Chapter 9.3Home Inspectors

Section § 7195

Explanation

This section explains what is meant by a 'home inspection' for residential properties in California. A home inspection involves checking the mechanical, electrical, and plumbing systems, as well as other crucial parts of a home, to spot any major issues. If a property has a pool or spa, the inspection must assess pools for specific safety features. The inspector can also evaluate the home's energy efficiency if the client requests it. A 'material defect' is anything that can seriously impact a home's value or safety, not just its looks. After an inspection, a written report is created detailing the findings. The use of inspectors and the kinds of property transfers involving these inspections are also defined.

For purposes of this chapter, the following definitions apply:
(a)Copy CA Business and Professions Code § 7195(a)
(1)Copy CA Business and Professions Code § 7195(a)(1) “Home inspection” is a noninvasive, physical examination, performed for a fee in connection with a transfer, as defined in subdivision (e), of real property, of the mechanical, electrical, or plumbing systems or the structural and essential components of a residential dwelling of one to four units designed to identify material defects in those systems, structures, and components. “Home inspection” includes any consultation regarding the property that is represented to be a home inspection or any confusingly similar term.
(2)CA Business and Professions Code § 7195(a)(2) In connection with the transfer, as defined in subdivision (e), of real property with a swimming pool or spa, an appropriate inspection shall include a noninvasive physical examination of the pool or spa and dwelling for the purpose of identifying which, if any, of the seven drowning prevention safety features listed in subdivision (a) of Section 115922 of the Health and Safety Code the pool or spa is equipped, in good repair, operable as designed, and, if applicable, appropriately labeled, as required by Section 115922 of the Health and Safety Code. This paragraph does not require a determination as to whether a pool safety feature meets the ASTM International and American Society of Mechanical Engineers specifications referenced in Section 115922 of the Health and Safety Code.
(3)CA Business and Professions Code § 7195(a)(3) “Home inspection,” if requested by the client, may include an inspection of energy efficiency. Energy efficiency items to be inspected may include the following:
(A)CA Business and Professions Code § 7195(a)(3)(A) A noninvasive inspection of insulation R-values in attics, roofs, walls, floors, and ducts.
(B)CA Business and Professions Code § 7195(a)(3)(B) The number of window glass panes and frame types.
(C)CA Business and Professions Code § 7195(a)(3)(C) The heating and cooling equipment and water heating systems.
(D)CA Business and Professions Code § 7195(a)(3)(D) The age and fuel type of major appliances.
(E)CA Business and Professions Code § 7195(a)(3)(E) The exhaust and cooling fans.
(F)CA Business and Professions Code § 7195(a)(3)(F) The type of thermostat and other systems.
(G)CA Business and Professions Code § 7195(a)(3)(G) The general integrity and potential leakage areas of walls, window areas, doors, and duct systems.
(H)CA Business and Professions Code § 7195(a)(3)(H) The solar control efficiency of existing windows.
(b)CA Business and Professions Code § 7195(b) A “material defect” is a condition that significantly affects the value, desirability, habitability, or safety of the dwelling. Style or aesthetics shall not be considered in determining whether a system, structure, or component is defective.
(c)CA Business and Professions Code § 7195(c) A “home inspection report” is a written report prepared for a fee and issued after a home inspection. The report clearly describes and identifies the inspected systems, structures, or components of the dwelling, any material defects identified, and any recommendations regarding the conditions observed or recommendations for evaluation by appropriate persons. In a dwelling with a pool or spa, the report shall identify which, if any, of the seven drowning prevention safety features listed in subdivision (a) of Section 115922 of the Health and Safety Code the pool or spa is equipped with and shall specifically state if the pool or spa has fewer than two of the listed drowning prevention safety features, and whether those features are in place, in good repair, operable as designed, and, if applicable, appropriately labeled, as required by Section 115922 of the Health and Safety Code. The report shall also include a written statement that a pool isolation fence, as described in Section 115923 of the Health and Safety Code, is the most studied and effective drowning prevention safety feature for preventing a child from accessing a pool or spa unsupervised, according to the American Academy of Pediatrics Policy Statement, “Prevention of Drowning,” published in 2019. This subdivision does not require a determination as to whether a pool safety feature meets the ASTM International and American Society of Mechanical Engineers specifications referenced in Section 115922 of the Health and Safety Code.
(d)CA Business and Professions Code § 7195(d) A “home inspector” is any individual who performs a home inspection.
(e)CA Business and Professions Code § 7195(e) “Transfer” is a transfer by sale, exchange, installment land sales contract, as defined in Section 2985 of the Civil Code, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements, of real property or residential stock cooperative, improved with or consisting of not less than one nor more than four dwelling units.
home inspection material defects energy efficiency drowning prevention safety features inspection report pool safety structural components residential dwelling mechanical systems plumbing systems transfer by sale real property transfer home inspector swimming pool inspection pool isolation fence
(Amended by Stats. 2024, Ch. 769, Sec. 2. (SB 552) Effective January 1, 2025.)

