Title of Regulation: 18VAC15-40. Home Inspector Licensing Regulations (amending 18VAC15-40-10, 18VAC15-40-120, 18VAC15-40-130).

Statutory Authority: §§ 54.1-201 and 54.1-501 of the Code of Virginia.

Public Hearing Information:

August 9, 2023 - 10 a.m. - Department of Professional and Occupational Regulation, 9960 Mayland Drive, 2nd Floor Richmond, VA 23233

Public Comment Deadline: September 1, 2023.

Agency Contact: Trisha L. Lindsey, Executive Director, Board for Asbestos, Lead, and Home Inspectors, 9960 Mayland Drive, Suite 400, Richmond, VA 23233, telephone (804) 367-8595, FAX (866) 350-5354, or email alhi@dpor.virginia.gov.

Basis: Section 54.1-501 of the Code of Virginia authorizes for the Virginia Board for Asbestos, Lead, and Home Inspectors to administer the licensure program for home inspectors. Additionally, Chapter 398 of the 2022 Acts of Assembly directs the board to amend the regulation "to require that a home inspection and the report on its findings include a determination of whether the home's smoke detectors are in 'good working order,' as defined by the board."

Purpose: The General Assembly has charged the board with the responsibility for regulating those who engage in the practice of home inspection by requiring that such individuals obtain a license in order to perform home inspections on residential buildings for compensation. Home inspections are a common component of residential real estate transactions. The parties to such transactions rely on the expertise of a home inspector to provide an accurate evaluation of the condition of a home that is being purchased. The evaluation provided by a home inspector can have a significant effect on the transaction, particularly if there are substantial defects in the condition of the property. Home inspections performed by individuals who lack sufficient training and expertise expose the public to the risk of harm, which can include financial harm to home purchasers who may have to assume costs after acquiring the property to remedy defects that were not properly identified during the home inspection. Similarly, home inspections and home inspection reports that fail to meet certain minimum standards can deprive the parties to a residential real estate transaction of an accurate evaluation of the condition of a home that is being purchased.

The proposed amendments mandated by the General Assembly are intended to provide additional protection to members of the public who utilize the services of a home inspector by requiring a home inspection and report to include a determination of the working order of smoke alarms in the residential building or new residential structure. The anticipated result is that smoke alarms that are not in good working order will be repaired or replaced, which may help prevent loss of life or serious injury in the event there is a fire.

Substance: The proposed amendments were developed and recommended by a committee of subject matter experts, including licensed home inspectors, a representative of the Department of Housing and Community Development, a representative of home builders, and other individuals involved in the building industry. The committee's recommendations adopted by the board include (i) changes to the definitions section, (ii) requirements for a home inspection contract adding a provision that the requirements for inspection and testing of smoke alarms cannot be excluded from a home inspection contract, and (iii) requiring that a home inspection report must include a determination of whether any smoke alarms that are readily accessible in the residential building or new residential structure are in good working order, as the term is defined in the regulation. A home inspector is not required to test a smoke alarm if the alarm is part of a central alarm system, or security system, that will automatically notify a fire department or other authorities. A home inspection report must state whether a smoke alarm is not readily accessible, or if there are limitations in determining its good working order. The home inspection report must also include an advisory regarding smoke alarms.

Issues: The expected advantage of the amendments to the public is that individuals who are informed about the condition and working order of smoke alarms in a home that is inspected will repair or replace any smoke alarms that are not in good working order. This could potentially avoid the loss of life or serious injury in the event of a fire.

There may be potential disadvantages resulting from the regulatory change. The regulatory change may result in additional costs for home inspections. Under the current regulation, a home inspector is only required to note the presence or absence of smoke detectors in a home inspection report, but is not required to assess their condition or perform any testing related to their functionality. The inspection of smoke alarms to determine their good working order, including operating the smoke alarm test function, would likely cause home inspections to take longer. This may affect the number of inspections a home inspector can perform in a day. In addition, the added requirement may cause home inspectors to spend more time in preparing home inspection reports, as these reports will now have to account for the condition of each smoke alarm in a home. A possible result is that the price of a home inspection may increase. An increase in costs for home inspections may cause some individuals to forgo requesting an inspection during a real estate transaction.

