TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING

VIRGINIA BOARD FOR ASBESTOS, LEAD, AND HOME INSPECTORS

Proposed Regulation

Title of Regulation: 18VAC15-40. Home Inspector Licensing Regulations (amending 18VAC15-40-10 through 18VAC15-40-33, 18VAC15-40-35, 18VAC15-40-48, 18VAC15-40-50, 18VAC15-40-60, 18VAC15-40-72, 18VAC15-40-75 through 18VAC15-40-105, 18VAC15-40-120 through 18VAC15-40-160, 18VAC15-40-180, 18VAC15-40-210 through 18VAC15-40-270; adding 18VAC15-40-73; repealing 18VAC15-40-108).

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

Public Hearing Information:

August 15, 2024 - 2 p.m. - Department of Professional and Occupational Regulation, 9960 Mayland Drive, Second Floor, Richmond, VA 23233.

Public Comment Deadline: September 27, 2024.

Agency Contact: Cameron Parris, Regulatory Operations Administrator, Department of Professional and Occupational Regulation, 9960 Mayland Drive, Suite 400, Richmond, VA 23233, telephone (804) 367-9183, FAX (866) 350-5354, or email cameron.parris@dpor.virginia.gov.

Basis: Section 54.1-501 of the Code of Virginia allows the Virginia Board for Asbestos, Lead, and Home Inspectors to promulgate regulations for the licensing of home inspectors regarding (i) the professional qualifications of home inspector applicants, (ii) the requirements necessary for passing home inspector examinations, (iii) the proper conduct of its examinations, (iv) the proper conduct of the home inspectors licensed by the board, and (v) the proper discharge of the board's duties.

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 the subject of the transaction. 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 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 the subject of the transaction. In addition, home inspectors who engage in unscrupulous practices may expose the public to the risk of harm. The board protects the public welfare, in part, by establishing through regulation the minimum qualifications for entry into the profession, as well as the minimum requirements for the provision of home inspection services.

Substance: The amendments (i) amend definitions, including adding and removing terms; (ii) clarify that an inspection on a new residential structure includes any course of construction inspection; (iii) clarify that an unlicensed individual who is only conducting inspections of a component or system of a home is not considered to be performing a home inspection; (iv) require that applicants and licensees disclose all misdemeanor convictions, except marijuana-related convictions; (v) clarify the disclosure of prior disciplinary action; (vi) transition qualifications for licensure to a points-based system; (vii) revise provisions pertaining to continuing professional education; (viii) amend procedures for renewal of a license to require submission of a completed renewal application and proof of completing continuing professional education; (ix) amend standards for home inspection contracts and home inspection reports; (x) require minimum provisions of home inspection contracts and home inspection reports; (xi) clarify that a home inspector is prohibited from designing or performing repairs or modifications to a home on which the inspector has performed an inspection within 12 months after the date of inspection; (xii) revise prohibited acts; and (xiii) repeal unnecessary requirements.

Issues: The primary advantages to the public and the regulated community are that the amendments will (i) provide needed updating and clarification, including incorporating the board's previous interpretive guidance; (ii) address concerns regarding barriers to licensure, including to individuals in neighboring states; and (iii) enhance standards for home inspection contracts and home inspection reports, and standards of conduct and practice, that will better serve to protect members of the public.

An anticipated advantage is that the amendments potentially increase the number of individuals who may qualify for licensure, and, therefore, be available to members of the public to provide home inspection services. This may be of particular benefit to members of the public located in more rural areas of the Commonwealth where there are fewer licensed home inspectors available. There are no identifiable disadvantages to the public. The board anticipates no substantial disadvantages to the regulated community. The primary advantage of the amendments to the Commonwealth is that the board will be more able to administer the licensure program, including the process for renewal of licenses, and to more effectively address issues that are the subject of complaints from the public against licensees. There are no anticipated 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 and Executive Order 19. The analysis presented represents DPB's best estimate of the potential economic impacts as of the date of this analysis.¹

Summary of the Proposed Amendments to Regulation. The Virginia board for Asbestos, Lead, and Home Inspectors (board) proposes numerous amendments to Home Inspector Licensing Regulations (18VAC15-40), including requirements for: initial licensure, license renewal, information to be reported the board, contracts, home inspection reports, licensee's responsibilities, grounds for disciplinary action, prohibited acts, and extensive clarifying language.

Estimated Benefits and Costs. The following are sections of the regulation where proposed amendments are likely to have impact.

18VAC15-40-30: General requirements for licensure. The current regulation requires that each applicant shall disclose all misdemeanor convictions involving moral turpitude, sexual offense, non-marijuana drug distribution, or physical injury within five years of the date of the application. The proposed regulation would broaden this to require the disclosure of all misdemeanor convictions (except marijuana convictions), while reducing the timeframe to three years (rather than the current five years) from the date of the application. Since the applicant would be required to disclose all misdemeanor convictions (excluding marijuana convictions) during the three-year period prior to application, it potentially covers more varieties of misdemeanors. This additional information may be useful in judging the applicant's fitness for licensure and would make it easier to determine which criminal convictions should or should not be disclosed. On the other hand, it may require some applicants to do some additional reporting. Reducing the timeframe to only require disclosure of misdemeanor convictions within three years of the application, instead of the current five years, would help reduce barriers to licensure for individuals with a prior criminal history. The board believes the most recent three years are the most relevant.²

The current regulation also requires additional reporting pertaining to licensure status, stating, "The applicant shall report any suspension, revocation, or surrender of a license, certification, or registration in connection with a disciplinary action or a license, certification, or registration that has been the subject of discipline in any jurisdiction prior to applying for licensure. The board, in its discretion, may deny licensure to any applicant based on prior suspensions, revocations, or surrender of licenses based on disciplinary action by any jurisdiction." The board proposes to also require that the applicant report when another jurisdiction has imposed a monetary penalty or required the applicant to take remedial education or other corrective action. Additionally, the second quoted sentence would be amended to state that "The board, in its discretion, may deny licensure to any applicant for any prior action taken by any board or administrative body in any jurisdiction." The proposed new language provides the board with greater relevant information upon which to make licensure denial decisions.

18VAC15-40-32: Qualifications for licensure. Under the current regulation, an applicant for licensure as a home inspector must pass the National Home Inspector Examination provided by the Examination board of Professional Home Inspectors, and also furnish documentation acceptable to the board that one of the five qualification methods for licensure listed in Table 1 has been met.

Table 1
Board-approved pre-license education course contact hours	Experience
35	Completion of 100 home inspections prior to July 1, 2017
35	Completion of 50 home inspections under the direct supervision of a home inspector3
70	Completion of 50 home inspections prior to July 1, 2017
70	Completion of 25 home inspections under the direct supervision of a home inspector4
None	Verification of 10 years' experience as a home inspector prior to July 1, 2017, with a minimum of 250 home inspections completed during such time period

No more than half of the required pre-license education course contact hours may be completed using distance or online education technology.

For the proposed regulation, the applicant for licensure as a home inspector must still pass the National Home Inspector Examination provided by the Examination Board of Professional Home Inspectors; but instead of meeting one of the five qualification methods for licensure listed in Table 1, the applicant must instead acquire a minimum of 15 qualifying points from a combination of the following education and experience categories listed in Tables 2 and 3, with a minimum of five points from each of Tables 2 and 3.

