Disclosing R-Value of Insulation
QUESTION: What is the “R-value” of insulation and why is it addressed in NCAR’s New Construction Addendum (Form 2A3-T) and Offer to Purchase and Contract—New Construction (form 800-T)?
ANSWER: “R” means resistance to heat flow. The higher the R-value, the greater the insulating power. Federal regulations in place since 1980 require that if you sell new homes to consumers, you must put in every sales contract the type, thickness and R-value of the insulation that will be installed in each part of the house. Each of those fields appears in the New Construction Addendum and the Offer to Purchase and Contract—New Construction. If the buyer signs a sales contract before you know what type of insulation will be put in the house, or if there is a change in the contract, you can give the buyer a receipt stating this information as soon as you find out. If you are covered by this regulation, you can be fined heavily each time you break it. To access the FTC’s rules on labeling and advertising of home insulation, click here.
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