§ 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.