New Mexico home inspector licensing law now in effect
The New Mexico Legislature began contemplating whether to license home inspectors in 2011. It wasn’t until April 4, 2019, that H.B. 433, the most recent iteration of the many home inspector licensing bills introduced over the past decade, was signed into law. The Home Inspector Licensing Act took full effect on Jan. 15.
New Mexico is now the 28th state to require the licensing of home inspectors. Prior to the passage of the legislation, home inspectors in New Mexico had to meet just two criteria: The first was that they had to be at least 18-years of age so they could legally contract to do the work. The second was to be breathing so they could show up at the job site. No kidding — that was it.
While most home inspectors learned their trade by attending one of the numerous home inspector schools located throughout the U.S., some practitioners, such as those with prior experience in the building trades industry, relied on their knowledge of general construction practices to assess the physical condition of properties.
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Beginning Jan. 15, home inspectors who apply for licenses will have to prove that they are at least 18 years of age, submit fingerprints to be used in connection with state and federal criminal background checks, submit proof of errors and omissions insurance, complete at least 60 hours of classroom training and 80 hours of field training, and pass a national home inspector licensing examination. All home inspectors must be licensed by July 15, 2021.
The classroom and field training requirements will be waived for current home inspectors who have completed at least one home inspection in each of the 24 months prior to Jan. 1, 2020, and have completed at least 100 home inspections for compensation during the same period. In addition, applicants will be required to pay an application fee of $250 and a 3-year license fee of $1,000.
To renew their licenses, inspectors will be required to complete 60 hours of continuing education classes every three years, pass updated criminal background checks, and pay applicable license renewal fees. Unlicensed inspectors who conduct home inspections for a fee are guilty of a misdemeanor punishable by a fine of no more than $1,000, a jail term not to exceed one year, or both, for each violation.
A major provision of the law that benefits consumers is that home inspector pre-inspection agreements may no longer contain a provision limiting the inspector’s liability to the amount of the fee charged by the inspector. Inspectors are also prohibited from performing or offering to perform for an additional fee any repair to a structure on which the home inspector or the home inspector's company has prepared an inspection report at any time during the 12 months immediately prior to the repair or offer to repair.
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According to Jeff Gorum, owner of Southwest Home Inspections and chairman of the state’s Home Inspector Licensing Board, “The biggest benefit to the public is that they have some way of verifying that their inspector (when licensed) has a minimum level of education and experience, is required to stay current, and has a vested interest in the job they are doing outside of the check they get for the fee.”
An informal survey of more than a dozen Las Cruces area Realtors and home inspectors by this writer revealed that most are in favor of the law because it sets minimum standards for inspectors and, more importantly, provides consumers with a method to file complaints and against monetary damages from unethical inspectors.
For more information as it comes available, log on to the Home Inspector Licensing Board’s website at https://www.rld.state.nm.us/boards/home-inspectors-overview.aspx.
See you at closing.
Gary Sandler is a full-time Realtor and president of Gary Sandler Inc., Realtors in Las Cruces. He loves to answer questions and can be reached at 575-642-2292 or Gary@GarySandler.com.
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