to be inspected is disclosed.

Amendments are made to the unworthiness and incompetence section empowering the board to take disciplinary action against those home inspectors who perform home inspections when they are not qualified by training or experience to conduct the specific inspection. The amendments also empower disciplinary action against certificate holders who fail to maintain the proficiency necessary to perform home inspections.

A number of nonsubstantive amendments are made to rearrange the current regulation provisions to conform to the DPOR model regulations.

Issues: The primary advantage of the new and amended provisions to the public is the availability of minimally competent home inspectors using contracts designed to disclose the scope and limitations of the planned home inspection and using inspection reports that document, in writing, any defects found. Further, the public will benefit from certified home inspectors who keep up with changes in technology and other aspects of housing construction through continuing professional education (CPE). Revising contracts and inspection reports currently in use as well as completing CPE will add some costs; however, these are expected to be minor. Many regulants belong to professional organizations that already require CPE as a condition of continued membership.

The primary advantage to DPOR and the Commonwealth is an amended regulation that can be administered effectively and is anticipated to provide a reasonable level of public protection with a minimum intrusion into the conduct of commerce. No disadvantage has been identified.

The Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The Board of Asbestos, Lead and Home Inspectors (Board) proposes to amend its Certified Home Inspectors Regulation as part of the periodic review process. The Board proposes to:

• Require certificate holders to complete 16 hours of continuing education during each biennial renewal cycle,

• Institute two new certificate qualification standards which will allow applicants to complete fewer home inspections if those home inspections are completed under the supervision of a Board certified home inspector,

• Require home inspectors who are applying for certification with 10 years or more of experience as a home inspector provide documentation of “a minimum of 250 home inspections completed in substantial compliance with” Board standards for home inspection, and

• Allow certified home inspectors to inspect residential buildings that they have repaired or modified (within the last 12 months), or refer clients to another party to make repairs of modifications on a residential building that they have inspected, only after they have disclosed their interest to their clients.

Result of Analysis. The benefits likely exceed the costs for several of these proposed changes. There is insufficient data to determine whether benefits exceed costs for at least one proposed change. Detailed analysis of major costs and benefits can be found below.

Estimated Economic Impact. Currently, the Certified Home Inspectors Regulations (promulgated in 2003) do not include any requirement for continuing education. The Board proposes to require certified home inspectors to complete 16 hours of continuing education during each biennial renewal cycle. Continuing education hours will have to cover only the content areas of the Board’s examination for initial certification. The Department of Professional and Occupational Regulation (DPOR) reports that home building technology is subject to change and that home inspectors will need continuing education to adequately inspect new equipment/systems.

If home building technology does change fairly continuously, certified building inspectors may benefit from continuing education requirements only to the extent that 1) the initial Board examination has content areas that are sufficiently broad that they cover any possible new technology or 2) this exam evolves to include knowledge of any new equipment/systems. Any benefit that might be realized from requiring certified home inspectors to keep abreast of new developments in their field must be weighed against both the explicit and implicit costs of continuing education. DPOR reports that the fees for each hour of continuing education range from $30 to $90, so certified home inspectors will incur fees of $480 to $1,440 during each biennial renewal period. Additionally, certified home inspectors may incur other explicit costs for any required books/supplies and will incur implicit costs for time spent traveling to, and participating in, required continuing education. If these costs outweigh any benefits accrued, this continuing education requirement will serve as a barrier to entry to, and continuing participation in, this profession.

Currently, these regulations include several paths to certification that combine differing levels of education and experience. Applicants may currently complete:

• 35 hours of classroom instruction and a minimum of 100 home inspections,

• 70 hours of classroom instruction and a minimum of 50 home inspections, or

• Have ten years of verifiable experience as a home inspector.

The Board proposes to add two new paths to certification. Applicants who have completed 35 hours of classroom instruction would only need to complete 50 home inspections, and applicants who have completed 70 hours of classroom instruction would only need to complete 25 home inspections, if they complete those inspections under the supervision of an already certified home inspector.