Section § 7195.5

Explanation

This law allows home inspection reports to include an optional inspection of landscape irrigation systems if the homeowner or occupant controls them. The inspection should look for defects and issues like spray mishaps or water pooling. Inspectors and homeowners won't be penalized for running the irrigation system during the inspection. Inspectors are also encouraged to share info on water-efficient systems. If funding is available, the Department of Water Resources will track how many of these inspections happen yearly. They will work with other agencies to update the California Water Plan with this data.

(a)CA Business and Professions Code § 7195.5(a) For purposes of improving landscape water use and irrigation efficiency, a home inspection report on a dwelling unit prepared pursuant to this chapter on a parcel containing an in-ground landscape irrigation system, the operation of which is under the exclusive control of the owner or occupant of the dwelling, may include an irrigation system inspection report, prepared by either a home inspector or certified landscape irrigation auditor, that contains all of the following:
(1)CA Business and Professions Code § 7195.5(a)(1) Examination of the irrigation system controller, if present, noting observable defects in installation or operation, or both.
(2)CA Business and Professions Code § 7195.5(a)(2) Activation of each zone or circuit providing irrigation water to turf grass, noting malfunctions observed in the operation of each of the following:
(A)CA Business and Professions Code § 7195.5(a)(2)(A) The irrigation valve.
(B)CA Business and Professions Code § 7195.5(a)(2)(B) Visible irrigation supply piping.
(C)CA Business and Professions Code § 7195.5(a)(2)(C) Sprinkler heads and stems.
(3)CA Business and Professions Code § 7195.5(a)(3) During activation of the system pursuant to paragraph (2), observation of any of the following during the period of operation, in minutes, specified in the report:
(A)CA Business and Professions Code § 7195.5(a)(3)(A) Irrigation spray being directed to hardscape.
(B)CA Business and Professions Code § 7195.5(a)(3)(B) Irrigation water leaving the irrigated area as surface runoff.
(C)CA Business and Professions Code § 7195.5(a)(3)(C) Ponding of irrigation water on the surface of the irrigated area.
(4)CA Business and Professions Code § 7195.5(a)(4) Notation whether inspection is limited due to snow, ice, or other site conditions that impede an inspection.
(b)CA Business and Professions Code § 7195.5(b) Notwithstanding any other law, a sanction or penalty regarding prohibited hours, days, or effects of operation of a landscape irrigation system shall not be levied upon either the home inspector, the landscape irrigation auditor, the occupant, or the owner of a property by any state or local agency or water purveyor as a consequence of the operation of a landscape irrigation system for the purpose of an irrigation system inspection carried out under this section.
(c)CA Business and Professions Code § 7195.5(c) A home inspector is encouraged to provide information or access to information regarding water-efficient landscape irrigation systems within the home inspection report.
(d)CA Business and Professions Code § 7195.5(d) To the extent funds are available, the Department of Water Resources, in consultation with the California Real Estate Inspection Association and the Department of Housing and Community Development, shall compile an estimate of the number of properties for which an irrigation system inspection report has been prepared each year, beginning with 2018, for inclusion in an update to the California Water Plan.
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(Added by Stats. 2018, Ch. 867, Sec. 3. (AB 2371) Effective January 1, 2019.)

Section § 7195.7

Explanation

Home inspectors are not allowed to provide an estimate of what a property is worth.

A home inspector shall not give an opinion of valuation on a property.
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(Added by Stats. 2019, Ch. 267, Sec. 1. (AB 1018) Effective January 1, 2020.)

Section § 7196

Explanation

If a home inspector is not officially licensed or registered in certain professional categories, like general contracting or engineering, they must perform home inspections with the same level of care as any careful and competent home inspector would.

