HB 2645

PRIOR PRINTER'S NO. 3641  PRINTER'S NO.   3689
                THE GENERAL ASSEMBLY OF PENNSYLVANIA
                    HOUSE BILL
                    No. 2645
                                          Session of
                                            2026
INTRODUCED BY T. DAVIS, BRENNAN, GUENST, McNEILL, PROBST,
   SANCHEZ, RIVERA, NEILSON, MERSKI, McANDREW, M. MACKENZIE,
   SHUSTERMAN, D. WILLIAMS, STEELE, DEASY, CIRESI, WARREN,
   MENTZER AND BOYD, JUNE 17, 2026
AS REPORTED FROM COMMITTEE ON PROFESSIONAL LICENSURE, HOUSE OF
   REPRESENTATIVES, AS AMENDED, JUNE 24, 2026
                               AN ACT
1 Amending the act of February 19, 1980 (P.L.15, No.9), entitled
2    "An act establishing the State Real Estate Commission and
3    providing for the licensing of real estate brokers and
4    salesmen," in definitions, further providing for definitions
5    and for State Real Estate Commission; in application of the
6    act and penalties, further providing for unlawful to conduct
7    business without license or registration certificate, for
8    civil suits, for criminal penalties and for civil penalty; in
9    powers and duties of the State Real Estate Commission -
10    general, further providing for duty to issue licenses and
11    registration certificates and for approval of schools,
12    providing for continuing education for licensed home
13    inspectors and further providing for administration and
14    enforcement; in qualifications and applications for licenses
15    and registration certificates, further providing for
16    reputation and inactive licensee and revoked license,  <--
17    REPEALING PROVISIONS RELATING TO QUALIFICATIONS FOR LICENSE
18    AND TO APPLICATION FOR LICENSE and providing for home
19    inspector license and home inspector-in-training
20    registration; in duties of licensees, further providing for
21    DUTY OF BROKERS, CEMETERY BROKERS AND RENTAL LISTING REFERRAL <--
22    AGENTS TO MAINTAIN OFFICE, FOR reciprocal licenses, FOR       <--
23    EMPLOYMENT OF ASSOCIATE BROKERS, SALESPERSON and for broker
24    price opinion; making a repeal; and making an editorial
25    change.
26    The General Assembly of the Commonwealth of Pennsylvania
27 hereby enacts as follows:
28    Section 1.    The definitions of "license" and "school" in     <--
1 section 201 of the act of February 19, 1980 (P.L.15, No.9),
2 known as the Real Estate Licensing and Registration Act, are
3 amended and the section is amended by adding definitions to
4 read:
5    SECTION 1.    THE DEFINITIONS OF "CAMPGROUND MEMBERSHIP  <--
6 SALESPERSON," "LICENSE," "SALESPERSON," "SCHOOL" AND "TIME-SHARE
7 SALESPERSON" IN SECTION 201 OF THE ACT OF FEBRUARY 19, 1980
8 (P.L.15, NO.9), KNOWN AS THE REAL ESTATE LICENSING AND
9 REGISTRATION ACT, AMENDED JULY 8, 2024 (P.L.545, NO.52), ARE
10 AMENDED AND THE SECTION IS AMENDED BY ADDING DEFINITIONS TO
11 READ:
12 Section 201.    Definitions.
13    The following words and phrases when used in this act shall
14 have, unless the context clearly indicates otherwise, the
15 meanings given to them in this section:
16    * * *
17    "CAMPGROUND MEMBERSHIP SALESPERSON."    A PERSON WHO EITHER AS   <--
18 AN EMPLOYEE OR AN INDEPENDENT CONTRACTOR SELLS OR OFFERS TO SELL
19 CAMPGROUND MEMBERSHIPS. [SUCH PERSON SHALL SELL CAMPGROUND
20 MEMBERSHIPS UNDER THE ACTIVE SUPERVISION OF A BROKER. A PERSON
21 LICENSED AS A BROKER, AS A SALESPERSON OR AS A TIME-SHARE
22 SALESPERSON SHALL NOT BE REQUIRED TO BE LICENSED AS A CAMPGROUND
23 MEMBERSHIP SALESPERSON AS A CONDITION FOR SELLING OR OFFERING TO
24 SELL CAMPGROUND MEMBERSHIPS.]
25    * * *
26    "Client."    When the term is applied to a home inspector, a
27 person or person acting through a legal representative who
28 contracts with a licensed home inspector to obtain a home
29 inspection and subsequent written home inspection report.
30    * * *
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1    "Home inspection."       A noninvasive visual examination of the
2 systems and essential components of a residential dwelling
3 designed to identify material defects in those systems and
4 components and performed for a fee in connection with or
5 preparation for a proposed or possible residential real estate
6 transfer. The term:
7(1)   Includes a consultation regarding the property that
8    is represented to be a home inspection or that is described
9    by a confusingly similar term such as a home survey, home
10    assessment, building survey, home walk-through or dwelling
11    examination.
12(2)   Does not include:
13(i)    An examination of a single system or component
14of a residential dwelling, such as an electrical or
15plumbing system or roof.
16(ii)    An examination that is limited to inspection
17for or of one or more of the following:
18(A)   Wood destroying insects.
19(B)   Underground tanks and wells.
20(C)   Septic systems.
21(D)   Swimming pools and spas.
22(E)   Alarm and smart home systems.
23(F)   Air and water quality.
24(G)   Tennis courts and playground equipment.
25(H)   Pollutants, toxic chemicals and
26environmental hazards.
27(iii)    An examination associated with moving into or
28out of a leased home.
29    "Home inspection report."       A typewritten report on the
30 results of a home inspection.