These proposed new paths will provide the benefit of increased options for individuals seeking certification as home inspectors. No cost is likely to be incurred on account of these proposed changes; if these paths turn out to cost more than paths to certification that are currently open to applicants, they will likely just choose not to use them.

Currently, individuals with ten years of experience as home inspectors may qualify for certification without completing classroom instruction. Board staff must currently evaluate and approve proof of experience offered by individuals taking this path to certification. The Board proposes to make this path more specific by requiring that these individuals provide documentation of at least 250 home inspections completed in substantial compliance with current Board regulations. DPOR does not anticipate that individuals who currently qualify for this path to certification would be excluded under the proposed new regulatory language. If this turns out to be the case, costs for affected individuals are unlikely to increase on account of these proposed regulations.

Current regulations do not allow certified home inspectors to inspect residential buildings that they have repaired or modified or refer clients to another party to make repairs of modifications on a residential building that they have inspected. These proposed regulations will allow inspectors to complete such inspections, and make such referrals, after they have disclosed their former actions or interest to their clients. This regulatory change will benefit certified home inspectors as they will be able to do work that they are currently not allowed to do. No cost is likely to be associated with this change as the clients of these inspectors will be making decisions with full knowledge of any possible conflict of interest.

Businesses and Entities Affected. DPOR reports that there are 256 certified home inspectors in the Commonwealth; all of these individuals likely qualify as small businesses.

Localities Particularly Affected. No locality will be particularly affected by this proposed regulatory action.

Projected Impact on Employment. To the extent that continuing education requirements increase costs for continuing certification, fewer individuals will likely enter and/or remain in this profession. To the extent that instituting two new paths to certification may tend to decrease costs for entry into this field, more individuals may choose to become certified home inspectors.

Effects on the Use and Value of Private Property. This regulatory action will likely increase costs for affected small businesses by imposing continuing education requirements. These extra costs will likely decrease profits for these businesses and, therefore, will decrease their value.

Small Businesses: Costs and Other Effects. DPOR reports that there are 256 certified home inspectors in the Commonwealth; all of these individuals likely qualify as small businesses. These certified home inspectors will incur costs associated with completing continuing education required by these proposed regulations.

Small Businesses: Alternative Method that Minimizes Adverse Impact. Since this certification program is relatively new, and continuing education requirements will be absolutely new, the Board may find that building technology does not change frequently enough to justify the amount of continuing education proposed here. If this turns out to be the case, the Board will be able to decrease costs for affected small businesses by decreasing or eliminating continuing education requirements.

Real Estate Development Costs. This regulatory action will likely have no effect on real estate development costs in the Commonwealth.

Legal Mandate. The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Administrative Process Act and Executive Order Number 36 (06). Section 2.2-4007.04 requires that such economic impact analyses include, but need not be limited to, the projected number of businesses or other entities to whom the regulation would apply, the identity of any localities and types of businesses or other entities particularly affected, the projected number of persons and employment positions to be affected, the projected costs to affected businesses or entities to implement or comply with the regulation, and the impact on the use and value of private property. Further, if the proposed regulation has adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include (i) an identification and estimate of the number of small businesses subject to the regulation; (ii) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the regulation, including the type of professional skills necessary for preparing required reports and other documents; (iii) a statement of the probable effect of the regulation on affected small businesses; and (iv) a description of any less intrusive or less costly alternative methods of achieving the purpose of the regulation. The analysis presented above represents DPB’s best estimate of these economic impacts.

Agency Response to the Department of Planning and Budget's Economic Impact Analysis: Concur with approval.

Summary:

The amendments (i) update the definitions, the qualifications for certification, the certified home inspection contract provisions, the certified home inspection report provisions, the conflict of interest provisions, and the unworthiness and incompetence provisions; (ii) add continuing professional education requirements; and (iii) change several sections to conform to DPOR’s model regulations with no substantive impact.

