12 U.S.C. § 1701j–1 — Builder’s certification as to construction
submitted 72 years ago by ch. 649 to r/title-12-BANKS-AND-BANKING · 465 words · no verdicts yet
(a) The Secretary of Housing and Urban Development must require certain sellers, builders, and other warrantors to give a warranty for covered dwellings. The warranty concerns conformity with approved plans and applies only when written notice is given within one year after title is conveyed or the dwelling is first occupied, whichever happens first; (b) the Secretary must make the relevant plans and specifications available for inspection or copying.
The term "warrantor" is not defined in this section. (a) Warranty requirements. The Secretary of Housing and Urban Development is authorized and directed to require the following. For property with a dwelling designed mainly as a residence for no more than four families, when the property was approved for mortgage insurance before construction began, the seller or builder, and any other person* the Secretary requires to become a warrantor, must give the purchaser or owner a warranty. The warranty must state* that the dwelling is built in substantial conformity with the plans and specifications on which the Secretary based the dwelling's valuation. This includes amendments, changes, and variations that the Secretary has approved in writing. The Secretary must give the builder, seller, or other warrantor written approval of any amendment, change, or variation that the Secretary considers substantial. That written approval is conclusive evidence that the Secretary approved it. The Secretary must also file a copy of the written approval with the plans and specifications. The warranty applies only to substantial failures to conform to the approved plans and specifications, including approved amendments, changes, and variations, about which the purchaser or homeowner gives the warrantor written notice within one year after the date of conveyance of title to the dwelling or the date of its initial occupancy, whichever occurs first. The warranty adds to, and does not take away from, all other rights and privileges that the purchaser or owner may have under another law or instrument. This section applies to covered property with a mortgage insured by the Secretary on or after October 1, 1954, unless the mortgage was insured under a commitment made before October 1, 1954. (b) Availability of plans and specifications. The Secretary must also allow copies of the plans and specifications for dwellings covered by subsection (a)'s warranty requirement to be available at the appropriate local offices. This includes written approvals of amendments, changes, or variations as described above. Any purchaser, homeowner, or warrantor may inspect or copy them during the hours or periods that the Secretary considers reasonable.
The Secretary of Housing and Urban Development is authorized and directed to require that, in connection with any property upon which there is located a dwelling designed principally for not more than a four-family residence and which is approved for mortgage insurance prior to the beginning of construction, the seller or builder, and such other person* as may be required by the said Secretary to become warrantor, shall deliver to the purchaser or owner of such property a warranty that the dwelling is constructed in substantial conformity with the plans and specifications (including any amendments thereof, or changes and variations therein, which have been approved in writing by the Secretary of Housing and Urban Development) on which the Secretary of Housing and Urban Development based his valuation of the dwelling: Provided, That the Secretary of Housing and Urban Development shall deliver to the builder, seller, or other warrantor his written approval (which shall be conclusive evidence of such approval) of any amendment of, or change or variation in, such plans and specifications which the Secretary deems to be a substantial amendment thereof, or change or variation therein, and shall file a copy of such written approval with such plans and specifications: Provided further, That such warranty shall apply only with respect to such instances of substantial nonconformity to such approved plans and specifications (including any amendments thereof, or changes or variations therein, which have been approved in writing, as provided herein, by the Secretary of Housing and Urban Development) as to which the purchaser or homeowner has given written notice to the warrantor within one year from the date of conveyance of title to, or initial occupancy of, the dwelling, whichever first occurs: Provided further, That such warranty shall be in addition to, and not in derogation of, all other rights and privileges which such purchaser or owner may have under any other law or instrument: And provided further, That the provisions of this section shall apply to any such property covered by a mortgage insured by the Secretary of Housing and Urban Development on and after October 1, 1954, unless such mortgage is insured pursuant to a commitment therefor made prior to October 1, 1954.
The Secretary of Housing and Urban Development is further directed to permit copies of the plans and specifications (including written approvals of any amendments thereof, or changes or variations therein, as provided herein) for dwellings in connection with which warranties are required by subsection (a) of this section to be made available in their appropriate local offices for inspection or for copying by any purchaser, homeowner, or warrantor during such hours or periods of time as the said Secretary may determine to be reasonable.
Source credit: (Aug. 2, 1954, ch. 649, title VIII, § 801, 68 Stat. 642; Pub. L. 85–857, § 13(s)(2), Sept. 2, 1958, 72 Stat. 1266; Pub. L. 90–19, § 10(e), May 25, 1967, 81 Stat. 22.)
- 1954Enacted · Act of Aug. 2, 1954, ch. 649 · 68 Stat. 642
- 1958Amended · Pub. L. 85-857 · 72 Stat. 1266
- 1967Amended · Pub. L. 90-19 · 81 Stat. 22
A history note hasn’t been published yet. The record shows enactment by ch. 649 on 1954-08-02.
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