3:41 p.m. - Nearly two months after the state began regulating the home inspection industry, 19 inspectors have met the requirements, which can cost $3,000 or more annually, but may provide some peace of mind to prospective home buyers.

Some inspectors have welcomed the new regulations, which became effective July 1, because they say it takes some of the less-reputable inspectors out of the business.

"I think that helps weed out people who are doing it halfway," Terisina Hintz, an inspector with Home Team Inspection in Bismarck, said.

The law requires anyone doing home inspections to register with the secretary of state, carry errors and omissions insurance of at least $100,000 and proof that the inspector has passed an exam by one of five national organizations.

Hintz said the only requirement Home Team Inspection had to comply with on July 1 was registering with the secretary of state, which costs $200.

Hintz said the company carried three different types of insurance and that the company's inspectors were certified with the National Association of Certified Inspectors before the new law went into effect.

Home Team Inspection is a national chain that has been doing business in the Bismarck-Mandan area for two years

Glen Naumann, a home inspector in Mandan, said he had already fulfilled most of the requirements of the new law before it was enacted.

"Basically all I had to do is forward everything up to the secretary of state's office," Naumann said.

Naumann said he is comfortable with the new regulations because in the 13 years he has done inspections, he has seen a lot of inspectors in the business that didn't last long.

"I've seen so many come and go that I don't keep track anymore," Naumann said.

Naumann said errors and omissions insurance costs about $3,000 annually.

Home inspections can cost around $300, which means inspectors would have to conduct a number of inspections just to pay for their insurance.

The new requirements have gone over well with Realtors who often encourage home buyers to get an inspection before making their decision, according to Claus Lembke, executive vice president of the North Dakota Association of Realtors.

Lembke said the registration adds some validity to home inspections and gives Realtors more confidence when they recommend a home inspection.

"As a Realtor you don't want to recommend a single inspector, you want to provide a list of inspectors," Lembke said.

Although Lembke sees the new law as a positive change for home buyers, he said some part-time inspectors have left the business because they don't want to comply with the new law.

Of the 19 registered home inspectors listed on the secretary of state's Web site, six of them are from Bismarck or Mandan.

Although the Secretary of State is responsible for registering inspectors, the agency cannot punish those who violate the law.

Any person who inspects homes without registering is guilty of a Class B misdemeanor, which is punishable by up to 30 days in jail and a fine of $1,000.

Secretary of State Al Jaeger said even though an inspector is registered with the state, people also should ask the inspector about their qualifications.

"What the public needs to know is just because they (inspectors) are registered, there is no guarantee regarding their qualifications," Jaeger said.

Rep. Margaret Sitte, R-Bismarck, was the main sponsor of the new law as it worked its way through the Legislature earlier this year.

Sitte introduced the bill on behalf a Bismarck couple who hired a home inspector before they bought a $200,000-plus house in Bismarck that they later found had moisture problems that caused mold. The couple blamed the inspector for not telling them about a leaky skylight that caused water to enter the house.

Many home inspectors testified on the bill before it was approved, including Melvin Zent, a home inspector in Dickinson.

Zent said he would like to see a time limit to prevent people from going after inspectors several years after problems occur.

Zent also is concerned that the new law could result in more claims against inspectors for things that are not their fault, or that they cannot see.

"If there's something concealed in a wall and if you have no proof of seeing it, how can you be liable for it?" Zent said.

One change that could be considered in 2007 when the Legislature meets next is defining which organizations inspectors can use to obtain certification.

Jaeger said some applicants have listed credentials from organizations not listed in the law, but he can't legally register an inspector unless they receive certification from one of five organizations approved by the state.

"I have no wiggle room, it has to be from one of those organizations," Jaeger said.

Sitte said there could be some changes made to the law when the Legislature meets in 2007.

"You realize when you are in the legislative process that change is hard and it comes slowly," Sitte said.

(Reach reporter Tom Rafferty at 223-8482 or tom.rafferty@bismarcktribune.com)