Part I
General

18VAC15-40-10. Definitions.

The following words and terms when used in this chapter shall have the following meanings unless a different meaning is provided or is plainly required by the context:

"Adjacent" means structures, grading, drainage, or vegetation within three feet of the residential building that may affect the building.

"Board" means the Virginia Board for Asbestos, Lead, and Home Inspectors.

"Certificate holder" means any person holding a valid certificate as a certified home inspector issued by the board.

"Certification" means an authorization issued to an individual by the board to perform certified home inspections by meeting the entry requirements established in these regulations.

"Client" means a person who engages or seeks to engage the services of a certified home inspector for the purpose of obtaining an inspection of and a written report upon the condition of a residential building.

"Compensation" means the receipt of monetary payment or other valuable consideration for services rendered.

"Component" means a part of a system.

"Contact hour" means 50 minutes of participation in a structured training activity.

"Department" means the Department of Professional and Occupational Regulation.

"Fireplace" means an interior fire-resistant masonry permanent or prefabricated fixture that can be used to burn fuel and is either vented or unvented.

"Foundation" means the base upon which the structure or a wall rests, usually masonry, concrete, or stone, and generally partially underground.

"Function" means the action for which an item, component or system is specially fitted or used, or for which an item, component or system exists.

"Inspect" or "inspection" means to visually examine readily accessible systems and components of a building established in this chapter.

"Outbuilding" means any building on the property that is more than three feet from the residential building that might burn or collapse and affect the residential building.

"Readily accessible" means available for visual inspection without requiring moving of personal property, dismantling, destructive measures, or any action that will likely involve risk to persons or property.

"Reinstatement" means having a certificate restored to effectiveness after the expiration date has passed.

"Renewal" means continuing the effectiveness of a certificate for another period of time.

"Residential building" means, for the purposes of home inspection, a structure consisting of one to four dwelling units used or occupied, or intended to be used or occupied, for residential purposes.

"Solid fuel burning appliances" means a hearth and fire chamber or similarly prepared place in which a fire may be built and that is built in conjunction with a chimney, or a listed assembly of a fire chamber, its chimney and related factory-made parts designed for unit assembly without requiring field construction.

"Structural component" means a component that supports nonvariable forces or weights (dead loads) and variable forces or weights (live loads).

"System" means a combination of interacting or interdependent components, assembled to carry out one or more functions.

Terms not defined in this chapter have the same definitions as those set forth in § 54.1-500 of the Code of Virginia.

18VAC15-40-30. Qualifications for certification.

Every applicant for an individual home inspector certificate shall have the following qualifications:

1. The applicant shall be at least 18 years old.

2. The applicant shall meet the following educational and experience requirements:

a. High school diploma or equivalent; and

b. One of the following:

(1) Completed 35 contact hours of classroom instruction and have completed a minimum of 100 home inspections; or

(2) Completed 35 contact hours of classroom instruction and have completed a minimum of 50 certified home inspections in compliance with this chapter under the direct supervision of a certified home inspector, who shall certify the applicant's completion of each inspection and shall be responsible for each inspection;

(2) (3) Completed 70 contact hours of classroom instruction and have completed a minimum of 50 home inspections; or

(4) Completed 70 contact hours of classroom instruction and have completed a minimum of 25 certified home inspections in compliance with this chapter under the direct supervision of a certified home inspector, who shall certify the applicant's completion of each inspection and shall be responsible for each inspection.

Instruction courses shall cover the content areas of the board-approved examinations.

An applicant who cannot fulfill the classroom instruction requirement as outlined in this subsection may substitute provide documentation of a minimum of 10 years of experience as a home inspector with a minimum of 250 home inspections completed in substantial compliance with this chapter to satisfy this requirement. The experience substitution documentation is subject to board review and approval.

3. The applicant shall have passed a written competency examination approved by the board.

4. The board may accept proof of membership in good standing, in a national or state professional home inspectors association approved by the board, as satisfaction of subdivisions 1, 2, and 3 of this section, provided that the requirements for the applicant's class of membership in such association are equal to or exceed the requirements established by the board for all applicants.