Table 2: Education Qualifying Points
Points Assigned	Education Description	Max. Allowable Points
5	Successfully completed a three-credit hour minimum class with a passing grade in home inspection from an accredited college or university.	5
1	Successfully completed a three-credit hour minimum class with a passing grade in construction, remodeling, engineering, architecture, building design, building technology, or real estate from an accredited college or university.	3
1	Successfully completed a four-hour minimum course specific to home inspection contracts, home inspection reports, or topics covered on the board-approved examination.	3
5	Successfully completed a minimum 35-hour pre-license education course approved by the board.	5
10	Successfully completed a minimum 70-hour pre-license education course approved by the board	10

Table 3: Experience Qualifying Points
Points Assigned	Experience Description	Max. Allowable Points
2	One month of full-time qualifying experience.5	12
1	Completion of 5 home inspections under the direct supervision of a home inspector or without supervision if lawfully conducted as authorized under the laws of the applicable jurisdiction.	12
1	Membership in a home inspector trade or professional association.6	2
2	One year teaching at an accredited college or university, trade school, or private business for monetary compensation in construction, remodeling, engineering, architecture, building design, building technology, real estate, or home inspections.	6
2	The qualified individual of a contractor license issued pursuant to the Code of Virginia for one or more of the following classifications or specialty services: 1. Residential Building Contractors, 2. Home Improvement Contracting, 3. Commercial Building Contractors	2
1	The qualified individual of a contractor license issued pursuant to the Code of Virginia for one or more of the following classifications: 1. Electrical Contractors, 2. HVAC Contractors, 3. Plumbing Contractors	3
2	Licensed architect or professional engineer.	2
2	Building code official certified pursuant to the Department of Housing and Community Development Virginia Certification Standards.	2

The proposed regulation does not limit the amount of pre-license education course contact hours that may be completed using distance or online education technology.

According to DPOR, it is the board's intent to increase the variety of methods by which one can qualify for home inspector license. In particular, the proposed regulation includes methods that are less reliant on supervised inspections since there have been reports of difficulties finding licensees willing to provide supervised training. Further, the removal of the limitation on the amount of pre-license education course contact hours that may be completed using distance or online education technology reduces the practical burden on receiving the relevant education.

As can be seen in Table 4, while the variety of methods by which one can qualify for home inspector license increases under the board's proposal, the burden for applicants remains similar to the current system.

Table 4: Comparison of Qualifying with Ed. Contact Hours and Supervised Home Inspections
Current Regulation	Proposed Regulation
70 education course contact hours; Completion of 25 home inspections under the direct supervision of a home inspector.	70 education course contact hours; Completion of 25 home inspections under the direct supervision of a home inspector or without supervision if lawfully conducted as authorized under the laws of the applicable jurisdiction.
35 education course contact hours; Completion of 50 home inspections under the direct supervision of a home inspector.	35 education course contact hours; of 50 home inspections under the direct supervision of a home inspector or without supervision if lawfully conducted as authorized under the laws of the applicable jurisdiction.

18VAC15-40-73: Acceptable topics for continuing professional education. Each licensee must complete 16 contact hours of continuing professional education (CPE) during each two-year license renewal cycle. The board proposes to add the following to the list of topics that are acceptable for continuing professional education: completion of training required to maintain credentials, howsoever denominated, related to home inspection services, including asbestos inspection, lead inspection, and radon testing. There would be a limit of four contact hours of CPE for such training per cycle. This could somewhat reduce burden for licensees and does appear to be relevant to maintaining their professional expertise.

18VAC15-40-80: Procedures for renewal. When renewing a license, the licensee attests to compliance with CPE requirements. However, DPOR audits have shown that some licensees have inaccurately reported compliance. The board proposes to require that as part of the licensure renewal process, the licensee provide proof of completion of CPE. The regulation already requires that each licensee maintain evidence of the satisfactory completion of CPE for at least three years following the end of the license renewal cycle for which the CPE was taken. Thus, the proposal to present this evidence at the time of renewal should not be a substantial additional burden, and would help enable greater assurance of compliance.

18VAC15-40-120: Home inspection contract. The current regulation specifies that for the protection of both the client and the licensee, both parties must sign a legible, written contract clearly specifying the terms, conditions, and limitations and exclusions of the work to be performed. The board proposes to add, "Prior to the commencement of work or acceptance of payments, the contract must be signed by both the client, or the client's authorized representative, and the licensee. The licensee must make prompt delivery to the client, or client's authorized representative, a fully executed copy of the contract in compliance with this section before work begins. Any modification to the contract that changes the cost, scope of work to be performed, or estimated completion date, must be in writing and signed by all parties." This may help minimize potential disputes and misunderstandings.

18VAC15-40-130: Home inspection report. The current regulation requires that the home inspection report contains the licensee's telephone number. The proposal amends the requirement to telephone number, email address, or other contact information, as applicable. This is beneficial in that it allows the licensee to provide the best means of contact for their situation. The inspection report would be required to note the presence or absence of carbon monoxide detectors, in addition to the current requirement for smoke detectors. This has become a common concern for homeowners and is a beneficial addition.

18VAC15-40-150: Grounds for disciplinary action. The board proposes to add violating provisions of "the regulations of the board" to grounds for disciplinary action. According to the agency, the revised language permits the board to take action against a home inspector licensee in instances where the licensee may have violated regulations related to other disciplines (e.g., asbestos or lead) falling under the board's jurisdiction. This may be beneficial in determining appropriate status for a licensee who participated in misconduct.

18VAC15-40-152: Notice of adverse action. Among other items, this section requires that licensees notify the board of conviction, finding of guilt, or plea of guilty, regardless of adjudication or deferred adjudication, in any jurisdiction of the United States of any misdemeanor involving moral turpitude, sexual offense, non-marijuana drug distribution, or physical injury or relating to performing a home inspection. Similar to 18VAC15-40-30, the proposal is to require the applicant to notify the board of all misdemeanor convictions except marijuana convictions. Since the applicant would be required to disclose all misdemeanor convictions, excluding marijuana convictions, it would be easier to determine which criminal convictions should or should not be disclosed. On the other hand, it may require some applicants to do some additional reporting. It also potentially covers more varieties of misdemeanors, which may be useful in judging the applicant's fitness for licensure.

18VAC15-40-155: Prohibited acts. The current list of prohibited acts includes "Obtaining or attempting to obtain a license by false or fraudulent representation." The board proposes to add "or maintaining, renewing, or reinstating a license by false or fraudulent representation; or furnishing substantially inaccurate or incomplete information to the board in obtaining, renewing, reinstating, or maintaining a license." According to DPOR, the current subdivision is interpreted as being applicable to only the initial obtaining of a license, and would not be applicable to cases where a licensee has renewed or reinstated a license falsely. One area where there have been demonstrated instances of renewal by false representation is in completion of CPE. There have been cases where a licensee has renewed a license by representing that the licensee has completed CPE, when in fact the licensee has not. This revised subdivision would better enable the agency to charge a violation under the prohibited acts for such conduct.

Businesses and Other Entities Affected. The proposed regulation affects the 1,318 licensed home inspectors⁷ in the Commonwealth, as well potential applicants for licensure, clients, and training providers.

