S.C. Home Inspectors Licensing Law

Article 3, Licensing of Home Inspectors

SECTION 40-59-200. When used in this article:
       (1) 'Administrator' means the executive director for the South Carolina Residential Builders Commission provided for under Section 40-59-50.
       (2) 'Commission' means the South Carolina Residential Builders Commission.
       (3) 'Director' means the Director of the Department of Labor, Licensing, and Regulation.
       (4) 'Home Inspection' means the rendering of a written or oral report in exchange for compensation of any sort, regarding the condition of the construction or improvements to a residence, including, but not limited to , structural problems or deterioration, equipment, and systems that are visible and readily accessible. Home inspection does not include a contract or proposal for repair, renovation, or remodeling of the improvements to a residence. The parties to a home inspection may limit or expand the scope of the inspection by agreement.
       (5) 'Home Inspector' means a natural person who, for compensation of any sort, engages in the business of home inspection.
       (6) 'Residence' means a structure, including, but not limited to, condominiums and town houses, intended to be used or in fact used primarily for living quarters which is not over three floors in height and which does not have more than sixteen units.

SECTION 40-59-210. The administrator is authorized to administer the provisions of this article. The administrator shall keep a register of all applicants for a license, including the date of application, the name, qualifications, place of business, and place of residence of the applicant, and the status of the license application. The administrator also shall maintain a roster listing the name, place of business, residence, and business telephone number of each licensed home inspector. A copy of the roster must be available to anyone upon a written request to the commission. The commission may charge a reasonable fee for complying with a request for a roster. The amount of the fee must be established by regulation of the commission.

SECTION 40-59-220. (A) No person may engage in or transact any home inspection business, or hold himself out to the public as a home inspector, or offer to engage in or transact any home inspection business in this State unless the person is licensed by the commission.
       (B) A person already engaged in the business of performing home inspections on the date of this article becomes effective is allowed ninety days from such effective date to comply with the provisions of this article for the purpose of qualifying to perform home inspections.
       (C) No license shall be issued under the provisions of this article to a partnership, association, corporation, firm, or group. However, nothing in this article precludes a licensed home inspector from performing home inspections for or on behalf of a partnership, association, corporation, firm, or group or from entering into contracts or enforcing contracts as a partnership, association, corporation, firm, or group.

SECTION 40-59-230. The provisions of this article do not apply to:
       (A) a person employed by the State of South Carolina or any political subdivision of the State as a coded enforcement official when acting within the scope of that employment;
       (B) a person inspecting a home exclusively for the use of a bank, savings and loan association, or credit union, unless otherwise required by federal law or regulation;
       (C) a person duly licensed, registered, or certified pursuant to Chapter 3 of this title or a person duly licensed as a general contractor pursuant to Chapter 11 of this title or a person duly licensed pursuant to Article 1 of Chapter 59 of this title or a person duly licensed or registered as a professional engineer pursuant to Chapter 22 of this title. Notwithstanding the exemption from licensure under this article, the provisions of this article relating to the conduct of the person in the performance of a home inspection shall apply to such person. Any violation of this article is considered a violation against the person's license and subjects the person to disciplinary action by the licensing board under which the person is duly licensed.

SECTION 40-59-240. (A) A person desiring to be licensed as a home inspector shall make a written application to the commission on forms as the commission prescribes. Upon the submission of a completed application form and the payment of the fee required by the commission, the applicant is entitled to take the home inspector licensing examination as prescribed by the commission. Upon successful completion of the examination, the commission shall issue the applicant a license authorizing the applicant to engage in the business of home inspection in the State. The issuance of a license is evidence that the person named therein is entitled to all the rights and privileges of a licensed home inspector while the license remains active.
       (B) The commission shall promulgate regulations to establish the minimum qualifications and uniform criteria for the granting of a home inspector license.

SECTION 40-59-250. (A) The licensee shall display the license in a manner prescribed by the commission.
       (B) The licensee shall inform the commission of any change in his business or home address.
       (C) The license must be renewed before July first of each year for a period of one year upon payment of the renewal fee and upon compliance with the provisions of this article. If the home inspector has not complied with any provisions of this article during the year, the licensee shall make a new application as in the case of the issuance of an original license.
       (D) The commission may provide for the late renewal of a license upon payment of a late fee in an amount established by regulation of the commission.
       (E) A licensee who does not intend to engage in the business of home inspection for at least one year may request upon written notice to the commission that his license be placed in inactive status. While in inactive status, the person is not subject to payment of any renewal fees and shall not perform home inspections in this State. When the person desires to resume the performance of home inspections, he shall file an application for license renewal, pay the renewal fee, and demonstrate continuing competence as defined by regulation of the commission. If a license has been inactive status for more than three years, the person is required to make a new application as in the case of the issuance of an original license and is required to take and successfully complete the examination.