5. The applicant shall have a good reputation for honesty, truthfulness, and fair dealing, and be competent to transact the business of a home inspector in such a manner as to safeguard the interests of the public.

6. The applicant shall disclose whether a certificate or license as a home inspector from any jurisdiction where certified or licensed has ever been suspended, revoked or surrendered in connection with a disciplinary action or which has been the subject of discipline in any jurisdiction prior to applying for certification in Virginia. The board may deny certification to any applicant so disciplined after examining the totality of the circumstances.

7. The applicant shall disclose any conviction or finding of guilt, regardless of adjudication, in any jurisdiction of the United States of any misdemeanor involving violence, repeat offenses, multiple offenses, or crimes that endangered public health or safety, or of any felony, there being no appeal pending therefrom or the time for appeal having elapsed. Subject to the provisions of § 54.1-204 of the Code of Virginia, the board shall have the authority to determine, based upon all the information available, including the applicant's record of prior convictions, if the applicant is unfit or unsuited to engage in the profession of residential home inspections. The board will decide each case by taking into account the totality of the circumstances. Any plea of nolo contendere shall be considered a conviction for purposes of this subdivision. A certified copy of a final order, decree, or case decision by a court with the lawful authority to issue such order, decree or case decision shall be admissible as prima facie evidence of such conviction or guilt.

8. Procedures and appropriate conduct established by either the board or any testing service administering an examination approved by the board or both shall be followed by the applicant. Such procedures shall include any written instructions communicated prior to the examination date and any instructions communicated at the site, either written or oral, on the date of the examination. Failure to comply with all procedures established by the board or the testing service with regard to conduct at the examination shall be grounds for denial of the application.

9. Applicants shall show evidence of having obtained general liability insurance with minimum limits of $250,000.

18VAC15-40-45. Application denial.

The board may refuse initial certification due to an applicant's failure to comply with entry requirements or for any of the reasons it may discipline a regulant.

18VAC15-40-48. General fee requirements.

All fees are nonrefundable and shall not be prorated. The date on which the fee is received by the department or its agent will determine whether the fee is on time. Checks or money orders shall be made payable to the Treasurer of Virginia.

18VAC15-40-50. Application fees.

A. All application fees for certificates are nonrefundable and the date of actual receipt by the board or its agent is the date that will be used to determine whether it is timely received The application fee for an initial home inspector certification shall be $25.

B. The fee for an initial application for Certified Home Inspector shall be $25.

18VAC15-40-52. Renewal and reinstatement fees.

Renewal and reinstatement fees are as follows:

Fee type	Fee amount	When due
Renewal	$25	With renewal application
Late renewal	$25 (renewal) + $25 (late fee) = $50 total fee	With renewal application
Reinstatement	$75 (reinstatement) + $25 (renewal) = $100 total fee	With reinstatement application

18VAC15-40-70. Qualification for renewal. (Repealed.)

A. As a condition of renewal, all certified home inspectors shall be required to affirm that they continue to maintain insurance as required by 18VAC15-40-30. Failure to maintain the required insurance as directed by the board will result in the certification not being renewed or disciplinary action pursuant to this chapter, or both.

B. Each certificate holder desiring to renew the certificate shall return to the board the renewal application form and the appropriate fee as outlined in 18VAC15-40-100.

18VAC15-40-72. Continuing professional education (CPE) required.

A. Each certificate holder shall have completed 16 contact hours of continuing professional education (CPE) during each certificate renewal cycle, beginning with the certificate renewal cycle that ends (insert date two years after the effective date of this chapter).

B. The subject matter addressed during CPE contact hours shall be limited to the content areas covered by the board's examination.

