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Sunday, July 21, 2013

Compulsory warranties for new homes? Yes, probably a good idea

After the scandal of leaky homes, it seems to make sense to give these warranties. Every home buyer should be confident that they are buying a good product.

I agree with Minister Williamson that the joint and several liability regime has not worked. It essentially means that any one party involved in a building project, like an architect, builder or Council can be held liable if they are the only one still in existence. This regime has meant that the cost of building failure has been left with councils, even when other parties are at fault.

I do note however the concerns of the Building and Insurance companies, without their support, it would be difficult to make warranties work. They have argued that costs could rise and that some work like a smaller building job do not require a warranty.

I will be watching these developments closely.

Photo courtesy of times-age.co.nz

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