The Code of Virginia requires DPB to assess whether an adverse impact may result from the proposed regulation.⁸ An adverse impact is indicated if there is any increase in net cost or reduction in net benefit for any entity, even if the benefits exceed the costs for all entities combined. No adverse impact is indicated.

Small Businesses⁹ Affected.¹⁰ The proposed amendments do not appear to adversely affect small businesses.

Localities¹¹ Affected.¹² The proposed amendments neither appear to disproportionately affect particularly localities, nor substantively affect costs for local governments.

Projected Impact on Employment. The proposed amendments do not appear to substantively affect total employment.

Effects on the Use and Value of Private Property. The proposed amendments do not substantively affect the use and value of private property. The proposed amendments do not substantively affect real estate development costs.

_____________________________

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.

² Source: DPOR.

³ The direct supervision of a home inspector must be provided by an individual who was properly licensed or certified by the Board during the applicable time period.

⁴ Ibid.

⁵ In order to be acceptable, qualifying experience must meet all of the following: 1. Experience must be verified by one or more of the following: licensed home inspector; qualified individual or responsible manager of a licensed contractor; or any combination of at least three licensed real estate professionals or clients. 2. An applicant's experience must have been gained by assisting a properly licensed or certified home inspector, as applicable, and under such home inspector's direct supervision; or through the performance of home inspections as authorized under the laws of the applicable jurisdiction. 3. For the purposes of this part, experience requirements are expressed in terms of calendar periods of full-time employment. a. A month of full-time qualifying experience is a minimum of 146 hours during a one-month period or a minimum of 18 workdays in a one-month period. More than 146 hours or 18 workdays during a one-month period will not be considered as more than one month of full-time employment. b. Partial credit may be given for actual hours of qualifying experience if the applicant's experience was gained working less than full time.

⁶ The current membership fee for the International Association of Certified Home Inspectors (InterNACHI) is $499 per year. The current membership fee for the American Society of Home Inspectors (ASHI) is $449 per year. The current membership fee for the Virginia Association of Real Estate Inspectors (VAREI) is $175 per year.

⁷ Source: DPOR

⁸ Pursuant to § 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.

⁹ Pursuant 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."

¹⁰ If 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.

¹¹ "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.

¹² Section 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 economic impact analysis prepared by the Department of Planning and Budget.

Summary:

The proposed amendments (i) add new definitions, remove unnecessary definitions, and clarify existing definitions; (ii) revise licensure entry requirements, including establishing a points-based system for education and experience qualifications; (iii) adjust requirements for renewal of a license; (iv) adjust standards for conducting home inspections; (v) update standards of conduct pertaining to conflicts of interest; and (vi) revise prohibited acts in the standards of conduct and practice.

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.

"Course of construction inspection" means one or more inspections conducted during the construction of a new residential structure.

"CPE" means continuing professional education.

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

"Describe" means to report a system or component by its type or other observed significant characteristics to distinguish it from other systems or components.

"Direct supervision" means that a licensed home inspector is physically present on the premises at all times and is at all times responsible for compliance with this chapter.

"Financial interest" means financial benefit accruing to an individual or to a member of his that 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 these, paid or provided by a business person 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 assembly consisting of a hearth and fire chamber of noncombustible material provided with a chimney for use with solid fuel.

"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.

"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 licensee to conduct a home inspections inspection on any a 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.

"Qualifying experience" means the experience used by a home inspector applicant to qualify for licensure.

"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.

"Solid fuel burning 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 chimney-connected devices that burn solid fuel for purposes of heating, cooking, or both. Such appliances include wood stoves, fireplace wood-burning inserts, wood pellet-burning appliances, or similar solid fuel-burning devices.

"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. through 13VAC5-63-390) 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.

18VAC15-40-20. Necessity for licensure.

A. It shall be unlawful for any individual who does not possess a license as a home inspector issued by the board to perform a home inspection for compensation on a residential building.

B. A home inspection on a new residential structure, to include any course of construction inspection, shall only be conducted by a home inspector with the NRS specialty and who has completed a training module on the Virginia Residential Code.

C. An individual who does not hold a license as a home inspector and who is only conducting inspections of a component or system of a residential building is not considered to be performing a home inspection.

18VAC15-40-25. Application procedures.

A. All applicants seeking licensure shall must submit an application with the appropriate fee specified in 18VAC15-40-50. Application shall will be made on forms provided by the board or its the board's agent.

1. By submitting the application to the department, the applicant certifies that the applicant has read and understands the applicable statutes and the board's regulations.

2. The receipt of an application and the deposit of fees by the board do not indicate approval of the application by the board.

B. The board may make further inquiries and investigations with respect to the applicant's qualifications to confirm or amplify information supplied. All applications shall must be completed in accordance with the instructions contained in this section and on the application. Applications will not be considered complete until all required documents are received by the board.

C. The applicant will be notified within 30 days of the board's receipt of an initial application if the application is incomplete. An individual who fails to complete the application process within 12 months of receipt of the application in the board's office must submit a new application.

D. The applicant shall must immediately report all changes in information supplied with the application, if applicable, prior to issuance of the license or expiration of the application.

18VAC15-40-30. General requirements for licensure.

A. In addition to the provisions of 18VAC15-40-32, every applicant for a home inspector license shall must meet the requirements provided in this section.

B. The applicant shall must be at least 18 years old.

C. The applicant shall must provide a mailing address, which shall will serve as the address of record. A post office box is only acceptable as the address of record when a physical address is also provided.

D. In accordance with § 54.1-204 of the Code of Virginia, each applicant shall must disclose the following information:

1. All misdemeanor convictions involving moral turpitude, sexual offense, non-marijuana drug distribution, or physical injury, except marijuana convictions, within five three years of the date of the application; and

2. All felony convictions during the applicant's lifetime.

Any plea of nolo contendere shall be considered a conviction for the purposes of this section. The record of conviction received from a court shall be accepted as prima facie evidence of a conviction or finding of guilt. The board, in its discretion, may deny licensure to any applicant in accordance with § 54.1-204 of the Code of Virginia.

E. The applicant for licensure shall must be in compliance with the standards of conduct and practice set forth in Part V (18VAC15-40-140 et seq. through 18VAC15-40-180) of this chapter at the time of application, while the application is under review by the board, and at all times when the license is in effect.

F. The applicant shall must report any suspension, revocation, or surrender of a license, certification, or registration in connection with a disciplinary action or a license, certification, or registration that has been the subject of discipline in any jurisdiction prior to applying for licensure action taken by any board or administrative body in any jurisdiction against a professional or occupational license, certification, or registration issued to the applicant, to include any suspension, revocation, or surrender of a license, certification, or registration; imposition of a monetary penalty; or requirement to take remedial education or other corrective action. The board, in its discretion, may deny licensure to any applicant based on prior suspensions, revocations, or surrender of licenses based on disciplinary action by for any prior action taken by any board or administrative body in any jurisdiction. The applicant has the right to request further review of any such action by the board under the Administrative Process Act (§ 2.2-4000 et seq. of the Code of Virginia).

