old shipping container? Make it a home!

I am absolutely astonished at the current state of modular housing. At this point, I think I must be dumb not to own one.

A recent explosive upstart in green modular home builders has me excited. Jetson Green posted a great article this morning showcasing some of the industry leaders. Its amazing what builders that builders are able to put together full enclosures for prices as low as $4,500.00.

 

In most cases, the structures are entirely fabricated at the builder’s site and then shipped off to the consumers on trucks. Site preparation is typically nothing more than plopping the enclosure down on the ground and hooking it up to utilities. In some cases, a foundation might need poured – but don’t fret, the modular builder will come out and do it for a mere $1,500.00!

Additionally, these homes are green. Most builders are using FSC certified wood and other efficient energy sources. Check out LEED Cabins, who assert that their homes come with “radiant floor heating, FSC flooring, energy efficient windows and doors, LED lighting, recycled glass mosaic tiles, green insulation, and no-VOC coatings.”  Efficient use of space, low maintenance costs, and environmentally friendly, these homes are attractive to many looking to get “off the grid.”

Most importantly, these homes are complete! Picture that for a moment. No working on site with other contractors, no threats of liens from unpaid suppliers, no permitting problems (well, perhaps this is still an issue), no worker injury concerns, no persistent fight over design and installation – virtually problem free. Modular housing producers have turned the project of building a home into the simple purchase of a product.

That raises the issue of whether or not a modular home is a product and not a home. If its a product, then is the transaction a sale of goods under the Uniform Commercial Code? Is the sale subject to the Product Liability Act? Does the transaction have a different statute of limitations?

These are all interesting questions that consumers, builders and lawyers need to ask. Fortunately, my good friend Tim Hughes, attorney at Bean, Kinney & Korman in VA, has already asked these questions. His article has garnered quite a few comments and I would suggest that you check it out for a jump start on this discussion.

One thing that seems certain – modular homes are products and subject to different rules than the traditional construction industry. Builders in this industry should become well-versed in the regulations facing typical product sellers.

Consumers should better understand their rights with respect to the purchase of these items. In Washington, we are currently without a statutory home warranty. These modular homes likely are sold with an express warranty, but certain implied warranties and consumer protection are likely afforded by law.

One last thought – when does modular building invade commercial construction? I think that we are quickly moving in that direction.

Any thoughts on the new wave of modular building? Please leave a comment below.