PROPOSED
BILL
To enact a
proposed Bill to be entitled the “Home Inspectors Licensing Law”; to regulate
the practice of home inspection in South Africa; to create and establish a
State Board of Home Inspectors (as currently constituted by the South African
Society of Home Inspectors (“SASHI”); to provide for the qualification and
appointment of the members of the Board; to provide for the terms of office and
compensation; to provide for the powers and duties of the Board; to provide
relative to qualifications and fees for licensure; to provide for continuing
education and insurance requirements; to provide relative to suspension,
revocation and penalties; to provide relative to current practitioners; to
provide relative to receipts and disbursements of funds; to authorize the
adoption of rules and regulations; and to provide for related matters.
Be it enacted by the
Parliament of South Africa.
Section 1 Bill number ..................... is hereby enacted to read as follows:
HOME
INSPECTOR LICENSING LAW
1. Purpose
The Legislature
declares that it is in the best interest of the citizens of
2. Short Title
This Chapter shall be
known and may be cited as the "Home Inspectors Licensing Law."
3. Definitions
As used in this
Chapter, the following words shall have the meanings ascribed to them in this
Section, unless the context clearly indicates otherwise:
(1)
"Applicant" means a person who seeks to be examined for licensure by
the Board.
(2) "Board"
means the State Board of Home Inspectors.
(3)
"Component" means a readily accessible and observable aspect of a
system, such as a floor or wall, but not individual pieces such as boards or
nails where many similar pieces make up a component.
(4) "Home
Inspection" means a written evaluation inclusive of photographs of two or
more of the following components of a resale residential building:
heating and cooling systems, plumbing system, electrical system, structural and
or foundation system, components, foundation, roof, exterior and interior
components, or any other related residential housing system as defined in the
standards of practice, as promulgated by the Board.
(5) "Licensed
Home Inspector" means any person who, in accordance with the provisions of
this Chapter, holds him or herself out to the general public and engages in the
business of performing Home Inspections on resale residential buildings for
compensation, including any person who for the first time or presently examines
any component of a building, through visual means and through normal user
controls, without the use of mathematical sciences.
(6)
"Licensee" means any person who has been issued a license by the
Board in accordance with the provisions of this Chapter.
(7) "
(8) "System"
means a combination of interactive or interdependent components, assembled to
carry out one or more functions.
4. State Board of Home Inspectors;
creation; qualifications; domicile; terms of office; confirmation; oath of
office; compensation
A. The State Board of
Home Inspectors is hereby created within the Department of Housing. The Board
shall be a body corporate and may sue and be sued.
B. The Board shall be
comprised of the current Board members of SASHI and one Board member from each
Province, appointed by the incepted state Board of directors for the first year
after promulgation. After the first year of office, the members from each
Province shall be appointed by the Premier of that province upon the
recommendation of the SASHI Board. The Premier shall consider the appointment of
members from a list of names submitted by the board of directors of SASHI. Each
member of the board shall be a citizen of
C. The initial Board
comprising of SASHI board members and each subsequent member appointed by the
Premier shall be confirmed by the Cabinet.
D. Initially, the
members of the Board shall be appointed for a three year term. No person shall
be appointed for more than one full six year term. Thereafter, all members
shall be appointed for six years. Any vacancy on the Board caused by death,
resignation, or disability of a member shall be filled, for the unexpired
terms, by appointment by the Premier of the Province where the vacancy occurs.
E. The board shall be
domiciled in the
F. Each member of the
initial Board shall receive a certificate or commission from the President
before beginning his or her term of office and shall file with the Department
of Housing a written oath or affirmation for faithful discharge of his or her
official duties. Each subsequent member of the Board shall receive a commission
from the Premier of the Province that he/she is appointed from before beginning
his or her term of office and shall also file with the Department of Housing a
written oath or affirmation for faithful discharge of his or her official
duties.
G. No member of the
Board shall receive a salary but shall be reimbursed for actual expenses
incurred when attending a meeting of the board or any of its committees and for
the time spent on behalf of the Board on official business. Each member shall
be reimbursed, upon approval of the Board as evidenced by voucher, for all
necessary travel and incidental expenses incurred in carrying out the
provisions of this Chapter.
