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§ 1701j-1. —  Builder's certification as to construction.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 12USC1701j-1]

 
                       TITLE 12--BANKS AND BANKING
 
                      CHAPTER 13--NATIONAL HOUSING
 
Sec. 1701j-1. Builder's certification as to construction


(a) Warranty requirements

    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.

(b) Availability of plans and specifications

    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.

(Aug. 2, 1954, ch. 649, title VIII, Sec. 801, 68 Stat. 642; Pub. L. 85-
857, Sec. 13(s)(2), Sept. 2, 1958, 72 Stat. 1266; Pub. L. 90-19, 
Sec. 10(e), May 25, 1967, 81 Stat. 22.)

                          Codification

    Section was enacted as part of the Housing Act of 1954, and not as 
part of the National Housing Act which comprises this chapter.


                               Amendments

    1967--Subsecs. (a), (b). Pub. L. 90-19 substituted ``Secretary of 
Housing and Urban Development'' and ``Secretary'' for ``Federal Housing 
Commissioner'' and ``Commissioner'', respectively.
    1958--Subsec. (a). Pub. L. 85-857 struck out provisions that related 
to Administrator of Veterans' Affairs and to mortgages guaranteed by 
him.
    Subsec. (b). Pub. L. 85-857 struck out provisions that related to 
Administrator of Veterans' Affairs.


                    Effective Date of 1958 Amendment

    Amendment by Pub. L. 85-857 effective Jan. 1, 1959, see section 2 of 
Pub. L. 85-857, set out as an Effective Date note preceding part 1 of 
Title 38, Veterans' Benefits.


                   Study Regarding Home Warranty Plans

    Pub. L. 102-550, title V, Sec. 514, Oct. 28, 1992, 106 Stat. 3789, 
directed Secretary of Housing and Urban Development to conduct a study 
of home and builder's warranties and protection plans regarding 
construction of, and materials used in, 1- to 4-family dwellings subject 
to mortgages insured under title II of the National Housing Act (12 
U.S.C. 1707 et seq.), and submit a report to Congress regarding findings 
of the study and any recommendations of the Secretary resulting from the 
study, not later than the expiration of the 12-month period beginning on 
Oct. 28, 1992.



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