PRINTER'S NO. 3615

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2742 Session of 1992


        INTRODUCED BY HARPER AND CIVERA, MAY 18, 1992

        REFERRED TO COMMITTEE ON TRANSPORTATION, MAY 18, 1992

                                     AN ACT

     1  Amending the act of December 22, 1983 (P.L.306, No.84), entitled
     2     "An act providing for the State Board of Vehicle
     3     Manufacturers, Dealers and Salespersons; and providing
     4     penalties," providing for warranty and presale information.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7     Section 1.  The definition of "vehicle" in section 2 of the
     8  act of December 22, 1983 (P.L.306, No.84), known as the Board of
     9  Vehicles Act, is amended to read:
    10  Section 2.  Definitions.
    11     The following words and phrases when used in this act shall
    12  have the meanings given to them in this section unless the
    13  context clearly indicates otherwise:
    14     * * *
    15     "Vehicle."  Every device which is or may be moved or drawn
    16  upon a highway, except devices designed primarily for use in
    17  construction or agriculture or road maintenance, devices moved
    18  by human or animal power, those used exclusively upon rails or


     1  tracks or motorized pedalcycles. The term includes manufactured
     2  homes.
     3     * * *
     4     Section 2.  The act is amended by adding a section to read:
     5  Section 8.1.  Warranty and presale information.
     6     (a)  Manufacturer's warranty.--At least 48 hours before an
     7  agreement of sale is executed for the purchase of a new
     8  manufactured home, the dealer shall show the prospective
     9  purchaser the manufacturer's warranty for the home to be
    10  purchased and explain its contents. The purchaser shall sign a
    11  form indicating they have reviewed the warranty.
    12     (b)  Extended warranty.--
    13         (1)  The purchaser prior to signing a sales contract
    14     shall be offered an extended warranty of not less than ten
    15     years covering at a minimum major structural defects which
    16     shall include actual physical damage to the following
    17     specified load-bearing segments of the home, caused by a
    18     failure of such segments which affects their load-bearing
    19     functions to the degree that the home becomes unsafe or
    20     unlivable:
    21             (i)  Roof framing members and systems (rafters and
    22         trusses).
    23             (ii)  Floor systems (joists).
    24             (iii)  Bearing walls and partitions.
    25             (iv)  Columns.
    26             (v)  Lintels.
    27             (vi)  Girders.
    28             (vii)  Load-bearing beams.
    29             (viii)  Foundation systems.
    30         (2)  If the purchaser declines the extended warranty, he
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     1     shall sign a statement to that effect which shall be retained
     2     by the dealer.
     3     (c)  Estimate of expenses.--At least 48 hours before an
     4  agreement of sale is executed for the purchase of a new
     5  manufactured home, the dealer shall provide the prospective
     6  purchaser with a written estimate of the reasonably foreseeable
     7  expenses associated with the sale that the prospective purchaser
     8  may be expected to pay including:
     9         (1)  Actual retail sale price of home.
    10         (2)  All finance charges, including principal amount to
    11     be borrowed, rate of interest, length of loan and total
    12     principal and interest to be paid back during entire term of
    13     loan, when the dealer is assisting in arranging financing of
    14     the home for the prospective purchaser.
    15         (3)  Annual cost of insurance premiums for any insurance
    16     policies prospective purchasers are told they should carry on
    17     the home when the dealer is assisting in arranging insurance
    18     coverage on the home for the prospective purchaser.
    19         (4)  Annual cost of extended warranty coverage should
    20     prospective purchaser choose to purchase same.
    21     (d)  Approval by community.--When a prospective purchaser is
    22  going to place the home in a manufactured housing community, the
    23  prospective purchaser shall have first been approved as a
    24  resident of the community where the home is to be located and in
    25  addition shall have in his possession a lease for that community
    26  signed by the owners of the community and a copy of the
    27  community's current rules and regulations, fees and charges, as
    28  well as any proposed changes to same, prior to an agreement of
    29  sale being executed for the new home.
    30     (e)  Certificate of installation.--A dealer shall insure that
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     1  the new manufactured home is set up on site according to the
     2  manufacturer's setup specifications for that type of model home.
     3  The dealer shall provide the manufactured homeowner with a
     4  notarized certificate of installation prior to occupancy which
     5  shall state the home was set up by the installer according to
     6  the manufacturer's specifications for that home and if any
     7  damage occurs to the home in the future as a result of improper
     8  installation and setup, the dealer shall be financially liable
     9  and responsible for all repairs or replacement costs resulting
    10  from the damage.
    11     (f)  Contract null and void.--Any violation of the provisions
    12  of this section by a dealer shall render null and void any
    13  contract for the purchase of a new manufactured home previously
    14  entered into by the affected party.
    15     Section 2.  This act shall take effect in 60 days.










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