Indiana Home Inspector Licensing Law

Indiana Code · 16 sections

The following is the full text of Indiana’s home inspector licensing law statutes as published in the Indiana Code. For the official version, see the Indiana Legislature.

Ind. Code § 25-20.2-1-1

IC 25-20.2-1-1 Application of article; exclusions

Sec. 1. (a) This article applies to an individual who conducts home inspections for compensation. (b) This article does not apply to the following: (1) An individual who is acting within the scope of the individual's employment as: (A) a code enforcement official for the state or a political subdivision of the state; or (B) a representative of a state or local housing agency or authority acting under the authority of the United States Department of Housing and Urban Development. (2) An individual who is: (A) either: (i) registered as an architect under IC 25-4 ; (ii) registered as a professional engineer under IC 25-31 ; or (iii) licensed as a plumbing contractor or journeyman plumber under IC 25-28.5 ; and (B) acting within the scope of the individual's registration or license. (3) An individual who is licensed under IC 25-34.1 as a real estate broker and is acting within the scope of the individual's license. (4) An individual who is licensed or certified under IC 25-34.1 as a real estate appraiser and is acting within the scope of the individual's license or certificate. (5) An individual who holds a certificate of authority under IC 27-1-27-2 as a public adjuster and is acting within the scope of the individual's certificate. (6) An individual who holds a permit, certificate, or license to: (A) use and apply pesticides; or (B) make diagnostic inspections and reports for wood destroying pests; under IC 15-16-5 and is acting within the scope of the individual's certificate or license. (7) An individual who holds a license from a political subdivision as a tradesperson or home builder and is acting within the scope of the individual's license. As added by P.L.145-2003, SEC.7. Amended by P.L.2-2008, SEC.63; P.L.127-2012, SEC.4.

Ind. Code § 25-20.2-2-6

IC 25-20.2-2-6 "Home inspection"

Sec. 6. "Home inspection" means a visual analysis for the purpose of providing a professional opinion of the condition of a residential dwelling and the dwelling's carports or garages, any reasonably accessible installed components, and the operation of the dwelling's systems, including any controls normally operated by the owner of the dwelling, for the following components: (1) Heating systems. (2) Cooling systems. (3) Electrical systems. (4) Plumbing systems. (5) Structural components. (6) Foundations. (7) Roof coverings. (8) Exterior and interior components. (9) Attic spaces. (10) Basement or crawl space, if any. (11) Any other site aspects that affect the residential dwelling. The term does not include a code compliance inspection. As added by P.L.145-2003, SEC.7. Amended by P.L.163-2014, SEC.1.

Ind. Code § 25-20.2-2-7

IC 25-20.2-2-7 "Home inspection report"

Sec. 7. "Home inspection report" means a legibly written report prepared for compensation and issued after a home inspection. The report must include the following: (1) A report on any system or component inspected that, in the professional opinion of the inspector, is significantly deficient or near the end of the system or component's service life. A report under this subdivision must include the reason why the system or component is significantly deficient or near the end of the system or component's service life, unless the reason is self-evident. (2) The inspector's recommendation to remedy or monitor a deficiency reported under subdivision (1). (3) A list of any systems or components that were designated for inspection in the standards of performance adopted by the board but that were not inspected. (4) The reason a system or component listed under subdivision (3) was not inspected. (5) A statement that the report does not address environmental hazards, including: (A) lead-based paint; (B) radon; (C) asbestos; (D) cockroaches; (E) rodents; (F) pesticides; (G) treated lumber; (H) mold; (I) mercury; (J) carbon monoxide; or (K) other similar environmental hazards. (6) A statement that the report does not address wood destroying insects and organisms. (7) A statement that the report does not address subterranean systems or system components (operational or nonoperational), including: (A) sewage disposal; (B) water supply; or (C) fuel storage or delivery. As added by P.L.145-2003, SEC.7.