5. Powers and duties; meetings
A. The Board shall:
(1) Elect a
Chairperson and a Vice-Chairperson, each to serve a term of one year, provided
that these officers may be re-elected for subsequent terms.
(2) Employ a
Secretary-Treasurer who shall serve as the Chief Operating Officer of the
Board, and who shall serve at the pleasure of the Board and employ such other
staff as approved by the Board.
(3) Meet at quarterly
meetings each year, and at special meetings which will be held at such time and
place as specified or called by the Chairperson. The Board shall appoint an
Executive Director who for the first year following promulgation shall be the
Executive Director of SASHI. The Executive Director shall provide written
notice of all meetings to the members of the Board and to the interested
public.
(4) Adopt rules and
regulations to govern the practice of a Home Inspector in
(5) Issue, suspend,
modify, or revoke licenses to practice as a home inspector in
(6) Report to the
Attorney General all persons who violate the provisions of this Chapter.
(7) Maintain a current
list of licensed Home Inspectors.
(8) Adopt, develop and
conduct a licensing examination, which may be administered by a nationally
accepted testing service as determined by the Board.
(9) Adopt its official
seal and minimum standards of practice for Home Inspectors.
(10) Have the
authority to impose fines.
(11) Prescribe and
adopt regulations, governing the manner and conditions under which credit shall
be given by the Board for participation in continuing professional education
such as the Board may consider necessary.
(12) Authorize any
affidavit necessary for the issuance of any interdict or other legal process
authorized under this Chapter or under the rules and regulations of the Board.
(13) Issue subpoenas
to require attendance and testimony and the production of documents for the
purpose of enforcing the regulations relative to the home inspection industry
and securing evidence of violations thereof.
(14) To incur debt.
6. Licensing required
Effective ........................................ 200............. , no person shall engage in
or conduct or advertise or hold himself or herself out as engaging in or conducting
the business, or acting in the capacity, of a licensed Home Inspector without
first obtaining a license as provided for in this Chapter, unless he or she is
exempted from obtaining a license as provided for in 7 below.
7. Application for licensure; fees
A. The Board shall
establish satisfactory minimum qualifications for licensing. Applications for
licenses and for renewal licenses shall be made in writing to the Board on
forms provided by the Board.
B. The Board may
charge and collect fees not in excess of the following:
(1) Application for
license: R1000
(2) License Renewal
Fee: R500
(3) Delinquent Renewal
Fee:
(January 1-February
15) R300
(February 16-June 30)
R400
(4) Initial
qualifying/continuing education provider: R1000
Annual renewal fee for
education provider: R1000
Filing fee for
additional course offerings: R200
(5) Inspection Report
Fee: R25
C. To become eligible
for licensure as a licensed home inspector an applicant shall fulfil the
following requirements.
(1) Shall be at least
eighteen years of age.
(2) Shall have
successfully completed grade 10 and have three years experience in the home
inspection, building or property related field OR have successfully completed
grade 12 and have one year’s experience in the building, home inspection or
property related field.
(3) Shall have passed
the examination required by this Chapter.
(4) Shall pay the
appropriate fees.
(5) Shall complete a
license application prescribed by the Board.
D. Effective ........................................................... 200
,
any individual filing for an initial licensing application shall present
evidence to the Board that he or she has satisfactorily completed at least
thirty hours of instruction. At least twelve but not more than twenty of the
hours required shall be obtained in course work containing actual practical
home inspections, and the remainder of the training must be classroom hours
pertaining to work approved by the Board, or, in the case of distance
education, such course as may be approved by the Board. Satisfactory completion
includes attendance of specified hours and passage of an examination on course
contents.
8. Duties of inspector; written reports
A licensed Home
Inspector shall give to each person for whom the inspector performs a home
inspection for compensation a written report of the home inspection which shall
include photographs. The inspector must give the person the report by the date
set in a written agreement by the parties to the agreement for a home
inspection. If the parties to the home inspection agreement do not agree on a
date in a written agreement, the inspector must give the person the report
within three business days after the inspection is performed.
