New-Home Buyers and Federal Agencies Benefit From Improved Warranty Protection
CED-81-40
Published: May 26, 1981. Publicly Released: May 26, 1981.
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Highlights
GAO reviewed the private and State warranty programs that were developed to protect home buyers from construction defects in new houses. The review was made to assess the growth of these warranty programs and the protection that they provided through federally assisted housing programs.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Agriculture | The Secretaries of the Departments of Housing and Urban Development and Agriculture and the Administrator of Veterans Affairs should revise the builder's warranty and structural defect compensation programs to meet the disclosure requirements of the Magnuson-Moss Warranty Act by clearly describing the defects covered and the procedures used to settle claims. The availability to home buyers of Federal structural defect compensation programs should also be clearly disclosed. |
Closed
GAO has no information on the actions taken in response to this recommendation.
|
| Farmers Home Administration | The Secretaries of the Departments of Housing and Urban Development and Agriculture and the Administrator of Veterans Affairs should revise the builder's warranty and structural defect compensation programs to meet the disclosure requirements of the Magnuson-Moss Warranty Act by clearly describing the defects covered and the procedures used to settle claims. The availability to home buyers of Federal structural defect compensation programs should also be clearly disclosed. |
Closed
GAO has no information on the actions taken in response to this recommendation.
|
| Department of Housing and Urban Development | The Secretaries of the Departments of Housing and Urban Development and Agriculture and the Administrator of Veterans Affairs should revise the builder's warranty and structural defect compensation programs to meet the disclosure requirements of the Magnuson-Moss Warranty Act by clearly describing the defects covered and the procedures used to settle claims. The availability to home buyers of Federal structural defect compensation programs should also be clearly disclosed. |
Closed
GAO has no information on the actions taken in response to this recommendation.
|
| Veterans Administration | The Secretaries of the Departments of Housing and Urban Development and Agriculture and the Administrator of Veterans Affairs should revise the builder's warranty and structural defect compensation programs to meet the disclosure requirements of the Magnuson-Moss Warranty Act by clearly describing the defects covered and the procedures used to settle claims. The availability to home buyers of Federal structural defect compensation programs should also be clearly disclosed. |
Closed
GAO has no information on the actions taken in response to this recommendation.
|
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Building codesBuilding inspectionCommunity developmentHousing constructionHousing repairsInteragency relationsProgram evaluationReal estate purchasesWarrantiesCompensation