The House Committee on Regulated Industries offers the following substitute to HB 1305:
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 41 of Title 43 of the Official Code of Georgia Annotated, relating to
residential and commercial general contractors, so as to provide for licensure of home
inspectors; to provide for reciprocity of licensure; to provide for licensure of companies
performing home inspections; to provide for minimum requirements to apply for licensure;
to provide for requirements to maintain license; to require home inspectors to maintain
insurance; to provide for standards of practice and unfair trade practices; to provide for
exceptions; to provide for definitions; to provide for a short title; to provide for a legislative
purpose; to provide for related matters; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
This Act shall be known and may be cited as the "Home Inspector Licensing Act of
Georgia."
SECTION 2.
The purpose of this Act is to regulate the practice of home inspection within this state by
establishing minimum qualifications, education, experience, and unfair trade practices for
home inspectors, thereby protecting consumers from unqualified or unethical practitioners.
SECTION 3.
Chapter 41 of Title 43 of the Official Code of Georgia Annotated, relating to residential and
commercial general contractors, is amended by designating Code Sections 43-41-1 through
43-41-18 as Article 1.
SECTION 4.
Said chapter is further amended by adding a new article to read as follows:
"ARTICLE 2
43-41-20.
As used in this article, the term:
(1) 'Ancillary services' means specialized inspections that a home inspector may offer
but are not considered part of a general home inspection unless specifically advertised or
performed outside the scope of the standards of practice.
(2) 'Client' means the party for whom the home inspection is performed, including, but
not limited to, a prospective purchaser or seller of a home.
(3) 'Home inspection' means a limited, noninvasive examination of the condition of a
home by a home inspector.
(4) 'Home inspector' means any person, except an employee of a county, municipality,
or political subdivision while engaged in the performance of the duties of his or her
employment, who, for consideration, inspects and reports on the condition of any home
or single-family dwelling or the grounds, roof, exterior surface, garage or carport,
structure, attic, basement or crawl space, electrical system, heating system,
air-conditioning system, plumbing, on-site sewerage disposal, pool or hot tub, fireplace,
kitchen, appliances, or any combination thereof for a prospective purchaser or seller.
(5) 'Standards of practice' means the minimum standards for home inspections
established by the board.
(6) 'Unfair trade practices' means practices that violate the code of conduct that governs
home inspectors as established by the board.
43-41-21.
(a) Home inspectors shall be licensed by the board beginning January 1, 2028.
(b) The residential contractor division shall have jurisdiction and authority over home
inspectors.
(c) The board shall provide by regulation for reciprocity with other states or territories of
the United States in the licensing of home inspectors, provided that such other states have
requirements substantially equal to the requirements in force in this state for registration,
licensure, or certification, and that any such home inspector holding a current and valid
license, certificate, or registration from another state or territory seeking licensure by way
of reciprocity shall demonstrate that such applicant meets the qualifications, requirements,
and criteria set forth in this article and that such applicant is otherwise in compliance with
all requirements of this state for the transaction of such business; provided, further, that a
similar privilege is offered to residents of this state by such other state or territory.
43-41-22.
(a) An applicant for a home inspector license shall:
(1) Be at least 18 years of age;
(2) Possess a high school diploma, or its equivalent, or ten years of experience in the
home inspection or residential contractor industry;
(3) Pass a criminal background check; and
(4) Submit a complete application with all required documentation and fees.
(b) Applicants shall pass an examination approved by the board.
(c) Such licenses shall be renewable every four years by birth month of the licensee.
43-41-23.
Applicants and home inspectors shall maintain:
(1) A minimum of $250,000.00 per occurrence and $500,000.00 aggregate general
liability insurance for third-party claims for bodily injury or property damage; and
(2) A minimum of $250,000.00 per occurrence and $500,000.00 aggregate errors and
omissions insurance for claims of professional mistakes, oversights, or negligence. Such
errors and omissions insurance shall include coverage for liability arising from referrals.
43-41-24.
To maintain licensure, home inspectors shall maintain competency in the current standards
of practice and residential building codes.
43-41-25.
(a) Companies that perform home inspections shall be licensed by the board beginning
January 1, 2028.
(b) To be licensed by the board, companies that perform home inspections shall:
(1) Register with the board;
(2) Provide the board a list of all licensed home inspectors employed or contracted by
the company;
(3) Ensure all home inspections are performed by individuals holding active licenses;
(4) Maintain records of all inspections performed, including, but not limited to, home
inspection reports and client information; and
(5) Be subject to audit and disciplinary action by the board.
43-41-26.
(a) The board shall adopt and periodically update comprehensive standards of practice and
unfair trade practices that all licensed home inspectors shall comply with. Such standards
shall define the scope of a home inspection, include what is and is not required to be
inspected, and establish a baseline for the protection of public interest.
(b) Licensed home inspectors shall provide clients with a written disclosure of the current
standards of practice and unfair trade practices, a written disclosure of any ancillary
services to be performed, and a sample home inspection report prior to commencing an
inspection.
43-41-27.
(a) The board shall open an investigation when there is:
(1) A sworn written complaint from a client who hired a home inspector or company that
performs home inspections;
(2) A referral from another licensing entity; or
(3) Probable cause established in the course of another investigation, or that is available
in the public domain, that the home inspector or company that performs home inspections
violated the standards of practice or engaged in unfair trade practices.
(b) If an investigation finds a violation of this article, the board may:
(1) Issue cease and desist orders to home inspectors or companies performing home
inspections;
(2) Impose fines;
(3) Suspend or revoke licenses;
(4) Require additional education or training;
(5) File a criminal complaint with the Attorney General; or
(6) Any combination thereof.
(c) Before imposing penalties for violations of this article, such violations shall be heard
and determined by the residential contractor division in accordance with the provisions of
Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act.'
43-41-28.
The board shall establish reasonable fees for applications, examinations, licenses, license
renewals, and other administrative services. All such fees collected shall be used to fund
the operations and enforcement activities of the board.
43-41-29.
This article shall not apply to:
(1) A real estate appraiser licensed pursuant to Chapter 39A of this title;
(2) A real estate broker or salesperson licensed pursuant to Chapter 40 of this title;
(3) A residential contractor licensed pursuant to Article 1 of this chapter; or
(4) Any officer or employee of a government agency conducting official duties.
43-41-30.
Beginning July 1, 2027, any person working as a home inspector on or before such date
may apply to the board for licensure without meeting the initial education requirements if
they pass the National Home Inspector Examination or meet an equivalent competency
measure as approved by the board."
SECTION 5.
All laws and parts of laws in conflict with this Act are repealed.