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Committee advances bill requiring builders to disclose remaining warranties at closing
Summary
Senate Bill 522, reported favorably, would require registered home builders to provide buyers the remaining warranty information for appliances, including HVAC, at closing; committee members debated how warranties and registrations operate in practice and noted the bill contains no enforcement penalties.
The Economic Matters Committee voted to move Senate Bill 522 favorably; the bill requires a person registered as a home builder in the state to provide, at closing for the initial sale of a new home, specified information about warranties for appliances installed by the builder.
Supporters said the bill aims to prevent surprise warranty shortfalls — for example, if appliances were installed early in the construction process and buyers later find less warranty time remains than they expected. "Homeowner buys the house presuming there's at least a 5 year warranty, doesn't understand 3 of those years has already gone up," a committee member said during discussion, summarizing the sponsor's concern.
Committee members questioned how warranties and registrations operate in practice and whether the bill would actually ensure a buyer can enforce longer warranty coverage. Some members explained that warranty terms and registration practices vary by manufacturer and that registration often defines the party responsible for warranty service. "Warranty terms can vary depending on manufacturer," counsel said; in some cases an HVAC contractor may register a unit on behalf of the homeowner. Members also noted the bill contains no civil penalties and appears intended as an information disclosure to consumers rather than a new enforcement regime.
Several committee members expressed practical concerns about compliance. One member said builders routinely install HVAC equipment months before closing to allow finishing work and asked whether builders can know or are required to register warranties in a way that provides the disclosure the bill requires. Counsel and other members responded that, in practice, registration and warranty administration often happen at or after closing and may be handled by contractors, manufacturers or the buyer.
The motion to move the bill favorably carried; discussion does not record a penalty mechanism or detailed compliance procedures. Supporters said the bill is intended to improve consumer information at the time of sale; implementation details around registration and documentation were left to administrative or industry practice in the committee record.
