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Newsletter,  December 21, 2005

Home Inspectors Urged To Apply Before Dec. 31 

"Method 3" Applications Are Getting A Second Look

As most home inspectors know by now, there are three "Methods" that can be used when applying for a grand parented home inspector license.  Most experienced inspectors will qualify under either Method 1 or Method 2.

Method 3 was included in the law to allow a legitimate home inspector who, for whatever reason, does not meet the requirements of the first two methods to obtain a license if he/she has  "Education and experience equivalent to either Method 1 or 2 under the grandparenting clause".

We were therefore disappointed when told by the Department of State last month that they did not anticipate issuing any licenses under Method 3.  This decision threatened to lock out many well qualified, experienced inspectors from their profession. 

 Our lobbyist, Jim McCulley of McCulley and Associates has been working on this issue for weeks and is pleased to announce that the Department of State is aware of this issue and that their intent now is to review Method 3 applications on a case by case basis.  We have been told that all legitimately qualified inspectors will receive their license. 

Mr. McCulley urges all home inspectors to get their application in before Dec. 31.  If applying under Method 3 he suggests that you submit as detailed a portfolio as you can to make your case for a license.  Examples of information that should be included are a list of inspections you have completed, training you have received and experience that you have had in other fields.

We have also been told that applicants that are denied a license will "receive credit" for the training and experience they have.   These applicants will be told what additional training is required to obtain a license in their cases. 

There is also an expedited appeal process for inspectors that have been denied a license.  We expect that during the appeal the inspector will be able to make his/her case for a license.  However, the guidelines for this process have not been released.  The standards for equivalency have yet to be formalized and applications will be considered on a case by case basis.  We recommend that inspectors that have been denied contact the Department of State ASAP and ask for an appeal.

The license application process has been a bit of a rocky road to date, but hopefully these new policies will eliminate some of our most immediate concerns.

Best wishes for the holiday season and the new year
(and GET THOSE APPLICATIONS IN!!),
Gregg Harwood, NYSAHI president, 2006-07

Applications are available on line in PDF format at: http://www.dos.state.ny.us/lcns/homemain.htm

Realtors Advised to Check for Licenses

The following article appeared in the December issue of the Greater Binghamton Association of Realtors newsletter.  Reprinted by permission.

REALTORS® RESPONSIBILITY WITH THE NEW HOME INSPECTOR LICENSING

Per NYSARs legal counsel it has become REALTORS® responsibility to know who is a Licensed Home Inspector. Please read the following:

According to the New York State Department of State, “Real estate licensees will be expected to know that home inspectors must be licensed. Accordingly, they will have an obligation to ensure that the names of home inspectors that are provided must be licensed. Failure to do so will be viewed as a demonstration of untrustworthiness or incompetence, which is grounds for disciplinary action under Article 12-A.” Also, DOS has stated that a real estate licensee can check the names of licensed home inspectors on the DOS website, by calling DOS at 518-474-4429, and by asking to see the home inspector's license. It should be noted that these are the same methods used to determine if a broker or salesperson is licensed.

Therefore, it is the obligation of a real estate licensee to provide the names of licensed home inspectors to customers, clients, sellers or purchasers. If it is found that a real estate licensee is providing the names of individuals who are not licensed or fall under one of the other categories enumerated under §444-d, the real estate licensee is at risk of disciplinary action by the Department of State. Such disciplinary action may be as extreme as suspension or revocation of the individual’s broker or salespersons license.

As can be seen, any individual who claims to be able to inspect a home for compensation must be licensed (unless that person is an architect, engineer or code enforcement official pursuant to §444-d). Therefore, there are now additional obligations of a real estate licensee when providing the names of home inspectors to customers, clients, sellers or purchasers.

If there are any questions concerning this issue, please feel free to contact the NYSAR Legal Department.

Stay Informed

Newsletter,  November 14, 2005

Home Inspector License Applications Now Available. 