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1    "Home inspector-in-training."        A candidate for licensure as a
2 licensed home inspector who has been granted a registration as a
3 home inspector-in-training.
4    "License."   The term includes both a standard license and a
5 reciprocal license, or in the context of home inspection, a home
6 inspector license.
7    "Licensed home inspector."    An individual licensed by the
8 commission to perform home inspections. The term does not
9 include an individual licensed under any of the following laws
10 when acting under the individual's registration or license:
11(1)   The act of May 23, 1945 (P.L.913, No.367), known as
12    the Engineer, Land Surveyor and Geologist Registration Law,
13    as a professional engineer, professional land surveyor and
14    professional geologist.
15(2)   The act of January 24, 1966 (1965 P.L.1535, No.537),
16    known as the Pennsylvania Sewage Facilities Act.
17(3)   The act of March 1, 1974 (P.L.90, No.24), known as
18    the Pennsylvania Pesticide Control Act of 1973.
19(4)   The act of December 14, 1982 (P.L.1227, No.281),
20    known as the Architects Licensure Law.
21(5)   The act of July 9, 1987 (P.L.238, No.43), known as
22    the Radon Certification Act.
23    * * *
24    "Material defect."   A problem with a residential property or
25 any portion of it that would have a significant adverse impact
26 on the value of the property or that involves an unreasonable
27 risk to people on the property. The fact that an essential
28 component, system or subsystem is near, at or beyond the end of
29 its normal useful life is not by itself a material defect.
30    * * *
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1    "SALESPERSON."    ANY PERSON EMPLOYED BY A LICENSED REAL ESTATE <--
2 BROKER TO PERFORM COMPARATIVE MARKET ANALYSES OR TO LIST FOR
3 SALE, SELL OR OFFER FOR SALE, TO BUY OR OFFER TO BUY OR TO
4 NEGOTIATE THE PURCHASE OR SALE OR EXCHANGE OF REAL ESTATE OR TO
5 NEGOTIATE A LOAN ON REAL ESTATE OR TO LEASE OR RENT OR OFFER TO
6 LEASE, RENT OR PLACE FOR RENT ANY REAL ESTATE OR COLLECT OR
7 OFFER OR ATTEMPT TO COLLECT RENT FOR THE USE OF REAL ESTATE OR
8 ENGAGE OR ATTEMPT TO ENGAGE IN A WHOLESALE TRANSACTION FOR OR IN
9 BEHALF OF SUCH REAL ESTATE BROKER. NO PERSON EMPLOYED BY A
10 BROKER TO PERFORM DUTIES OTHER THAN THOSE ACTIVITIES AS DEFINED
11 HEREIN UNDER "BROKER" SHALL BE REQUIRED TO BE LICENSED AS A
12 SALESPERSON. NO PERSON WHO PERFORMS ONLY THE DUTIES OF A
13 CAMPGROUND MEMBERSHIP SALESPERSON, RENTAL LISTING REFERRAL AGENT
14 OR TIME-SHARE SALESPERSON SHALL BE REQUIRED TO BE LICENSED AS A
15 SALESPERSON.
16    "School."    Any person who conducts classes in real estate
17 subjects, including home inspection, but is not a college,
18 university or institute of higher learning duly accredited by
19 the Middle States Association of Colleges and Secondary Schools
20 or equivalent accreditation.
21    * * *
22    "TIME-SHARE SALESPERSON."    A PERSON WHO EITHER AS AN EMPLOYEE <--
23 OR INDEPENDENT CONTRACTOR SELLS OR OFFERS TO SELL TIME SHARES.
24 [SUCH PERSON SHALL SELL TIME SHARES UNDER THE ACTIVE SUPERVISION
25 OF A BROKER. A PERSON LICENSED AS A BROKER OR AS A SALESPERSON
26 SHALL NOT BE REQUIRED TO BE LICENSED AS A TIME-SHARE SALESPERSON
27 AS A CONDITION FOR SELLING OR OFFERING TO SELL TIME SHARES.]
28    * * *
29    Section 2.    Section 202(a), (b) and (c) of the act are
30 amended and the section is amended by adding a subsection to
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1 read:
2 Section 202.   State Real Estate Commission.
3    (a)   The State Real Estate Commission is hereby created and
4 shall consist of the Commissioner of Professional and
5 Occupational Affairs; the Director of the Bureau of Consumer
6 Protection, or [his] the director's designee; three members who
7 shall be persons representing the public at large; [five] six
8 other persons, each of whom shall at the time of [his]
9 appointment be a licensed and qualified real estate broker under
10 the existing law of this Commonwealth, and shall have been
11 engaged in the real estate business in this Commonwealth for a
12 period of not less than ten years immediately prior to [his] the
13 appointment; two shall be qualified home inspectors; and one
14 other person who shall have been licensed as a real estate
15 broker, or cemetery broker, for a period of at least five years
16 and shall have been engaged in selling cemetery lots for at
17 least ten years immediately prior to [his] appointment. Each of
18 said members of the commission shall be appointed by the
19 Governor. For a member to qualify as a home inspector, the
20 member must meet the requirements of a licensed home inspector
21 even if the license has not been granted, but must obtain a
22 license within one month of the license being available to
23 remain on the commission.
24    (a.1)   Within 90 days of the effective date of this
25 subsection, the Governor shall nominate two qualified home
26 inspectors to serve.
27    (b)   The term of office of each of said members shall be five
28 years from [his] the appointment, or until [his] a successor has
29 been appointed and qualified but not longer than six months
30 beyond the five-year period. In the event that any of said
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1 members shall die or resign during [his] the term of office,
2 [his] a successor shall be appointed in the same way and with
3 the same qualifications as above set forth and shall hold office
4 for the unexpired term. No member shall be eligible to serve
5 more than two consecutive terms.
