Bill > HB551

This bill, titled the "Home Inspector Licensing Act," establishes a licensing system for home inspectors in New Mexico, overseen by the New Mexico real estate commission (the "commission"). It defines key terms such as "client," "home inspection," and "pre-inspection agreement," which is a written contract between a client and a home inspector outlining the scope of the inspection, compensation, and report delivery date. The commission is empowered to create rules, set ethical standards, issue licenses, establish training and continuing education requirements, and administer fees. A five-member home inspector advisory panel will provide guidance to the commission. The act mandates that home inspectors must use a pre-inspection agreement and provide a written report to clients, explicitly stating that these do not determine compliance with building codes. It also prohibits waiving duties or limiting liability through contracts. The bill requires individuals to be licensed to perform home inspections or use titles like "home inspector," with exemptions for certain licensed professionals and specific roles. To obtain a license, applicants must meet age and residency requirements, undergo background checks, complete specific training hours, pass an exam, and maintain insurance. Licenses are valid for three years and require continuing education for renewal. The commission can issue licenses to inspectors from other states if their requirements are similar, and may establish reciprocity agreements. Licenses can be denied, suspended, or revoked for various reasons, including criminal convictions or misrepresentation. All licensees and their employers must carry errors and omissions and professional liability insurance. The bill also sets various fees for applications, background checks, and licenses, and outlines penalties for unlicensed activity, including misdemeanors and civil fines.