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CHAPTER 36-21C

HOME INSPECTORS

36-21C-1      Definition of terms.
36-21C-2      Commission to license or register home inspectors.
36-21C-3      Home inspectors to be licensed or registered--Violation as misdemeanor.
36-21C-4      Application for license--Requirements.
36-21C-5      Application for registration--Requirements.
36-21C-6      Promulgation of rules for licensing and registration.
36-21C-7      Exceptions to home inspector licensing requirements.
36-21C-8      Issuing of license to persons licensed elsewhere.
36-21C-9      Initial provisions for licensing experienced home inspectors.
36-21C-10      Expiration and renewal of license or registration--Applications--Penalty for late filing.
36-21C-11      Suspension, revocation, reprimand, or fine for violation of chapter.
36-21C-12      Fees and fines paid to commission fund.
36-21C-13      Grounds for refusing, suspending or revoking license or registration.
36-21C-14      Applicants for licensure and registration and licensees under disciplinary investigation to submit to criminal background check.


     36-21C-1.   Definition of terms. Terms used in this chapter mean:
             (1)      "Client," any person who engages, or seeks to engage, the services of a home inspector for the purpose of obtaining inspection of and written report upon the condition of a residential building;
             (2)      "Commission," the South Dakota Real Estate Commission;
             (3)      "Home inspector," any person registered or licensed as a home inspector pursuant to the provisions of this chapter;
             (4)      "Home inspection," an inspection and written evaluation of all the following components of a residential building: heating system, cooling system, plumbing system, electrical system, structural components, foundation, roof, masonry structure, and exterior and interior components;
             (5)      "Residential building," a structure consisting of not more than four family dwelling units.

Source: SL 2000, ch 194, § 1.


     36-21C-2.   Commission to license or register home inspectors. The commission shall issue and renew certificates to licensed and registered home inspectors pursuant to the provisions of this chapter.

Source: SL 2000, ch 194, § 2.


     36-21C-3.   Home inspectors to be licensed or registered--Violation as misdemeanor. No person may provide, or hold oneself out as able to provide, a home inspection for compensation unless registered or licensed in accordance with the provisions of this chapter. A violation of this section is a Class 1 misdemeanor.

Source: SL 2000, ch 194, § 3.


     36-21C-4.   Application for license--Requirements. An applicant for a license as a home inspector shall file a written application provided by the commission showing that the applicant meets the following requirements:
             (1)      Good moral character;
             (2)      Successful completion of high school or high school equivalency;
             (3)      Employment as a registered home inspector for no less than one year and performance of not less than one hundred home inspections for compensation; and
             (4)      Successful completion of a licensing examination approved by the commission.

Source: SL 2000, ch 194, § 4.


     36-21C-5.   Application for registration--Requirements. An applicant for registration as a home inspector shall file a written application provided by the commission showing that the applicant meets the following requirements:
             (1)      Good moral character;
             (2)      Successful completion of high school or high school equivalency;
             (3)      Successful completion of an approved course of study of not less than forty hours, as prescribed by the commission in rules promulgated pursuant to chapter 1-26; and
             (4)      Successful completion of a registration examination approved by the commission.

Source: SL 2000, ch 194, § 5.


     36-21C-6.   Promulgation of rules for licensing and registration. The commission shall promulgate rules pursuant to chapter 1-26 for licensed and registered home inspectors in the following areas:
             (1)      Standards and requirements for prelicense and continuing education, including qualifications of instructors, procedures for granting a certificate of accreditation, notification of a material change in an approved course offering, suspension, revocation, and denial of course approval, certification of attendance, preregistration, and hours required to renew a license or registration;
             (2)      A code of ethics and standards of practice;
             (3)      Fees for applications, examinations, registration, licensure, and renewals, not to exceed two hundred dollars for application and one hundred dollars for renewal;
             (4)      Procedures and qualifications for application, minimum requirements for examination, procedures for the examination and the administration of the examination, the required score for passing the examination, and procedures for replacement of a license;
             (5)      Procedures for disciplinary proceedings, including requirements for filing a complaint, dismissal of a complaint, informal and formal resolution of a complaint, formal complaint and answer requirements, final action and review, disqualification of a commission member from a hearing, and authorization for per diem and mileage; and
             (6)      Procedures for declaratory rulings, petitions for rules, and contested cases.

Source: SL 2000, ch 194, § 6.