6    (c)   A majority of the members currently serving on the
7 commission shall constitute a quorum. The commission shall elect
8 a chairman, vice-chairman and secretary from among its members.
9 A commission member who fails to attend three consecutive
10 meetings shall forfeit [his] the member's seat unless the
11 Commissioner of Professional and Occupational Affairs, upon
12 written request from the member, finds that the member should be
13 excused from a meeting because of illness or the death of a
14 family member.
15    * * *
16    Section 3.    Sections 301, 302, 303, 305, 401, 402 and 404.1
17 heading of the act are amended to read:
18 Section 301.    Unlawful to conduct business without license or
19registration certificate.
20    It shall be unlawful for any person, directly or indirectly,
21 to engage in or conduct, or to advertise or hold [himself]
22 oneself out as engaging in or conducting the business, or acting
23 in the capacity of a broker or salesperson, cemetery broker,
24 cemetery salesperson, [campground membership salesperson, time-    <--
25 share salesperson,] builder-owner salesperson[, rental listing     <--
26 referral agent], licensed home inspector, home inspector-in-       <--
27 training or cemetery company within this Commonwealth without
28 first being licensed or registered as provided in this act,
29 unless [he] the person is exempted from obtaining a license or
30 registration certificate under the provisions of section 304 or
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1 599.1(c).
2 Section 302.   Civil suits.
3    No action or suit shall be instituted, nor recovery be had,
4 in any court of this Commonwealth by any person for compensation
5 for any act done or service rendered, the doing or rendering of
6 which is prohibited under the provisions of this act by a person
7 other than a licensed broker, salesperson, cemetery broker,
8 cemetery salesperson[, campground membership salesperson, time-    <--
9 share salesperson,] OR builder-owner salesperson [or rental        <--
10 listing referral agent], unless such person was duly licensed      <--
11 and registered hereunder as broker or salesperson at the time of
12 offering to perform any such act or service or procuring any
13 promise or contract for the payment of compensation for any such
14 contemplated act or service or the person is a licensed home
15 inspector providing home inspection services.
16 Section 303.   Criminal penalties.
17    Any person who shall engage in or carry on the business, or
18 act in the capacity of a broker, salesperson, cemetery broker,
19 cemetery salesperson, [campground membership salesperson, time-    <--
20 share salesperson,] builder-owner salesperson, [rental listing     <--
21 referral agent], licensed home inspector, home inspector-in-       <--
22 training or cemetery company, within this Commonwealth, without
23 a license or registration certificate, or shall carry on or
24 continue business after the suspension or revocation of any such
25 license or registration certificate issued to [him] the person,
26 or shall employ any person as a salesperson or cemetery
27 salesperson to whom a license has not been issued, or whose
28 license or registration certificate as such shall have been
29 revoked or suspended, shall be guilty of a summary offense and
30 upon conviction thereof for a first offense shall be sentenced
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1 to pay a fine not exceeding $500 or suffer imprisonment, not
2 exceeding three months, or both and for a second or subsequent
3 offense shall be guilty of a felony of the third degree and upon
4 conviction thereof, shall be sentenced to pay a fine of not less
5 than $2,000 but not more than $5,000 or to imprisonment for not
6 less than one year but not more than two years, or both.
7 Section 305.    Civil penalty.
8    In addition to any other civil remedy or criminal penalty
9 provided for in this act, the commission, by a vote of the
10 majority of the maximum number of the authorized membership of
11 the commission as provided by law, or by a vote of the majority
12 of the duly qualified and confirmed membership or a minimum of
13 five members, whichever is greater, may levy a civil penalty of
14 up to $1,000 on any current licensee who violates any provision
15 of this act or on any person who practices real estate or as a
16 licensed home inspector or home inspector-in-training without
17 being properly licensed or registered to do so under this act.
18 The commission shall levy this penalty only after affording the
19 accused party the opportunity for a hearing, as provided in
20 Title 2 of the Pennsylvania Consolidated Statutes (relating to
21 administrative law and procedure).
22 Section 401.    Duty to issue licenses and registration
23certificates.
24    It shall be the duty of the department to issue licenses and
25 registration certificates to any person who shall comply with
26 the provisions of this act. The commission may establish limits
27 on the number of times a home inspector-in-training may renew a
28 registration.
29 Section 402.    Approval of schools.
30    Any school which shall offer or conduct any course or courses
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1 of study in real estate or home inspection shall first obtain
2 approval from, and thereafter abide by the rules and regulations
3 of the commission covering such schools.
4 Section 404.1.    Continuing education for real estate brokers and
5real estate salespersons.
6    * * *
7    Section 4.    The act is amended by adding a section to read:
8 Section 404.2.    Continuing education for licensed home
9inspectors.
10    A licensed home inspector shall be required to obtain 32
11 hours of continuing education during the biennial renewal
12 period. Continuing education hours may be earned by completion
13 of continuing education courses in the field of home inspection
14 during the immediately preceding two years as approved by the
15 commission. Three of the total required hours of continuing
16 education must focus on the difference between 42 U.S.C. Ch. 70
17 (relating to manufactured home construction and safety
18 standards) and the act of May 11, 1972 (P.L.286, No.70), known
19 as the Industrialized Housing Act, and the installation of
20 manufactured and modular homes.