An issue that the regulatory change may not address is whether the operating of a smoke alarm test function is truly determinative of whether a smoke alarm is properly functional. According to some of the public comment received following publication of the previous stage, the only way to properly test whether a smoke alarm works is to test it with smoke. Operating of the test function may only serve to demonstrate the alarm sounds.

Another issue concerns the potential for home inspectors to be subject to sanctions by local authorities for generating "false alarms" as the result of testing smoke alarms. Some smoke alarms are parts of home security systems designed to automatically contact fire and emergency services whenever an alarm activates. To the extent local fire and emergency response resources are caused to be diverted to nonemergency alarms, this may create a potential disadvantage. Another issue concerns the extent to which a home inspector may be liable in the event of a fire at a home where the home inspector conducted an inspection and made a determination of the good working order of the smoke alarms. Finally, the actual repair or replacement of smoke alarms that are determined not to be in good working orders remains up to the home owner. To the extent a home inspection determines the presence of smoke alarms in a home that are not in good working order, this regulation does not require the repair or replacement of such smoke alarms.

There are no known advantages or disadvantages to the agency or the Commonwealth.

Department of Planning and Budget's Economic Impact Analysis:

The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Code of Virginia (Code) and Executive Order 19. The analysis presented represents DPB's best estimate of these economic impacts.¹

Summary of the Proposed Amendments to Regulation. As the result of a 2022 legislative mandate, the Virginia Board for Asbestos, Lead, and Home Inspectors (Board) proposes to: define "good working order" for smoke alarms, require home inspectors to determine whether smoke alarms in the home are in good working order if they are readily accessible (with an exception for those that would produce a false alarm to a fire department), include this determination in their home inspection report, and other associated amendments.

Background. The current regulation states that: "In conducting a home inspection and reporting its findings, the home inspector, at a minimum, shall inspect the condition of and shall describe in writing the composition or characteristics of the following readily accessible components and readily observable defects, except as may be limited in the home inspection contract agreement:

6. Electrical system.

j. Presence or absence of smoke detectors."

That is the only mention of smoke detectors or smoke alarms in the current regulation. Note that it allows components, including smoke detectors, to be excluded from the contract agreement, and thus not included in the inspection and report.

Chapter 398 of the 2022 Acts of Assembly, in its entirety, states that "The Board for Asbestos, Lead, and Home Inspectors (the Board) shall update the regulations in 18VAC15-40-130 to require that a home inspection and the report on its findings include a determination of whether the home's smoke detectors are in "good working order," as defined by the Board." The legislation makes clear that smoke detectors should not be excluded from the contract agreement. The Board proposes to insert a sentence stating this in the regulation.

During development of this regulation the Department of Professional and Occupational Regulation (DPOR) recognized that the terms "smoke alarm" and "smoke detector" refer to different types of devices in the International Building Code.² A smoke detector is a device that senses particles of combustion, but does not contain control components and an alarm notification appliance. Smoke detectors are typically components of security systems. The current regulation and the legislation both use the term "smoke detector." DPOR believes that "smoke alarm" is what was intended. Consequently, the Board also proposes to add the following definition to the regulation: "'Smoke alarm' means a single station or multiple station alarm responsive to smoke or 'smoke detector' as used in Chapter 398 of the 2022 Acts of Assembly." Additionally, the Board proposes to amend "Presence or absence of smoke detectors" to "Presence or absence of smoke alarms."

Pursuant to Chapter 398, the Board also proposes to define "Good working order" as "with respect to a smoke alarm inspected during a home inspection, that the smoke alarm is securely attached, not physically damaged, and operation of the test function is successful."

