PRINTER'S NO. 849
No. 763 Session of 2001
INTRODUCED BY McILHINNEY, BARRAR, CALTAGIRONE, CORRIGAN, COSTA,
HORSEY, LaGROTTA, LEDERER, MELIO, STABACK, THOMAS AND
YOUNGBLOOD, FEBRUARY 14, 2001
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, FEBRUARY 14, 2001
AN ACT
1 Requiring bonds for certain residential property construction
2 contracts.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Short title.
6 This act shall be known and may be cited as the Residential
7 Property Construction Contract Bond Act.
8 Section 2. Definitions.
9 The following words and phrases when used in this act shall
10 have the meanings given to them in this section unless the
11 context clearly indicates otherwise:
12 "Builder." A person or entity engaged in the business of
13 constructing residential property.
14 "Residential property." A building that is constructed as a
15 dwelling or residence.
16 Section 3. Bond required.
17 A contract between a builder and a purchaser for the
1 construction of a residential property that includes an express,
2 written warranty from the builder shall include a provision that
3 the builder shall post a bond in favor of the purchaser, his
4 successors and assigns and that the bond shall provide that, if
5 the builder breaches the warranty and for whatever reason ceases
6 its business of constructing residential properties within the
7 time period covered by the warranty, the purchaser shall have a
8 right to make a claim under the bond. The form and amount of the
9 bond shall be agreed to by the builder and the purchaser prior
10 to the commencement of construction
11 Section 4. Effective date.
12 This act shall take effect in 60 days.
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