Amending the act of February 19, 1980 (P.L.15, No.9), entitled "An act establishing the State Real Estate Commission and providing for the licensing of real estate brokers and salesmen," in definitions, further providing for definitions and for State Real Estate Commission; in application of the act and penalties, further providing for unlawful to conduct business without license or registration certificate, for civil suits, for criminal penalties and for civil penalty; in powers and duties of the State Real Estate Commission - general, further providing for duty to issue licenses and registration certificates and for approval of schools, providing for continuing education for licensed home inspectors and further providing for administration and enforcement; in qualifications and applications for licenses and registration certificates, further providing for reputation and inactive licensee and revoked license and providing for home inspector license and home inspector-in-training registration; in duties of licensees, further providing for reciprocal licenses and for broker price opinion; making a repeal; and making an editorial change.
SB907 would create a new licensing framework for home inspectors in Pennsylvania while also revising the existing real estate appraiser law and the Real Estate Licensing and Registration Act to incorporate home inspection into the State Real Estate Commission’s regulatory structure. The bill defines “home inspection,” “home inspector,” “home inspector-in-training,” “material defect,” and related terms; requires licensure to perform or advertise home inspection services; and establishes a training-to-licensure pathway that includes 80 hours of approved instruction, 50 mentored inspections, a board-approved exam, and proof of good moral character and financial responsibility. It also creates a registration category for home inspector-in-training and authorizes reciprocity for out-of-state home inspectors with substantially equivalent credentials.
The bill sets detailed practice standards for home inspectors, including required contract terms, report contents, disclosure of visible mold and immediate health or safety threats, and limits on liability waivers. It bars certain conflicts of interest and referral arrangements, treats home inspection services as subject to the Unfair Trade Practices and Consumer Protection Law, and gives consumers remedies for prohibited conduct. It also requires licensed home inspectors to maintain errors-and-omissions and general liability insurance, complete 32 hours of continuing education every two years, and comply with disciplinary, renewal, reinstatement, and reporting rules similar to those already used for appraisers and other licensees.
In addition to regulating home inspectors, SB907 amends the composition and authority of the State Real Estate Commission and the State Board of Certified Real Estate Appraisers to include home inspector representation and to administer the new licensing regime. It also updates penalties for unlicensed practice, expands injunctive relief and civil penalty provisions to cover unlicensed home inspection activity, and repeals 68 Pa.C.S. Chapter 75 to remove the existing home inspection chapter and replace it with the new framework. Most provisions take effect in two years, while the board/commission composition changes and implementation-related sections take effect immediately.
The overall sentiment reflected in the available voting history is supportive but not unanimous. The Senate Consumer Protection & Professional Licensure Committee first reported the bill as amended on a 13-1 vote, then adopted a further amendment unanimously by a 14-0 vote. That pattern suggests broad committee agreement on the need to regulate home inspection, with at least one member initially objecting or seeking changes before the final amendment was adopted.
The main points of contention appear to center on how tightly home inspection should be regulated and how the new licensing system should be structured. Potential issues include the mandatory licensure requirement for home inspectors, the insurance and continuing-education mandates, the scope of exemptions for engineers and architects, the limits on local regulation, and the bill’s consumer-protection rules restricting repair work, referral fees, and contingent compensation. The inclusion of home inspectors on the regulatory boards and the repeal of the existing home inspection chapter also indicate a significant policy shift that likely required negotiation among industry, consumer-protection, and licensing stakeholders.
SB907 would substantially change Pennsylvania law by moving home inspection into a formal state licensing system and integrating it into the State Real Estate Commission’s regulatory authority. It would create new statutory duties, qualifications, enforcement tools, consumer remedies, and professional standards for home inspectors and home inspector-in-training registrants, while also amending related provisions governing appraisers, real estate licensing, reciprocity, continuing education, penalties, and board composition. The bill would repeal the existing home inspection chapter in 68 Pa.C.S. and replace it with a new framework that governs who may perform home inspections, how they are supervised, and what disclosures and contract/report requirements apply.
The available vote history indicates generally favorable sentiment toward the bill, especially after amendment. The committee vote to report the bill as amended was 13-1, showing some initial resistance or concern, but the later vote to adopt the amendment was unanimous at 14-0. With no transcript excerpts available, the record suggests the committee ultimately coalesced around the bill’s consumer-protection and professional-licensing approach, even if there were earlier reservations about its details.
The likely areas of contention are the bill’s new licensing mandate for home inspectors, the level of education and supervised experience required, the insurance minimums, and the extent to which home inspectors may be restricted from performing related services or accepting referral-based business. Another possible point of debate is the bill’s treatment of existing professionals such as engineers and architects, who may perform home inspections under their own licenses but must still comply with the new home-inspection rules. The bill also limits local licensing authority, which could be controversial for municipalities, and it imposes consumer-protection remedies and liability restrictions that may affect both inspectors and affiliated businesses.