The Department of State has recently announced the release of the Home Inspector License Applications.  Applications are available on line in PDF format at: http://www.dos.state.ny.us/lcns/homemain.htm

You can also call the licensing services department at the DOS at the following customer service numbers:

Fax a request to (518) 473-6648

E&O Insurance Is Not Required

Inspectors that have already received their license application packets will notice that general liability insurance coverage is required but Errors and Omission insurance (E&O) is not.  This is a direct result of NYSAHI working on your behalf. 

The staff at the Department of State had originally misinterpreted the licensing law and were putting rules in place to require E&O.  Through repeated contacts we were able to clarify the original intend of the law and had the insurance rule corrected. 

Inspectors know that the primary purpose of E&O is to protect the inspector's assets, not to provide insurance coverage for their clients.  Inspectors are now free to choose to have E&O insurance or not and will make that decision themselves as part of their business planning.

License Application Hints

Two representatives from the Department of State Licensing Division were guests at the NYSAHI annual board meeting held in Albany on November 10th.  The face to face meeting and exchange of information was helpful to both sides at this time of change. 

The following hints on filling out the license application came out of that meeting.  Of course, if you have any questions while filling out the application you should call the customer service numbers above.

NYSAHI has another meeting with the DOS this week to discuss the licensing exam. 

1. As of Dec. 31, 2005 performing a home inspection without a valid license will be illegal.  Home inspectors are urged to send in their completed license applications.  Inspecting without a license on or after that date is grounds for denial of an application or revoking an inspector's license.
    

2. To date, most home inspector license applications have been returned to the inspectors due to being either improperly filled out or incomplete.  The most common error is not signing the bottom of each page of the "Grandparenting Log". 
    

3. The "Grandparenting Log" does not have to be filled out by hand.  A computer generated log of your inspections is acceptable as long as it is in the exact format as the DOS has used and each page contains the applicants signature and the statement that the information is true, as found at the footer of the Grandparenting Log included with the application packet.   The following text must be included and signed on each page:
   I certify that the information given on this log is true to the best of my knowledge and belief. I understand that any material misstatement made may result in the revocation or suspension of any license/certification issued.
   Applicant’s Signature/Date_________________
    

4. The DOS will verify the grandparenting log by requesting copies of a number of the inspections listed on your grandparenting log.  This may be done next year, after the license has been granted.  Do not send in inspections with your application.  However, you should make sure your application is accurate.  Cancelled inspections and services that were not home inspections should not appear on this list.  Remember, there is now a legal definition of  the term "Home Inspection" in NYS.  A home inspection is an inspection of a residential building defined as "... a structure consisting of 1 to 4 dwelling units and their garages and carports, but shall not include any such structure newly constructed or not previously occupied as a dwelling unit."  Therefore, you should not include inspections of new construction, apartment buildings with more than 4 units, or commercial structures in your log.
    

5. New home inspectors that do not qualify for a license using "Method 1, 2 or 3" should enroll in a school to receive their training ASAP to avoid being out of business too long at the first of the year.  The DOS is now accepting applications from schools that want to provide the training.

Where is the Home Inspector Advisory Board?

As of this posting, the members of the Home Inspector Advisory Board have not yet been appointed by the Governor, Senate and Assembly. 

The licensing law provides for a Home Inspector Advisory Council to advise the Secretary of the Department of State in the administration of the licensing law.  However, our lobbyist, Jim McCulley, explains that the DOS can proceed in the absence of a Council by making  "emergency regulations".  This process allows the DOS to have the licensing in place by December 31, 2005 as dictated by the law. 

Once an Advisory Council has been named and has met, we expect most of the emergency rules to be published for public comment before being made final.

The DOS had asked NYSAHI for input on the licensing provisions during this emergency rule making process and prior to release of the applications.  We therefore have been able to educate the Department about our profession and to provide guidance.  We will continue to monitor the progress of the rule making and provide input on your behalf through face to face meetings,  phone conversations and your lobbyist.