9. License issuance and renewal
A. Every license
issued under the provisions of this Chapter shall be issued for a period of one
year and shall expire on the last day of the month of issuance in the preceding
year. A license which is not renewed shall be considered to be expired, and any
home inspection practice requiring a license as a licensed Home Inspector after
expiration of the license shall be deemed a violation of this Chapter.
B. Any licensee who
fails to renew timely may thereafter renew upon payment of the appropriate
renewal and delinquent fees and upon filing of a complete renewal application.
The period for delinquent renewal of an expired license shall be limited to the
six month period immediately following the expiration date of the active
license. Failure to delinquently renew an expired license during this six month
period shall result in a forfeiture of renewal rights and shall require the
former licensee to apply as an initial applicant and meet all requirements of
an initial applicant.
10. Continuing education
requirements
A. As a prerequisite
to renewal of a license, a licensed Home Inspector shall present evidence to
the Board of having completed the continuing education requirements set forth
in this Chapter.
B. The basic
continuing education requirements for renewal of a license shall be the completion
by the applicant, during the immediate preceding one-year term of license, of
ten hours of instruction in courses which have received the approval of the
Board, or in the case of distance education, such instruction as may be
approved by the Board.
C. In lieu of meeting
the requirements of Subsection B of this Section, an applicant for the renewal
of a license, may satisfy all or part of the requirements of this section by
presenting evidence of participation, other than as a student, in educational
processes and programs in home inspection practices, or techniques, including,
but not limited to, teaching, program development, and preparation of
textbooks, monographs, articles, and other instructional materials, subject to
the approval of the Board.
D. No amendment or
repeal of a regulation adopted by the Board pursuant to this section shall
operate to deprive a licensed home inspector, of credit toward renewal of a
license for any course of instruction completed by the applicant prior to the
amendment or repeal of the regulation, if the course would have qualified for
continuing education credit under the regulation as it existed prior to the
repeal or amendment.
11. Insurance
A. All active
practitioners licensed in accordance with the provisions of this Chapter shall
carry professional indemnity insurance to cover all activities contemplated
under this Chapter.
The Board shall, by
rule, provide for the establishment of a group insurance program, provided
licensees shall have the option of obtaining professional indemnity insurance
independently that complies with the coverage requirements established by the
Board.
B. The Board shall
establish the terms and conditions of coverage mandated under this Section,
including but not limited to the minimum limits of coverage, the permissible
deductible, and permissible exemptions.
C. Each licensee shall
be notified of the required terms and conditions of coverage for the annual
policy at least thirty days prior to the annual renewal date. A certificate of
coverage, showing compliance with the required terms and conditions of
coverage, must be filed with the Board by the annual license renewal date by
each active licensee who opts not to participate in the group insurance program
administered by the Board.
D. All active
licensees licensed in accordance with the provisions of this Chapter shall be
required to carry general liability insurance to cover all activities
contemplated under this Chapter.
12. Corporations,
Partnerships
No license shall be
issued under the provisions of this Chapter to a corporation, limited liability
company, partnership, firm or group. However, nothing herein shall preclude a
licensed home inspector from rendering home inspections for or on behalf of a
corporation, limited liability company, partnership, firm or group, provided
that the home inspection report is performed by and is prepared by the licensed
home inspector and is signed by such state licensed Home Inspector.
13. License form,
exemptions from provisions
A. The license, when
issued, shall be in a form prescribed by the Board.
B. The provisions of
this law shall not apply to:
(1) Persons licensed
as professional engineers when acting within the scope of their license.
(2) Persons licensed
as architects when acting within the scope of their license.
(3) Persons licensed
by as electricians when acting within the scope of their license.
(4) Persons licensed
as plumbers when acting within the scope of their license.
(5) Persons licensed
as real estate brokers or real estate sales persons when acting within the
scope of their license.
(6) Persons licensed
as real estate appraisers, registered valuers, certified general appraisers, or
residential real estate appraisers when acting within the scope of their
license.
(7) Persons licensed
as pest control operators when acting within the scope of their license.
(8) Persons regulated
by law as insurance adjusters when acting within the scope of their profession.
(9) Persons who are
employed as code enforcement officials when acting within the scope of their
employment by such governmental entity.
(11) Persons licensed
as building contractors when acting within the scope of their license.
