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Some
Typical "New House" Warranties |
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By Douglas
Pencille |
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Introduction
| General Structural Warranty
| Sub-Contractor's Warranties |
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Construction
Documents | Appliance & Fixture
Warranties | "Shell"
Warranties |
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| 1.
Introduction |
I perform a large number of
"new house" inspections for people purchasing brand new
homes. Almost without exception and without regard to the sticker
price, I find that very little information is being passed on to buyers on
how to care for their new purchase. Many times, all they will get
from their builder is a handful of appliance manuals. There are also
many warranties associated with the labor performed on their new home, and
on the products & components installed - which most people are unaware
of.
Let me relate a simple analogy. When you purchase a
new automobile you always receive an "Owners Manual" which in great detail,
describes what to do and when to do it. You also are informed of what
your warranty coverages are. All of this is designed to help you get the
most life out of your new purchase, and also save you money in the process.
On the other hand, when you bought your new
home, did you
receive a "Home Owners Manual"? Were you informed about what
warranty coverage you have on the house and its components? I highly doubt it! Your home is many
times more expensive than your car, and houses today have a large number of specialized
systems that make them very complex. Without a "Home Owners Manual", many
people are in the dark as to what they should be doing, on a regular basis, to maintain
their home. See Home Maintenance Checklist.
Most people are also unaware of the protection afforded them by the many
warranties in place on the structure, labor, and interior components.
Listed below are five basic categories of
"new home" warranties, product information, and typical
procedures that you should be aware of:
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| 2.
General Structural Warranty |
| Most states require the builder
of a new house to be responsible for any "significant structural
defect" for a period of time after the house is sold. In
this particular region, the builder is responsible for a period of 10
years. Of course, this warranty is only as good as the financial
situation of a particular builder. In other words, if he is no
longer in business then you have no recourse of action. This is a
very good reason for choosing a top notch builder with a proven track
record.
It is important to make note of what is
defined as a "significant structural defect". This type of
defect is usually considered as something of a larger nature that impacts
the load-bearing capacity of the structure, is unsafe, makes the structure
not suitable for use as it was intended, etc. This doesn't mean that
you can call the builder back to your house every month after you close
escrow, to repair typical settlement cracks or make cosmetic
repairs. What we are talking about here is foundation or load
bearing-wall problems, rafter problems, basement water leakage issues,
etc. |
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| 3.
Sub-Contractor's Warranties |
| While the builder is usually
considered the "General Contractor", and is ultimately
responsible for a the work performed at the house, there are numerous sub-contractors
and materials suppliers working under the general contractor.
These range from the carpenter, mason, electrician, etc., who are actually
at the house performing work - all the way to the materials supplier who
provides the lumber, the draftsman who drew up the plans, the flooring
company who ordered and installed your ceramic tile, etc. All of the
sub-contractors and suppliers who performed work, supplied materials, or
performed a service in the effort to construct your new home have a
responsibility to you, in their specific area.
There is typically an implied
sub-contractor's warranty, to you, for the work or service provided.
This is usually for a period of one year. Some specific trades, such
as plumbing and electrical, sometimes are obligated to warrant their work
for a period of two years. Therefore, it is always important that you have
your builder provide you with a complete sub-contractors list.
This should include the name, address, phone number, and license number of
the sub-contractor, along with what specific area of work they were
responsible for and the dollar amount they were paid. |
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| 4.
Construction Documents |
| Many documents are generated
during the construction of a new home. Typically, this would include
documentation that is more legal in nature. Many of these documents
will originate with you (i.e. your construction and loan documents,
special materials and products for the home that you personally were
responsible for, purchase agreement with the builder, etc.), and should
already be in your possession.
However, there are many other documents
generated during a building project that you may never see, unless you
make it clear that you want possession of them. They can
include:
- All final signed off
permits for each category.
- Additional copies of
blue prints.
- Copies of all
correspondence with the local building authorities.
- Copy of a signed
"Certificate of Occupancy" . . . . see
Certificate of Occupancy
- Paid receipts and lien
waivers from all parties who provided a service in the building of
your home.
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| 5.
Appliance & Fixture Warranties |
| All appliances installed and
present in your new home should arrive with some type of documentation
from the manufacturer (i.e. furnace, water heater, range, dishwasher,
microwave, clothes washer / dryer, overhead door openers, fireplace,
etc.). This can include the actual appliance warranty, operating and
maintenance instructions, etc. - all very important for you to
retain. Often times I see this paper work torn out of the packing
crate the appliance arrived in, left on the floor, and then thrown away
with the trash at the end of the day. It is important that you make
it clear to your builder, that you expect him to present you with all of
these documents when you close escrow.
An often forgotten portion of the Appliance
Warranty Category are the fixtures (i.e. lighting, cabinetry, sinks,
toilets, floor covering, etc.). Many times product warranty
information for these items will not be delivered with the individual
item. You need to be aware that warranties, maintenance and product
information, etc., for the fixtures do (should) exist. |
| 6.
"Shell" Warranties |
| When we use the term
"Shell Warranties", we are referring to the exterior skin of the
house, or its shell. This category typically includes items like
siding, windows, shingles, etc. For example, many shingles have a
manufacturers warranty of 20-25 years or more, most windows are warranted
for at least ten years, some steel sidings have warranties of 30-50 years,
etc. Again, It is not uncommon for the product warranty information
pertaining to these items not to be delivered with the individual item,
but you need to be aware that warranties, maintenance and product
information, etc., for them do (should) exist. You, or your builder
may have to speak directly to the supplier in order to obtain
them. |
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