Received this information and was wondering what you guys thought of this Prop 201? It seems like this would be a killer for the Contractors... now I know some of these fly-by-night one's should pay for shoddy work but this appears to open the door for lawsuits. Am I missing the big picture? It seems like the Cons out weigh the Pros here... Agree or Disagree?
"Proposition 201: A union-backed initiative that would require a 10-year warranty on new homes, increase litigation and otherwise harm the home building industry.
In the November general election, Arizona voters will decide the fate of Proposition 201, touted by its promoters as the “Homeowners’ Bill of Rights.”
The Sheet Metal Workers International Association, with support from the AFL-CIO, is the primary sponsor of the initiative. It is reasonable to assume that the union’s motivation in pushing this initiative is to increase employment opportunities for its members and to strengthen organized labor in right-to-work Arizona.
As the following provisions of Proposition 201 confirm, there is much for home builders, related industries and, in many respects, the home-buying public to oppose. If it is approved, Prop. 201 will:
• establish a minimum 10-year warranty on new homes (materials and workmanship);
• allow a homeowner to choose from among three contractors with complaint-free records to fix any repairs that might be needed in the home;
• impose mandatory disclosures of financial arrangements and pricing;
• prevent home builders from recovering their legal fees from homeowners who lose their lawsuit or whose suits are dismissed for being frivolous;
• allow prospective home buyers to sue, even if they never purchase the home;
• prohibit out-of-court settlements between home builders and homeowners – regardless of how large or small the claim – thus delaying the repairs;
• give home buyers the right to cancel a purchase contract within 100 days and get back at least 95% their earnest money; and
• extend the statute of limitations for bringing a court action from eight years to ten.
It is easy to envision the proposal causing a needless increase in litigation, inflating the cost of homes, adding red tape for builders, and dragging out the time for resolving legitimate claims. In addition, the right of buyers to cancel a contract within 100 days with little risk of financial loss could create situations in which an individual simultaneously contracts for the construction or purchase of several houses and then walks away from all but one.
Home builders would not be the only group to suffer. Proposition 201 would also require every seller of a dwelling to include a 10-year warranty in the purchase price. In addition, the warranty applies to the original owner and all subsequent owners within 10 years of the original purchase. Further, the 100-day money-back provision also would apply to re-sales by owner-occupants. Finally, increasing the home builders’ cost of doing business is a burden that will ultimately fall on homebuyers."