The American housing market is still suffering hard with the evident effects of the current economical crisis. However, lawmakers in Olympia are now debating a controversial new bill that would eventually bring more trouble to the sector and other related businesses, such as the owner insurance market and mortgage companies.
According with the new proposal, all new homes would be required to carry a state-imposed warranty, which would create liability for builders for a period of up to six years. This warranty would result in a a new way to sue both homebuilders and small contractors. Another detail creating considerable controversy is that any substantial remodeling of existing homes would be also included on the definition of “new homes”.
Analysts say that since building permits declined 42% in Washington in comparison with the previous year and home values declined by over 10%, the new warranty would eventually push up the price of housing in the state. According with the proposal, homebuyers would have no alternative than working with the new warranty, as they would be barred from choosing to establish their own guarantee terms with home builders. The warranty would apply even when the home is sold, and against the owner's wishes.
The bill is also being criticized for creating higher liability insurance premiums for several fields such as architects, general contractors, builders and engineers, and also by affecting the owner insurance market. Specialists also claim that such bill would significantly slow down the recovery of the housing market in the state, which would in turn result in less work for several related fields.