DENVER-
After lawmakers accused some homebuilders of forcing buyers to waive their warranty rights, the House gave initial approval Wednesday to a bill that requires the warranties to be upheld.
The Homeowner Protection Act of 2007 would allow courts to void any part of a contract that waives basic legal rights.
Rep. Debbie Stafford, a Republican from Aurora, said some homebuilders were taking advantage of a 2003 law that eased restrictions on them, wiggling out of warranties even when negligence was involved.
She said lawmakers thought they were doing the right thing when they passed the law, but some homebuyers have been left with costly repairs.
“The American dream for many of the people who voted to send us down here are caught in the American nightmare,” Stafford said.
Other Republicans said the measure (House Bill 1338) will drive up the cost of new homes and hurt the industry at a time when it is in a slump.
“This is kicking an industry while it’s down,” said Rep. David Balmer, R-Centennial.
The bill faces a third reading in the House before it goes to the Senate.
Rep. Al White, R-Winter Park, said the bill would create a windfall for home buyers who could prove a builder was negligent.
Bill sponsor Rep. Jack Pommer, D-Boulder, said the measure puts limits on damages. He said some homebuilders have acknowledged that some of their contracts are “unconscionable” and he said they need to be reined in.