Additionally, the Board proposes to amend 18VAC15-40-130 Home inspection report by adding a new subsection, which states that "For any smoke alarms that are readily accessible, the home inspection report must include a determination of whether the smoke alarms are in good working order." The proposed text includes an exception for when the smoke alarm is part of a central alarm system or security system in which such testing will automatically alert a fire department or other authority. The proposed new text also requires that if the smoke alarm is not readily accessible, or there are any limitations in determining whether it is in good working order, that this be included in the report. Finally, the proposed new subsection requires that the home inspection report include the following advice to the client and disclaimer language:

It is recommended that a home have smoke alarms on each level of the dwelling and in every bedroom or sleeping area. Clients should replace any existing smoke alarms that are not in good working order with new ones and install smoke alarms where they may be missing or not properly located. Any test of a smoke alarm during a home inspection only reflects its condition at the time of inspection and is not a guarantee, warranty, or any form of insurance. A test performed during the home inspection does not supersede the smoke alarm manufacturer's testing recommendations. Clients should follow the manufacturer's instructions for proper placement, installation and maintenance.

Estimated Benefits and Costs. In 2021 the National Fire Protection Association issued a report that found that the risk of dying in reported home structure fires is 55% lower in homes that have working smoke alarms than in homes without alarms or those with non-working alarms.³ Additionally, it found that 16% of home fire deaths were caused by fires in properties where smoke alarms failed to operate.⁴ Thus, to the extent that the proposed requirements increase the likelihood that homeowners have working smoke alarms, there is the strong potential that fewer Virginians may die in home fires.

DPOR does not have data on the percentage of home inspectors who currently test smoke alarms as part of their inspections. Anecdotally it appears that some provide the service while others do not. For those inspectors who have been choosing to not test smoke alarms, the proposed requirement that the home inspection report include a determination of whether the readily accessible smoke alarms are in good working order would introduce some cost in that (i) these inspectors would be required to spend time in an activity that otherwise they would not do, and (ii) potentially there may be some additional risk of liability in the event of a fire at a home where the home inspector conducted an inspection and made a determination of the good working order of the smoke alarms and the alarms fail during the fire. The potential additional risk of liability may be lessened somewhat by the disclaimer language that is to be required to be in the report. Some of these inspectors may choose to raise the price they charge for inspections in response.

Businesses and Other Entities Affected. The proposed amendments affect the 1,137 licensed home inspectors in the Commonwealth,⁵ their employers, and consumers who make use of home inspection services.

The Code of Virginia requires DPB to assess whether an adverse impact may result from the proposed regulation.⁶ An adverse impact is indicated if there is any increase in net cost or reduction in net revenue for any entity, even if the benefits exceed the costs for all entities combined. As discussed, the proposed requirement that the home inspection report include a determination of whether the readily accessible smoke alarms are in good working order would produce cost, but since that is directly required by the legislation, no adverse impact is indicated for adding the language to the regulation.

Small Businesses⁷ Affected.⁸

Types and Estimated Number of Small Businesses Affected. The proposed amendments affect small firms that provide home inspection services. DPOR does not have data on the number of small firms that provide home inspection services.

Costs and Other Effects. For those small home inspection firms that have chosen to not test smoke alarms in their inspections, the proposed requirement that the home inspection report include a determination of whether the readily accessible smoke alarms are in good working order would introduce some cost as described above in the Estimated Benefits and Costs section of this report.

Alternative Method that Minimizes Adverse Impact. As the requirement that produces cost is from the legislation, there are no clear alternative methods that both reduce adverse impact and meet the intended policy goals.

Localities⁹ Affected.¹⁰ The proposed amendments do not appear to disproportionally affect any localities or introduce costs for local governments.

Projected Impact on Employment. The proposed amendments are not likely to substantively affect total employment.

Effects on the Use and Value of Private Property. To the extent that the proposed requirements increase the likelihood that homeowners have working smoke alarms, some fires may be detected earlier, potentially allowing for the fires to be put out sooner. This could potentially limit the damage to the property, as well reduce the likelihood of fatalities.

For those home inspection firms that have chosen to not test smoke alarms in their inspections, the proposed requirement that the home inspection report include a determination of whether the readily accessible smoke alarms are in good working order would introduce some cost as described in the Estimated Benefits and Costs section of this report. This may have a small negative effect on their value.

The proposal does not affect real estate development costs.

