|AtlantiCape Inspections, LLC||P.O. Box 3350||7809 Wellington Ave., Margate NJ 08402||Phone (609) 431-0202|
A note to New Jersey property owners and prospective owners, and their real estate agents...
Effective December 31, 2005, all individuals Iincluding engineers and contractors) performing home inspections in New Jersey were required by NJ state law to be State-licensed. Licensed home inspectors can be identified because they must provide specific information on their vehicle lettering, print and directory advertising, and promotional materials. This information includes their legal name, HI license number (begins with 24GI), and physical business address (not a PO box). Failure to properly inform the public as specified in the statutes will result in Licensing Board action against the home inspector. Note that NO individual may legally perform an inspection in New Jsersey without a specific home inspection license issued by the NJ HIAC. To see if a particular home inspector is licensed, click here.
If the home inspector you choose is not licensed, there are several risks that you should be aware of:
- Assuming they carry insurance at all, the unlicensed inspector's Errors and Ommissions (E&O) insurance carrier may disclaim their coverage . E&O insurance carriers require inspectors that they insure to follow the laws of the state where they practice. Homebuyers could be placed at a disadvantage if they hire an unlicensed inspector assuming their insurance is valid. (Note that unlicensed inspectors may be unwilling or unable to secure insurance). For more information about the requirements for existing home inspectors to become licensed in New Jersey, click here.
- The State will prosecute unlicensed inspectors if a complaint is received from the public, effectively shutting down their practice. Beginning April 26, 2006, the State will not wait for complaints but has indicated that it will actively pursue unlicensed inspectors.
- Real estate agents who refer clients to home inspectors that are unlicensed are placing themselves and their brokers at risk. Should a claim against an inspector arise, the referring agent could be drawn into the lawsuit. (Agents should verify that the home inspectors to whom they refer clients have Agent and Broker Indemnification coverage as part of the inspector's E&O insurance).
If you are interested in the complete New Jersey home inspection law, click here.