Tuesday, January 14, 2014

Could a "ObamaHomeCare" be Coming to the New Home Industry?

If Hurricane Sandy and ObamaCare have taught us anything it's that when the Federal government gets involved, problems begin immediately. There is a new law in Alberta Province in Canada that appears to have legs and if it becomes the law for the entire country, look for our legislature in the US to start looking at getting into a nationwide home warranty program similar to ObamaCare.

It's called the New Home Buyer Protection Act. It just sounds like something politicians will love.

Here is a video outlining the basics of the program. It is scheduled to go into effect on February 1 and if it shows any promise, manufactured housing (HUD) and modular housing just might become more expensive.

The Act calls for all major components of the home to covered for 10 years. Minimum coverage of 2 years for workmanship and materials including interior trim, paint, flooring, etc. If something goes wrong with say the workmanship done by the builder after the home is set, do you think that the home buyer will only go after their builder? Nope, they will also go after the factory. Cha-Ching and the cost of modular housing goes up.

1 comment:

Anonymous said...

Feel Good Photo Op Legislation - What's not to Love? Who cares about unintended consequences!!