G. The applicant for licensure shall must submit evidence satisfactory to the board of having obtained general liability insurance with minimum limits of $250,000 per occurrence. A business liability insurance policy or a commercial general liability insurance policy with minimum limits of $250,000 may be considered to meet such requirement, so long as the applicant is listed as an additional insured. If for any reason the board cannot reasonably ensure that the applicant is sufficiently covered in accordance with this subsection, the board may require that requisite coverage be obtained in the name of the applicant. Proof of such insurance policy must be submitted in order to obtain the license.

18VAC15-40-32. Qualifications for licensure.

A. Qualifications for licensure. An applicant for licensure as a home inspector shall must furnish documentation acceptable to the board that one of the qualifications for licensure in Table 1 has been met.

TABLE 1
	Board-approved prelicense education course contact hours	Experience	Passed the board-approved examination
1.	35	Completion of 100 home inspections prior to July 1, 2017	Yes
2.	35	Completion of 50 home inspections under the direct supervision of a home inspector	Yes
3.	70	Completion of 50 home inspections prior to July 1, 2017	Yes
4.	70	Completion of 25 home inspections under the direct supervision of a home inspector	Yes
5.	None	Verification of 10 years' experience as a home inspector prior to July 1, 2017, with a minimum of 250 home inspections completed during such time period	Yes

B. Prelicense education courses must be approved by the board pursuant to Part VI (18VAC15-40-200 et seq.) of this chapter. No more than half of the required hours may be completed using distance or online education technology.

C. Verification of home inspections completed under the direct supervision of a home inspector must be provided by an individual who was properly licensed or certified by the board during the applicable time period.

D. The National Home Inspector Examination provided by the Examination Board of Professional Home Inspectors is the board-approved examination pursuant to § 54.1-517.2 A 2 c of the Code of Virginia. of the following:

1. The applicant has passed a board-approved examination. The National Home Inspector Examination provided by the Examination Board of Professional Home Inspectors is the board-approved examination pursuant to § 54.1-517.2 A 2 c of the Code of Virginia.

2. A minimum of 15 qualifying points from a combination of the following education and experience, with a minimum of five points from each category in Tables 1 and 2. An applicant cannot be assigned points from multiple areas in each table for the same activity for which credit is being sought. Except as provided in Tables 1 and 2, an applicant cannot be assigned points multiple times for the same activity for which credit is being sought.

TABLE 1 Qualifying Points Table: Education Category
Points Assigned	Education Description	Maximum Allowable Points
5	Successfully completed a three credit-hour minimum class with a passing grade in home inspection from an accredited college or university pursuant to 18VAC15-40-32 C.	5
1	Successfully completed a three credit-hour minimum class with a passing grade in construction, remodeling, engineering, architecture, building design, building technology, or real estate from an accredited college or university pursuant to 18VAC15-40-32 C.	3
1	Successfully completed a four-hour minimum course specific to home inspection contracts, home inspection reports, or topics covered on the board-approved examination.	3
5	Successfully completed a minimum 35-hour prelicense education course approved by the board in accordance with Part VI (18VAC15-40-200 through 18VAC15-40-300) of this chapter.	5
10	Successfully completed a minimum 70-hour prelicense education course approved by the board in accordance with Part VI (18VAC15-40-200 through 18VAC15-40-300) of this chapter.	10
TABLE 2 Qualifying Points Table: Experience Category
Points Assigned	Experience Description	Maximum Allowable Points
2	One month of full-time qualifying experience pursuant to subsection B of this section.	12
1	Completion of five home inspections under the direct supervision of a home inspector or without supervision if lawfully conducted as authorized under the laws of the applicable jurisdiction.	12
1	Membership in a home inspector trade or professional association.	2
2	One year teaching at an accredited college or university, trade school, or private business for monetary compensation in construction, remodeling, engineering, architecture, building design, building technology, real estate, or home inspections.	6
2	The qualified individual of a contractor license issued pursuant to Chapter 11 (§ 54.1-1100 et seq.) of Title 54.1 of the Code of Virginia for one or more of the following classifications or specialty services: 1. Residential building contractors (RBC) 2. Home improvement contracting (HIC) 3. Commercial building contractors (CBC)	2
1	The qualified individual of a contractor license issued pursuant to Chapter 11 (§ 54.1-1100 et seq.) of Title 54.1 of the Code of Virginia for one or more of the following classifications: 1. Electrical contractors (ELE) 2. HVAC contractors (HVA) 3. Plumbing contractors (PLB)	3
2	Architect or professional engineer licensed pursuant to Chapter 4 (§ 54.1-400 et seq.) of Title 54.1 of the Code of Virginia.	2
2	Building code official certified pursuant to the Department of Housing and Community Development Virginia Certification Standards (13VAC5-21).	2

B. Qualifying experience. In order to be acceptable, qualifying experience must meet all of the following:

1. Experience must be verified by one or more of the following: licensed home inspector; qualified individual or responsible manager of a licensed contractor; or any combination of at least three licensed real estate professionals or clients.

2. An applicant's experience must have been gained by assisting a properly licensed or certified home inspector, as applicable, and under such home inspector's direct supervision or through the performance of home inspections as authorized under the laws of the applicable jurisdiction.

3. For the purposes of this part, experience requirements are expressed in terms of calendar periods of full-time employment.

a. A month of full-time qualifying experience is a minimum of 146 hours during a one-month period or a minimum of 18 workdays in a one-month period. More than 146 hours or 18 workdays during a one-month period will not be considered as more than one month of full-time employment.

b. Partial credit may be given for actual hours of qualifying experience if the applicant's experience was gained working less than full time.

C. Accredited colleges or universities and verification procedures. An applicant seeking to qualify for licensure based on completion of a class from an accredited college or university must submit an official transcript from the school where the applicable class was completed. Only classes from an accredited college or university that is approved or accredited by the Commission on Colleges of the Southern Association of Colleges and Schools, a regional or national accreditation association, or by an accrediting agency that is recognized by the U.S. Secretary of Education will be considered. An applicant seeking to qualify for licensure based on working or teaching at an accredited college or university must submit evidence satisfactory to the board of employment by the college or university. Only employment with an accredited college or university that is approved or accredited by the Commission on Colleges of the Southern Association of Colleges and Schools, a regional or national accreditation, or by an accrediting agency that is recognized by the U.S. Secretary of Education will be considered.

18VAC15-40-33. Examination conduct.

Procedures and appropriate conduct established by the board or examination organization administering the examination approved by the board, or both, shall must be followed by the applicant. Such procedures shall include written instructions communicated prior to the examination date and instructions communicated at the site, either written or oral, on the date of the examination. Failure to comply with all procedures established by the board or the examination organization with regard to conduct at the examination shall will be grounds for denial of the application.

18VAC15-40-35. Qualifications for the new residential structure specialty.

To obtain the NRS specialty, the applicant shall submit the appropriate application form and fee pursuant to 18VAC15-40-50 and meet the following qualifications:

1. Hold a current and valid home inspector license. An applicant who does not hold a current and valid home inspector license shall apply for such licensure and meet the requirements contained in 18VAC15-40-30 and 18VAC15-40-32.

2. Submit proof of successful completion of an NRS training module approved by the board pursuant to Part VI (18VAC15-40-200 et seq. through 18VAC15-40-300) of this chapter and completed no more than two years prior to the date of application.

18VAC15-40-48. General fee requirements.