C. The following shall be maintained by the certificate holder to document completion of the hours of CPE specified in subsection A of this section:

1. Evidence of completion that shall contain the name, address, and telephone number of the training sponsor;

2. The dates the applicant participated in the training;

3. Descriptive material of the subject matter presented documenting that it covers the content areas covered by the board's examination; and

4. A statement from the sponsor verifying the number of CPE contact hours completed.

D. Each certificate holder shall maintain evidence of the satisfactory completion of CPE for at least three years following the end of the certificate renewal cycle for which the CPE was taken. Such documentation shall be in the form required by subsection C of this section and shall be provided to the board or its duly authorized agents upon request.

E. The certificate holder shall not receive CPE credit for the same training course more than once during a single certificate renewal cycle.

F. Distance learning courses that comply with subsection B of this section and provide the documentation required by subsection C of this section shall comply with the CPE requirement.

G. The certificate holder may request additional time to meet the CPE requirement; however, CPE hours earned during a certificate renewal cycle to satisfy the CPE requirement of the preceding certificate renewal cycle shall be valid only for that preceding certificate renewal cycle.

18VAC15-40-80. Procedures for renewal.

A. The board will mail a renewal application form to the certificate holder at the last known home address of record. These notices shall outline the procedures for renewal. Failure of the board to mail or of the certificate holder to receive these notices does not relieve the certificate holder of the obligation to renew.

B. Prior to the expiration date shown on the certificate, regulants desiring to renew their certificate shall return the renewal application form to the board together with the appropriate fee specified in 18VAC15-40-52. If the regulant fails to receive the renewal notice, a copy of the certificate may be submitted with the required fee as an application for renewal. The date on which the fee is received by the department or its agent will determine whether the fee is on time.

C. By causing a renewal application to be sent to the board or its authorized agent, the regulant is affirming that the insurance required by 18VAC15-40-30 continues to be in effect, that the CPE requirements of 18VAC15-40-72 have been met, and that he is in continued compliance with this chapter.

18VAC15-40-85. Late renewal.

If the renewal requirements of 18VAC15-40-80 are met more than 30 days but less than six months after the expiration date on the certificate, a late renewal fee shall be required as established in 18VAC15-40-52. The date on which the renewal application and the required fees are actually received by the board or its agent shall determine whether the certificate holder must pay the renewal fee only or whether the late renewal fee must be paid.

18VAC15-40-90. Failure to renew; reinstatement required Reinstatement.

A. If the requirements for renewal of a certificate, including receipt of the fee by the board, are not completed by the certificate holder within 30 days of the expiration date noted on the certificate, a late renewal fee shall be required in addition to the renewal fee.

B. A. If the requirements for renewal of a certificate, including receipt of the fee by the board, are not completed by the certificate holder within six months of after the expiration date noted on the certificate, a reinstatement fee shall be required.

C. B. All applicants for reinstatement shall meet all requirements set forth in 18VAC15-40-30, 18VAC15-40-72 and 18VAC15-40-80.

D. C. A certificate may be reinstated for up to two years following the expiration date with payment of the reinstatement fee. After two years, the certificate shall not be reinstated under any circumstances and the applicant shall apply as a new applicant, requiring the applicant to retake the examination.

E. The certificate holder who reinstates his certification shall be regarded as having been continuously certified without interruption. Therefore, the certificate holder shall remain under the disciplinary authority of the board during this entire period and shall be held accountable for his activities during this period.

18VAC15-40-100. Fees for renewal, reinstatement and examination. (Repealed.)

A. All fees for renewal and reinstatement are nonrefundable, and the date of actual receipt by the board or its agent is the date that will be used to determine whether it is timely received.

B. Renewal and reinstatement fees are as follows:

	Renewal fee	$25
	Late renewal fee	$25
	Reinstatement fee	$100

C. The examination fee shall consist of the administration expenses of the department ensuing from the board's examination procedures and contract charges. Examination service contracts shall be established through competitive negotiations in compliance with the Virginia Public Procurement Act (§ 2.2-4300 et seq. of the Code of Virginia).

18VAC15-40-105. Status of certificate holder during the period prior to reinstatement.

