815 KAR 6:030. Home inspector standards of conduct.

 

      RELATES TO: 198B.706, 198B.728

      STATUTORY AUTHORITY: 198B.706

      NECESSITY, FUNCTION AND CONFORMITY: KRS 198B.706(15) requires the Kentucky Board of Home Inspectors to promulgate administrative regulations necessary to enforce the provisions of KRS 198B.700 to 198B.738. KRS 198B.706(13) authorizes the board to establish standards of practice for home inspectors. This administrative regulation establishes standards of conduct for home inspectors.

 

      Section 1. Standards of Conduct. A licensed home inspector or an entity under which the inspector conducts business, shall:

      (1) Act as an unbiased third party to the real estate transaction;

      (2) Discharge the duties of a home inspector with integrity and fidelity to the client;

      (3) Express an opinion on any aspect of the inspected property only if that opinion is based upon the experience, training, education, and personal opinion of the inspector;

      (4) Provide a written disclosure to the client of any interest the inspector maintains in the transaction and advise the client to obtain competitive bids before products or additional services are offered by the licensee including:

      (a) Products or additional services to be purchased from or provided by the inspector, his agents, or employees;

      (b) Products or additional services to be purchased from or provided by any entity, organization, or venture in which the inspector has an interest; or

      (c) Products or additional services to be purchased which will result in any additional compensation or benefit to the inspector, financial or otherwise; and

      (5) Provide the license number, following the licensee’s signature, on any document signed by the home inspector pertaining to the home inspection.

 

      Section 2. Additional Standards. In addition to the affirmative duties imposed by Section 1 of this administrative regulation, a licensed home inspector or an entity under which the licensee conducts business, shall not:

      (1) Engage in or knowingly cooperate in the commission of fraud or material deception to obtain a license to engage in the practice of home inspection, including cheating on the licensing examination;

      (2) Perform repairs or modifications for compensation, or for other direct or indirect financial benefit, to a residential dwelling within twelve (12) months after performing a home inspection on the same residential dwelling, if the repairs or modifications are based upon the findings in the home inspection report. This subsection shall not apply if the home inspector purchases the residence after performing the inspection;

      (3) Provide a home inspection to the client that does not conform to the Standards of Practice selected on the initial application for licensure or the application for renewal submitted pursuant to 815 KAR 6:010;

      (4) Provide services that constitute the unauthorized practice of any profession that requires a special license if the home inspector does not hold that license;

      (5) Provide any compensation, inducement, or reward, either directly or indirectly, to any person or entity other than the client for the referral of business to the inspector. The purchase or use of advertising, marketing services, or products shall not be considered compensation, inducement, or reward;

      (6) Conduct a home inspection or prepare a home inspection report for which the inspector’s fee is contingent upon the conclusions contained in the report;

      (7) Misrepresent the financial interests, either personally or through his or her employment, of any of the parties to the transfer or sale of a residential dwelling upon which the licensee has performed a home inspection;

      (8) Disclose any information concerning the results or content of the home inspection report without the written approval of the client for whom the home inspection was performed. However, the home inspector may disclose information if there is an imminent danger to life, health, or safety, or where the home inspector is compelled to disclose information by court order;

      (9) Accept compensation, financial or otherwise, from more than one (1) interested party for the same home inspection on the same property without the written consent of all interested parties;

      (10) Make a false or misleading representation regarding:

      (a) The condition of a residential dwelling for which the licensee has performed or contracted to perform a home inspection;

      (b) The extent of the services the licensee has performed or will perform; or

      (c) The type of license held by the licensee;

      (11) Be convicted of a crime in the course of the practice of home inspection or commit any act constituting a violation of state law during the course of a home inspection;

      (12) Make a false or misleading representation:

      (a) In a license or renewal application form; or

      (b) In information provided to the board;

      (13) Fail to pay any fees required by 815 KAR 6:010;

      (14) Fail to continuously maintain the insurance or other evidence of financial responsibility required by KRS Chapter 198B or 815 KAR Chapter 6;

      (15) Engage in any course of lewd or immoral conduct in connection with the delivery of services to clients;

      (16) Fail to complete the continuing education requirements established by the board in 815 KAR 6:010;

      (17) Use the term "certified" in advertising, unless the certification is current and the full name of the certifying body is clearly identified;

      (18) Use the term "fully insured," unless the person or entity has business liability and worker’s compensation insurance coverage in effect at the time of the advertisement; or

      (19) Continue to practice, if the licensed home inspector has become unfit to practice due to:

      (a) Professional incompetence;

      (b) Failure to keep abreast of current professional theory or practice;

      (c) Physical or mental disability;

      (d) Addiction to, abuse of, or severe dependency on, alcohol or other drugs that endanger the public by impairing a licensed home inspector’s ability to practice safely; or

      (e) Failure to maintain a valid home inspector’s license.

 

      Section 3. Disciplinary Actions and Appeals. (1) Pursuant to KRS 198B.728, the board may investigate complaints related to violations of this administrative regulation and may impose the following penalties:

      (a) Denial of a license;

      (b) Suspension of a license; or

      (c) Revocation of a license.

      (2) The licensee shall be notified of the proposed penalties in writing sent to the licensee’s address on file with the board.

      (3) If a licensee chooses to appeal a proposed penalty, the licensee shall notify the board of his appeal in writing within ten (10) days of the notice of the proposed penalty.

      (4) All appeal proceedings shall be conducted in accordance with KRS Chapter 13B. (32 Ky.R. 2403; 33 Ky.R. 780; eff. 10-6-2006.)