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¹Section 2.2-4007.04 of the Code of Virginia requires that such economic impact analyses determine the public benefits and costs of the proposed amendments. Further the analysis should include but not be limited to: (1) the projected number of businesses or other entities to whom the proposed regulatory action would apply, (2) the identity of any localities and types of businesses or other entities particularly affected, (3) the projected number of persons and employment positions to be affected, (4) the projected costs to affected businesses or entities to implement or comply with the regulation, and (5) the impact on the use and value of private property.

²See https://codes.iccsafe.org/content/IBC2018P6/chapter-2-definitions#IBC2018P6_Ch02_Sec202

³See https://www.nfpa.org/News-and-Research/Data-research-and-tools/Detection-and-Signaling/Smoke-Alarms-in-US-Home-Fires

⁴Ibid

⁵Data source: Department of Professional and Occupational Regulation

⁶Pursuant to Code § 2.2-4007.04 D: In the event this economic impact analysis reveals that the proposed regulation would have an adverse economic impact on businesses or would impose a significant adverse economic impact on a locality, business, or entity particularly affected, the Department of Planning and Budget shall advise the Joint Commission on Administrative Rules, the House Committee on Appropriations, and the Senate Committee on Finance. Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation.

⁷Pursuant to § 2.2-4007.04, small business is defined as "a business entity, including its affiliates, that (i) is independently owned and operated and (ii) employs fewer than 500 full-time employees or has gross annual sales of less than $6 million."

⁸If the proposed regulatory action may have an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include: (1) an identification and estimate of the number of small businesses subject to the proposed regulation, (2) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the proposed regulation, including the type of professional skills necessary for preparing required reports and other documents, (3) a statement of the probable effect of the proposed regulation on affected small businesses, and (4) a description of any less intrusive or less costly alternative methods of achieving the purpose of the proposed regulation. Additionally, pursuant to § 2.2-4007.1 of the Code of Virginia, if there is a finding that a proposed regulation may have an adverse impact on small business, the Joint Commission on Administrative Rules shall be notified.

⁹"Locality" can refer to either local governments or the locations in the Commonwealth where the activities relevant to the regulatory change are most likely to occur.

¹⁰Section 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

Agency's Response to Economic Impact Analysis: The Virginia Board for Asbestos, Lead, and Home Inspectors concurs with the results of the economic impact analysis prepared by the Department of Planning and Budget.

Summary:

Pursuant to Chapter 398 of the 2022 Acts of Assembly, the proposed amendments (i) add a definition for "good working order"; (ii) require that a home inspection report include a determination of whether readily accessible smoke alarms are in good working order; and (iii) prohibit a home inspector from excluding the inspection and assessment of smoke alarms from the home inspection contract.

18VAC15-40-10. Definitions.

A. Section 54.1-500 of the Code of Virginia provides definitions of the following terms and phrases as used in this chapter:

"Board"

"Home inspection"

"Home inspector"

"Person"

"Residential building"

B. Section 54.1-517.2:1 of the Code of Virginia provides definitions of the following terms and phrases as used in 18VAC15-40-130:

"Bonding"

"Corrugated stainless steel tubing"

"Grounding"

C. The following words and terms when used in this chapter shall have the following meanings unless a different meaning is provided or is plainly required by the context:

"Address of record" means the mailing address designated by the licensee to receive notices and correspondence from the board.

"Adjacent" means adjoining or within three feet of the residential building and that may affect the residential building.

"Applicant" means an individual who has submitted an application for licensure.

"Application" means a completed, board-prescribed form submitted with the appropriate fee and other required documentation.

"Client" means a person who engages the services of a home inspector for a home inspection.

"Compensation" means the receipt of monetary payment or other valuable consideration for services rendered.

"Component" means a part of a system.

"Contact hour" means 50 minutes of participation in a structured training activity.

"CPE" means continuing professional education.

"Department" means the Department of Professional and Occupational Regulation.

