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AB-717 Home inspectors.(2017-2018)

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Date Published: 03/27/2017 09:00 PM

Amended  IN  Assembly  March 27, 2017


Assembly Bill
No. 717

Introduced by Assembly Member Dababneh

February 15, 2017

An act to amend Section 7195 of add Section 7196.2 to the Business and Professions Code, relating to professions and vocations. vocations, and making an appropriation therefor.


AB 717, as amended, Dababneh. Home inspectors.
Existing law regulates persons who perform home inspections for a fee in connection with a property transfer, as defined. Existing law defines terms related to home inspections, establishes a standard of care for home inspectors, inspectors who are not licensed as a general contractor, structural pest control operator, or architect, or registered as a professional engineer, and declares that certain activities by a home inspector or a company that employs a home inspector constitute unfair business practices.

This bill would make a nonsubstantive change to this definition provision.

This bill would require a home inspector to be a licensee of the Contractors’ State License Board pursuant to the Contractors’ State License Law. By increasing application and examination fees received into the Contractors’ License Fund, a continuously appropriated fund as it pertains to fees collected by the board, this bill would make an appropriation.
Vote: MAJORITY   Appropriation: NOYES   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


 Section 7196.2 is added to the Business and Professions Code, to read:

 A home inspector shall be a licensee of the Contractors’ State License Board pursuant to Chapter 9 (commencing with Section 7000).

SECTION 1.Section 7195 of the Business and Professions Code is amended to read:

For purposes of this chapter, the following definitions shall apply:

(a)(1)“Home inspection” is a noninvasive, physical examination, performed for a fee in connection with a transfer, as defined in subdivision (e), of real property, of the mechanical, electrical, or plumbing systems or the structural and essential components of a residential dwelling of one to four units designed to identify material defects in those systems, structures and components. “Home inspection” includes any consultation regarding the property that is represented to be a home inspection or any confusingly similar term.

(2)“Home inspection,” if requested by the client, may include an inspection of energy efficiency . Energy efficiency items to be inspected may include the following:

(A)A noninvasive inspection of insulation R-values in attics, roofs, walls, floors, and ducts.

(B)The number of window glass panes and frame types.

(C)The heating and cooling equipment and water heating systems.

(D)The age and fuel type of major appliances.

(E)The exhaust and cooling fans.

(F)The type of thermostat and other systems.

(G)The general integrity and potential leakage areas of walls, window areas, doors, and duct systems.

(H)The solar control efficiency of existing windows.

(b)A “material defect” is a condition that significantly affects the value, desirability, habitability, or safety of the dwelling. Style or aesthetics shall not be considered in determining whether a system, structure, or component is defective.

(c)A “home inspection report” is a written report prepared for a fee and issued after a home inspection. The report clearly describes and identifies the inspected systems, structures, or components of the dwelling, any material defects identified, and any recommendations regarding the conditions observed or recommendations for evaluation by appropriate persons.

(d)A “home inspector” is any individual who performs a home inspection.

(e)“Transfer” is a transfer by sale, exchange, installment land sales contract, as defined in Section 2985 of the Civil Code, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements, of real property or residential stock cooperative, improved with or consisting of not less than one nor more than four dwelling units.