Home Inspection Business Licence


Definitions

A Home Inspection Business is defined as the activity of providing home inspection services to consumers.

A Home Inspection means an opinion as to the condition of a dwelling based primarily on a non-invasive examination of readily accessible features and components of the dwelling.

Exclusions

A business operating in only the way(s) listed below does not require licensing as a Home Inspection Business:

  • Contracts for inspections of common areas of a condominium property.

  • Contracts for inspections of dwellings to be used for commercial or business purposes, including use as a rental property.

  • Contracts for inspections of dwellings conducted by a person participating in a home inspection training course or as part of a test home inspection if the consideration, if any, for the home inspection is paid to the educational institution or supervisor of the test home inspection and no remuneration is paid to the person conducting the home inspection.

  • Inspections of dwellings by a safety codes officer pursuant to the Safety Codes Act.

  • Inspections of dwellings for purposes of constructing, altering, maintaining, repairing or improving the dwelling.

Licensing Requirements

Note: Failure to provide complete information will delay processing of your application and may result in a refund of your fees and closure of your file.

To get a licence as a Home Inspection business you must provide a complete application package including all of the following:

  • Completed application form (pdf)


  • Original, signed security in the amount of $10,000*.  You may get this security in one of two ways:

    • General Surety Bond  (pdf)

    • Cash Security Agreement (pdf) accompanied by:

      • An Irrevocable Letter of Credit (pdf), or

      • Cash (including payment by bank draft, money order, certified cheque – all of these are payable to the Government of Alberta), or

      • A term deposit or other similar instrument in the name of the Government of Alberta, c/o Service Alberta, 3rd Floor, 10155 102 Street, Edmonton, Alberta, T5J 4L4, in trust for (name of licensee)
    *Note:  In accordance with the Security agreement, the security provided will be held for two (2) years after the agreement expires or for two years and three months (27 months) from the date the business license expires or the business closes or longer in the event of a claim being received.
    The amount of security given is a minimum security requirement.  The amount could increase at the discretion of the Director of Fair Trading.  When setting the security amount, the Director can consider the following:  the department’s previous history with the business and its partners or directors, the business’s financial history, and criminal convictions.
  • Proof that the applicant has errors and omission insurance specifically in respect of the carrying on of the home inspection business covering at least $1,000,000 per claim and $2,000,000 aggregate for all claims within a one-year period

  • Payment of the License Fee.  Fees are based upon the number of home inspectors licensed with the home inspection business.  Fees for a home inspection business having:

    • 3 or fewer licensed home inspectors is $500

    • more than 3 but fewer than 10 licensed home inspectors is $700

    • 10 or more licensed home inspectors is $900

(Note: Your cheque should be made payable to the Government of Alberta.  If you are applying in person, you can also pay this fee using Debit, Visa, MasterCard, or cash.).

This fee is for a 24 month licence.  Licences take effect the date they are issued.  The department will send you a notice and the appropriate form(s) before your licence needs to be renewed.  Licence holders must notify Service Alberta in writing if their business licence address changes.

  •  A copy of the business' standard contract.

General Information

  • A home inspection business shall ensure that a home inspection is conducted only by a licensed home inspector.

Home inspection businesses should pay particular attention to the following sections:

  • Section 6 of the Home Inspection Business Regulation regarding error and omissions insurance that must be maintained

  • Section 9 of the Home Inspection Business Regulation regarding licensing requirements

  • Section 22 of the Home Inspection Business Regulation regarding wording that is prohibited

  • Section 25 of the Home Inspection Business Regulation regarding compensation for damages

  • Section 26 of the Home Inspection Business Regulation regarding prohibitions

Contract Requirements

Written contracts will be required.  The contract must conform to the requirements set out in the Home Inspection Business Regulation under the Fair Trading Act.

Legislation

Fair Trading Act

Home Inspection Business Regulation

Copies of legislation can be obtained from the Queen’s Printer Bookstore  at:

Park Plaza, 5th floor
10611-98 Avenue
Edmonton, Alberta   T5K 2P7
Telephone: 780-427-4952

To call a Government of Alberta office toll free (in Alberta), dial 310-0000 and follow the instructions.