This form sets out the mandatory notice under 16 C.F.R. § 460.16. A new home seller must include in every sales contract the type, thickness, and R-value of the insulation that will be installed in each part of the house. The exception to this rule is that if the buyer signs a sales contract before the seller knows what type of insulation will be put in the house, or if there is a change in the contract, the seller can give the buyer a receipt stating this information as soon as the seller finds out the information. This regulation is enforceable by the Federal Trade Commission. The failure of the seller to provide this information does not appear to invalidate the contract or render the sale voidable but may subject the seller to a claim for damages.
Use this form when the information was not available to be included in the sales contract or the relevant information changed after the execution of the sales contract.
Notice Regarding Insulation to Buyer of New Home
Seller:
Address:
Buyer:
Address of Buyer’s new home:
Description of type, thickness, and R-value of the insulation that will be installed in each part of the new house:
[Name of seller]
Date: