IA SSB1144

Only home inspectors (members of national home inspectors associations), licensed architects, or licensed professional engineers may issue independent home inspection reports for residential real estate transfers

Home inspectors, their employers, or those with financial interests in the employer commit unlawful practices by: performing repairs on properties they inspected within 12 months, inspecting properties they have transfer interests in, paying referral fees/kickbacks, or accepting contingent payment based on inspection conclusions

Home inspection reports must include: description of inspection scope, material defects found (with safety hazards conspicuously identified), and required disclosure statements about the inspection's limitations and purpose

Home inspectors must maintain errors and omissions insurance and general liability coverage of at least $100,000 per occurrence and $500,000 aggregate, with deductibles no more than $2,500

Penalties include: simple misdemeanor (up to 30 days confinement, $105-$855 fine) for first offense of failing to maintain insurance or falsely representing qualifications; serious misdemeanor (up to 1 year confinement, $430-$2,560 fine) for subsequent offenses; civil penalties up to $40,000 for unfair practices