"Financial interest" means financial benefit accruing to an individual or to a member of his an individual's immediate family. Such interest shall exist by reason of (i) ownership in a business if the ownership exceeds 3.0% of the total equity of the business; (ii) annual gross income that exceeds or may be reasonably anticipated to exceed $1,000 from ownership in real or personal property or a business; (iii) salary, other compensation, fringe benefits, forgiveness of debt, or benefits from the use of property, or any combination of it, paid or provided by a business that exceeds or may be reasonably expected to exceed $1,000 annually; (iv) ownership of real or personal property if the interest exceeds $1,000 in value and excluding ownership in business, income, salary, other compensation, fringe benefits, or benefits from the use of property; (v) personal liability incurred or assumed on behalf of a business if the liability exceeds 3.0% of the asset value of the business; or (vi) an option for ownership of a business, real property, or personal property if the ownership interest will consist of clause (i) or (iv) of this definition.

"Fireplace" means an interior fire-resistant masonry permanent or prefabricated fixture that can be used to burn fuel and is either vented or unvented.

"Foundation" means the element of a structure that connects to the ground and transfers loads from the structure to the ground. Foundations may be shallow or deep.

"Good working order" means, with respect to a smoke alarm inspected during a home inspection, that the smoke alarm is securely attached, not physically damaged, and operation of the test function is successful.

"Licensee" means a home inspector as defined in Chapter 5 (§ 54.1-500 et seq.) of Title 54.1 of the Code of Virginia.

"Licensure" means a method of regulation whereby the Commonwealth, through the issuance of a license, authorizes a person possessing the character and minimum skills to engage in the practice of a profession or occupation that is unlawful to practice without such license.

"New residential structure" or "NRS" means a residential structure for which the first conveyance of record title to a purchaser has not occurred or the purchaser has not taken possession, whichever occurs later.

"NRS specialty" means a designation granted by the board to a home inspector that authorizes such individual to conduct home inspections on any new residential structure.

"Outbuilding" means any structure on the property that is more than three feet from the residential building and that may affect the residential building.

"Prelicense education course" means an instruction program approved by the board and is one of the requirements for licensure effective July 1, 2017.

"Readily accessible" means available for access without requiring moving or removing of any obstacles.

"Reinstatement" means the process and requirements through which an expired license can be made valid without the licensee having to apply as a new applicant.

"Renewal" means the process and requirements for periodically approving the continuance of a license.

"Residential structure" means a structure consisting of no more than two dwelling units or a townhouse.

"Smoke alarm" means (i) a single station or multiple station alarm responsive to smoke; or (ii) a "smoke detector" as used in Chapter 398 of the 2022 Acts of Assembly.

"Solid fuel burning appliances" means a hearth and fire chamber or similarly prepared place in which a fire may be built and that is built in conjunction with a chimney, or a listed assembly of a fire chamber, its chimney, and related factory-made parts designed for unit assembly without requiring field construction.

"System" means a combination of interacting or interdependent components, assembled to carry out one or more functions.

"Virginia Residential Code" means the provisions of the Virginia Construction Code (Part I (13VAC5-63-10 et seq.) of 13VAC5-63) applicable to R-5 residential structures and that includes provisions of the International Residential Code as amended by the Board of Housing and Community Development.

18VAC15-40-120. Home inspection contract.

A. For the protection of both the client and the licensee, both parties shall sign a legible, written contract clearly specifying the terms, conditions, and limitations and exclusions of the work to be performed.

B. At a minimum, the written contract shall include:

1. Name, business name (if applicable), business address, and telephone number of the home inspector.

2. License number of the home inspector, and notation of NRS specialty, if applicable.

3. Name of the clients.

4. Physical address of the residential property to be inspected.

5. Cost of the home inspection.

6. A listing of all areas and systems to be inspected, including those inspections that are either partial or limited in scope.

7. A statement in the contract that the home inspection does not include a review for compliance with regulatory requirements (Virginia Uniform Statewide Building Code or other codes, regulations, laws, ordinances, etc.).