Item:  While the Home Inspector Professional Licensing Act has been passed, it will not take effect until the rules process is complete.  The Department of State must set up the regulatory apparatus to maintain and enforce the law.  The likely date of full implementation is January of 2006. 

Item:  The Home Inspector Professional Licensing Act was passed contingent upon the successful passage of a bill to amend some provisions of the Licensing Act.  This bill, called a Chapter Amendment was required by the Governor for his signature on the Licensing Act, and primarily involves "housekeeping" changes regarding enforcement of the new law.  There are a few issues in the amendment that concern NYSAHI, primarily regarding the composition of the advisory council.  Until the amendment passes, the implementation of the rules development process will not begin. 

Item:  The NYSAHI Board met in Albany in early November for the annual meeting and to elect its officers for 2005.  The Board continues its mission to represent the home inspection profession in New York State and encourages broad participation.  The annual budget is very similar to 2004 with no major changes anticipated.  Expenses for lobbying and communications with our members remain necessary and equivalent to last year.

January, 2005 Newsletter

The 2005 legislative session is now underway. 

Bills are being introduced and sent to committees.

The following two bills are the "chapter amendments" that Governor Pataki sent back when he signed the inspector licensing act last year:

 A01264 Modifies various provisions governing the licensing of home inspection professionals; fees for exams, powers and duties of secretary of state to enforce

 S00160 Modifies various provisions governing the licensing of home inspection professionals; fees for exams, powers and duties of secretary of state to enforce

The following five bills may be of interest to home inspectors.  These bills have also been introduced in past sessions.  Since these bills have only been introduced in one side of the legislature, they cannot move forward at this time.

A00225 Requires sellers of residential real property to disclose result of radon tests for all houses offered for sale, exchange, or for lease with option to buy

A01460 Requires inspection of certain septic systems

S00475 Relates to establishing private well water testing requirements for the sale of real property

A00777 Requires dangerous or unsafe structural conditions in structures in New York city to be reported upon knowledge by owners, agents, employees, and engineers

A01108 Relates to the remediation and prevention of indoor mold and requiring the disclosure of indoor mold history upon the sale of certain real property

Health Department Has Issued New Regulations Concerning Radon Testers

During the past few years the New York State Department of Health (DOH) has been discussing proposed changes to the New York State ELAP regulations (Environmental Laboratory Approval Program).  In late December the DOH sent notice to radon testers that these regulations have now been finalized and put into effect.

The following notice has been mailed by the DOH:  "As of November 2004 ELAP requires all companies utilizing a continuous monitor to measure radon, with results not analyzed by an external laboratory, to obtain ELAP certification.  Attached you will find a copy of the new ELAP regulations (10 NYCRR subpart 55-2.10 m).  Please call Dan Dickinson at 518-485-5570 or email ELAP@health.state.ny.us for further details."

Prior to this announcement, while ELAP certification was required of radon testers that analyze their own equipment, this regulation did not seem to be enforced. 

Up until last year ELAP certification was out of the reach of most home inspectors since the regulations required that the lab director have a bachelor of science degree.  These regulations were relaxed somewhat last year when the educational requirements were lower to two years of college education and one year of radon testing experience. 

The regulations that have now been put into affect have relaxed the education/experience requirements once again.  Radon lab director education requirements have been reduced to a high school diploma, completion of a training course on the use of the monitor and six month's supervision. 

In addition, there is a "grandfathering" provision for inspectors that are presently functioning as lab directors.

During a telephone conversation, the DOH's Dan Dickinson said that he has had about a dozen calls concerning the new regulations.  The DOH will consider the inspector's experience when processing applications.  .. 

Enforcement will be by the Regulatory Affairs Unit.  This department routinely visits labs and others that may be performing environmental testing and also responds to complaints.  Mr. Dickinson expressed a desire to work with inspectors to help bring them into the program.  However, civil and criminal penalties can be assessed for non-compliance. 