A certificate holder who reinstates his certificate shall be regarded as having been continuously certified without interruption and shall remain under the disciplinary authority of the board during this entire period and shall be held accountable for activities during this period.

18VAC15-40-110. Board discretion to deny renewal or reinstatement. (Repealed.)

A. The board may deny renewal or reinstatement of a certificate for the same reasons as it may refuse initial certification or discipline a current certificate holder.

B. The board may deny renewal or reinstatement of a certificate if the applicant has not met the terms of an agreement for certification or not fully paid monetary penalties, satisfied sanctions and paid costs imposed by the board, plus any accrued interest.

Part IV
Minimum Standards for Conducting Certified Home Inspections

18VAC15-40-120. Certified home inspection contract.

A. For the protection of both the client and the certificate holder, both parties shall sign a legible written contract clearly specifying the terms, conditions, and limitations and exclusions of the work to be performed.

B. At a minimum, the written contract shall include:

1. Name, business name (if applicable), business address, and telephone number of the certified home inspector.

2. Certificate number and expiration date of the certified home inspector.

3. Name of the clients.

4. Physical address of the residential properties to be inspected.

5. Cost and method of payment of the certified home inspection.

6. A listing of all areas, and systems, and components to be inspected, including those inspections that are either partial or limited in scope.

7. To the extent that any of the following categories are not covered by the home inspection, they shall be noted as exclusions in the inspection contract:

a. The condition of systems or components that are not readily accessible.

b. The remaining life of any system or component.

c. The strength, adequacy, effectiveness, or efficiency of any system or component.

d. The causes of any condition or deficiency.

e. The methods, materials, or costs of corrections.

f. Future conditions including, but not limited to, failure of systems and components.

g. The suitability of the property for any specialized use.

h. Compliance with regulatory requirements (codes, including the Virginia Uniform Statewide Building Code, regulations, laws, ordinances, etc.).

i. The market value of the property or its marketability.

j. The advisability of the purchase of the property.

k. The presence of diseases harmful to humans or potentially hazardous plants or animals including, but not limited to, wood destroying organisms and mold.

l. The presence of any environmental hazards including, but not limited to, toxins, carcinogens, noise, asbestos, lead-based paint, mold, radon, and contaminates in soil, water, and air.

m. The effectiveness of any system installed or methods utilized to control or remove suspected hazardous substances.

n. The operating costs of systems or components.

o. The acoustical properties of any system or component.

p. The presence of components involved in manufacturer's recalls.

q. The inspection of outbuildings.

To the extent any other items are not specifically included in the home inspection by agreement of the parties, they shall also be noted as exclusions in the inspection contract.

8. Expected delivery date to the client of the certified home inspection report.

9. Dated signatures of both the certified home inspector and the client or the client's authorized representative.

C. The certified home inspection contract shall make written disclosure that the certified home inspection report is based upon visual observation of existing conditions of the inspected property at the time of the inspection and is not intended to be, or to be construed as, a guarantee, warranty, or any form of insurance.

18VAC15-40-130. Certified home inspection report.

A. Certified home inspection reports shall contain:

1. The name, business address and telephone number of the certificate holder as well as his certificate number and expiration date;

2. The name, address, and telephone number of the clients client or the client's authorized representative, if available at the time of the inspection;

3. The physical address of the residential properties inspected; and

4. The date, time (to include both start and finish times of the inspection), and weather conditions at the time of the certified home inspection.

B. In conducting a certified home inspection and reporting its findings, the certified home inspector, at a minimum, shall inspect the condition of and shall describe in writing the composition/characteristics of the following readily accessible components and readily observable defects, except as may be limited in the certified home inspection contract agreement:

1. Structural system.

a. Foundation.

b. Framing.

c. Stairs.

d. Crawl space, the method of inspecting the crawl space shall be noted and explained in the inspection report. If the crawl space cannot be inspected, the certificate holder shall explain in the inspection report why this component was not inspected.

e. Crawl space ventilation and vapor barriers.

f. Slab floor, when present.

g. Floors, ceilings, and walls.

