NCJ Number
92426
Date Published
1983
Length
67 pages
Annotation
The Home Owners Warranty (HOW) Program established in 1974 by the National Association of Home Builders is a self-regulating program which contains an informal dispute settlement system.
Abstract
The expedited dispute settlement (EDS) provides an opportunity for the builder and the buyer to meet and, with the help of a neutral third party, work out an agreement which is satisfactory to all. The dispute settler has the power of rendering a decision at the initial meeting. The decision is binding on the builder if the homeowner accepts it. The homeowners retain their legal rights throughout the process. Since its inception, HOW has processed some 21,000 cases and has resolved 72 percent of them. The EDS process starts with a written complaint from the homeowner to the builder regarding the specific defects in the building. If the builder does not respond satisfactorily, the homeowner files a request for warranty performance with the local HOW office. In 38 percent of the cases, the builders handle the problem at this stage of the process. If the case is not resolved, the local HOW office assigns a dispute settler who arranges a meeting with the homeowner and the builder in the owner's home. The dispute settler reviews all materials and hears both sides at the meeting. The parties try to reach a voluntary settlement. If they do not, the dispute settler renders a decision. The decision must be rendered within 40 days of the receipt of the request for warranty performance. Sixty days is generally the time limit for performance on the decision. Extensive attachments present the forms used and background materials.