By: Richard L. Oller, Esq.
Practically all contracts for the purchase of a home include the ability of the buyer to have the home inspected before completing the purchase. Most home-buyers do not have the level of expertise necessary to allow them to walk through a house and determine whether it is constructed properly, whether all the systems are working or whether there are defects that could impact their future life in the house or require further expenditures after they have purchased the house. In an effort to prevent unqualified inspectors from marketing themselves to home-buyers, and to assure that the inspectors have a level of responsibility, the New Jersey legislature has adopted laws requiring home inspectors to be licensed and to maintain financial responsibility for the home-buyers who are relying upon them to provide a thorough and accurate description of any problems, defects or limitations that may exist in the house being purchased. The legislation was designed to address certain problems with home inspections, including poorly trained home inspectors, home inspection companies that failed to carry insurance to protect consumers from negligently performed home inspections, and home inspection companies that hire unqualified inspectors. N.J.S.A. 45:8-61.
How can consumers insure that a home inspector is properly licensed?
When hiring a home inspector, a consumer should simply ask whether they are properly licensed and ask to see a copy of their license certificate.
What can you expect from a licensed home inspector?
A home inspector with a current and valid license will be deemed to meet the following qualifications:
- Good moral character;
- A high school education or equivalent;
- Being engaged as a licensed associate home inspector for not less than one year and having performed not less than 250 home inspections for compensation; and
- Passed the national home inspection exam administered by the Examination Board of Professional Home Inspectors (EBPHI) or the exam offered by the American Society of Home Inspectors (ASHI).
With regard to insurance requirements, a licensed home inspector must maintain and file with the State proof of a certificate of an errors and omissions insurance policy which should be in the minimum amount of $500,000 per occurrence. The insurance certificate guarantees that there is insurance coverage for you in the event that your home inspector is negligent in the performance of the home inspection. In other words, in the event your home inspector commits errors and/or omissions in the way the home inspection was conducted and in the resulting conclusions, there may be insurance coverage to cover your loss.
Is there a time limitation on suing a licensed home inspector?
Yes. An action for an error or omission in the performance of a home inspection contract must be commenced within four years of the date of the home inspection.