2. Roof structure, attic, and insulation.

a. Roof covering. The method of inspecting the roof covering shall be noted and explained in the inspection report. If the roof covering cannot be inspected, the certificate holder shall explain in the inspection report why this component was not inspected.

b. Roof ventilation.

c. Roof drainage system, to include gutters and downspouts.

d. Roof flashings, if readily visible.

e. Skylights, chimneys, and roof penetrations, but not antennae or other roof attachments.

f. Roof framing and sheathing.

g. Attic, unless area is not readily accessible due to size or condition of structure.

h. Attic insulation.

3. Exterior of dwelling.

a. Wall covering, flashing, and trim, and protective coatings.

b. Readily accessible doors and windows, but not the operation of associated security locks, devices, or systems.

c. Attached, or adjacent and on the same property, decks, balconies, stoops, steps, porches, carports, and any associated railings, but not associated screening, shutters, awnings, storm windows, garages, or storm doors.

d. Eaves, soffitts, and fascias where readily accessible from ground level.

e. Walkways, grade steps, patios, and driveways, but not fences or privacy walls.

f. Vegetation, trees, grading, drainage, and any retaining walls in contact with or immediately adjacent to the dwelling that may affect the dwelling.

g. Visible exterior portions of chimneys.

4. Interior of dwelling.

a. Readily accessible interior walls, ceilings, and floors of dwelling and any attached or adjacent garage.

b. Steps, stairways, railings, and balconies and associated railings.

c. Countertops and installed cabinets, including hardware.

d. Readily accessible doors and windows, but not the operation of associated security locks, devices, or systems.

e. Garage doors and permanently mounted and installed garage door operators. The automatic safety reverse function of garage door openers shall be tested, either by physical obstruction as specified by the manufacturer, or by breaking the beam of the electronic photo eye but only when the test can be safely performed and will not risk damage to the door, the opener, any nearby structure, or any stored items.

f. Fireplaces, including flues, venting systems, hearths, dampers, and fireboxes, but not mantles, fire screens and doors, seals and gaskets.

g. Solid fuel burning appliances if applicable.

5. Plumbing system.

a. Interior water supply and distribution systems, including water supply lines and all fixtures and faucets, but not water conditioning systems or fire sprinkler systems.

b. Water drainage, waste, and vent systems, including all fixtures.

c. Drainage sumps, sump pumps, and related piping.

d. Water heating equipment, including heat energy source and related vent systems, flues, and chimneys, but not solar water heating systems.

e. Fuel storage and distribution systems for visible leaks.

6. Electrical system.

a. Service drop.

b. Service entrance conductors, cables, and raceways.

c. Service equipment and main disconnects.

d. Service grounding.

e. Interior components of service panels and sub panels, including feeders.

f. Conductors.

g. Overcurrent protection devices.

h. Readily accessible installed lighting fixtures, switches, and receptacles.

i. Ground fault circuit interrupters.

j. Presence or absence of smoke detectors.

k. Presence of solid conductor aluminum branch circuit wiring.

l. Arc fault interrupters shall be noted if installed but not tested if equipment is attached to them.

7. Heating system.

a. Heating equipment, including operating controls, but not heat exchangers, gas logs, built-in gas burning appliances, grills, stoves, space heaters, solar heating devices, or heating system accessories such as humidifiers, air purifiers, motorized dampers, and heat reclaimers.

b. Energy source.

c. Heating distribution system.

d. Vent systems, flues, and chimneys, including dampers.

8. Air conditioning system.

a. Central and installed window/wall wall air conditioning equipment.

b. Operating controls, access panels, and covers.

c. Energy source.

d. Cooling distribution system.

C. Systems in the home that are turned off, winterized, or otherwise secured so that they do not respond to normal activation using standard operating controls need not be put into operating condition. The certified home inspector shall state, in writing, the reason these systems or components were not tested.