It is the duty of a home inspector who is not licensed as a general contractor, structural pest control operator, or architect, or registered as a professional engineer to conduct a home inspection with the degree of care that a reasonably prudent home inspector would exercise.
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(Added by Stats. 1996, Ch. 338, Sec. 2. Effective January 1, 1997.)

Section § 7196.1

Explanation

This law clarifies what home inspectors, engineers, and real estate professionals can and cannot do in California. Home inspectors who aren’t registered engineers can't perform engineering tasks like analyzing the structural integrity of a building. This rule doesn’t apply to registered engineers, surveyors, or architects working under their licenses. It also ensures real estate agents still have their responsibilities under existing laws. Additionally, real estate appraisers cannot act as home inspectors during an appraisal unless standards demand it.

(a)CA Business and Professions Code § 7196.1(a) Nothing in this chapter shall be construed to allow home inspectors who are not registered engineers to perform any analysis of the systems, components, or structural integrity of a dwelling that would constitute the practice of civil, electrical, or mechanical engineering, or to exempt a home inspector from Chapter 3 (commencing with Section 5500), Chapter 7 (commencing with Section 6700), Chapter 9 (commencing with Section 7000), Chapter 14 (commencing with Section 8500) of Division 3, or Part 3 (commencing with Section 11300) of Division 4.
(b)CA Business and Professions Code § 7196.1(b) This chapter does not apply to a registered engineer, licensed land surveyor, or licensed architect acting pursuant to their professional registration or license, nor does it affect the obligations of a real estate licensee or transferor under Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 3 of Division 2 of, or Article 2 (commencing with Section 2079) of Chapter 3 of Title 6 of Part 4 of Division 3 of, the Civil Code.
(c)CA Business and Professions Code § 7196.1(c) Except as required to comply with standards set forth in law or regulation, a real estate appraiser licensed under Part 3 (commencing with Section 11300) of Division 4, performing a real estate appraisal, shall not engage in the activity of a home inspector performing a home inspection.
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(Amended by Stats. 2019, Ch. 267, Sec. 2. (AB 1018) Effective January 1, 2020.)

Section § 7196.2

Explanation

This law requires home inspectors to report any yellow corrugated stainless steel tubing (CSST) they see during an inspection and to include a specific warning in their report. The warning should state that this type of tubing is considered safer when correctly bonded and grounded, which must be verified by a licensed electrical contractor. The law further clarifies that CSST is a flexible pipe used for natural gas and propane in various buildings. Compliance with these requirements is judged according to the standard care outlined earlier in Section 7196.

(a)CA Business and Professions Code § 7196.2(a) If a home inspector observes any shade of yellow corrugated stainless steel tubing during a home inspection, the home inspector shall include that observation, and the following notification, in the home inspection report:
“Manufacturers of yellow corrugated stainless steel tubing believe that yellow corrugated stainless steel tubing is safer if properly bonded and grounded as required by the manufacturer’s installation instructions. Proper bonding and grounding of this product can only be determined by a licensed electrical contractor.”
(b)CA Business and Professions Code § 7196.2(b) For purposes of this section, “corrugated stainless steel tubing” means a flexible, stainless steel pipe used to supply natural gas and propane in residential, commercial, and industrial structures.
(c)CA Business and Professions Code § 7196.2(c) The degree of care specified in Section 7196 shall be used in determining whether a home inspector has complied with the requirements of subdivision (a).
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(Added by Stats. 2018, Ch. 225, Sec. 2. (SB 988) Effective January 1, 2019.)

Section § 7197

Explanation

This law makes it an unfair business practice for a home inspector or their company to perform certain actions that could create conflicts of interest or unethical situations. Inspectors can't charge extra to fix things they noted in their inspection report within the last year. They also can't inspect properties they have a financial stake in or give rewards for business referrals. Inspection fees shouldn't depend on the inspection outcomes. However, specific exemptions exist for roofing and plumbing contractors, provided they inform consumers and follow certain procedures. Roofers and plumbing contractors can perform repairs if different employees handle inspections and repairs and consumers are fully informed.