8. To the extent that any of the following categories are not covered by the home inspection, they shall be noted as exclusions in the inspection contract:

a. The condition of systems or components that are not readily accessible.

b. The remaining life of any system or component.

c. The strength, adequacy, effectiveness, or efficiency of any system or component.

d. The causes of any condition or deficiency.

e. The methods, materials, or costs of corrections.

f. Future conditions, including failure of systems and components.

g. The suitability of the property for any specialized use.

h. The market value of the property or its marketability.

i. The advisability of the purchase of the property.

j. The presence of diseases harmful to humans or potentially hazardous plants or animals, including wood destroying organisms and mold.

k. The presence of any environmental hazards, including toxins, carcinogens, noise, asbestos, lead-based paint, mold, radon, and contaminates in soil, water, and air.

l. The effectiveness of any system installed or methods utilized to control or remove suspected hazardous substances.

m. The operating costs of systems or components.

n. The acoustical properties of any system or component.

o. The presence of components involved in manufacturer's recalls.

p. The inspection of outbuildings.

To the extent any other items are not specifically included in the home inspection by agreement of the parties, they shall also be noted as exclusions in the home inspection contract.

9. Estimated delivery date to the client of the home inspection report.

10. Dated signatures of both the home inspector and the client or the client's authorized representative.

C. The home inspection contract shall make written disclosure that the home inspection report is based upon visual observation of existing conditions of the inspected property at the time of the inspection and is not intended to be, or to be construed as, a guarantee, warranty, or any form of insurance. This provision does not prevent a home inspector from offering a separate guarantee, warranty, or any form of insurance if he so chooses.

D. The requirements of 18VAC15-40-130 D regarding smoke alarms will not be excluded from the home inspection contract.

E. If the home inspector recommends a person to the client for repairs or modifications to the inspected property, the home inspector shall disclose to the client all financial interests that the home inspector has with the recommended person. The disclosure shall be written within the home inspection contract.

18VAC15-40-130. Home inspection report.

A. Home inspection reports shall contain:

1. Information pertaining to the licensee, including:

a. Licensee's name;

b. Business address;

c. Telephone number; and

d. License number and expiration date, to be followed by "NRS" if so designated and performing a home inspection on a new residential structure;

2. The name, address, and telephone number of the client or the client's authorized representative, if available at the time of the inspection;

3. The physical address of the residential property inspected; and

4. The date, time (to include both start and finish times of the home inspection), and weather conditions at the time of the home inspection.

B. In conducting a home inspection and reporting its findings, the home inspector, at a minimum, shall inspect the condition of and shall describe in writing the composition or characteristics of the following readily accessible components and readily observable defects, except as may be limited in the home inspection contract agreement:

1. Structural system.

a. Foundation.

b. Framing.

c. Stairs.

d. Crawl space,; the method of inspecting the crawl space shall be noted and explained in the home inspection report. If the crawl space cannot be inspected, the licensee shall explain in the home inspection report why this component was not inspected.

e. Crawl space ventilation and vapor barriers.

f. Slab floor, when present.

g. Floors, ceilings, and walls.

2. Roof structure, attic, and insulation.

a. Roof covering. The method of inspecting the roof covering shall be noted and explained in the home inspection report. If the roof covering cannot be inspected, the licensee shall explain in the home inspection report why this component was not inspected.

b. Roof ventilation.

c. Roof drainage system, to include gutters and downspouts.

d. Roof flashings, if readily visible.

e. Skylights, chimneys, and roof penetrations, but not antennae or other roof attachments.

f. Roof framing and sheathing.

g. Attic, unless area is not readily accessible.

h. Attic insulation.

3. Exterior of residential building or NRS.

a. Wall covering, flashing, and trim.

b. Readily accessible doors and windows, but not the operation of associated security locks, devices, or systems.

c. Decks, balconies, stoops, steps, porches, attached garages, carports, and any associated railings that are adjacent to the residential building or NRS and on the same property but not associated screening, shutters, awnings, storm windows, detached garages, or storm doors.

d. Eaves, soffits, and fascias where readily accessible from ground level.

e. Walkways, grade steps, patios, and driveways, but not fences or privacy walls.

f. Vegetation, trees, grading, drainage, and any retaining walls adjacent to the residential building or NRS.

g. Visible exterior portions of chimneys.