     36-21C-7.   Exceptions to home inspector licensing requirements. The provisions of this chapter do not apply to any of the following persons:
             (1)      Any person who is employed as a code enforcement official by the state or a political subdivision of the state when acting within the scope of that governmental employment;
             (2)      Any person regulated by the state as an architect, professional engineer, electrical contractor, or plumber, who is acting within the scope of practice of the person's profession or occupation;
             (3)      Any real estate broker or salesperson licensed by the state when acting within the scope of that person's license;
             (4)      Any real estate appraiser certified, licensed, or registered by the state when acting within the scope of that person's license;
             (5)      Any person engaged as an insurance adjuster, when acting within the scope of that person's profession; or
             (6)      Any manufactured home dealer who is licensed by the state, when acting within the scope of that person's license.

Source: SL 2000, ch 194, § 7.


     36-21C-8.   Issuing of license to persons licensed elsewhere. Upon payment to the commission of a fee and the submission of a written application provided by the commission, the commission may issue a home inspector license to any person who holds a valid license issued by another state or possession of the United States or the District of Columbia which has standards substantially equivalent to those of this state, as determined by the commission.

Source: SL 2000, ch 194, § 8.


     36-21C-9.   Initial provisions for licensing experienced home inspectors. During the first three hundred sixty-five days after January 1, 2001, the commission shall issue to any person, upon application, a home inspector license, if the applicant meets the requirements of subdivisions 36-21C-4(1), (2), and (4) and has been engaged in the practice of home inspections for compensation for not less than one year prior to January 1, 2001, and has performed not less than one hundred home inspections for compensation.

Source: SL 2000, ch 194, § 9.


     36-21C-10.   Expiration and renewal of license or registration--Applications--Penalty for late filing. Any license or registration expires on December thirty-first of the year following issuance and may be renewed biennially. An application for renewal shall be filed with the commission no later than November thirtieth of the year of expiration. Any renewal application filed after that date is subject to a late renewal penalty of twenty dollars per month or fraction thereof. However, no late renewal may be filed after June thirtieth of the year following the expiration of the registration or license.

Source: SL 2000, ch 194, § 10.


     36-21C-11.   Suspension, revocation, reprimand, or fine for violation of chapter. The commission may suspend, revoke, reprimand, or assess a monetary penalty not to exceed two thousand five hundred dollars, or may provide for a combination or revocation, suspension, reprimand, or monetary penalty, for any violation of this chapter or any administrative rule adopted to administer this chapter.

Source: SL 2000, ch 194, § 11.


     36-21C-12.   Fees and fines paid to commission fund. All fees and any fines imposed by the commission shall be paid to the fund of the commission.

Source: SL 2000, ch 194, § 12.


     36-21C-13.   Grounds for refusing, suspending or revoking license or registration. The commission may refuse to grant or may suspend or revoke a home inspector license or registration upon proof, to the satisfaction of the commission, that the holder has:
             (1)      Disclosed any information concerning the results of the home inspection without the approval of a client or the client's representative;
             (2)      Accepted compensation from more than one interested party for the same service without the written consent of all interested parties;
             (3)      Accepted commissions or allowances, directly or indirectly, from other parties dealing with the holder's client in connection with work for which the holder is responsible;
             (4)      Failed to disclose promptly to a client information about any business interest of the holder which may affect the client in connection with the home inspection; or
             (5)      Been convicted, or pled guilty or nolo contendere before a court of competent jurisdiction in this or any other state, or before any federal court, of a misdemeanor involving moral turpitude or a felony arising under the laws of this state or under the laws of the United States or any other state that would be a misdemeanor involving moral turpitude or a felony under the laws of this state.

Source: SL 2000, ch 194, § 13; SL 2014, ch 183, § 1.


     36-21C-14.   Applicants for licensure and registration and licensees under disciplinary investigation to submit to criminal background check. Each applicant for licensure and registration under this chapter in this state shall submit to a state and federal criminal background investigation by means of fingerprint checks by the Division of Criminal Investigation and the Federal Bureau of Investigation. Upon application, the commission shall submit completed fingerprint cards to the Division of Criminal Investigation. Upon completion of the criminal background check, the Division of Criminal Investigation shall forward to the commission all information obtained as a result of the criminal background check. This information shall be obtained prior to licensure of the applicant. The commission may require a state and federal criminal background check for any licensee who is the subject of a disciplinary investigation by the commission. Failure to submit or cooperate with the criminal background investigation is grounds for denial of an application or may result in revocation of a license. The applicant shall pay for any fees charged for the cost of fingerprinting or the criminal background investigation.

Source: SL 2009, ch 190, § 2.


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