Ind. Code § 25-20.2-3-2

IC 25-20.2-3-2 Members

Sec. 2. (a) The board is composed of five (5) members appointed by the governor as follows: (1) Subject to IC 25-1-6.5-3 , three (3) members, each of whom: (A) is licensed in Indiana as a home inspector; and (B) has been actively engaged in performing home inspections in Indiana for at least five (5) years immediately before the member's appointment to the board. (2) Subject to IC 25-1-6.5-3 , one (1) member who satisfies either of the following: (A) The member: (i) is a home builder; and (ii) has been actively engaged in home building in Indiana for at least five (5) years immediately before the member's appointment to the board. (B) The member: (i) is a real estate broker licensed under IC 25-34.1 ; and (ii) has been actively licensed in Indiana under IC 25-34.1 as a real estate broker for at least five (5) years immediately before the member's appointment to the board. (3) Subject to IC 25-1-6.5-3 , one (1) member who represents the public at large and is not associated with the home inspection, home building, or real estate business other than as a consumer. (b) The members of the board must be residents of Indiana. As added by P.L.145-2003, SEC.7. Amended by P.L.127-2012, SEC.5; P.L.177-2015, SEC.41; P.L.249-2019, SEC.88.

Ind. Code § 25-20.2-3-8

IC 25-20.2-3-8 Board duties and powers

Sec. 8. The board shall: (1) administer and enforce this article; (2) adopt rules under IC 4-22-2 that are reasonably necessary or appropriate for the administration and enforcement of this article; (3) prescribe the requirements for and the form of licenses, applications, and other documents that are required by this article; (4) grant, deny, suspend, and revoke approval of examinations and courses of study; (5) issue, deny, suspend, and revoke licenses in accordance with this article; (6) in accordance with IC 25-1-7 , investigate complaints concerning licensees or persons the board has reason to believe should be licensees, including complaints concerning failure to comply with this article or rules adopted under this article, and, when appropriate, take action under IC 25-20.2-8 ; (7) bring actions in the name of the state in an appropriate circuit court, superior court, or probate court in order to enforce compliance with this article or rules adopted under this article; (8) establish fees in accordance with IC 25-1-8 ; (9) inspect the records of a licensee in accordance with rules adopted by the board; (10) conduct or designate a member or other representative to conduct public hearings on any matter for which a hearing is required under this article and exercise all powers granted under IC 4-21.5 ; (11) adopt a seal containing the words "Indiana Home Inspectors Licensing Board" and, through the board's secretary, certify copies and authenticate all acts of the board; (12) in accordance with IC 25-1-6 : (A) use counsel, consultants, and other persons; (B) enter into contracts; and (C) authorize expenditures; that are reasonably necessary or appropriate to administer and enforce this article and rules adopted under this article; (13) establish continuing education requirements for licensed home inspectors in accordance with IC 25-1-4 ; (14) maintain the board's office, files, records, and property in the city of Indianapolis; and (15) exercise all other powers specifically conferred on the board by this article. As added by P.L.145-2003, SEC.7. Amended by P.L.84-2016, SEC.106.

Ind. Code § 25-20.2-5-2

IC 25-20.2-5-2 Licensing requirements

Sec. 2. (a) An individual who applies for a license as a home inspector must do the following: (1) Furnish evidence satisfactory to the board showing that the individual: (A) is at least eighteen (18) years of age; (B) has graduated from high school or earned an Indiana general educational development (GED) diploma; and (C) has not been: (i) convicted of an act that would constitute a ground for disciplinary sanction under IC 25-1-11 ; (ii) convicted of a crime that has a direct bearing on the individual's ability to perform competently and fully as a licensee; (iii) listed on a national or state registry of sex or violent offenders; or (iv) the subject of a disciplinary or enforcement action by another state or a local jurisdiction in connection with the performance of home inspections or the licensing or certification of home inspectors. (2) Verify the information submitted on the application form. (3) Complete a board approved training program or course of study involving the performance of home inspections and the preparation of home inspection reports and pass an examination prescribed or approved by the board. (4) Submit to the board a certificate of insurance or other evidence of financial responsibility that is acceptable to the board and that: (A) is issued by an insurance company or other legal entity authorized to transact business in Indiana; (B) provides for general liability coverage of at least one hundred thousand dollars ($100,000); (C) states that cancellation and nonrenewal of the underlying policy or other evidence of financial responsibility is not effective until the board receives at least ten (10) days prior written notice of the cancellation or nonrenewal; and (D) contains any other terms and conditions established by the board. (5) Pay a licensing fee established by the board. (b) An individual applying for a license as a home inspector must apply on a form prescribed and provided by the board. As added by P.L.145-2003, SEC.7. Amended by P.L.216-2007, SEC.33; P.L.112-2014, SEC.25.