The following is the text of the revised regulation:

"(m) A technical director of an approved laboratory engaged in determination of radon in air shall meet the following requirements:

(1)   An associate's degree in the physical sciences, or two (2) years of equivalent and successful college education, and one year of experience in radiochemical measurements, including at least six (6) months of experience in measurement of radon and/or radon progeny.

(2)   For radon determinations using a direct continuous monitoring device, as in on-site measurement of residential radon levels, at least a high school diploma or high school equivalency diploma, and certification of successful completion of a training course in operation of the instrument, as well as six (6) months of experience, under supervision, in use of the instrument.

(n)   A person who meets the experience requirements but not the educational and/or credential requirements of this Subpart, and is functioning in a technical directors capacity on the date the laboratory becomes subject to these regulations, shall qualify as technical director of that laboratory, or any other laboratory approved by the department and performing similar analyses, provided such person can demonstrate the ability to comply with the proficiency testing and quality system requirements of this Subpart."

New Wood Destroying Insect Report

Home inspectors that perform HUD-type Wood destroying insect reports should know that the old form, NPCA-1 is now obsolete.  Lenders are requiring the new NPMA-33 form for wood destroying insect reports beginning Jan. 1, 2005. 

The new form is on three-part letter sized carbonless paper.  In addition to the change in size, some significant changes have been made in the text of the form itself.   

Following are some of the changes to the form:

* The form is streamlined (in an effort to clarify language for the homeowner)

* No "indeterminable" box in the "Inspection Findings" section.  "The choices are now either "No visible evidence of  wood destroying insects was observed" or Visible evidence of wood destroying insects was observed".

There has been a clarification of when to recommend treatment for termites as follows:

Termite control treatment should be recommended:

Whenever live termites are observed (regardless of whether or not the structure has been previously treated).

When there is evidence of termites (other than live insects) observed in, on, or within a structure and no evidence of a previous treatment.

A treatment may also be recommended for a previously treated structure(s) showing signs of infestation - but no live insects - if there is no treatment documentation provided to the inspector prior to completing the report. Documentation must be a service record of a liquid soil termite treatment within the past five (5) years by a licensed pest control company or proof that the structure(s) is presently covered by a warranty or service contract with a licensed pest control company. The warranty or service agreement may also include a baiting program. If there is no treatment documentation presented to the inspector, then the inspector would recommend treatment for subterranean termites indicating on the report, "unless there is documentation of a previous liquid treatment within the past five years or unless a service agreement is current" or similar language. If a baiting system is installed but the inspector does not know whether the contract is current, the inspector may recommended a treatment for subterranean termites and should also note "unless there is a current baiting system service agreement in effect" or similar language. If any

documentation is presented after the report is completed, the inspector should not change the report but rather advise that documentation be provided to the lender or appropriate parties.

* Added "recommendation" section so that lenders, real estate agents and customers can receive suggestions from the inspector

* Ladders are not required to be used for inspections, Inspections in attics are only required if there is a walk-up attic or pull-down stairs to the attic

* "Inaccessible" may include less 24-inch clearance from bottom of joists to the crawl floor.

* Three conditions have been added to the "Obstructions" list: Rigid foam insulation, Synthetic stucco, and Ductwork, plumbing and /or wiring.

Additional information and/or copies of the new forms is available at :

http://www.pestworld.com

http://www.cbsforms.com

http://www.hudclips.org/sub_nonhud/html/pdfforms/npma-33.pdf

1. Review of the "Chapter Amendments" and providing input as necessary.
2. Monitoring for any attempts to modify the Home Inspector Professional Licensing Law.
3. Providing input to the Department of State as they create the rules and regulation and begin implementation of the law.
4. Monitoring legislation that would affect our member inspector businesses.  Legislation is continually monitored for key words such as radon testing, water testing and septic testing.