(a)CA Business and Professions Code § 7197(a) It is an unfair business practice for a home inspector, a company that employs the inspector, or a company that is controlled by a company that also has a financial interest in a company employing a home inspector, to do any of the following:
(1)CA Business and Professions Code § 7197(a)(1) To perform or offer to perform, for an additional fee, any repairs to a structure on which the inspector, or the inspector’s company, has prepared a home inspection report in the past 12 months.
(2)CA Business and Professions Code § 7197(a)(2) Inspect for a fee any property in which the inspector, or the inspector’s company, has any financial interest or any interest in the transfer of the property.
(3)CA Business and Professions Code § 7197(a)(3) To offer or deliver any compensation, inducement, or reward to the owner of the inspected property, the broker, or agent, for the referral of any business to the inspector or the inspection company.
(4)CA Business and Professions Code § 7197(a)(4) Accept an engagement to make an inspection or to prepare a report in which the employment itself or the fee payable for the inspection is contingent upon the conclusions in the report, preestablished findings, or the close of escrow.
(b)CA Business and Professions Code § 7197(b) A home protection company that is affiliated with or that retains the home inspector does not violate this section if it performs repairs pursuant to claims made under the home protection contract.
(c)CA Business and Professions Code § 7197(c) This section shall not affect the ability of a structural pest control operator to perform repairs pursuant to Section 8505 as a result of a structural pest control inspection.
(d)CA Business and Professions Code § 7197(d) Paragraph (1) of subdivision (a) shall not affect the ability of a roofing contractor who holds a C-39 license, as defined in Section 832.39 of Title 16 of the California Code of Regulations, to perform repairs pursuant to the contractor’s inspection of a roof for the specific purpose of providing a roof certification if all of the following conditions are met:
(1)CA Business and Professions Code § 7197(d)(1) Different employees perform the home inspection and the roof inspection.
(2)CA Business and Professions Code § 7197(d)(2) The roof inspection is ordered prior to, or at the same time as, the home inspection, or the roof inspection is completed before the commencement of the home inspection.
(3)CA Business and Professions Code § 7197(d)(3) The consumer is provided a consumer disclosure before the consumer authorizes the home inspection that includes all of the following:
(A)CA Business and Professions Code § 7197(d)(3)(A) The same company that performs the roof inspection and roof repairs will perform the home inspection on the same property.
(B)CA Business and Professions Code § 7197(d)(3)(B) Any repairs that are authorized by the consumer are for the repairs identified in the roofing contractor’s roof inspection report and no repairs identified in the home inspection are authorized or allowed as specified in the roof inspection.
(C)CA Business and Professions Code § 7197(d)(3)(C) The consumer has the right to seek a second opinion.
(4)CA Business and Professions Code § 7197(d)(4) For purposes of this subdivision, “roof certification” means a written statement by a licensed C-39 Roofing Contractor who has performed a roof inspection, made any necessary repairs, and warrants that the roof is free of leaks at the time that the certification is issued and should perform as designed for the specified term of the certification.
(e)CA Business and Professions Code § 7197(e) Paragraph (1) of subdivision (a) shall not affect the ability of a plumbing contractor who holds a C-36 license, as defined in Section 832.36 of Title 16 of the California Code of Regulations, to perform repairs pursuant to the inspection of a sewer lateral pipe connecting a residence or business to a sewer system if the consumer is provided a consumer disclosure before the consumer authorizes the home inspection that includes all of the following notifications:
(1)CA Business and Professions Code § 7197(e)(1) The same company that performs the sewer lateral inspection and the sewer lateral repairs will perform the home inspection on the same property.
(2)CA Business and Professions Code § 7197(e)(2) Any repairs that are authorized by the consumer are for the repairs identified in the sewer lateral inspection report and no repairs identified in the home inspection report are authorized or allowed except as specified in the sewer lateral inspection report.
(3)CA Business and Professions Code § 7197(e)(3) The consumer has the right to seek a second opinion on the sewer lateral inspection.
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(Amended by Stats. 2021, Ch. 545, Sec. 1. (SB 484) Effective January 1, 2022.)

Section § 7198

Explanation

This law states that any contract clauses trying to waive a home inspector's responsibilities or limit their liability just to the cost of the inspection report are not allowed. These kinds of clauses go against public policy and are therefore invalid.

Contractual provisions that purport to waive the duty owed pursuant to Section 7196, or limit the liability of the home inspector to the cost of the home inspection report, are contrary to public policy and invalid.
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(Added by Stats. 1996, Ch. 338, Sec. 2. Effective January 1, 1997.)

Section § 7199

Explanation
You have up to four years to file a lawsuit if you believe there was a breach of duty related to a home inspection report.
The time for commencement of a legal action for breach of duty arising from a home inspection report shall not exceed four years from the date of the inspection.
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(Added by Stats. 1996, Ch. 338, Sec. 2. Effective January 1, 1997.)