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Consumers Union’s Manufactured Home Warranty Tips Negotiating the maze of warranty services on your manufactured home You’ve decided that a manufactured home is right for you, but want to ensure that your home looks like the model you saw on the lot, and everything works as it should after you move in. What can you do to protect yourself? Prior to the sale: Buying a manufactured home is a major purchase, so take some time to educate yourself about all aspects of the process. Research construction quality and upgrade options, the proper site for your home, financing, and insurance. You can get started with our free brochures “Dealing with Dealers and Financiers”, and “Tips on Mobile Homes”, which are available (as well as links to materials from other organizations) at www.consumersunion.org/mh.

Although
it can be more difficult, also research the service record of the dealerships
at which you shop. Our research shows proper after-purchase warranty service is
very important for consumer satisfaction. Ask questions and get commitments in
writing from several retailers about the following aspects of warranty service:

Warranty
terms: Manufacturers, retailers and installers may offer separate warranties,
each of which covers a different part of the home. Ask for copies to take home
and compare against other packages from other retailers. Make sure you get a copy
of the complete warranty, not just a summary brochure. Look at the combined terms
of all the warranties that cover a home. All new homes should have a warranty,
but used homes may not, or may have a very limited warranty. Be wary of homes
sold ‘as-is’ with no warranty - there may be hidden problems with the
home.

• How
  long does the warranty last?
• What
  is covered and what is excluded? Warranties typically disclaim responsibility
  for normal wear and tear, consumer abuse, site preparation and neglect of maintenance.
  Many exclude “cosmetic” items – the definition of which can be
  a source of contention down the line. Some exclude important items such as wall
  cracks and leaky faucets, and doors and windows. Used homes typically have extremely
  limited warranties.
• What
  can void the warranty? Sometimes moving or selling the home can void the warranty,
  as can improper site preparation. Does the home need regular maintenance to keep
  the warranty in force? What kind of maintenance?
• Are
  appliances covered by a separate warranty? Who do you contact for service?
• Who
  performs the warranty work? How does the retailer, manufacturer, and installer
  split responsibility? Who do you contact first? Consumer Reports recommends purchasing
  direct from a manufacturer, but this is not possible in all states due to licensing
  laws.
• Be wary
  of “extended warranties.” These are often little more then high-priced
  insurance products issued by third party companies. Terms of extended warranties
  may be different then the original warranty, so evaluate them as closely. If you
  are financing the extended warranty, factor in the interest costs.

Site
preparation: Many warranties become void if the installation site is not properly
prepared. Find out if the installer, retailer, park owner, or site contractor
will certify that the site is properly prepared to receive a home and meet the
warranty requirements. This may protect you if the manufacturer, retailer, or
installer attempts to invalidate their warranty due to improper site preparation.

Arbitration
clauses: These contract terms limiting your right to sue are more common in
manufactured homes then conventional housing. Does the retailer, manufacturer,
or finance company use mandatory arbitration clauses in their contracts? What
does it cost to file a claim? Will they sell you the home without the clause,
or with the clause amended to your satisfaction? Ask to see the agreement while
shopping.

Quality of Service: Does the retailer have references from previous customers? Check more than one, preferably people who have been in their homes long enough to experience the quality of warranty service. You can also check the record of the manufacturer, retailer, and installer at agencies such as the state attorney general, or the state manufactured housing agency. Many states require retailers to be licensed. Is their license current? Do they have a history of complaints? Have they posted a bond? How long have they been in business? If the manufacturer does not contract with the dealer to perform warranty service, you should check the history of the manufacturer as well. Escrow of Funds: Some consumer report delays in warranty service. If the retailer has already been paid in full, there is less incentive for prompt service. Is the retailer willing to escrow (i.e. delay receiving) some of the funds until completion of the installation of the home and inspection by a third party?

Inspection:
Will the final home be inspected by a third party? For used homes, we advise you
have the home professionally inspected prior to any purchase commitment.

After
the Purchase:
Once you’ve bought the home, you can continue
to take steps to protect your investment and ensure proper service.

• Store in a safe place all
  documents pertaining to the sale of your home, in addition to any correspondence
  with the retailer, manufacturers and state or federal agencies.
• Review
  the homeowner’s guidelines and other information found in the homeowner’s
  manual your retailer gives you upon receipt of your new home. This manual is required
  by Federal law. There should be information on how to deal with warranty issues,
  as well as maintenance requirements that may need to be followed to keep your
  warranty valid.
• Maintain
  documentation of maintenance performed on the home.
• If
  you are contacted by your lender about the status of the home, don’t tell
  them the installation is complete unless it is complete to your satisfaction.
  You can tell the lender it has been delivered, but has not yet been properly installed
  to your satisfaction.
• As
  you near the end of your warranty period, carefully inspect the home for signs
  of problems.

