Legislstive Mandated New Home Warranties (ESSB 5550)

I received this information from Paul Guppy, VP for Research at Washington Policy Center, a nonpartisan independent policy research organization. Click here for the website.

Our state legislators are at it again! Proposed legislation is being debated that would create a new way for consumers to sue homebuilders and small contractors (remodelers) by mandating that all new homes carry a state-imposed warranty creating liability for builders for up to six years. As Paul points out, now is certainly not the time given our current real estate markets.

The proposed warranty would be imposed on each purchase contract, even if the terms conflict with the homebuyer's desires. And, homebuyers would be barred from choosing a different warranty or voluntarily establishing their own guarantee terms directly with the builder.

And who's backing this proposal...well, the state trial lawyer's association of course! With the threat of more litigation comes more expensive insurance premiums for architects, engineers, builders, general contractors and subcontractors. Guess who's going to pay for this...YOU, when it comes time to buy a new home or undertake a remodel!

The Better Business Bureau, state Attorney General's Office and the Department of Labor and Industries all have programs to identify responsible contractors. Builders are already required by law to have insurance to pay customers if the builder fails to fulfill the contract terms.

I know our legislators try to do what they believe is "right," but do you think special interest groups were involved? And I wonder if the sponsors of this legislation consulted with builders, architects, engineers and building trades? Hmmm.

BTW: if we're going to write legislation, it helps to "get it right" the first time.