All fees are nonrefundable and shall will not be prorated. The date on which the fee is received by the department or its the department's agent will determine whether the fee is on time. Checks or money orders shall must be made payable to the Treasurer of Virginia.

18VAC15-40-50. Fees.

A. The following table lists fees:

Fee type	Fee amount	When due
Initial home inspector application	$80	With application for home inspector
Initial NRS specialty application	$80	With application for NRS specialty designation
Home inspector renewal	$45	With renewal application
Home inspector with NRS specialty renewal	$90	With renewal application
Home inspector reinstatement	$125	With reinstatement application
Home inspector with NRS specialty reinstatement	$170	With reinstatement application
Prelicense education course approval	$250	With prelicense education course approval application
NRS training module approval	$150	With NRS training module approval application
NRS CPE course approval	$150	With NRS CPE course approval application

For licenses expiring after February 1, 2020, and before February 1, 2022, the renewal fees shall be as follows:

Home inspector renewal	$40
Home inspector with NRS specialty renewal	$80

For reinstatement applications received after March 1, 2020, and on or before February 28, 2022, the reinstatement fees shall be as follows:

Home inspector reinstatement	$120
Home inspector with NRS specialty reinstatement	$160

B. For licenses expiring after February 1, 2022, and before February 1, 2024, the renewal fees shall be as follows:

Home inspector renewal	$25
Home inspector with NRS specialty renewal	$50

C. For reinstatement applications received after March 1, 2022, and on or before February 29, 2024, the reinstatement fees shall be as follows:

Home inspector reinstatement	$105
Home inspector with NRS specialty reinstatement	$130

18VAC15-40-60. Renewal required.

Licenses issued under this chapter shall will expire two years from the last day of the month in which they were issued.

18VAC15-40-72. Continuing professional education required for home inspector licensure.

A. Each licensee shall have completed must complete 16 contact hours of continuing professional education (CPE) during each license renewal cycle. CPE can be met through classroom instruction, distance learning, or online education technology.

B. Notwithstanding the provisions of 18VAC15-40-75, the subject matter addressed during CPE contact hours shall be is limited to the content areas covered by the board's approved examination and the list of acceptable topics provided in 18VAC15-40-73.

C. The licensee shall will not receive CPE credit for the same training course more than once during a single license renewal cycle.

D. A licensee who completes the initial training module required by 18VAC15-40-35 to obtain an NRS specialty may count completion of the module towards toward the required 16 hours of CPE credit for that renewal cycle.

18VAC15-40-73. Acceptable topics for continuing professional education.

A. The following topics will be accepted for CPE credit, all as related to home inspection services:

1. Site conditions;

2. Exterior components;

3. Roof components;

4. Structural components;

5. Electrical systems;

6. Cooling systems;

7. Heating systems;

8. Insulation, moisture management systems, and ventilation systems;

9. Mechanical exhaust systems;

10. Plumbing systems;

11. Interior components;

12. Fireplaces, fuel-burning appliances, chimney, and vent systems;

13. Common permanently installed kitchen appliances;

14. Home inspection reporting requirements;

15. Responsibilities to the client, including required home inspection contract elements;

16. Laws and regulations applicable to the profession; and

17. Content areas covered by the board's approved examination.

B. In addition to the topics provided in subsection A of this section, a licensee may receive a maximum of four contact hours of CPE credit for completion of training required to maintain credentials related to home inspection services, including asbestos inspection, lead inspection, and radon testing.

C. A licensee may apply completion of the NRS CPE course, as applicable, toward the 16 contact hours of CPE required for license renewal.

18VAC15-40-75. Board-approved new residential structure update continuing professional education course required to maintain new residential structure specialty.

A. In addition to the CPE requirements of 18VAC15-40-72, to maintain the NRS specialty, the licensee shall must submit proof of completion of a four-hour, board-approved NRS CPE course, which can be applied toward the 16 contact hours of CPE required for the license renewal.

B. A licensee who has taken the initial NRS training module pursuant to subdivision 2 of 18VAC15-40-35 no more than one year before the expiration date on the license will not require proof of the NRS CPE course for that renewal. All other requirements for renewal must be met in order to renew the license and the home inspector is still required to have completed all other CPE requirements pursuant to this chapter.

18VAC15-40-76. Continuing professional education for instructors.

A licensee may receive CPE credit for teaching a course that otherwise meets the requirements of this chapter; however, additional credit shall will not be given for subsequent offerings of a course or activity with the same content within the same licensing cycle. In addition, a licensee may receive two hours of CPE no more than once during a single licensing cycle for the initial development or substantial updating of a CPE course.

18VAC15-40-78. Maintenance of continuing professional education records.

A. Each licensee shall must maintain evidence of the satisfactory completion of CPE for at least three years following the end of the license renewal cycle for which the CPE was taken. Such documentation shall must be provided to the board or its the board's duly authorized agents upon request. The following shall will be maintained by the licensee to document completion of the hours of CPE specified in 18VAC15-40-72:

1. Evidence of completion that shall contain contains the name, address, and telephone number of the training provider;

2. The dates the applicant licensee participated in the training;

3. Descriptive material of the subject matter presented documenting that it the subject matter covers the content areas covered by the board's examination or the list of acceptable topics provided in 18VAC15-40-73; and

4. A statement from the provider verifying the number of CPE contact hours completed.

B. The board may conduct an audit of its licensees to ensure compliance with the applicable CPE requirements. Licensees who are selected for audit shall must provide the necessary documentation stipulated in this section.

C. The licensee may request additional time to meet the CPE requirement; however, CPE hours earned during a license renewal cycle to satisfy the CPE requirement of the preceding license renewal cycle shall will be valid only for that preceding license renewal cycle.

18VAC15-40-80. Procedures for renewal.

A. Prior to the expiration date shown on the license, the board shall will mail a renewal notice to the licensee's address of record.

B. Prior to the expiration date shown on the license, the a licensee desiring to renew his a license shall must return to the board the renewal notice (i) a completed renewal application, (ii) proof of insurance required by 18VAC15-40-30, (iii) proof of completion of CPE, in accordance with 18VAC15-40-72, and (iv) the appropriate fee specified in 18VAC15-40-50.

C. Prior to the expiration date shown on the license In addition to the requirements of subsection B of this section, a licensee with the NRS specialty must submit proof of completion of four hours of board-approved NRS CPE, in accordance with 18VAC15-40-75, along with the renewal notice and the appropriate fee specified in 18VAC15-40-50.

D. Failure to receive the renewal notice does not relieve the licensee of the obligation to renew. If the licensee fails to receive the renewal notice, a copy of the license may be submitted with the required fee and any other required documentation as an application for renewal. The date on which the renewal application is received by the department or its the department's agent will determine whether the renewal application was received on time.

E. By submitting the renewal application, the licensee is affirming that the CPE requirements of 18VAC15-40-72 have been met, and he the licensee is in continued compliance with this chapter.

18VAC15-40-90. Reinstatement.

A. If the requirements for renewal of a license, as provided in 18VAC15-40-80, are not completed by the licensee within 30 days after the expiration date on the license, reinstatement of the license shall will be required.

B. All applicants for reinstatement shall must meet all requirements set forth in 18VAC15-40-30, 18VAC15-40-72, and 18VAC15-40-75, as applicable.

