112TH CONGRESS 

2D SESSION H. R. 2446 

AN ACT 

To clarify the treatment of homeowner warranties under 

current law, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
2 

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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘RESPA Home War3 ranty Clarification Act of 2012’’. 

4 SEC. 2. TREATMENT OF HOMEOWNER WARRANTIES. 

5 Section 8 of the Real Estate Settlement Procedures 

6 Act of 1974 (12 U.S.C. 2607) is amended by adding at 

7 the end the following new subsection: 

8 ‘‘(e) HOMEOWNER WARRANTIES.— 

9 ‘‘(1) IN GENERAL.—Nothing in this section, 

10 section 2, or section 3 shall be deemed to include, 

11 or be deemed to have included, homeowner warran12 ties or similar residential service contracts for the 

13 repair or replacement of home system components or 

14 home appliances. 

15 ‘‘(2) NOTICE BY HOME WARRANTY COMPANY.— 

16 Any person that pays another person not employed 

17 by the person for selling, advertising, marketing, or 

18 processing, or performing an inspection in connec19 tion with, a homeowner warranty or similar residen20 tial service contract for the repair or replacement of 

21 home system components or home appliances shall 

22 include the following statement, in boldface type that 

23 is 10-point or larger, in any such warranty or con24 tract offered or sold as an incident to or as part of 

25 any transaction involving the origination of a feder26 ally related mortgage loan: 
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1 ‘‘ ‘NOTICE: THIS COMPANY MAY PAY 

2 PERSONS NOT EMPLOYED BY THE COM3 PANY FOR SELLING, ADVERTISING, 

4 MARKETING, OR PROCESSING, OR PER5 FORMING AN INSPECTION IN CONNEC6 TION WITH, A HOMEOWNER WARRANTY 

7 OR SIMILAR RESIDENTIAL SERVICE 

8 CONTRACT FOR REPAIRING OR RE9 PLACING HOME SYSTEM COMPONENTS 

10 OR HOME APPLIANCES.’ 

11 ‘‘(3) NOTICE BY REAL ESTATE AGENT OR

12 BROKER.—Any person who has contracted to receive 

13 payment from a provider of the services described in 

14 paragraph (1) for recommending the purchase of a 

15 home warranty or similar residential service con16 tract, and is not an employee of such provider, shall 

17 provide the potential purchaser, upon first recom18 mending the purchase of a homeowner warranty or 

19 similar residential service contract, a written notice 

20 containing the following language in boldface type 

21 that is 10-point or larger (with the bracketed matter 

22 being replaced with the information described by 

23 such bracketed matter): 

24 ‘‘ ‘NOTICE: THIS IS TO GIVE YOU 

25 NOTICE THAT [the provider of the notice] 
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1 HAS RECEIVED OR WILL RECEIVE COM2 PENSATION FROM [the home warranty com3 pany] FOR [the residential service for which 

4 the notice provider is being compensated]. YOU 

5 ARE NOT REQUIRED TO PURCHASE A 

6 HOME WARRANTY OR A SIMILAR RESI7 DENTIAL SERVICE CONTRACT AND IF 

8 YOU CHOOSE TO PURCHASE SUCH COV9 ERAGE YOU ARE FREE TO PURCHASE 

10 IT FROM ANOTHER PROVIDER’.’’. 

Passed the House of Representatives August 1, 

2012. 

Attest: 

Clerk. 

112TH CONGRESS 

2D SESSION H. R. 2446 

AN ACT 

To clarify the treatment of homeowner warranties 

under current law, and for other purposes.