Important Warning for General Contractors!
General Contractors should be aware of potential legislation that will directly impact your home construction business.
Proposed House Bill 3499 seeks to substantially modify the liability protection offered by the Limited Liability Company Act, Business Corporation Act, and Uniform Limited Partnership Act. The Act allows a home buyer to file a claim directly against the entity’s owners and managers for warranty obligations following the dissolution of the entity.
Said another way, the entity no longer provides the Corporate owners protection against warranty claims of home owners. This is a substantial proposed change to long standing corporate protections. This is set for hearing in the House Judiciary Committee, tomorrow March 13, 2019.
House Bill 3499
(Manley, D-Romeoville,) provides that a director, officer, member, manager. general partner, or person dissociated as a general partner of a business entity remains liable to a home buyer after dissolution of the entity for any obligation arising under a warranty for the sale of a new home. It amends the Business Corporation Act of 1983, the Limited Liability Company Act, and the Uniform Limited Partnership Act (2001). It is scheduled for hearing this Wednesday in House Judiciary Committee.
Click here for the link to the bill status.
Click here for the link to contact the Representative who is sponsoring this legislation.