On December 20, 2001, the Pennsylvania Home Inspection Law (Act 114) went into effect.

Highlights of the Law include:

Defines a home inspection as "A noninvasive, visual examination of some combination of the mechanical, electrical or plumbing systems of the structural and essential components of a residential dwelling designated to identify material defects in those systems and component, and performed for a fee in connection with or preparation for a proposed or possible residential real estate transfer. The term also includes any consultation regarding the property that is represented to be a home inspection or that is described by any confusingly similar term. The term does not include an examination that is limited to inspection for, or of, one or more of the following: wood destroying insects, underground tanksand wells, septic systems, swimming pools and spas, alarm systems, air and water quality, tennis courts and playground equipment, pollutants, toxic chemicals and environmental hazards."

Defines a home inspector as "An individual who performs a home inspection". The Act also requires home inspectors to be a member of a national home inspectors association.

Defines a national home inspection association as "Any national association of home inspectors that:

• Is operated on a not-for-profit basis and is not operated as a franchise.
• Has members in 10 or more states.
• Requires that a person may not become a full member unless the person has performed and participated in more than one hundred home inspections and has passed a recognized or accredited examination testing knowledge of the proper procedures for conducting a home inspection.
• Requires that its members comply with a code of conduct and attend continuing professional education classes as an ongoing condition of membership.

Prohibits home inspectors from engaging in the following acts:

• Performing or offering to perform repairs to a structure for which the home inspector or the employer of the home inspector prepared a home inspection report within the preceding twelve months.
• Inspecting for a fee any property in which the home inspector or the employer if the home inspector has any financial interest or interest in the transfer of the property, unless the financial interest is disclosed in writing to the buyer before the home inspection is performed and the buyer acknowledges this disclosure in writing.
• Offering or delivering any compensation or reward having a total value of more than $100 during any one-year period to the seller of the inspected property or to an agent for either the seller or the buyer for the referral of any business to the home inspector or the employer of the home inspector.
• Accepting an engagement to perform a home inspection or to prepare a home inspection report in which the employment itself or fee payable for the inspection is contingent upon the conclusion of the report.

Prohibits home inspectors from expressing orally or in writing an estimate of the cost to repair any defect found during a home inspection, except that such an estimate may be included in a home inspection report under the following conditions:

• The report identifies the source of the estimate.
• The estimate is stated as a range of costs.
• The report states that the parties should consider obtaining an estimate from a contractor who performs the type of repair involved.

Home inspectors may not deliver reports to any party other than their client without the client's consent. Sellers have the right, upon request, to receive without charge a copy of a home inspection report from the person for whom it was prepared.

Home inspectors must maintain insurance against errors and omissions in the performance of a home inspection and general liability with coverage not less then $100,000 per occurrence and $500,000 in the aggregate and with deductibles of not more than $2,500.

The scope of a home inspection, the services to be performed and the systems and conditions to be inspected or excluded for the inspection may be defined by a contract between the home inspector and the client.

Home inspection reports must include statements concerning the purpose of the home inspection and that if the home inspector is not a licensed engineer or other professional whose license authorizes the rendering of an opinion, consumers are advised to seek a professional opinion as to any defects or concerns mentioned in the report.

Prohibits the following types of provisions in home inspection contracts:

• Limitations on the liability of the home inspector for gross negligence or willful misconduct.
• Waivers or modifications of any provision of the Act.

Buyers are entitled to rely in good faith, without independent investigation, on a written representation by a home inspector that the home inspector is a full member in good standing of a national home inspection association. (Pennsylvania Home Inspector Compliance Statement)

Home inspectors who violate the act commit a summary offense, punishable through fines. Multiple offenses are misdemeanors and punishable through an escalating series of fines and imprisonment.

For more information and documents about the Law,
Visit the Pennsylvania Home Inspectors Coalition