Part V
Standards of Conduct and Practice

18VAC15-40-140. Conflict of interest.

A. The certificate holder shall not:

1. Design or perform repairs or modifications to a residential building on which he has performed a certified home inspection as a result of the findings of the certified home inspection within 12 months after the date he performed the certified home inspection, except in cases where the home inspector purchased the residence after he performed the inspection;

2. Perform a certified home inspection of a residential building upon which he has designed or performed repairs or modifications within the preceding 12 months without disclosing to the client in the certified home inspection contract the specifics of the repairs or modifications he designed or performed;

3. Refer his client to another party to make repairs or modifications to a residential building on which he has performed a certified home inspection within the preceding 12 months. However, such inspection may be performed if such repairs or modifications are disclosed to the client or to the client's authorized representative; or

4. Represent the financial interests, either personally or through his employment, of any of the parties to the transfer or sale of a residential building on which he has performed a certified home inspection; or

5. Perform a certified home inspection of a residential building under a contingent agreement whereby any compensation or future referrals are dependent on the reported findings or on the sale of the property.

B. The certificate holder shall not disclose any information concerning the results of the certified home inspection without the approval of the client for whom the certified home inspection was performed. However, the certificate holder may disclose information in situations where there is an imminent endangerment to life and health.

C. The certificate holder will not accept compensation, financial or otherwise, from more than one interested party for the same service on the same property without the consent of all interested parties.

D. The certificate holder shall not accept nor offer commissions or allowances, directly or indirectly, from other parties dealing with the client in connection with work for which the certificate holder is responsible. Additionally, the certificate holder shall not enter into any financial relationship with any party that may compromise the certificate holder's commitment to the best interest of his client.

E. The certified home inspection shall not be used as a tool pretext by the certificate holder to solicit or obtain work in another field, except for additional diagnostic inspections or testing.

18VAC15-40-190. Unworthiness and incompetence.

Actions constituting The following shall constitute unworthy and incompetent conduct include and may result in disciplinary action by the board:

1. Obtaining a certificate by false or fraudulent representation.

2. Performing improvements or repairs to a residential building as a result of the findings of the certified home inspection within 12 months before or after performing a certified home inspection on it, except in cases where the home inspector purchased the residential building after he performed the inspection.

3. Violating or inducing another person to violate any of the provisions of Chapter 1, 2, 3, or 5 of Title 54.1 of the Code of Virginia or this chapter.

4. Subject to the provisions of § 54.1-204 of the Code of Virginia, having been convicted or found guilty, regardless of adjudication in any jurisdiction of the United States, of any misdemeanor involving violence, repeat offenses, multiple offenses, or crimes that endangered public health or safety, or of any felony, there being no appeal pending therefrom or the time for appeal having elapsed. Any plea of nolo contendere shall be considered a conviction for the purposes of this subdivision. A certified copy of a final order, decree, or case decision by a court with the lawful authority to issue such order, decree or case decision shall be admissible as prima facie evidence of such conviction or guilt.

5. Failing to inform the board in writing within 30 days of pleading guilty or nolo contendere or being convicted or found guilty, regardless of adjudication in any jurisdiction of the United States of any misdemeanor involving violence, repeat offenses, multiple offenses, or crimes that endangered public health or safety, or of any felony, there being no appeal pending therefrom or the time for appeal having elapsed.

6. Failing to act as a certificate holder in such a manner as to safeguard the interests of the public.

7. Engaging in improper, fraudulent, or dishonest conduct in conducting a certified home inspection.

8. Having been found guilty by the board, an administrative body, or by any court of any misrepresentation in the course of performing home inspections.

9. Having performed a certified home inspection when not qualified by training or experience to competently perform any part of the certified home inspection.

10. Failing to maintain, through training, the proficiency to perform Virginia certified home inspections.

VA.R. Doc. No. R08-1010; Filed May 20, 2009, 11:41 a.m.