It is hard to forget that story of a dozen people in Elk Grove who bought new houses last year from now-bankrupt Dunmore Homes of Granite Bay and then became the target of liens from unpaid contractors and suppliers.
California homebuilders are not forgetting, either. What can be worse for an industry image than selling people new houses and seeing them fighting off liens before the paint dries?
The California Building Industry Association, a trade group that represents 1,200 builders and 1,800 contractors, is sponsoring a bill to make sure this does not happen again.
Robert Rivinius, president and chief executive officer of the CBIA, said Thursday he has seen four recessions and never before seen people chased so by unpaid contractors after buying a new house. The industry bill, AB2683, will require that title insurance policies sold with new homes protect buyers from claims made against builders.
It has to pass both houses of the Legislature this year and be signed by Gov. Arnold Schwarzenegger to become law.
A blog about the economy and the Sacramento-area real estate market.
March 13, 2008
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