4. Interior of residential building or NRS.

a. Interior walls, ceilings, and floors of residential building or NRS and any adjacent garage.

b. Steps, stairways, railings, and balconies and associated railings.

c. Countertops and installed cabinets, including hardware.

d. Doors and windows, but not the operation of associated security locks, devices, or systems.

e. Garage doors and permanently mounted and installed garage door operators. The automatic safety reverse function of garage door openers shall be tested, either by physical obstruction as specified by the manufacturer, or by breaking the beam of the electronic photo eye but only when the test can be safely performed and will not risk damage to the door, the opener, any nearby structure, or any stored items.

f. Fireplaces, venting systems, hearths, dampers, and fireboxes, but not mantles, fire screens and doors, seals, and gaskets.

g. Solid fuel burning appliances, if applicable.

5. Plumbing system.

a. Interior water supply and distribution systems, including water supply lines and all fixtures and faucets, but not water conditioning systems or fire sprinkler systems.

b. Water drainage, waste, and vent systems, including all fixtures.

c. Drainage sumps, sump pumps, and related piping.

d. Water heating equipment, including energy source and related vent systems, flues, and chimneys, but not solar water heating systems.

e. Fuel storage and distribution systems for visible leaks.

6. Electrical system.

a. Service drop.

b. Service entrance conductors, cables, and raceways.

c. Service equipment and main disconnects.

d. Service grounding.

e. Interior components of service panels and sub panels, including feeders.

f. Conductors.

g. Overcurrent protection devices.

h. Readily accessible installed lighting fixtures, switches, and receptacles.

i. Ground fault circuit interrupters.

j. Presence or absence of smoke detectors alarms.

k. Presence of solid conductor aluminum branch circuit wiring.

l. Arc fault interrupters shall be noted if installed but not tested if equipment is attached to them.

7. Heating system.

a. Heating equipment, including operating controls, but not heat exchangers, gas logs, built-in gas burning appliances, grills, stoves, space heaters, solar heating devices, or heating system accessories such as humidifiers, air purifiers, motorized dampers, and heat reclaimers.

b. Energy source.

c. Heating distribution system.

d. Vent systems, flues, and chimneys, including dampers.

8. Air conditioning system.

a. Central and installed wall air conditioning equipment.

b. Operating controls, access panels, and covers.

c. Energy source.

d. Cooling distribution system.

C. Systems in the home that are turned off, winterized, or otherwise secured so that they do not respond to normal activation using standard operating controls need not be put into operating condition. The home inspector shall state, in writing, the reason these systems or components were not inspected.

D. For any smoke alarms that are readily accessible in the residential building or NRS, the home inspection report must include a determination of whether the smoke alarms are in good working order as defined in 18VAC15-40-10.

1. A home inspector is not required to operate the test function of a smoke alarm if the smoke alarm is part of a central alarm system or security system in which such testing will automatically alert a fire department or other authority. To the extent the home inspector is unable to determine whether testing will cause an automatic alert, the home inspector is not required to operate the test function of the smoke alarm.

2. If a smoke alarm is not readily accessible or there are any limitations in determining whether it is in good working order, the home inspection report must state that it is not readily accessible or describe such limitations, as applicable.

3. The home inspection report must include the substance of the following: It is recommended that a home have smoke alarms on each level of the dwelling and in every bedroom or sleeping area. Clients should replace any existing smoke alarms that are not in good working order with new ones and install smoke alarms where they may be missing or not properly located. Any test of a smoke alarm during a home inspection only reflects its condition at the time of inspection and is not a guarantee, warranty, or any form of insurance. A test performed during the home inspection does not supersede the smoke alarm manufacturer's testing recommendations. Clients should follow the manufacturer's instructions for proper placement, installation, and maintenance.

E. In accordance with § 54.1-517.2:1 of the Code of Virginia, if a home inspector observes the presence of any shade of yellow corrugated stainless steel tubing during a home inspection in a home that was built prior to the adoption of the 2006 Virginia Construction Code, effective May 1, 2008, the home inspector shall include that observation in the report along with the following statement: "Manufacturers believe that this product is safer if properly bonded and grounded as required by the manufacturer's installation instructions. Proper bonding and grounding of the product should be determined by a contractor licensed to perform the work in the Commonwealth of Virginia."