SECTION 40-59-260. (A) The commission may deny, refuse to renew, or temporarily suspend or revoke a license, or issue a civil penalty under this section, if the licensee or applicant for licensure engages in any of the following conduct:
       (1) making a false or misleading statement in that
       portion of a written report that deals with professional
       qualification or in any testimony concerning professional
       qualifications;
       (2) any act or omission involving dishonesty, fraud,
       or misrepresentation with the intent to substantially
       benefit a home inspector or other person or with the
       intent to substantially injure another person;
       (3) any act of fraud, misrepresentation, or deceit in
       the making of a home inspection;
       (4) payment of a finder's fee or a referral fee to any
       person in connection with an inspection of a residence;
       (5) failure or refusal without good cause to exercise
       reasonable diligence in developing a home inspection
       report, preparing a report, or communicating a report;
       (6) accepting a home inspection assignment when the
       employment itself is contingent upon the home inspector
       reporting a predetermined estimate, analysis, or opinion
       or when the fee to be paid is contingent upon the
       opinion, the conclusions, analysis, or report reached or
       upon the consequences resulting from such assignment;
       (7) the performing of any work or improvement to a
       residence upon which the home inspector performed
       a home inspection within the previous twelve months;
       (8) employment of fraud, deceit, or misrepresentation
       in obtaining or attempting to obtain a license, or
       renewal of it;
       (9) committing an act or acts of malpractice, gross
       negligence, or incompetence in the performance of
       home inspections;
       (10) practicing as a licensed home inspector without
       a current license;
       (11) engaging in conduct that could result in harm
       or injury to the public;
       (12) engaging in any act or practice violative of any
       of the provisions of this article or any regulation
       promulgated by the commission under this article,
       or aiding, abetting, or assisting a person in such violation.
       (B) The commission may impose a civil penalty for violations of any provision of this article, or the regulations promulgated by the board, as follows: for a first violation, a penalty in an amount not to exceed one hundred dollars; for a second violation, a penalty in an amount not to exceed two hundred dollars; and for a third and any subsequent violation, a penalty in an amount not to exceed one thousand dollars. Any civil penalties collected by the commission must be remitted to the State Treasurer for deposit by him in the State's general fund.
       (C) The denial, refusal to renew, or temporary suspension or revocation of a license, or the issuance of a civil penalty under this section, may be ordered by a decision of a majority of the commission after a hearing held in accordance with Article 3, Chapter 23, of Title 1, the Administrative Procedures Act. A decision of the commission to deny, refuse to renew, temporarily suspend a license, revoke a license, or impose a civil penalty is subject to review by an administrative law judge as provided under Article 5, Chapter 23, of Title 1.
       (D) An application may be made to the commission for reinstatement of a revoked license if the revocation has been in effect for at least one year. The license may be granted upon an affirmative vote by a majority of the commission.

SECTION 40-59-265. A home inspector is prohibited from engaging in real estate appraisal activity unless the inspector meets the requirements of Chapter 60 of this title. Further, a home inspector is prohibited from engaging in any real estate activity regulated under Chapter 57 of this title unless the inspector meets the requirements of that chapter.

SECTION 40-59-270. The administrator is authorized to use the powers granted to him pursuant to this chapter to enforce the provisions of this article. A home inspector who is not otherwise exempt from this article who undertakes or attempts to undertake the business of home inspection without first obtaining a valid license or who knowingly presents to, or files with , the commission false information for the purpose of obtaining a license is guilty of a misdemeanor and for the first offense, upon conviction, must be fined not more than one hundred dollars or imprisoned for not more than thirty days, or both. For a second offense, the person, upon conviction, must be fined not more than two hundred dollars or imprisoned for not more than ninety days, or both. For a third and subsequent offense, upon conviction, the person must be fined not more than one thousand dollars or imprisoned not more than one hundred eighty days, or both.
       A home inspector who does not have a license as required by this article may not bring any action either at law or in equity to enforce the provisions of any contract for home inspection which he entered into in violation of this article.
       Whenever it appears to the commission that any home inspector has violated or is about to violate, the provisions of this article, the commission may in its own name petition an administrative law judge as provided under Article 5 of Chapter 23 Title 1 to issue an temporary restraining order enjoining the violation of this article, pending a full hearing to determine whether or not the injunction must be made permanent.

SECTION 40-59-280. The commission is authorized to promulgate regulations to administer the provisions of this article and to establish fees reasonably necessary to cover the costs of administering this article.

SECTION 40-59-290. When an inspection report includes a deficiency that is alleged to be a building codes violation, the inspector is responsible for determining the construction dates and building codes in effect at the time of construction and must conduct the inspection using the building codes in effect at the time of construction.

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