Even though your home may be brand new, just as with a new car, there will still be reasons for service. Things may go wrong with your new home. The question is: Who is responsible for fixing these problems? All of this information should be spelled out in the builder’s warranty. The builder’s warranty is one of the items that you must read and understand before you make a buying decision. If the warranty references another document, such as standards set forth by a building trade organization or the state, make sure you also read and understand those documents. The way the warranty reads will give you insight into how the company operates and the faith that they have in their product. Some builders have more detailed warranties chock full of legalese, disclaimers, and limitations. Because the warranty is almost always referenced in the purchase agreement, it is a legally binding document that you are agreeing to, so make sure your attorney reviews it. You should compare warranties, tolerances, and remedies for different builders. If a huge crack develops in your garage floor, for example, is the builder’s remedy to fill the crack with caulk or replace the floor? If the builder is informing you in writing before you even agree to buy the home that they are not going to stand by their product and fix something, that should send up a red flag! Warranties vary greatly depending on the size of the builder and the area of the country. Some builders operate under a standard warranty that is mandated by the county or state government similar to a code. The length of the different parts of the warranty will vary, just like new car warranties. Like a new car, you will have a responsibility to maintain your home to keep the warranty enforceable on the components in your home. For instance, is the concrete warranty void unless you seal your concrete? Remember, it’s just like the warranty on a new car: If you don’t change your oil as prescribed, kiss your warranty good-bye. Most new home warranties have two components with varying terms of coverage. When you are shopping for homes you will commonly see “1-10” or “2-10” warranties. One- and Two-Year Warranty Coverage Think of this as the “Bumper-to-Bumper” version of your warranty. Almost everything in your home will fall under this category. From your squeaky floors to your doors that won’t shut, it is the builder’s responsibility to fix them for the period outlined in the warranty. Some builders will limit this part of the warranty to the major components of your home such as plumbing, heating and cooling, and electrical systems. Don’t make the mistake of thinking everything is covered. Read the warranty and all of its exclusions. Structural Warranties The longest period in most warranties offered by builders of new homes is the “Structural Warranty.” This is the “10” in the “2-10” warranty. Think of this as the “drive-train” portion of your home warranty. Just as a new car warranty defines the drive-train warranty as covering just the systems that make the wheels move, the builder limits the Structural Warranty to the components that keep the home from collapsing. Structural defects usually refer to defects in the load-bearing portions of your home such as roof rafters or trusses, floor joists, beams, foundation, and footings. …continued or begin new article. Items Almost Never Covered From the time you move in, most builders will not warrant items such as landscaping, paint, caulk, floor coverings including carpet, vinyl, tile, and hardwood. You need to pay special attention to these, and any other items not warranted by the builder, during your walk-through. It is important to make sure the house is clean when you do your walk-through so that you can identify defects in any of these products and have them repaired prior to closing. Manufacturers Warranties Almost every component in your house has a warranty from the manufacturer. However, it is a bit unrealistic to think you are going to get the warranty card for the subfloor or concrete. What you should get is warranties from all of the major mechanical component manufacturers used in your home. Specifically, make sure you get the warranty information for: appliances garbage disposal furnace air conditioner water heater water softener windows entry doors garage doors and openers roofing material skylights whirlpool type tubs If the builder uses name brand components with strong warranties you are protected even after the builder’s warranty expires. In the case of a stove, there is little a builder can do to improperly install it and void the warranty. On the other hand, for something like a window or door, it is very easy for the builder to void the warranty by not installing it according to manufacturers instructions. If you do have a problem with the windows or doors several years after the builder’s warranty expires, your claim could be rejected because the window or door manufacturer will simply say that the builder voided your warranty. If your windows carry a ten-year warranty and you have a problem (caused by your builder) in year seven, it may be difficult to go back on the builder. Most builders look at a seven-year-old house as ancient and probably built in a neighborhood that was long ago completed. So what can you do to protect yourself? First, make sure that your inspector is familiar with the components that your builder is using and can verify that those components are installed correctly. Second, you need to collect as much product information from the builder as you can, including warranty cards, installation instructions, and care and maintenance guides. Tell your builder that you are expecting these items to be given to you at the walk-through (new home orientation when the home is finished, but before closing). This is helpful if, for example, a builder tells you that the finish on your hardwood floor is not guaranteed by the builder, but it does carry a ten-year warranty from the manufacturer. Do you know who manufactured the floor? Do you know who installed it? Do you know how to care for it so as not to void the warranty? Can you verify that the floor really does have a warranty? Your most serious warranty claims will stem from foundation and framing problems. If your inspector verifies that the foundation and framing are done correctly and products such as windows and doors are installed correctly, you can avoid many problems later. Remember, no warranty can take the place of a well-built house.

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