Bill would require builders to disclose appliance warranty registrations to homebuyers at closing

Senator Nick Charles urged the Economic Matters Committee to support Senate Bill 522, a proposed consumer-protection measure that would require home builders to provide written warranty information for appliances, including heating, ventilation and air-conditioning systems, at the time of closing on an initial home sale.

Charles said the bill responds to cases in which buyers discovered, after purchase, that an appliance had been registered earlier by the builder and therefore had less remaining warranty coverage than the buyer expected. He illustrated the concern with a hypothetical in which "a home might come with an HVAC system that has a 5 year warranty, but the buyer could find out that there are only 2 years left having no idea the appliance was registered 3 years in advance." He said the bill does not require builders to provide a warranty themselves, only to provide information about any existing warranty and registration status.

Committee members pressed the sponsor on enforcement. Charles said the bill, as drafted for the hearing, does not include an enforcement mechanism and that he is "more than willing to work with the House to come up with an amendment that adds teeth to the bill." A committee member questioned whether a bill without enforcement would leave buyers told they were "protected" but with no recourse; Charles said he would work on amendments.

No formal vote on SB 522 was recorded at the hearing; the item was presented with sponsor testimony and committee questions.