Ind. Code § 25-20.2-5-3

IC 25-20.2-5-3 Waiver of licensing requirements

Sec. 3. (a) The other licensing requirements of this chapter may be waived for an individual moving to Indiana from another jurisdiction, and the individual may be granted a license as a home inspector if the individual meets the following requirements: (1) The other jurisdiction grants the same privileges to licensees of Indiana as Indiana grants to licensees of that other jurisdiction. (2) The individual is licensed in the other jurisdiction. (3) The licensing requirements of the other jurisdiction are substantially similar to the requirements of this article. (4) The individual states that the individual has studied, is familiar with, and will abide by this article and the rules adopted by the board under this article. (b) An individual seeking a license as a home inspector under this section must: (1) apply on a form prescribed and provided by the board; and (2) pay the applicable licensing fee established by the board. As added by P.L.145-2003, SEC.7.

Ind. Code § 25-20.2-6-1

IC 25-20.2-6-1 Expiration of license

Sec. 1. Subject to IC 25-1-2-6 (e), a license for a home inspector issued under this article expires on a date established by the licensing agency under IC 25-1-6-4 and shall be renewed biennially upon payment of the required renewal fees. As added by P.L.145-2003, SEC.7. Amended by P.L.194-2005, SEC.59; P.L.177-2015, SEC.42.

Ind. Code § 25-20.2-6-2

IC 25-20.2-6-2 License renewal

Sec. 2. (a) An individual who applies to renew a license as a licensed home inspector must: (1) furnish evidence showing successful completion of the continuing education requirements of this chapter; and (2) pay the renewal fee established by the board. (b) Subject to IC 25-1-2-6 (e), if the holder of a license does not renew the license on or before the renewal date specified by the licensing agency, the license expires and becomes invalid without any action by the board. (c) A license may be reinstated by the board not later than (3) years after the expiration of the license if the applicant for reinstatement meets the requirements for reinstatement under IC 25-1-8-6 (c). (d) If a license has been expired for more than three (3) years, the license may be reinstated by the board if the holder meets the requirements for reinstatement under IC 25-1-8-6 (d). As added by P.L.145-2003, SEC.7. Amended by P.L.105-2008, SEC.37; P.L.177-2015, SEC.43.

Ind. Code § 25-20.2-6-5

IC 25-20.2-6-5 Adoption of rules concerning continuing education

Sec. 5. (a) The board shall adopt rules concerning the continuing education required for the renewal of a license under this chapter. (b) The rules must do the following: (1) Establish procedures for approving organizations that provide continuing education. (2) Prescribe the content, duration, and organization of continuing education courses that contribute to the general competence of home inspectors. As added by P.L.145-2003, SEC.7. Amended by P.L.194-2005, SEC.60.