C. A license may be reinstated for up to two years following the expiration date upon submittal of the reinstatement application consisting of (i) payment of the reinstatement fee, (ii) proof of insurance required by 18VAC15-40-30, (iii) proof of CPE in accordance with 18VAC15-40-72, and (iv) proof of CPE to maintain the NRS specialty, if applicable. After two years, the license shall will not be reinstated under any circumstances, and the individual shall must apply as a new applicant and meet entry requirements current at the time of submittal of the new application.

D. By submitting the reinstatement application, the individual is affirming that he is in continued compliance with this chapter.

18VAC15-40-105. Status of licensee during the period prior to reinstatement.

A. A licensee who reinstates his a license shall will be regarded as having been continuously licensed without interruption and shall; will remain under the disciplinary authority of the board during this entire period; and shall will be held accountable for his the licensee's activities during this period.

B. Any regulated activity conducted subsequent to the license expiration date may constitute unlicensed activity and be subject to prosecution under Chapter 1 (§ 54.1-100 et seq.) of Title 54.1 of the Code of Virginia.

18VAC15-40-108. License renewal or reinstatement after July 1, 2017. (Repealed.)

A license eligible for renewal or reinstatement on or after July 1, 2017, shall be required to meet the requirements of this part as amended effective July 1, 2017, upon submittal of the renewal or reinstatement application, as applicable.

18VAC15-40-120. Home inspection contract.

A. For the protection of both the client and the licensee, both parties shall must sign a legible, written contract clearly specifying the terms, conditions, and limitations and exclusions of the work to be performed. Prior to the commencement of work or acceptance of payments, the contract must be signed by both (i) the client or the client's authorized representative and (ii) the licensee. The licensee must make prompt delivery to the client or client's authorized representative a fully executed copy of the contract in compliance with this section before work begins. Any modification to the contract that changes the cost, scope of work to be performed, or estimated completion date must be in writing and signed by all parties.

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

1. Name, business name (if applicable), business address, and telephone number of the home inspector The following information applicable to the home inspector:

a. Name;

b. Business name, if applicable;

c. Address;

d. Telephone number, email address, or other contact information, as applicable; and

e. License number and notation of NRS specialty, if applicable.

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

3. 2. Name of the clients client.

4. 3. Physical address of the residential property building or NRS to be inspected.

5. 4. Cost of the home inspection.

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

7. 6. 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, or 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 7. A statement disclosing any exclusions to the home inspection. Such exclusions may include the following:

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

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

10. A statement providing that any modification to the contract that changes the cost, scope of work to be performed, or estimated completion date must be in writing and signed by all parties.

11. Disclosure of the cancellation rights of the parties.

12. A general statement on the limits of the home inspector's liability.

C. The home inspection contract shall must make written disclosure that the home inspection report is (i) based upon visual observation of existing conditions of the inspected property residential building or NRS at the time of the inspection, and is (ii) 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 the home inspector so chooses.

D. 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 The home inspection contract must disclose any financial interest that the licensee has or reasonably expects to have with any person whom the licensee recommends to the client for the repairs or modifications to the residential building or NRS.

E. If the home inspector has designed or performed repairs or modifications to, or has inspected, the residential building or NRS to be inspected within the preceding 12 months, the home inspection contract must disclose to the client the specifics of the repairs or modifications the home inspector designed or performed or any inspection the home inspector performed.

18VAC15-40-130. Home inspection report.

A. A home inspection report is a written evaluation of the readily accessible components of a residential building or NRS, including heating, cooling, plumbing, and electrical systems; structural components; foundation; roof; masonry structure; exterior and interior components; and other related residential housing components.

B. Home inspection reports shall must contain:

1. Information pertaining to the licensee, including:

a. Licensee's name Name;

b. Business address Address;

c. Telephone number, email address, or other contact information, as applicable; 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 contact information 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 building or NRS 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. C. In conducting a home inspection and reporting its findings, the home inspector, at a minimum, shall must inspect the condition of and shall must describe in writing the composition or and characteristics of the following readily accessible components and readily observable defects of the residential building or NRS, except as may be limited in by the home inspection contract agreement:

1. Structural system.

a. Foundation.

b. Framing.

c. Stairs.

d. Crawl space, the. The method of inspecting the crawl space shall must 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.

h. Ceilings.

i. Walls.

2. Roof structure, attic, and insulation systems and components.

a. Roof covering. The method of inspecting the roof covering shall must 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 systems or components.

a. Wall covering, flashing, and trim.

b. Readily accessible doors Doors and windows, but. This does not include 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. This does not include 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. This does not include 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 systems and components.

a. Interior walls, ceilings, and floors of the 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. This does not include 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 must 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. This does not include mantles, fire screens and doors, or seals and gaskets.

g. Solid fuel burning 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. This does not include water conditioning systems or fire sprinkler systems.

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

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

d. Water heating equipment, including energy source and related vent systems, flues, and chimneys, but. This does not include 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 Installed lighting fixtures, switches, and receptacles.

i. Ground fault circuit interrupters.

j. Presence or absence of smoke or carbon monoxide detectors.

k. Presence of solid conductor aluminum branch circuit wiring.

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

7. Heating system.

a. Heating equipment, including operating controls, but. This does not include 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. D. To the extent that a component or system cannot be inspected, the home inspection report must identify such component or system and provide an explanation for why the component or system was not inspected.

E. 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 inspection report must state, in writing, the reason these systems or components were not inspected.

D. F. 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."

18VAC15-40-140. Conflict of interest.

A. The licensee shall will not:

1. Design or perform repairs or modifications to a residential building or NRS on which he the licensee has performed a home inspection as a result of the findings of the home inspection within 12 months after the date he the licensee performed the home inspection, except in cases where the home inspector purchased the residence after he performed the home inspection was performed;

2. Perform a home inspection of a residential building or NRS upon which he the licensee has designed or performed repairs or modifications within the preceding 12 months without disclosing to the client in the home inspection contract the specifics of the repairs or modifications he the licensee designed or performed;

3. Refer his the licensee's client to another person to make repairs or modifications to a residential building or NRS on which he the licensee has performed a home inspection unless, in accordance with 18VAC15-40-120 D, he the licensee provides written documentation to his the licensee's client that clearly discloses all any financial interests interest that the licensee has or reasonably expects to have with the person who is recommended for the repairs or modifications;

4. Represent the financial interests, either personally or through his employment, of any of the parties to the transfer or sale of a residential building or NRS on which he the licensee has performed a home inspection without disclosing such fact to the client; or

5. Perform a home inspection of a residential building or NRS under a contingent agreement whereby any compensation or future referrals are dependent on the reported findings or on the sale of the property.

B. The Notwithstanding the provisions of 18VAC15-40-180, the licensee shall must not disclose any information concerning the results of the home inspection without the approval of the client for whom the home inspection was performed. However, the licensee may disclose information in situations where there is an imminent endangerment to life or health.

C. The licensee shall must not accept compensation from more than one interested party for the same service home inspection on the same property without the consent of all interested parties.

D. The licensee shall must not accept nor offer commissions or allowances, directly or indirectly, from other parties dealing with the client in connection with work for which the licensee is responsible the home inspection. Additionally, the licensee shall must not enter into any financial relationship with any party that may compromise the licensee's commitment to the best interest of his the licensee's client.

