SECTIONS 7195-7199 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 7195-7199

7195. For purposes of this chapter, the following definitions
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.

7196. It is the duty of a home inspector who is not licensed as a
general contractor, structural pest control operator, or architect,
or registered as a professional engineer to conduct a home inspection
with the degree of care that a reasonably prudent home inspector
would exercise.

7196.1. (a) Nothing in this chapter shall be construed to allow
home inspectors who are not registered engineers to perform any
analysis of the systems, components, or structural integrity of a
dwelling that would constitute the practice of civil, electrical, or
mechanical engineering, or to exempt a home inspector from Chapter 3
(commencing with Section 5500), Chapter 7 (commencing with Section
6700), Chapter 9 (commencing with Section 7000), or Chapter 14
(commencing with Section 8500) of Division 3.
(b) This chapter does not apply to a registered engineer, licensed
land surveyor, or licensed architect acting pursuant to his or her
professional registration or license, nor does it affect the
obligations of a real estate licensee or transferor under Article 1.5
(commencing with Section 1102) of Chapter 2 of Title 4 of Part 3 of
Division 2 of, or Article 2 (commencing with Section 2079) of Chapter
3 of Title 6 of Part 4 of Division 3 of, the Civil Code.

7197. (a) It is an unfair business practice for a home inspector, a
company that employs the inspector, or a company that is controlled
by a company that also has a financial interest in a company
employing a home inspector, to do any of the following:
(1) To perform or offer to perform, for an additional fee, any
repairs to a structure on which the inspector, or the inspector's
company, has prepared a home inspection report in the past 12 months.
(2) Inspect for a fee any property in which the inspector, or the
inspector's company, has any financial interest or any interest in
the transfer of the property.
(3) To offer or deliver any compensation, inducement, or reward to
the owner of the inspected property, the broker, or agent, for the
referral of any business to the inspector or the inspection company.
(4) Accept an engagement to make an inspection or to prepare a
report in which the employment itself or the fee payable for the
inspection is contingent upon the conclusions in the report,
preestablished findings, or the close of escrow.
(5) A home protection company that is affiliated with or that
retains the home inspector does not violate this section if it
performs repairs pursuant to claims made under the home protection
contract.
(b) This section shall not affect the ability of a structural pest
control operator to perform repairs pursuant to Section 8505 as a
result of a structural pest control inspection.

7198. Contractual provisions that purport to waive the duty owed
pursuant to Section 7196, or limit the liability of the home
inspector to the cost of the home inspection report, are contrary to
public policy and invalid.

7199. The time for commencement of a legal action for breach of
duty arising from a home inspection report shall not exceed four
years from the date of the inspection.