C. The term
"licensed Home Inspector" along with the license number, shall appear
on all correspondence, advertising, and any documents incidental to a home
inspection.
14. Causes for censure,
suspension, revocation, or fines
A. The Board may
suspend, censure, fine, revoke, or impose probationary or other restrictions on
any licensee issued in accordance with the provisions of this Chapter for good
cause shown which shall include but not be limited to the following:
(1) Conviction of a
crime or entering a plea of guilty or criminal charge under the laws of
(2) Deceit or perjury in
obtaining any license issued under this Chapter.
(3) Providing false
testimony before the Board.
(4) Efforts to deceive
or defraud the public.
(5) Professional
incompetence or gross negligence.
(6) Rendering,
submitting, subscribing or verifying false, deceptive, misleading or unfounded
opinions or reports.
(7) Violation of any
rule or regulation promulgated by the Board.
(8) Aiding or abetting
a person to evade the provisions of this Chapter or knowingly combining or
conspiring with an unlicensed person, with intent to evade provisions of this
Chapter.
(9) Violation of any
provision of this Chapter not covered in this section.
(10) Violation of any
standard of conduct promulgated by the Board.
(11) Engaging in
conduct or advertising or holding him or herself out as engaging in or
conducting the business or acting in the capacity of a home inspector without
possessing a valid license.
(12) Falsely
representing that a person in the holder of a valid license or registration by
using the title licensed Home Inspector, or any title designation or
abbreviation deceptively similar or likely to create the impression that they
are licensed by the Board.
B. The Board may levy
fines in an amount not to exceed one-thousand Rands per each separate
violation.
15. License revocation
A. Revocation of a
Home Inspector license as a result of disciplinary action by the Board may
prohibit the re-licensure for a period of at least one - year from the date of
revocation. An applicant for re-license shall successfully complete the
examination for licensed Home Inspectors, in essence as currently provided for
and endorsed by SASHI (The South African Society of Home Inspectors), and shall
provide evidence of completion of twenty hours of continuing education as
prescribed by the Board.
B. The Board, as a
probationary condition or as a condition of a license being suspended or
revoked hereunder, may require a licensee to pay all costs of the Board
proceedings, including but not limited to investigators’, stenographers’ and
attorneys fees and court costs.
16. Licensing required
Effective ........................................ 200........... ,
it shall be unlawful for anyone to engage in, conduct or advertise or hold him
or herself out as engaging in or conducting the business or acting in the
capacity of a Home Inspector without possessing a valid license.
17. Penalties
Whoever wilfully
violates any provisions of this Chapter may be fined not more than five
thousand Rands, or imprisoned for not more than six months or both.
18. Cease and desist
orders; interdicts
A. In addition to or
in lieu of the criminal penalties and administrative sanctions provided in this
Chapter, the Board is empowered to issue an order to any person engaged in any
activity, conduct or practice constituting a violation of any provision of this
Chapter, directing such person or firm to cease and desist from such activity,
conduct or practice.
B. If the person or
firm to whom the Board directs a cease and desist order does not cease and
desist the prohibited activity, conduct or practice within two days from service
of such cease and desist order by certified mail, the Board may seek, in any
court of competent jurisdiction and proper venue, an interdict enjoining such
person or firm from engaging in the activity, conduct or practice.
19. Fund for the State
Board of Home Inspectors
A. All fees received
by the Board under this chapter, and all monies otherwise received by the board
shall be paid to the secretary-treasurer. Disbursements made by the Board shall
be signed by the chairperson and the secretary-treasurer. In the absence of the
chairperson or the secretary-treasurer, the vice-chairperson is authorized to
sign all disbursements with the remaining authorized signatory.
B. All fees and monies
received by the Board shall be used solely to effectuate the provisions of this
Chapter including but not limited to, expenditures necessary for office
fixtures, equipment and supplies, and all other expenses necessary to conduct
the board’s business.
20. Rules and
regulations
The adoption of any rule
or regulation, shall be subject to the provisions of the relevant
Administrative Procedure Act(s).
21. Occupational license
tax; levy; collection
This Section shall not
be construed to prohibit the levying and collection of any other license tax
authorised by any other Act of Parliament.
....................... .