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ALASKA – AK
Alaska Construction Contractors Statutes, ALASKA STAT. § 08.18 et seq. (West, 2005).
Alaska Dept. of Commerce Regulations, ALASKA ADMIN. CODE, § 12 AAC 22 et seq.
CASE LAW:
(Alaska has no reported cases that mention home inspectors, house inspectors,
or residential inspectors.)
State Statutes
Causes of Action:
- breach of contract
- personal injury or death
- property damage
- gross negligence
- intentional misconduct
Defenses:
The State of Alaska began to regulate its home inspectors in 2004
by amending Chapter 18, governing Construction Contractors, to impose similar
requirements for home inspectors. AS §§ 08.18 et seq.
Alaska regulations governing home inspection are promulgated by the
Alaska Department of Commerce, in the Alaska Administrative Code § 12 AAC 22.
Alaska requires its home inspectors to register with the state.
Alaska grants two types of licenses for home inspection: type I is for “Registered
Home Inspector” and type A is for “Registered Associate Home Inspector.” Associate
Home Inspectors have fewer requirements but must be employed or supervised by
a Registered Home Inspector.
Alaska provides specific exceptions to the registration requirement,
for example for registered engineers, architects, and other construction professionals,
where the work in question is limited and falls within the scope of that profession’s
duties. AS § 08.18.156
A home inspector may register to inspect “new homes, or existing
homes,” or jointly, to inspect both. AS § 08.18.021. To inspect existing homes,
applicants must pass “the examination offered by the American Society of Home
Inspectors or National Association of Home Inspectors.” AS § 08.18.021. To inspect
new homes (or both existing and new homes), applicants must pass “the examination
offered by the
International Code Council.” AS § 08.18.021. There are several other requirements
for registration, including the following:
- Payment of a fee. AS § 08.18.022(a).
- A passing score on one of several competency exams. § 12 AAC 22.030.
- Certain educational and experience requirements as required by the Department
of Commerce regulations (id.), and “continuing competency” requirements for renewals. AS § 08.18.31.
- No criminal sentence for “forgery, theft in the first or second degree, extortion,
or defrauding creditors or for a felony involving dishonesty” for the previous
seven years. Id..
- No history of revocation of the authority to conduct home inspections. Id..
- No unresolved criminal complaint or unresolved disciplinary action related to
real estate or home inspection. Id..
- Granting of a surety bond (or cash deposit) to the state to cover fees or payment
of subcontractors. AS § 08.18.071. The bond may be used to satisfy claims against
the inspector. AS § 08.18.081.
- A certain amount of casualty insurance. AS § 08.18.101
- (In addition to registration, Alaska home inspectors must have a business license.)
A benefit of registration is that actions “based on a home inspection
report” must be “commenced within one year” with the exception of those for “gross
negligence” or “intentional misconduct” of a home inspector. AS § 08.18.085.
The one-year filing requirement may not be waived by contract. Id.. The statute is silent on when the clock begins to run and the issue has not,
apparently, been litigated. However, Alaska’s Code of Civil Procedure includes
a section which may control the issue: “Limits on When Certain Design, Construction,
and Remodeling Actions May be Brought,” AS § 09.10.054. This statute requires
claimants “against a construction professional” to bring the action within one
year of discovery of the defect, but within “10 years of substantial completion”
of the project. Id..
Standing to sue a registered home inspector for damages is limited
to those who (1) were parties to the real estate transaction for which the inspection
was done, or (2) got the home inspector’s report with written permission from
“the party for whom” the inspection was done, or (3) who inherited the inspected
property from a person who would have had standing under (1) or (2). AS § 08.18.085.
If a home inspector fails to comply with the registration requirement,
Alaska Stat. § 08.18.151 states that (s)he will not have standing to sue for compensation
or breach of contract. However, Alaska case law has abrogated “strict construction”
of the requirement in the interests of fairness, and now requires only substantial
compliance where necessary to avoid “forfeiture of an otherwise valid claim.”
Industrial Power & Lighting Corp. v. Western Modular Corp., 623 P.2d 291, 294 (Alaska 1981). (Note, however, that Industrial Power may not have contemplated home inspectors, as they were not specifically named
in the statute until 2004.)
Among other things, Alaska Home Inspectors are required to give clients
written notice of the scope of inspections prior to the inspection, a written
list of defects discovered during inspection, and a written report following inspections.
AS § 08.18.023. A written report is valid for only 180 days after the inspector
signs the report. Id..
Home inspectors may not include contractual provisions to limit their
liability to the cost of the inspection. AS § 08.18.085.