E. A home inspector may provide services to a client in addition to a home inspection. The home inspector must disclose to the client the additional services to be performed and how such services may conflict with the home inspection. The disclosure must be in writing and may be incorporated into the home inspection contract or contained in a separate written agreement with the client. Any additional services performed pursuant to this subsection must be performed in accordance with applicable laws and regulations.

F. The home inspection shall must not be used as a pretext by the licensee to solicit or obtain work in another field, except for additional diagnostic inspections or testing.

18VAC15-40-145. Competency for assignments.

A. The licensee shall must undertake to perform professional assignments only when qualified by education or experience, or both.

B. A licensee shall must not misrepresent to a prospective or existing client or employer his the licensee's qualifications and or the scope of his the licensee's responsibility in connection with a home inspection.

18VAC15-40-150. Grounds for disciplinary action.

The board has the power to place a licensee on probation, may impose a monetary penalty in accordance with § 54.1-202 A of the Code of Virginia, or revoke, suspend, or refuse to renew a license when the licensee has been found to have violated or cooperated with others in violating any provision of the regulations of the board or Chapter 1 (§ 54.1-100 et seq.), 2 (§ 54.1-200 et seq.), 3 (§ 54.1-300 et seq.), or 5 (§ 54.1-500 et seq.) of Title 54.1 of the Code of Virginia or this chapter.

18VAC15-40-152. Notice of adverse action.

A. A licensee shall must notify the board of the following actions against the licensee:

1. Any disciplinary action taken by any jurisdiction, board, or administrative body of competent jurisdiction, including any (i) reprimand; (ii) license or certificate revocation, suspension, or denial; (iii) monetary penalty; (iv) requirement for remedial education; or (v) other corrective action.

2. Any voluntary surrendering of a related license, certificate, or registration done in connection with a disciplinary action in another jurisdiction.

3. Any conviction, finding of guilt, or plea of guilty, regardless of adjudication or deferred adjudication, in any jurisdiction of the United States of any (i) misdemeanor involving moral turpitude, sexual offense, non-marijuana drug distribution, or physical injury or relating to performing a home inspection, except marijuana convictions, or (ii) felony, for which there being is no appeal pending therefrom or the time for appeal having has lapsed. Review of convictions shall be subject to the requirements of § 54.1-204 of the Code of Virginia. Any plea of nolo contendere shall be considered a conviction for the purpose of this section.

B. The notice must be made to the board in writing within 30 days of the action. A copy of the order or other supporting documentation must accompany the notice. The record of conviction, finding, or case decision shall be considered prima facie evidence of a conviction or finding of guilt.

18VAC15-40-155. Prohibited acts.

The following acts are prohibited and any violation may result in disciplinary action by the board:

1. Violating, including inducing another to violate, cooperating with another to violate, or combining or conspiring with or acting as agent, partner, or associate for another to violate any of the provisions of Chapter 1 (§ 54.1-100 et seq.), 2 (§ 54.1-200 et seq.), 3 (§ 54.1-300 et seq.), or 5 (§ 54.1-500 et seq.) of Title 54.1 of the Code of Virginia or any of the regulations of the board.

2. Obtaining or attempting to obtain a license by false or fraudulent representation; maintaining, renewing, or reinstating a license by false or fraudulent representation; or furnishing substantially inaccurate or incomplete information to the board in obtaining, renewing, reinstating, or maintaining of a license.

2. Performing improvements or repairs to a residential building as a result of the findings of the home inspection within 12 months before or after performing a home inspection on it, except in cases where the home inspector purchased the residential building after he performed the home inspection.

3. Violating or inducing another person to violate any of the provisions of Chapter 1, 2, 3, or 5 of Title 54.1 of the Code of Virginia or this chapter.

4. A licensee having 3. Failing to maintain the insurance policy required pursuant to 18VAC15-40-30 G.

4. Failing to report a change or maintain records pursuant to 18VAC15-40-160.

5. Having been convicted, or found guilty, in any jurisdiction or disciplined by any jurisdiction, board, or administrative body in any jurisdiction of any offense or violation enumerated in 18VAC15-40-152. Review of convictions shall will be subject to the requirements of § 54.1-204 of the Code of Virginia.

5. 6. Failing to inform the board in writing within 30 days that the licensee was convicted, or found guilty, in any jurisdiction or disciplined in by any jurisdiction, board, or administrative body of any offense or violation enumerated in 18VAC15-40-152.

6. Failing to act as a licensee in such a manner as to safeguard the interests of the public.

7. Engaging Failing to use a contract that complies with 18VAC15-40-120.

8. Failing to produce a home inspection report that complies with 18VAC15-40-130.

9. Failing to comply with the requirements of 18VAC15-40-140.

10. Committing an action that constitutes negligence, incompetence, or misconduct in the practice of the profession, including:

a. Having performed a home inspection when not qualified by training or experience to competently perform any part of the home inspection.

b. Failing to demonstrate reasonable care, judgment, or application of the required knowledge, skill, and ability in the performance of the licensee's duties.

c. Conducting a home inspection on any new residential structure without the NRS specialty issued by the board.

d. Having cited, stated, or represented that there exists a violation of the Virginia Uniform Statewide Building Code (13VAC5-63) in a home inspection report or other document prepared relative to a home inspection.

e. 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 building or NRS that is the subject of the home inspection.

f. Failing to adequately supervise and review work by unlicensed individuals who are gaining experience under the direct supervision of the licensee.

11. Committing an action that constitutes engaging in improper, fraudulent, or dishonest conduct in conducting a home inspection

8. Having performed a home inspection when not qualified by training or experience to competently perform any part of the home inspection.

9. Failing to maintain, through training, the proficiency to perform Virginia home inspections.

10. Conducting a home inspection on any new residential structure without the NRS specialty issued by the board.

11. Failing to maintain the insurance policy required pursuant to 18VAC15-40-30 G.

12. Failing to report a change pursuant to 18VAC15-40-160.

13. Having cited, stated, or represented that there exists a violation of the Virginia Uniform Statewide Building Code (13VAC5-63) in a home inspection report or other document prepared relative to a home inspection, including:

a. Making any misrepresentation or making a false promise that might influence, persuade, or induce.

b. Knowingly misrepresenting factual information in expressing a professional opinion.

c. Intentionally and without justification failing to complete work contracted for or to comply with the terms in the contract.

d. Retaining or misapplying funds paid for which work is either not performed or performed only in part.

12. Allowing a license issued by the board to be used by another.

13. Failing to comply with the requirements of 18VAC15-40-180.

18VAC15-40-160. Maintenance of licenses, reports, and documentation.

A. The licensee shall must at all times keep the board informed of his the licensee's current address of record, to include the physical address, as applicable. Changes of address shall must be reported to the board in writing within 30 calendar days after such change. A post office box is acceptable as the address of record only when a physical address is also provided. The board shall will not be responsible for the licensee's failure to receive notices, communications, and correspondence caused by the licensee's failure to promptly notify the board of any change of address.

B. The licensee shall must notify the board in writing of a name change within 30 calendar days of any change in the licensee's legal name. Such notification shall must be accompanied by a copy of a marriage license, divorce decree, court order, or other documentation that verifies the name change.