If
you have a problem:
What to do when you have a problem with your
manufactured home that should be covered under your warranty:

• Organize all your records
  and write down exactly what your complaints are. Also make record of all conversations
  with retailers, manufacturers, state and federal agencies from this point on.
• Contact
  your retailer first. If they are not helpful or will not resolve your situation,
  get in touch with your manufacturer.
• Phone
  calls are fine, but follow up with notifications to both your manufacturer and
  retailer in writing. Address the letters to specific people with specific titles
  to create a clear paper trail. Contact information should be in some of the written
  material and information you received when your home was installed. Include your
  name, address, home or work telephone numbers and label number of your home. (The
  label number can be found on a red seal issued by HUD and affixed to all homes
  built under their jurisdiction)
• Keep
  the letter brief and to the point. Be sure to include the date and place you made
  the purchase, who performed your installation, the serial or model number and
  warranty terms, what went wrong and what, of anything, you have tried to do to
  correct it.
• Enclose
  copies of your records (Store the originals in a safe place), including receipts,
  guarantees, warranties, cancelled checks, contracts, model and serial numbers
  and any other documents.
• You
  may also mention that you will wait a reasonable amount of time (whatever you
  determine it to be) before seeking the aid of a consumer protection agency or
  legal representation
• Send
  the letters by certified mail. Some states will require this as proof of notice.
• If
  service personal attempt to perform work, but do not complete repairs to your
  satisfaction, do not sign off on service orders that state the job has been completed.

Regulatory Relief: All manufactured homes should be constructed to meet the federal building standards adopted and administered by the U.S. Department of Housing and Urban Development. This national code is called the National Manufactured Home Construction and Safety Standards, and it regulates manufactured home design and construction, strength and durability, fire resistance and energy efficiency. The code also dictates the performance standards for heating, plumbing, air conditioning, thermal and electrical systems. HUD generally contracts with state agencies (State Administrative Agencies or SAAs) to enforce the code and monitor complaints.

If you cannot get
your retailer or purchaser to perform the necessary repair work, contact your
SAA for a complaint form. Contact information should be in your homeowner’s
manual. The only states without HUD-affiliated (SAAs) are: Alaska, Connecticut,
Delaware, Hawaii, Massachusetts, New Hampshire, North Dakota, Ohio, Oklahoma,
Vermont and Wyoming. Complaints originating in these states should be directed
to HUD (1-800-927-2891). The HUD website also offers information about SAA’s
at http://www.hud.gov/offices/hsg/sfh/mhs/mhssaa.cfm.

• Fill
  out the complaint form and send it back to the agency with dated copies of your
  correspondence with retailers and manufacturers, in addition to a copy of your
  purchase agreement. The agency will review your complaint and send an inspector
  or district representative out to your home. Depending on your state’s number
  of inspectors and the urgency of your claim, this process can take several weeks.
  Follow up if the delay becomes unreasonable. If the agency declines to inspect
  you home, in some states, such as Texas, you have the right to ask for, and receive,
  an inspection. If the inspector finds your problem to be a result of a manufacturing
  defect, they will lobby both your manufacturer and retailer to remedy the situation.
  Even if your warranty has expired, some states will still force the retailer and
  manufacturer to compensate owners whose problems are the result of a manufacturing
  defect. Your state may even have a recovery fund with which to fix your problem
  if this is the case and your retailer or manufacturer is out of business.
• Used
  homes have shorter warranty periods, and your state may only have limited jurisdiction
  over them.
• If
  the SAA directs the licensee to perform work and it is not completed to your satisfaction,
  tell the SAA. They may assume the work is completed and close your file if they
  don’t hear from you.

Final
Steps:
If you
have no success with your State Administrative Agency or HUD and you feel the
regulatory system was not sufficient to address your problems, be sure to notify
your state and federal elected officials. Your final option is to seek legal assistance.
Many State Bar Associations will help consumers locate lawyers willing to take
manufactured home warranty cases. If you are low income, you may be able to qualify
for assistance from your local Legal Aid office.

The court system may be able to address issues such as implied warranty and deceptive trade practices violations that state agencies won’t tackle. Implied warranties are non-verbal, non-written guarantees that a product is fit to serve the purpose for which it was sold. Be forewarned, however, that if you signed an arbitration agreement in your purchase documents, you may go before a private court rather then the public civil justice system. Hopefully, your manufactured home purchase won’t lead to these steps. However, knowing your options from the beginning can help guide you to a happy purchase.

Report
in PDF

(Note: PDF brochure formatted for printout on legal paper)