21    Section 5.    Section 406 406(3) of the act is amended AND THE    <--
22 SECTION IS AMENDED by adding a paragraph to read:
23 Section 406.    Administration and enforcement.
24    The commission shall have the power and its duty shall be to
25 administer and enforce the laws of the Commonwealth relating to:
26* * *
27[(3)     THOSE ACTIVITIES INVOLVING CAMPGROUND MEMBERSHIPS    <--
28    FOR WHICH LICENSING IS REQUIRED UNDER THIS ACT AND TO
29    INSTRUCT AND REQUIRE ITS AGENTS TO BRING PROSECUTIONS FOR
30    UNAUTHORIZED OR UNLAWFUL ACTIVITIES.]
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1(4)   Those activities involving home inspection for which
2    licensing or registration is required under this act and to
3    instruct and require its agents to bring prosecutions for
4    unauthorized or unlawful activities.
5    Section 6.    Section 501(a) and (c) of the act are amended to
6 read:
7 Section 501.    Reputation; inactive licensee; revoked license.
8    (a)   Licenses shall be granted only to and renewed only for
9 persons who bear a good reputation for honesty, trustworthiness,
10 integrity and competence to transact the business of broker,
11 salesperson, cemetery broker, cemetery salesperson, [campground       <--
12 membership salesperson, time-share salesperson,] builder-owner        <--
13 salesperson, licensed home inspector, OR home inspector-in-  <--
14 training [or rental listing referral agent], in such manner as        <--
15 to safeguard the interest of the public, and only after
16 satisfactory proof of such qualifications has been presented to
17 the commission as it shall by regulation require. An applicant
18 for renewal of a reciprocal license shall provide evidence that
19 the applicant continues to hold a current license in the state
20 where the applicant's principal place of business is located.
21    * * *
22    (c)   Unless ordered to do so by Commonwealth Court, the
23 commission shall not reinstate the license or registration,
24 within five years of the date of revocation, of any person whose
25 license or registration has been revoked under this act. Any
26 person whose license or registration has been revoked may
27 reapply for a license or registration at the end of the five-
28 year period but must meet all of the licensing or registration
29 qualifications of this act for the license or registration
30 applied for, to include the examination requirement.
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1    SECTION 6.1.     SECTIONS 561, 581, 582, 591 AND 592 OF THE ACT   <--
2 ARE REPEALED.
3 [SECTION 561.     QUALIFICATIONS FOR LICENSE.
4    THE QUALIFICATION FOR LICENSURE AS A RENTAL LISTING REFERRAL
5 AGENT SHALL BE THE SAME AS THOSE SET FORTH IN SECTIONS 521 AND
6 522 EXCEPT THAT THE APPLICANT NEED NOT BE AFFILIATED WITH A
7 BROKER.
8 SECTION 581.     QUALIFICATIONS FOR LICENSE.
9    (A)    THE APPLICANT FOR A CAMPGROUND SALESPERSON'S LICENSE
10 SHALL BE AT LEAST 18 YEARS OF AGE.
11    (B)    THE APPLICANT SHALL HAVE SUCCESSFULLY COMPLETED 15 HOURS
12 IN THE FOLLOWING AREAS OF STUDY:
13(1)   BASIC CONTRACT LAW.
14(2)   SALES PRACTICES AND PROCEDURES.
15(3)   SALES ETHICS.
16(4)   BASIC THEORY OF CAMPGROUND MEMBERSHIPS.
17    (C)    THE APPLICANT SHALL UNDERGO NOT LESS THAN 30 DAYS OF
18 ONSITE TRAINING AT A CAMPGROUND MEMBERSHIP FACILITY.
19 SECTION 582.     APPLICATION FOR LICENSE.
20    (A)    AN APPLICATION FOR A LICENSE AS A CAMPGROUND MEMBERSHIP
21 SALESPERSON SHALL BE MADE IN WRITING TO THE DEPARTMENT UPON A
22 FORM PROVIDED FOR THE PURPOSE BY THE DEPARTMENT AND SHALL
23 CONTAIN SUCH INFORMATION AS TO THE APPLICANT AS THE COMMISSION
24 SHALL REQUIRE.
25    (B)    THE APPLICANT FOR A LICENSE SHALL SUBMIT A SWORN
26 AFFIDAVIT BY A BROKER CERTIFYING THAT THE BROKER WILL ACTIVELY
27 SUPERVISE AND TRAIN THE APPLICANT AND CERTIFYING THE TRUTH AND
28 ACCURACY OF THE CERTIFICATION OF THE APPLICANT.
29    (C)    A LICENSE SHALL BE RENEWED BIENNIALLY.
30    (D)    THE COMMISSION SHALL ESTABLISH AN APPLICATION FEE AND A
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1 BIENNIAL RENEWAL FEE BY REGULATION.
2 SECTION 591.    QUALIFICATIONS FOR LICENSE.
3    (A)   THE APPLICANT FOR A TIME-SHARE SALESPERSON'S LICENSE
4 SHALL BE AT LEAST 18 YEARS OF AGE.
5    (B)   THE APPLICANT SHALL HAVE SUCCESSFULLY COMPLETED 30 HOURS
6 OF INSTRUCTION IN THE FOLLOWING AREAS OF STUDY:
7(1)   BASIC CONTRACT LAW.
8(2)   SALES PRACTICES AND PROCEDURES.
9(3)   SALES ETHICS.
10(4)   BASIC THEORY OF RESORT TIME SHARING.
