Massachusetts General Laws chapter 112 sets a license requirement and an insurance minimum for home inspectors, and it lists what the licensing board can act on.
The license
Section 222 says no person shall conduct a home inspection for compensation unless licensed by the board, with the exceptions the section lists, and unless the person provides a written report of the home inspection. Each licensed home inspector and associate home inspector shall carry the license at all times and make it available for presentation to a client or prospective client.
The insurance
Section 225 requires a licensed home inspector and associate home inspector to secure, maintain and file with the board proof of an errors and omissions policy in a minimum amount of $250,000 in the aggregate. No home inspector or associate may supervise or perform a home inspection unless the inspection is covered by such a policy.
The deadline
Section 225 also says any action arising from a home inspection shall be commenced only within 2 years after the date of a completed written report of a home inspection by a home inspector.
What the board can act on
After a hearing, the board may deny, refuse renewal, limit, suspend or revoke a license on proof of certain conduct. The statute’s examples of ethical violations include accepting compensation from more than one interested party for the same service without the consent of all interested parties, failing to promptly disclose a business interest that may affect the client, and attempting to limit liability for negligent or wrongful errors or omissions with a contract clause that limits the cost of damages. Reporting on the market value of the property or its marketability, or on the advisability or inadvisability of the purchase, is also a ground for action.
Who to ask
I can’t give legal advice, and an attorney can say how these provisions apply to a specific inspection.
Questions
Common questions
Does a Massachusetts home inspector need a license?
Yes, with some exceptions the statute lists. M.G.L. c. 112, § 222 says no person shall conduct a home inspection for compensation unless licensed by the board and unless a written report of the inspection is provided.
What insurance must a Massachusetts home inspector carry?
Section 225 requires an errors and omissions policy in a minimum amount of $250,000 in the aggregate, and says no inspector may supervise or perform an inspection unless it's covered by such a policy.
Is there a time limit for an action arising from a home inspection?
Section 225 says any action arising from a home inspection shall be commenced only within 2 years after the date of a completed written report of the inspection.
Sources
- M.G.L. c. 112, Section 222(a): 'No person shall conduct a home inspection for compensation unless licensed by the board in accordance with this section and said sections 223 to 226, inclusive, and unless he provides a written report of the home inspection.'
- M.G.L. c. 112, Section 225: a licensed home inspector and associate home inspector 'shall secure, maintain and file with the board satisfactory proof of a certificate of an errors and omissions policy which shall be in a minimum amount of $250,000 in the aggregate.' Also: 'No home inspector or associate may supervise or perform a home inspection unless his performance of the inspection is covered by an errors and omissions policy of at least $250,000 in the aggregate.'
Written by Diana Yeji Kim — REALTOR® at eXp Realty, serving Greater Boston in English, Korean, and Japanese.
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