Home Builders – Avoid Construction Defects With the New Construction of Your Home

Posted on February 6, 2022 by dayat

After purchasing your home builder’s model home, the new construction phase is exciting and filled with anticipation. You’ve signed the contract and construction is about to start. What do you do? You need to make sure that your home is built correct.

What is correct?

The first thing that commonly comes to mind is the home being built to ‘Code.’ In a general sense, the code issue is reviewed by the governing municipality. Commonly they have inspectors that look for your house to be built to code.

By the way, the ‘Code’ is only the MINIMUM set of standards. Kind of scary to realize that your new home is only being inspected to a minimum set of standards. You would have a fit if your children were taught to a minimum set of standards. The bar is not being set too high here.

The most important factor when your new home builder or general contractor starts construction of your model home is having a game plan. Ask your self these questions: Do I understand the new home building process? No, truly ask yourself! Do I REALLY understand the new home building process? Can I tell if my new home is being built to today’s standards?

If your answer is not a definitive yes; you should consider choosing between one of the following options.

Home inspector or not
One solution is to hire a home inspector with experience reviewing the new construction home building process of your new home. This type of inspection process is not the same creature that you may have experienced when purchasing an existing home. Fees for this type of service will be at least $500. Multiple visits along with fully documented reports at specific milestones during construction process are necessary. The trick here is to make sure that your inspector understands the finer elements of the new construction process.

There are three likely pit falls with the home inspector route. First, in an effort to prove his worth, the report is filled with issues that don’t matter much. The concern here is provoking and creating an adversarial relationship with your new home builder or construction company. Second, issues which are truly important in the construction and ultimately performance of your house are missed in the process. The third and final area of concern lies with accountability. Home inspectors do not guarantee or provide a warranty for the accuracy of their services.

Is there another way?

There sure is; just to do it yourself. I know what you’re thinking. Hold on there partner, don’t you remember the questions asked at the top? Of course I do. This is where with a little help, you can take the bull by the horns and make sure the work is completed correctly yourself. It is possible for you to manage this task.

What if you had a step by step process? What about a process that not only tells you what to look for, but when to look for it? And, how about a process that even provides photographs as examples of what to look for. With all of that, I’m confident that you’ll have the skills necessary to make sure your new home is built to today’s standards.

Now you understand that it you can make a difference in the quality of your home builder’s new home construction.

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Buying New Construction? Don’t Let Those Builders Push You Around!

Posted on February 6, 2022 by dayat

From the concrete streets of metropolitan cities to the sprawling suburbs in most areas around the country, new construction is present in the form of townhouses, condominiums, single homes and the ever-so-popular “over-55 communities.”

While many of these properties are esthetically impressive complete with over-sized family rooms, open kitchen areas, and every upgrade/option imaginable, there are also the unfortunate, yet inevitable pitfalls associated with new construction such as delayed completion dates, cost overruns and building defects. With respect to the latter, buyers of new construction should be informed of their legal rights in the event that construction defects impede their use and enjoyment of the property.

Traditionally, a vendor of property is responsible for the quality of the property sold only to the extent that the vendor expressly agrees to be responsible. In years past, the notion was that a seller and buyer dealt with one another at “arm’s length” and, therefore the buyer should only be afforded the specific protection for which he/she contracts. However, in the context of new construction, the laws started to change over the past few decades. In states such as the Commonwealth of Pennsylvania, a well-established body of case law has evolved that has afforded protection to buyers in the form of implied warranties.

The “implied warranty of habitability” and “implied warranty of reasonable construction” exist between a builder-vendor of new construction and a buyer regardless of whether any mention of such warranties is actually written into the contract of sale (those huge 25-plus page contracts that builders make you sign!). These warranties, which automatically exist between builder-vendors and buyers, represent that the property is suitable for living and is constructed with a reasonable level of skill and workmanship. Further, these warranties apply whether the buyer purchases the new home prior to, during or after completion of construction.

So, what does this mean for those of you who are about to purchase a plush, new townhouse on a golf course? It means that you may have legal recourse in the event that the builder has improperly constructed your home and/or constructed the home with defects that make the property unfit for living. Some examples of defects that could trigger these warranties and potentially provide you with a cause of action against the builder-vendor include: severe water leakage leading to mold growth, faulty plumbing, contaminated water supply, improper foundation and faulty landfill/site development.

Even though the courts in Pennsylvania (and some other states) have consistently found that these implied warranties afford buyers of new construction protection from faulty workmanship, BEWARE…a builder-vendor could attempt to disclaim such warranties in the contract of sale. The Pennsylvania courts have ruled that a builder-vendor CAN disclaim these implied warranties but the disclaimer language must be clear, unambiguous and set forth in the contract. This means that the builder-vendor will not get away with burying the disclaimer somewhere in that bible-sized contract of sale. However, if the disclaimer language is clear, easy to find in the contract, and easy to understand, then there is a good chance that a court would uphold the disclaimer. Under that circumstance, it would be unlikely that you would prevail in asserting a claim that the builder breached one or both of these warranties. For this very reason, it is your absolute responsibility to thoroughly read your contract of sale (or at least hire a highly skilled real estate attorney to read through it for you!!). The last thing that a judge wants to hear is that you didn’t realize the builder-vendor disclaimed the implied warranties because you failed to read your contract of sale.

So, here is a little recap:

1. Builders of new construction have an obligation to make sure the property is built in a reasonable, workmanlike manner and fit for living.

2. The implied warranties of habitability and reasonable construction protect buyers regardless of the warranty provisions in the contract of sale.

3. A builder can disclaim these warranties by using clear, unambiguous language in the contract.

4. All buyers should thoroughly read through the contract of sale.

5. If your new home has significant defects and is unfit for you to live in, then you should consult an attorney to see if you have valid claims against the builder.

You are now ready to go looking for that beautiful new home…j

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