11    (C)   THE APPLICANT SHALL UNDERGO NOT LESS THAN 30 DAYS OF
12 ONSITE TRAINING AT A TIME-SHARE FACILITY.
13 SECTION 592.    APPLICATION FOR LICENSE.
14    (A)   AN APPLICATION FOR A LICENSE AS A TIME-SHARE SALESPERSON
15 SHALL BE MADE IN WRITING TO THE DEPARTMENT UPON A FORM PROVIDED
16 FOR THE PURPOSE BY THE DEPARTMENT AND SHALL CONTAIN SUCH
17 INFORMATION AS TO THE APPLICANT AS THE COMMISSION SHALL REQUIRE.
18    (B)   THE APPLICANT SHALL SUBMIT A SWORN STATEMENT BY A BROKER
19 CERTIFYING THAT THE BROKER WILL ACTIVELY SUPERVISE AND TRAIN THE
20 APPLICANT AND CERTIFYING THE TRUTH AND ACCURACY OF THE
21 CERTIFICATION OF THE APPLICANT.
22    (C)   A LICENSE SHALL BE RENEWED BIENNIALLY.
23    (D)   THE COMMISSION SHALL ESTABLISH AN APPLICATION FEE AND A
24 BIENNIAL RENEWAL FEE BY REGULATION.]
25    Section 7.    Chapter 5 of the act is amended by adding a
26 subchapter to read:
27SUBCHAPTER K
28HOME INSPECTOR LICENSE AND
29HOME INSPECTOR-IN-TRAINING REGISTRATION
30 Section 599.1.    Qualifications for licensure.
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1    (a)   Qualifications.--An applicant shall be considered to be
2 qualified for a license as a home inspector if the applicant
3 submits proof satisfactory to the commission of all of the
4 following:
5(1)   The applicant is of a good moral character. In
6    assessing the moral character of an applicant with a criminal
7    conviction, the commission shall conduct an individualized
8    assessment in accordance with 63 Pa.C.S. § 3113 (relating to
9    consideration of criminal convictions).
10(2)   The applicant is at least 18 years of age.
11(3)   The applicant has a high school diploma or its
12    equivalent or equivalent life or occupational experience.
13(4)   The applicant:
14(i)    has completed no less than 80 hours of
15commission-approved instruction;
16(ii)    is registered as a home inspector-in-training;
17and
18(iii)    has completed no less than 50 mentored home
19inspections completed in the presence and under the
20direct supervision of a licensed home inspector in this
21Commonwealth. A home inspection report prepared by a home
22inspector-in-training shall be used for training purposes
23only and may not be provided to a client.
24(5)   The applicant has passed a psychometrically sound
25    licensing examination, which has been commission-approved and
26    documented as psychometrically sound, administered pursuant
27    to section 812.1 of the act of April 9, 1929 (P.L.177,
28    No.175), known as The Administrative Code of 1929.
29(6)   The application is accompanied by the application
30    fee as established by the commission by regulation.
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1(7)   The applicant is not addicted to the habitual use of
2    alcohol, narcotics or other habit-forming drugs.
3(8)   There is no criminal history which would impede the
4    applicant's eligibility, determined by the commission based
5    on the applicant's submission of the following:
6(i)    A report of the applicant's criminal history
7record information under 18 Pa.C.S. § 9121(b) (relating
8to general regulations).
9(ii)    If the applicant has resided outside this
10Commonwealth for any time in the five years immediately
11preceding the date of application, a report to the
12commission of Federal criminal identification and crime
13records under 28 U.S.C. § 534(a)(4) (relating to
14acquisition, preservation, and exchange of identification
15records and information; appointment of officials).
16    (b)   Issuance of license.--The commission shall issue a
17 license as a home inspector to an applicant who applies within
18 two years of the effective date of this subsection and complies
19 with all of the following:
20(1)   Is an active home inspector.
21(2)   Meets the qualifications described in subsection (a)
22    (2), (3), (6), (7) and (8).
23(3)   Submits proof satisfactory to the commission that
24    the applicant has:
25(i)    been in active, continuous practice for at least
26five years immediately preceding the effective date of
27this section; or
28(ii)    performed or participated in 100 home
29inspections and has passed a recognized or accredited
30examination testing knowledge of the proper procedures
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1for conducting a home inspection.
2    (c)    Practice of home inspection.--An individual may not
3 practice home inspection or hold oneself out as a home inspector
4 unless licensed by the commission except for the following:
5(1)   An individual licensed as a professional engineer
6    under the act of May 23, 1945 (P.L.913, No.367), known as the
7    Engineer, Land Surveyor and Geologist Registration Law.
8(2)   An individual licensed under the act of December 14,
9    1982 (P.L.1227, No.281), known as the Architects Licensure
10    Law.
11(3)   A home inspector-in-training practicing home
12    inspection in the presence and under the direct supervision
13    of a licensed home inspector in this Commonwealth, provided
14    the home inspector-in-training does not hold oneself out as a
15    home inspector.
16    (d)    Compliance.--Notwithstanding subsection (c), a person
17 licensed or registered as a professional engineer under the
18 Engineer, Land Surveyor and Geologist Registration Law, or a
19 person licensed or registered under the Architects Licensure
20 Law, must comply with subsection (i) and sections 599.2, 599.3,
21 599.4 and 599.5 when performing a home inspection. A person
22 licensed or registered as a professional engineer, or licensed
23 or registered as an architect, who violates this subsection
24 shall be subject to disciplinary action, including license or
25 registration suspension and revocation, and penalties under the
26 Engineer, Land Surveyor and Geologist Registration Law and the
27 Architects Licensure Law, respectively.
28    (e)    Use of title.--An individual who holds a license or is
29 maintained on inactive status may use the title "Licensed Home
30 Inspector" and the abbreviation "L.H.I." No other individual may
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1 use the title "Licensed Home Inspector" or the title "Home
2 Inspector" or hold oneself out to others as a home inspector.
3 This subsection shall include advertising as a home inspector
4 and adopting or using a title or description, or a derivative of
5 "Licensed Home Inspector" or "Home Inspector" and their related
6 abbreviations, which implies directly or indirectly that home
7 inspection services are being provided.
