N.J. Admin. Code § 13:40-15.19

Current through Register Vol. 56, No. 16, August 19, 2024

Section 13:40-15.19 - Prohibited practices

(a) It is a prohibited practice for a licensee to do any of the following:

1. Perform, or offer to perform, for an additional fee, any repairs, renovations, additions, or alterations to a structure on which the licensee or the licensee's company has prepared a home inspection report;

2. Inspect for a fee any property in which the licensee, or the licensee's company, has any financial interest or any interest in the transfer of the property;

3. Offer or deliver any compensation, inducement, or reward to the owner of the inspected property, the broker, the agent or the client's representative, for the referral of any business to the licensee or the licensee's company;

4. Offer or deliver any compensation, inducement, or reward to the client, the broker, the agent or the client's representative or homeowner, on behalf of a person or business entity;

5. Accept an engagement to perform an inspection or prepare a home inspection report in which the employment itself or the fee payable for the inspection is contingent upon the conclusions of the report, preestablished findings, or the close of title;

6. Provide a copy of the home inspection report or disclose any information concerning the results of the inspection, including confidential client contact information, without the written approval of the client or the client's representative, except when the licensee discovers a health or safety condition that would not be readily detectable by the occupant or homeowner and which poses an imminent risk of injury;

7. Accept compensation, financial or otherwise, from more than one interested party for the same home inspection;

8. Accept or offer commissions or allowances, directly or indirectly, from other parties dealing with the client in connection with work for which the licensee is responsible;

9. Accept commissions from any other trade or profession for information concerning the condition of the property which is the subject of the home inspection;

10. Fail to promptly disclose to the client information about any business interest of the licensee which may affect the client in connection with the home inspection;

11. Allow an interest the licensee may have in any business to affect the quality of a home inspection;

12. Use a home inspection as a means to obtain work in another field which is not an additional inspection service as defined by N.J.A.C. 13:40-15.2;

13. Engage in the use of advertising which contains any statement, claim or format which is false, fraudulent, misleading or deceptive;

14. Engage in advertising which promotes a professional service which is beyond the licensee's ability or authority to perform;

15. Perform or represent that a licensee can perform a professional service which is beyond the licensee's ability or authority to perform;

16. Perform, or offer to perform engineering or architectural services unless appropriately qualified pursuant to 45:3-1 et seq., 45:8-27 et seq., and other applicable laws and rules;

17. Fail to inspect the systems and components required by the standards of practice as set forth in N.J.A.C. 13:40-15.16without a documented reason from the licensee explaining the exclusion of a system and/or component from an inspection;

18. Employ any person as a home inspector who is not licensed as a home inspector;

19. Practice as a home inspector without a license, with a suspended license or during inactive status;

20. Perform any act or omission involving dishonesty, fraud, or misrepresentation with the intent to benefit a licensee or other person or with the intent to substantially injure another person;

21. Perform any act or omission involving dishonesty, fraud, or misrepresentation in the performance of a home inspection or preparation of a home inspection report;

22. Pay or accept a finder's fee or referral fee to any person in connection with a home inspection; or

23. Fail or refuse, without good cause, to exercise diligence in preparing a home inspection report, delivering a report to the client, or responding to an inquiry from the client.

(b) Engaging in any of the prohibited practices delineated in (a) above shall be considered professional or occupational misconduct within the meaning of 45:1-21(e) and may subject the licensee to the disciplinary provisions of 13:40-15.2 0.

N.J. Admin. Code § 13:40-15.19

Amended by 52 N.J.R. 46(a), effective 1/6/2020