AZ Homeowners “Bill of Rights” - Proposition 201

August 26, 2008

If there is one positive that comes from the fallout of the Arizona real estate crisis is better regulation.

I am not talking about over-regulation or Government interference.

I am speaking of a revised set of laws and practices that will better protect the consumer and public from deceptive sales practices and require higher levels of seller culpability.

Buyer beware is not enough.  AZ Homeowners “Bill of Rights” - Proposition 201

In my opinion, current Arizona law does not give home buyers enough protection against deceitful sales people accountability for seller remedy of problems.

Currently on the November Ballot is the Arizona Homeowners Bill of Rights- Proposition 201 Particularly pointed at new home builders, the goal is to

“provide homeowners with improved rights to deal with construction defects and shady home sales practices.”

The Bill of Rights for Arizona Homeowners would

  • providing a 10-year warranty on new homes.
  • homeowners would have the right to demand either the builder correct construction defects or compensate the homeowner.
  • Homeowners also could participate in the selection of contractors to perform the repair work

The Building Industry is the main opponent of the bill claim who argue this draft of the AZ Homeowners Bill of Rights is overreaching are not happy that the Bill

  • Prohibits two parties from agreeing to resolve their disputes without going to court
  • Forbids defendants from recovering attorney’s fees even if case was frivolous
  • Allows PROSPECTIVE buyers to file suit so you don’t even have to own a home to file suit
  • Assures that all disputes, either large or small, go to court raising costs for everyone
  • Mandates that home builders pay homeowners for repairs with no requirement that they prove that the defect exists or is even the builders fault.

I am a big supporter of Buyer rights, consumer protection and seller responsibility. I agree with buyers, there needs to be better mechanisms in place to protect from bad business practice.

However, I am not a supporter of the Bill in this form.

The sustainability of the building business is critical to the Arizona economy. The Phoenix real estate market is hampered and needs better pricing.

Today is not the time to ask builders to increase the cost of home production which this bill does by definition.

I do agree with Don Lathem, treasurer of the committee

“One easy way for builders to stay out of court is to build high-quality homes and either correct construction defects or compensate homeowners. ”

However, increasing costs as preventative medicine at this time is not the answer.

What is needed are strict and more severe penalties when builders, sales people or any home seller acts deceptively, deceitfully or fraudulently.

If you are interested in supporting the Bill or wish to sign a petition against the AZ Homeowner Bill of Rights , …

you can contact the Arizona Secretary of State or Vote “Yes” or “No” on Proposition 201 in November.

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Copyright © 2008 James Wexler *AZ Homeowners “Bill of Rights” - Proposition 201 *

Contact James Wexler (480) 221-8080 for your Phoenix | Scottsdale area Real Estate needs

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Written by James Wexler · Filed Under Articles, Builders, Buyers 

Comments

3 Responses to “AZ Homeowners “Bill of Rights” - Proposition 201”

  1. Mike DelVero on August 26th, 2008 8:52 am

    Great Article! Had no idea this bill was in the works for the Arizona Real Estate Martket. I’m sure most real estate agents didn’t as well.
    Thank you

  2. Jason Charles on August 26th, 2008 8:57 am

    I think this bill is a terrible idea. I love how congress is always behind the 8 ball on everything and when consumers get in an uproar, then they decide to make some rules up. It’s bullshit and I challange anyone who disagres.

  3. Ken Siebrecht on September 16th, 2008 4:23 pm

    It’s not going to work!!
    If a builder is going to have to warranty a home unconditionally for 10 years HOW MUCH DO YOU THINK A NEW HOME IS GOING TO COST???

    CONTACT APPLIANCE MANUFACTURERS, HVAC EQUIPMENT MANUFACTURERS OR ANY OTHER COMPANY THAT BUILDS A PRODUCT FOR SALE TO THE PUBLIC AND ASK THEM HOW MUCH MORE THEIR PRODUCT WILL COST WITH A 10 YEAR UNLIMITED WARANTY THAT IS WRITTEN LIKE PROP 201.

    I GUESS NOBODY’S KIDS WILL EVER OWN A NEW HOME

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