8    (f)   Nontransferability of license.--A license under this
9 section is not transferable.
10    (g)   Examination not required.--The commission may issue a
11 home inspector license without examination to an applicant
12 holding a home inspector license in another state who submits
13 proof satisfactory to the commission of all of the following:
14(1)   The applicant is of a good moral character. In
15    assessing the moral character of an applicant with a criminal
16    conviction, the commission shall conduct an individualized
17    assessment in accordance with 63 Pa.C.S. § 3113.
18(2)   The applicant holds an unrestricted and active home
19    inspector license from another state whose licensure
20    requirements are substantially equivalent to the requirements
21    for licensure in this Commonwealth.
22(3)   The applicant has submitted an application
23    accompanied by the application fee.
24(4)   There is no criminal history which would impede the
25    applicant's eligibility, determined by the commission based
26    on the applicant's submission of the following:
27(i)    A report of the applicant's criminal history
28record information under 18 Pa.C.S. § 9121(b).
29(ii)    If the applicant has resided outside this
30Commonwealth for any time in the five years immediately
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1preceding the date of application, a report to the
2commission of Federal criminal identification and crime
3records under 28 U.S.C. § 534(a)(4).
4    (h)   Prohibitions.--No agency or political subdivision of the
5 Commonwealth, other than the commission, shall impose the
6 following on individuals licensed under this section:
7(1)   A registration or licensing requirement for
8    conducting home inspections.
9(2)   A license fee to obtain a local license, except that
10    this prohibition shall not prevent a local government from
11    imposing an occupational license tax on a person operating as
12    a licensed home inspector within the jurisdiction of the
13    local government.
14    (i)   Insurance.--A licensed home inspector shall maintain
15 insurance against errors and omissions in the performance of a
16 home inspection and general liability, with coverages of not
17 less than $250,000 per occurrence and $500,000 in the aggregate
18 and with deductibles of not more than $15,000. An applicant must
19 provide proof that the applicant has obtained professional
20 liability insurance. It is sufficient if the applicant files
21 with the application a copy of a letter from the applicant's
22 professional liability insurance carrier indicating that the
23 applicant will be covered against professional liability in the
24 required amounts effective upon the issuance of the applicant's
25 license to practice home inspection in this Commonwealth. Upon
26 issuance of the license, the licensee must, within 30 days,
27 submit to the commission the certificate of insurance or a copy
28 of the policy declaration page. A licensed home inspector shall
29 maintain professional liability insurance for at least one year
30 after the latest home inspection report the licensed home
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1 inspector delivers, unless the home inspection report was
2 delivered prior to the effective date of this section.
3    (j)   Construction.--Nothing in this act shall be construed to
4 allow a home inspector who is not licensed under any of the
5 following laws to perform any activity that would constitute the
6 practice of the profession regulated by that law:
7(1)   The Engineer, Land Surveyor and Geologist
8    Registration Law, as to the practice of engineering, land
9    surveying or geology.
10(2)   The act of January 24, 1966 (1965 P.L.1535, No.537),
11    known as the Pennsylvania Sewage Facilities Act.
12(3)   The act of March 1, 1974 (P.L.90, No.24), known as
13    the Pennsylvania Pesticide Control Act of 1973.
14(4)   The Architects Licensure Law.
15(5)   The act of July 9, 1987 (P.L.238, No.43), known as
16    the Radon Certification Act.
17    (k)   Other licensees.--The requirements of this act relating
18 to the licensure of home inspectors shall not affect the
19 obligations or immunities of an individual licensed under
20 another provision of this act that are imposed or provided under
21 this act or 68 Pa.C.S. Ch. 73 (relating to seller disclosures)
22 when the individual is acting under the individual's license,
23 nor the obligations or immunities of an individual certified
24 under the Real Estate Appraisers Certification Act when the
25 individual is acting under that certification.
26    (l)   Home inspector-in-training registration.--
27(1)   The commission shall, upon application and payment
28    of the application fee established by the commission, issue a
29    home inspector-in-training registration, without examination,
30    to any person who meets the home inspector-in-training
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1    educational requirements set by the commission.
2(2)   A home inspector-in-training shall keep a record of
3    the mentored home inspections completed, which shall, at a
4    minimum, include the following information:
5(i)    Date and time of the inspection.
6(ii)    Address of the residence inspected.
7(iii)    Business name of the supervising inspector
8(iv)    Name of the supervising inspector.
9(v)    License number of the supervising inspector.
10(vi)    Signature of the supervising inspector.
11    (m)   Reporting of multiple licensure.--A licensed home
12 inspector in this Commonwealth who is also certified or licensed
13 to perform home inspections in any other state, territory or
14 country shall report this information to the commission on the
15 biennial renewal application. Any disciplinary action taken in
16 any other state, territory or country shall be reported to the
17 commission on the biennial renewal application, or within 90
18 days of disposition, whichever is sooner. Multiple licensure
19 shall be noted by the commission on the licensed home
20 inspector's record, and the state, territory or country shall be
21 notified by the commission of any disciplinary action taken
22 against the licensed home inspector in this Commonwealth.
23 Section 599.2.        Conduct of home inspection.
24    (a)   Ethics.--A licensed home inspector shall conduct a home
25 inspection with the degree of care that a reasonably prudent
26 licensed home inspector would exercise. In ascertaining the
27 degree of care that would be exercised by a reasonably prudent
28 licensed home inspector, a court shall consider the standards of
29 practice and codes of ethics as established by the commission by
30 regulation.
