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An Illinois REALTOR® member Task Force and Illinois REALTOR’s lobbying staff worked hard with lawmakers, the OBRE, and the industry in helping to craft the Home Inspector License Act—an important statute. Please feel free to contact the Governmental Affairs Division, or e-mail Illinois REALTOR Governmental Affairs Director Greg St. Aubin at gstaubin@illinoisrealtors.org if you have any comments or questions regarding this legislation.

The intent of the Home Inspector License Act is to protect the public by measuring competency of those persons engaged in the home inspector business through regulation and licensing. All home inspectors are required to be licensed by Jan. 1, 2003, including individuals and entities practicing in the form of a corporation, a limited liability company or a legally formed partnership. Local licensing of this profession is preempted by this Act, including home rule units. Local code enforcement officials and state licensees acting within the scope of their employment or license are exempt from licensure, as well as individuals giving bids on repairs on the property. Any person who practices without a license shall pay a $10,000 civil penalty.

The Act provides for pre-license and continuing education, establishes standards of practice, and contains disciplinary provisions for inspectors that violate the Act or Rules. The Act requires that home inspectors provide clients with a written report that indicates components that have been inspected and are deemed to be “significantly deficient” (defined in the rules as “unsafe or not functioning). Importantly, the IR was successful in removing language that would have required home inspectors to state whether the systems and components inspected are “at or near the end of their service life.”

The Act does NOT provide for a standard form for home inspections reports. The Act requires that there be a written agreement between the inspector and the client detailing what is to be inspected and what is not to be inspected. The standards of practice establish minimum standards for the inspection of components and systems that are inspected per the written agreement.

The Act creates the Home Inspector Administration Fund and the Home Inspector Advisory Board. The seven member Board is comprised of five home inspectors, one real estate broker and a member of the public. An OBRE liaison works with the Board, home inspectors and related industry organizations and associations.

The Home Inspector License Act (225 ILCS 441) and Administrative Rule (68 Ill. Adm. Code 1440) provide the following:

Definitions

“Home inspection” means the examination and evaluation of the exterior and interior components of residential real property, which includes the inspection of any two or more of the following components in connection with the sale, lease, or other conveyance of, residential real property:

  1. heating, ventilation, and air conditioning system;
  2. plumbing system;
  3. electrical system;
  4. structural composition;
  5. foundation;
  6. roof;
  7. masonry structure; or
  8. any other residential real property component.

“Significantly deficient” means unsafe or not functioning.

“Unsafe” means a condition in a system or component that is judged to be a significant risk of personal injury or property damage during normal, day-to-day use. The risk may be due to damage, deterioration, improper installation or a change in accepted residential construction standards.

Initial License Requirements

  1. Must be at least 21 years of age;
  2. Must have a high school diploma or equivalent course of study (GED);
  3. Must take and successfully pass a state examination;
  4. Must complete 60 hours of pre-license education from an education provider approved and licensed by OBRE prior to taking the examination;
  5. Existing home inspectors may be exempted from pre-license education if they have;
  6. Practiced for at least two years and completed a minimum of 200 inspections within the past two years; or
  7. Taken a pre-license course between Jan. 1, 2001 and Jan. 1, 2003.

Education

  1. A minimum of 60 hours of pre-license education of which at least 40 hours shall be classroom instruction and at least 10 hours shall be practical lab instruction.
  2. Pre-license and continuing education courses shall include study of:
  3. Exteriors, interiors, roofing, plumbing, electrical, heating, ventilation and air conditioning (HVAC), structural, miscellaneous appliances (includes fireplaces), applicable laws, and standards of practice.

Renewal Requirements

  1. Successfully complete the equivalent of six hours per year or 12 hours per renewal from an education provider approved and licensed by OBRE.
  2. Complete a renewal application and pay the renewal fee.

Expirations

  1. Nov. 30th of even numbered years for home inspectors and entities.
  2. Dec. 31st of odd numbered years for education providers and courses (CE and pre-license).

Standards of Practice

Home inspectors or home inspector entities shall enter into a written agreement with the client that includes at a minimum:

  1. The purpose of the inspection;
  2. The date of the inspection;
  3. The name, address and license number of the home inspector/entity;
  4. The fee for services performed;
  5. A statement that the inspection will be performed in accordance with these Standards;
  6. A list of the systems and components to be inspected;
  7. Limitations or exclusions of systems or components to be inspected; and
  8. The signature of the home inspector or the duly authorized representative of a home inspector entity. Submit a written report to the client or their duly authorized representative at the conclusion of the home inspection that includes the home inspector’s signature and license number and shall:
  9. Describe the system and components inspected;
  10. Report on those systems and components inspected that in the opinion of the inspector, are significantly deficient with reasons, recommendations of corrections or monitoring of deficiencies, and a disclosure of systems or components designated for inspection that were present at the time of the inspection but not inspected, and a reason why they were not inspected. These Standards are not intended to limit home inspectors from:
  11. Including additional inspection services not defined in these standards of practice;
  12. Recommending repairs;
  13. Excluding systems and components in the written agreement from the inspection.

Grounds for Disciplinary Action

The rules contain standard disciplinary provisions dealing with incompetent, dishonest, and fraudulent actions, and actions in violation of the Act or Rules, and also provides for discipline for other actions such as the following:

  1. Advising a client as to whether the client should or should not engage in a real estate transaction or providing an opinion of value regarding the residential real property that is the subject of the home inspection.
  2. Performing a home inspection in a manner that damages or alters the residential real property that is the subject of the home inspection without the consent of the owner.
  3. Performing a home inspection when the home inspector is providing or may also provide other services in connection with or has an interest in the residential real property or transaction, without prior written notice of the potential conflict and obtaining prior consent of the client.
  4. Disclosing any information concerning the results of a home inspection without approval of the client.

Fees

  1. Inspector Initial - $250 + surcharge* , Renewal - $200 per year
  2. Entity Initial - $250 + surcharge, Renewal - $200 per year
  3. Education Provider Initial - $1,000, Renewal - $500 per year

*$150 surcharge to the Home Inspection Administration Fund Jan. 2003 Illinois REALTOR magazine