Ind. Code § 25-20.2-8-1

IC 25-20.2-8-1 Disciplinary actions

Sec. 1. The board may take disciplinary actions against or impose sanctions on a licensee under IC 25-1-11 for any of the following: (1) Disclosing information concerning the results of a home inspection without the approval of a client or the client's legal representative, except under a court order. (2) Accepting compensation for the same service from more than one (1) party without the consent of all interested parties. (3) Accepting commissions or allowances, directly or indirectly, from other parties dealing with the licensee's client in connection with any repair work recommended in the licensee's home inspection report. (4) Accepting compensation, directly or indirectly, from the licensee's client in connection with any repair work recommended in the licensee's home inspection report. (5) Failing to disclose to a client information about a business interest of the licensee that may affect the client in connection with any work for which the licensee is responsible. (6) Knowingly making a false or misleading representation about: (A) the condition of a residential dwelling for which the licensee has performed or has contracted to perform a home inspection; or (B) the extent of the services the licensee has performed or will perform. (7) Committing a felony in the course of the practice of home inspection or committing any act constituting a violation of IC 25-20.2-5-2 (a)(1)(C). (8) Violating any provisions of this article or rules adopted by the board under this article. (9) Making a false or misleading representation: (A) in a license or renewal application form; or (B) in information provided to the board. (10) Failing to pay any fees or fines required by this article. (11) Failing to continuously maintain the insurance or other evidence of financial responsibility required by this article. (12) Communicating to the public false or misleading information about the type of license held by the licensee. (13) Engaging in a course of lewd or immoral conduct in connection with the delivery of services to clients. (14) Failing to complete the continuing education requirements established by the board. As added by P.L.145-2003, SEC.7.

Ind. Code § 25-20.2-8-3

IC 25-20.2-8-3 License suspension

Sec. 3. The board may summarily suspend a license for up to ninety (90) days before a final adjudication or during an appeal of the board's determination if the board finds that the licensee would represent a clear and immediate danger to the public's health, safety, or property if allowed to perform home inspections. The summary suspension may be renewed upon a hearing before the board for up to ninety (90) days. As added by P.L.145-2003, SEC.7.

Ind. Code § 25-20.2-8-5

IC 25-20.2-8-5 Criminal violations; amount of fee or compensation added to penalty; separate violations

Sec. 5. (a) An individual who: (1) performs or offers to perform home inspections for compensation without being licensed as a home inspector and without being exempt from licensing under law; (2) presents as the individual's own the license of another; (3) intentionally gives false or materially misleading information to the board or to a board member in connection with licensing matters; (4) impersonates another licensee; (5) uses an expired, a suspended, a revoked, or an otherwise restricted license; or (6) otherwise violates this article; commits a Class B infraction. (b) When entering a judgment for an infraction under this section, the court shall add to any penalty imposed the amount of any fee or other compensation earned by the individual in the commission of the infraction. (c) Each transaction involving activities defined by this article constitutes a separate violation of this section. As added by P.L.145-2003, SEC.7.

Ind. Code § 25-20.2-8-6

IC 25-20.2-8-6 Prove compliance in action to collect fee or other compensation

Sec. 6. In all actions for the collection of a fee or other compensation for performing home inspections, the party seeking relief must allege and prove that, at the time the cause of action arose, the party seeking relief was not in violation of section 5 of this chapter. As added by P.L.145-2003, SEC.7.

Ind. Code § 25-20.2-9-1

IC 25-20.2-9-1 Statute of limitations

Sec. 1. An action for damages, whether brought in contract or tort or on any other basis, based upon professional services that were rendered or that should have been rendered by a licensed home inspector may not be brought, commenced, or maintained unless the action is filed not more than two (2) years after the date the cause of action accrues. As added by P.L.145-2003, SEC.7.

Ind. Code § 25-20.2-9-3

IC 25-20.2-9-3 Immunity from liability

Sec. 3. A person who in good faith recommends or endorses a licensed home inspector without compensation, remuneration, rebate, or other form of consideration is not liable for the actions of the licensed home inspector, including errors, omissions, the failure to perform contracted duties of a home inspection, or the failure to meet the standards of performance, report writing standards, or code of ethics established by the board. As added by P.L.145-2003, SEC.7.

The law belongs to the people. Georgia v. Public.Resource.Org, 590 U.S. (2020)