I have a client who is selling new construction, but he is not the builder, it was a spec. He received a warranty from the builder for 1-year but it runs out in ~3 months, and it is being resold. The buyer is expecting a 1-year builder's warranty. For the life of me, I can't find an easy way to get the seller to purchase one. Does anyone have any insight on a company?
@Mark Gallagher you should be able to buy what's called a 2 10 warranty usually less than 1k the builder has to buy it.
In our state.. the warranty is 1 year full warranty on new construction and 10 years for water leaks and major foundation issues. Ergo you can imagine what I pay in G L
The builder is saying they can't do anything, even if the owner wants to reimburse him to get an extended warranty. Is he just trying to avoid the issue?
Mark google 2 10 warranty and see if they are available I your state. I provide them on all my new builds.. my GL policy dictates that I must.. this is an after market policy like a 1 year first am home warrenty.
We provide a 1yr warranty plus I purchase a Bonded Builder 10yr structural warranty, mostly as an insurance policy.
Has the home ever been occupied? If ti has then the builder is within his right, if it hasn't then he should honor 1yr from date of occupancy.
We honor 1 year after occupancy.
I don't think getting an additional 7 months from a builder under their original warranty will happen. From their stand point, why would they? They've already sold the house and there is absolutely no benefit to them for extend it.
To help solve your problem though, my question would be, "what is the business problem the buyer is trying to solve?"
- If the answer is that they just want to make sure that the things in their house work, they have 3 months left on the builder's warranty, that combined with the fact that another buyer has lived there for 7 months already should be sufficient to find the issues. Remember, appliances will have their own manufacturer warranties and the house's major systems (foundation, plumbing), fall under a longer term in most (if not all) states.
- If the answer is that they want just want peace of mind, purchase a 3rd party home warranty as part of the sales contract. I should note that doing this is likely a double warranty. Most of what they cover in year two is still under warranty from 3rd party manufacturers (because they are appliances, HVAC, etc). It shouldn't be that expensive and should cover most things in the house. If this is done, I find it best to have the buyer choose the plan. I think few people are happy with 3rd party warranties so empowering the buyer with that decision keep them from being upset with the seller later.
- Some other reason? Post it here and we'll try to help find a solution.
do home warranties purchased from 3rd parties actually function on structural issues? I'm just wondering how a 3rd party could sell a warranty that will cover structural problems without seeing any of the structures (footings/beams/foundation walls/etc).....I'd imagine somewhere in small print they say structural issues caused by poor workmanship is not covered but I have no experience with these things.