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1    (b)   Immediate threat to health or safety.--If an immediate
2 threat to health or safety is observed during the course of a
3 home inspection and the home is occupied, the licensed home
4 inspector shall disclose the immediate threat to health or
5 safety to the property owner and occupants of the property at
6 the conclusion of the home inspection. Posting a notice on a
7 form prescribed by the commission by regulation on the front
8 door of the occupied home in a position that ensures the
9 occupants see the notice shall constitute proper disclosure.
10 Section 599.3.    Remedies for home inspection services clients.
11    (a)   Unfair Trade Practices and Consumer Protection Law.--The
12 performance of a home inspection is a service subject to the act
13 of December 17, 1968 (P.L.1224, No.387), known as the Unfair
14 Trade Practices and Consumer Protection Law.
15    (b)   Wrongful acts.--The following acts engaged in by a
16 licensed home inspector, an employer of a licensed home
17 inspector or another business or person that controls or has a
18 financial interest in the employer of a licensed home inspector
19 shall be deemed to be an unfair or deceptive act or practice as
20 defined by section 2(4) of the Unfair Trade Practices and
21 Consumer Protection Law:
22(1)   Performing or offering to perform for an additional
23    fee any repairs to a structure with respect to which the
24    licensed home inspector, the employer of the licensed home
25    inspector or other business or person has prepared a home
26    inspection report within the preceding 12 months, except that
27    this paragraph shall not apply to remediation for radon or
28    wood-destroying insects.
29(2)   Inspecting for a fee any property in which the
30    licensed home inspector, the employer of the licensed home
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1    inspector or other business or person has a financial
2    interest or an interest in the transfer of the property,
3    including receipt of a commission as an agent, unless the
4    financial interest or interest in the transfer of the
5    property is disclosed in writing to the buyer before the home
6    inspection is performed and the buyer signs an acknowledgment
7    of receipt of the disclosure.
8(3)   Offering or delivering a commission, referral fee or
9    kickback to the seller of the inspected property or to an
10    agent for the seller or buyer for the referral of business to
11    the licensed home inspector, the employer of the licensed
12    home inspector or other business or person.
13(4)   Accepting an engagement to perform a home inspection
14    or to prepare a home inspection report in which the
15    employment itself or the fee payable for the inspection is
16    contingent upon the conclusions in the report, preestablished
17    or prescribed findings or the closing of the transaction.
18    (c)   Home warranty company.--A home warranty company that is
19 affiliated with or retains the licensed home inspector does not
20 violate subsection (b) if the home warranty company performs
21 repairs in accordance with claims made under a home warranty
22 contract.
23    (d)   Other remedies.--In addition to other remedies available
24 under the Unfair Trade Practices and Consumer Protection Law or
25 other applicable provision of law, the owner of a property on
26 which repairs are performed in violation of subsection (b)(1)
27 shall be entitled to a full refund of money paid for those
28 repairs, and a promissory note or another obligation to pay
29 given to the person performing those repairs shall be void.
30 Section 599.4.    Home inspection contracts.
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1    (a)   Required provisions.--A home inspection contract must be
2 typewritten and include all of the following:
3(1)   Signature of client.
4(2)   Scope of home inspection.
5(3)   Fee charged to client.
6(4)   Contact information of the licensed home inspector.
7(5)   Signature of the licensed home inspector.
8(6)   License number of the licensed home inspector.
9(7)   A statement explaining the confidentiality between
10    the licensed home inspector and the client.
11    (b)   Prohibited provisions.--The following types of
12 provisions in a contract with a licensed home inspector for the
13 performance of a home inspection are contrary to public policy,
14 and the clause shall be unenforceable as it relates to:
15(1)   A limitation on the liability of the licensed home
16    inspector for gross negligence or willful misconduct.
17(2)   A waiver or modification of any provision of this
18    section or section 599.2, 599.3 or 599.5.
19 Section 599.5.    Home inspection reports.
20    (a)   Contents.--A home inspection report must be typewritten
21 and include all of the following:
22(1)   A description of the scope of the inspection,
23    including identification of the essential components and
24    systems and subsystems covered by the report.
25(2)   A description of material defects noted during the
26    inspection, along with a recommendation that certain experts
27    be retained to determine the extent of the defects and the
28    corrective action that should be taken.
29(3)   If, at the time of the inspection, there is visible
30    evidence of the presence of interior mold, the licensed home
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1    inspector must disclose in the home inspection report the
2    visible evidence and the location and advise the client to
3    obtain a professional evaluation.
4(4)   The following statements, set forth conspicuously:
5(i)    A home inspection is intended to assist in
6evaluation of the overall condition of the dwelling. The
7inspection is based on observation of the visible and
8apparent condition of the structure and its components on
9the date of inspection.
10(ii)    The results of this home inspection are not
11intended to make a representation regarding the presence
12or absence of latent or concealed defects that are not
13reasonably ascertainable in a competently performed home
14inspection. No warranty or guaranty is expressed or
15implied.
16(iii)    If the person conducting your home inspection
17is not a licensed structural engineer or other
18professional whose license authorizes the rendering of an
19opinion as to the structural integrity of a building or
20the building's other component parts, you may be advised
21to seek a professional opinion as to any defect or
22concern mentioned in the report.
23(iv)    This home inspection report is not to be
24construed as an appraisal and may not be used as such for
25any purpose.
26    (b)   Delivery of report.--Except as otherwise required by
27 this subsection or by law, a licensed home inspector may not
28 deliver a home inspection report to a person other than the
29 client of the licensed home inspector without the client's
30 consent. The property owner shall have the right, upon request,
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1 to receive without charge a copy of a home inspection report
2 from the person for whom the home inspection report was
3 prepared. If immediate threats to health or safety are observed
4 during the course of the inspection and if the premises are
5 occupied, the client hereby consents to allow the licensed home
6 inspector to disclose the immediate threats to health or safety
7 to the property owner and occupants of the property.
