§5414 Notification and Correction of Defects by Manufacturer

Summary

Manufacturers must tell buyers as soon as they reasonably can when they find a defect in a manufactured home that breaks a federal safety or construction rule or that creates an immediate risk of injury or death. They must mail the notice to the first buyer (not dealers), to any buyer who got a transferred warranty, to owners whose names they have on record, and to the retailer(s) who sold the home (by mail or faster). The notice must say what the defect is, how it could affect safety, how to fix it, and whether the maker will fix it for free or if the owner must pay. Makers also must send copies of these notices to the federal housing official, who can share helpful information with the public but will not reveal trade secrets or information that would seriously hurt the maker’s business. If the federal official finds a home doesn’t meet a federal standard or has a dangerous defect, the official will tell the maker, show the evidence, and give the maker a chance to respond. If the official confirms the problem, the maker must notify owners and, when the defect both creates an unreasonable risk of injury or death and comes from the maker’s design or assembly mistake, must fix it at no cost within a reasonable time. The maker must give the official a repair-and-notice plan and start work as soon as practical, normally within 60 days of finding the defect unless the official grants more time. If the home can’t be fixed adequately within 60 days, the official may require replacement with a new or equivalent home or a full refund minus reasonable depreciation if the owner had the home more than one year. Manufacturers must keep first-buyer names and addresses and try to track later buyers; the official can set reasonable record-keeping rules.