bizusa2000 said:
I thought any new house is under 10 years warranty... When I built another house in another state TX which they were very strict. The city inspector had to visit the new home and gave a pass prior the builder could build the next step... However, here in CA, I was disappointed that they don't do that at all. No City Inspector, no passing required... They kept building it like crazy... it took only 4 months or less to build one in CA, while my custom home in TX took 10 months to finish it... I caught the mold-grew lumbers they used for the frame of the house... terrified me... I could not understand why the government aint do anything about it...
Vic
This just goes to show you how code enforcement can vary widely from one area to another. There is no state that doesn't have some area within it that suffers from poor code enforcement. Many areas don't even conduct inspections.
People shouldn't rely on building code enforcement or warranties. Both are spotty at best.
Statute of limitations varies by state as far as how many years afterwards you can still sue a builder for construction defects. Arbitration clauses prevent suing, regardless. Warranties may be the kind mandated by state law, usually only a year, or those offered contractually by the builder or a separate warranty company. Warranties on homes usually have many exclusions, an arbitration clause, and can be notoriously difficult to get a claim paid.
Some requirements for a home to have a 10 year warranty have in the past been:
Where the buyer finances most of the price with a government backed loan.
Where required by a professional trade organization to which the builder belongs.
Additionally, warranty companies themselves usually if not always require the builder to honor his own first year warranty before the separate policy will kick in anyway.
Warranty companies often appear to be "insurance." They kind of are for the builder. But, for the home owner, warranty companies enjoy little to no insurance agency regulation. FEW home owners can afford to legally pursue a warranty company.
NOTE: If the buyer has financed with a government backed loan they should be able to bypass a warranty company arbitration clause because with government backed loans you are supposed to retain the option to sue. 24 CFR 203.204(g) Sorry I don't have a link handy but this is in the Code of Federal Regulations.
A home buyer should never assume they have the protection of building codes, warranties, etc. If there is anything still wrong with a house after closing, it will be an uphill battle to get it fixed. It is sad that many home buyers, especially first timers, assume that if there is a problem they could easily sue the builder. It's just not that way in real life. I've had a construction defect case, and though I tried to protect myself I still got taken. I knew legal recourse was not like on TV but I sure found out it was even crazier than I thought. Though I came out alright in the end it took years, and was very expensive and stressful while it was going on. I don't recommend anyone risk it. Take all precautions and learn from people here who advise various steps to prevent problems. They are not kidding that you have little recourse after closing.