C. The licensee shall must retain all records pertaining to home inspections performed to include written reports and supporting documentation for a period of three years from the date of the related home inspection.

D. The licensee shall must report the cancellation, amendment, expiration, or any other change of the insurance policy submitted in accordance with 18VAC15-40-30 G within 30 days of the change.

18VAC15-40-180. Response to inquiry of the board.

A. A licensee must respond within 10 days to a request by the board or any of its the board's agents regarding any complaint filed with the department.

B. Unless otherwise specified by the board, a licensee of the board shall must produce to the board or any of its the board's agents within 10 days of the request any document, book, or record concerning any transaction pertaining to a complaint filed in which the licensee was involved, or for which the licensee is required to maintain records. The board may extend such timeframe upon a showing of extenuating circumstances prohibiting delivery within such 10-day period.

C. A licensee shall must not provide a false, misleading, or incomplete response to the board or any of its the board's agents seeking information in the investigation of a complaint filed with the board.

D. With the exception of the requirements of subsections A and B of this section, a licensee must respond to an inquiry by the board or its the board's agent within 21 days.

18VAC15-40-210. Approval of prelicense education courses.

A training provider seeking approval of a prelicense education course shall must submit an application for prelicense education course approval on a form provided by the board. In addition to the appropriate fee provided in 18VAC15-40-50, the application shall must include:

1. The name of the provider;

2. Provider contact person, address, and telephone number;

3. Course contact hours;

4. Schedule of prelicense education courses if established, including dates, times, and locations;

5. Method of delivery;

6. Instructor information, including name, license number, if applicable, and a list of trade-appropriate designations, as well as a professional resume with a summary of teaching experience and subject matter knowledge and qualifications acceptable to the board;

7. Materials to be provided to students;

8. Fees for prelicense education course and materials; and

9. Training module syllabus.

18VAC15-40-220. Prelicense education course requirements.

A prelicense education course must be a minimum of 35 hours. The syllabus for each type of prelicense education course shall must encompass the following subject areas and include methods for identification and inspection, safety and maintenance, and standards for material selection and installation procedures, as applicable:

1. Site conditions;

2. Exterior components of the residential building;

3. Structural system elements;

4. Electrical system elements;

5. Heating and cooling systems;

6. Insulation, moisture management systems, and ventilation systems;

7. Plumbing systems;

8. Interior components;

9. Fireplace and chimney systems;

10. Common permanently installed appliances;

11. Inspection report requirements;

12. Responsibilities to the client, including required contract elements; and

13. Overview of the board's regulations.

18VAC15-40-230. Approval of new residential structures training modules and new residential structures continuing professional education.

A training provider seeking approval of an NRS training module or NRS CPE course shall must submit an application for NRS training module or NRS CPE course approval on a form provided by the board. NRS training modules and NRS CPE can be provided in a classroom environment, online, or through distance learning. In addition to the appropriate fee provided in 18VAC15-40-50, the application shall must include:

1. The name of the provider;

2. Provider contact person, address, and telephone number;

3. Module or CPE course contact hours;

4. Schedule of training module or CPE course if established, including dates, times, and locations;

5. Method of delivery;

6. Instructor information, including name, license number, if applicable, and a list of trade-appropriate designations, as well as a professional resume with a summary of teaching experience and subject matter knowledge and qualifications acceptable to the board;

7. Materials to be provided to students;

8. Fees for NRS training module or NRS CPE course and materials; and

9. Training module syllabus.

18VAC15-40-240. New residential structures training module requirements.

A. In order to qualify as an NRS training module under 18VAC15-40-35, the training module must include a minimum of eight contact hours, and the syllabus shall must encompass all of the subject areas set forth in subsection B of this section.

B. The following subject areas as they relate to the Virginia Residential Code shall must be included in all NRS training modules. The time allocated to each subject area must be sufficient to ensure adequate coverage of the subject as determined by the board.

1. Origin of the Virginia Residential Code.

a. Overview of Title 36 of the Code of Virginia.

b. Roles and responsibilities of the Board of Housing and Community Development and the Department of Housing and Community Development.

c. Virginia Uniform Statewide Building Code, Part I (13VAC5-63-10 through 13VAC5-63-390) of 13VAC5-63.

2. Scope of the Virginia Residential Code.

a. Purpose of the Virginia Residential Code.

b. Exemptions from the Virginia Residential Code.

c. Compliance alternatives.

d. Code official discretion in administration and enforcement of the Virginia Residential Code.

e. Process for amending the Virginia Residential Code.

f. Code violations and enforcement.

(1) Statute of limitations.

(2) Effect of violations.

g. Examples of code and non-code violations.

3. Roles of the building code official and the home inspector, including an overview of § 36-105 of the Code of Virginia.

18VAC15-40-250. New residential structures training modules and new residential structures continuing professional education requirements.

In order to qualify for NRS CPE for the renewal of home inspector licenses with the NRS specialty, the NRS CPE must include a minimum of four contact hours and the syllabus shall must encompass all of the topic areas listed in 18VAC15-40-240 for an NRS training module.

18VAC15-40-260. Documentation of prelicense education courses, new residential structures training modules, and new residential structures continuing professional education completion requirements.

All prelicense education course, NRS training module, and NRS CPE providers must provide each student who successfully completes the course or training module with a certificate of completion or other documentation that the student may use as proof of course or training module completion. Such documentation shall must contain the contact hours completed, the date of training, and the course identification number assigned by the board.

18VAC15-40-270. Maintenance of records.

All providers of approved prelicense education courses, NRS training modules, or NRS CPE courses must establish and maintain a record for each student. The record shall must include the student's name and address, the training module or course name and hours attended, the training module or course syllabus or outline, the name or names of the instructors, the date of successful completion, and the board's approved training module or course identification number. Records shall must be available for inspection during normal business hours by authorized representatives of the board. Providers must maintain these records for a minimum of five years.

FORMS (18VAC15-40)

Home Inspector License Application, A506-3380LIC-v4 (eff. 12/2021)

Home Inspector NRS Specialty Designation Application, A506-3380NRS-v1 (eff. 7/2017)

Home Inspector Experience Verification Form, A506-3380EXP-v7 (eff. 9/2017)

Home Inspectors – Inspection Log, A506-3380ILOG-v1 (eff. 9/2017)

Home Inspector Reinstatement Application, A506-3380REI-v4 (eff. 2/2022)

Home Inspector - Course Approval Application, Prelicense Education Course/NRS Training Module/NRS CPE, A506-3331HICRS-v3 (eff. 2/2020)

Home Inspector License Application, A506-3380LIC-v4 (eff. 7/2022)

Home Inspector Qualifying Experience Verification Form, A506-3380EXP-v8 (eff. 7/2022)

Home Inspectors - Inspection Log, A506-3380ILOG-v2 (eff. 7/2022)

Home Inspector NRS Specialty Designation Application, A506-3380NRS-v2 (eff. 7/2022)

Home Inspector Renewal/Reinstatement Application, A506-3380REN_REI-v1 (eff. 7/2022)

Home Inspector - Course Approval Application, Prelicense Education Course, NRS Training Module, or NRS CPE, A506-3331HICRS-vs4 (eff. 7/2022)