8    (c)   Liability.--A licensed home inspector shall not be held
9 liable for the contents or omissions of a home inspection report
10 if relied upon by any individual or person other than the client
11 as identified by the executed contract for the specific home
12 inspection.
13    (d)   Limitation period.--An action to recover damages arising
14 from a home inspection report must be commenced within one year
15 after the date the report is delivered regardless of when the
16 claim is discovered by the client.
17    Section 8.    Sections 601 HEADING AND (A), 602(a) AND (I),      <--
18 603(B) and 608.6(h) of the act are amended to read:
19 SECTION 601.    DUTY OF BROKERS[,] AND CEMETERY BROKERS [AND        <--
20RENTAL LISTING REFERRAL AGENTS] TO MAINTAIN OFFICE.
21    (A)   EACH BROKER (WHICH TERM IN THIS SECTION SHALL INCLUDE
22 CEMETERY BROKER) [AND RENTAL LISTING REFERRAL AGENT] WHO HOLDS A
23 STANDARD LICENSE SHALL MAINTAIN A FIXED OFFICE WITHIN THIS
24 COMMONWEALTH. THE CURRENT LICENSE OF SUCH A [RENTAL LISTING
25 REFERRAL AGENT OR] BROKER AND OF EACH LICENSEE EMPLOYED BY [SUCH
26 BROKER OR RENTAL LISTING REFERRAL AGENT] THE BROKER SHALL BE
27 PROMINENTLY DISPLAYED IN AN OFFICE OF THE BROKER [OR RENTAL
28 LISTING REFERRAL AGENT]. THE ADDRESS OF THE OFFICE SHALL BE
29 DESIGNATED ON THE CURRENT LICENSE. IN CASE OF REMOVAL OF A
30 BROKER'S OFFICE FROM THE DESIGNATED LOCATION, ALL LICENSEES
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1 REGISTERED AT THAT LOCATION SHALL MAKE APPLICATION TO THE
2 COMMISSION BEFORE SUCH REMOVAL OR WITHIN TEN DAYS THEREAFTER,
3 DESIGNATING THE NEW LOCATION OF THE OFFICE, AND SHALL PAY THE
4 REQUIRED FEES, WHEREUPON THE COMMISSION SHALL ISSUE A CURRENT
5 LICENSE AT THE NEW LOCATION FOR THE UNEXPIRED PERIOD, IF THE NEW
6 LOCATION COMPLIES WITH THE TERMS OF THIS ACT. EACH BROKER WHO
7 HOLDS A STANDARD LICENSE SHALL MAINTAIN A SIGN ON THE OUTSIDE OF
8 HIS OFFICE INDICATING THE PROPER LICENSED BROKERAGE NAME.
9    * * *
10 Section 602.   Reciprocal licenses.
11    (a)    Any person who holds a current license to provide real
12 estate services or home inspection services issued by another
13 state and whose principal place of business for the provision of
14 those services is outside of this Commonwealth may be issued a
15 reciprocal license under this act in accordance with this
16 section. The reciprocal license shall be the type of license
17 that the commission determines is most similar to the type of
18 license issued by the other state.
19    * * *
20    (I)    AN ASSOCIATE BROKER[,] OR SALESPERSON[, CAMPGROUND       <--
21 MEMBERSHIP SALESPERSON OR TIME-SHARE SALESPERSON] HOLDING A
22 RECIPROCAL LICENSE SHALL NOT CONDUCT BUSINESS IN THIS
23 COMMONWEALTH EXCEPT IN AFFILIATION WITH A BROKER HOLDING EITHER
24 A STANDARD OR A RECIPROCAL LICENSE.
25    * * *
26 SECTION 603.   EMPLOYMENT OF ASSOCIATE BROKERS, SALESPERSON.
27    * * *
28    [(B)    NO CAMPGROUND MEMBERSHIP SALESPERSON OR TIME-SHARE
29 SALESPERSON SHALL BE SUPERVISED BY ANY OTHER BROKER THAN IS
30 DESIGNATED UPON THE CURRENT LICENSE ISSUED TO SUCH SALESPERSON.
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1 WHENEVER A CAMPGROUND MEMBERSHIP SALESPERSON OR A TIME-SHARE
2 SALESPERSON DESIRES TO BE SUPERVISED BY A DIFFERENT BROKER, SUCH
3 LICENSEE AND THE COMMISSION SHALL FOLLOW THE PROCEDURE SPECIFIED
4 IN SUBSECTION (A) FOR REAL ESTATE SALESPERSONS.]
5 Section 608.6.  Broker price opinion.
6    * * *
7    (h)   A registered appraisal management company may recruit,
8 engage and negotiate fees with a broker to prepare broker price
9 opinions and may receive orders for and submit broker price
10 opinions to [clients] consumers.
11    * * *
12    Section 9.  Repeals are as follows:
13(1)    The General Assembly declares that the repeal under
14    paragraph (2) is necessary to effectuate this act.
15(2)    68 Pa.C.S. Ch. 75 is repealed.
16    Section 10.  The State Real Estate Commission shall
17 promulgate final regulations to implement this act within 18
18 months of the effective date of this section.
19    Section 11.  This act shall take effect as follows:
20(1)    The following provisions shall take effect
21    immediately:
22(i)    The amendment of section 202(a) and (b) of the
23act.
24(ii)    Section 10 of this act.
25(iii)    This section.
26(2)    The remainder of this act shall take effect in two
27    years.
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