Home inspectors are subject to regulations in the state of Wisconsin.  On March 26, 2021, Governor Evers signed 2021 Senate Bill 74.  The bill makes several changes to the requirements to become a home inspector as well as changes to how home inspectors report findings to consumers. 

The state now requires a specific number of hours of education prior to taking the required national exam.  The state only requires 40 hours of education to meet this new requirement.  This does set the bar relatively low so it is important to ask your home inspector if they met or exceeded the education requirement.  The bill also puts in place a continuing education requirement of 40 hours every two years.  The pre-license and continuing education requirement are minimums meant to protect the consumer from uneducated inspectors.  

The reports being produced by home inspectors will now be subject to additional requirements.  The biggest change is that home inspectors are now required to use the term “defect” in their reports.  According to the bill,  “Defect” means a condition of any component of an improvement that a home inspector determines, on the basis of the home inspector’s judgment on the day of an inspection, would significantly impair the health or safety of future occupants of a property or that, if not repaired, removed, or replaced, would significantly shorten or adversely affect the expected normal life of the component of the improvement.

In the past, inspectors were not required to use the term “defect” in their reporting.  This lead to problems in real estate transactions as the parties involved often debated which items constituted a defect.  Since the inspection contingency in the offer to purchase specifically references defects, this new requirement is intended to reduce the disputes between buyers and sellers in a real estate transaction.  

The bill further requires a summary section in each report.  While many inspectors have been providing this for years, the state will now require this in all home inspection reports.  The exact requirements are:

1. Includes a summary page that includes at least all of the following:

• a. A list of conditions, labeled as defects, that are observed under par. (cm) to be defects, as defined in s. 440.97 (2m).
• b. Other than items labeled as defects, a listing of components needing repairs, components needing further evaluation, items to monitor, and maintenance items.

• NOTE: This summary page is provided for convenience and is not a substitute for reading the entire report and should not be relied upon as the complete list for the client’s reference.
• For the purposes of the report, “defect,” as defined in section 440.97 (2m), Wis. Stats., means a condition of any component of an improvement that a home inspector determines, on the basis of the home inspector’s judgment on the day of an inspection, would significantly impair the health or safety of occupants of a property or that, if not repaired, removed, or replaced, would significantly shorten or adversely affect the expected normal life of the component of the improvement. The contract of sale may define “defect” to also include a condition that would have a significant adverse effect on the value of the property, but such a condition may not be labeled a defect in the report unless it meets the definition in section 440.97 (2m), Wis. Stats.
• NOTE: A home inspector may not report on the market value or marketability of a property or whether a property should or should not be purchased.