Filing a lawsuit or house warranty claim

Orlando, Florida
First-Time Home Buyer
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Filing a lawsuit or house warranty claim

Sharlene Ko
Member since 2022 · 11 posts · 7 votes

Hello! First time home buyer here. I bought a flipped house last July 2023 in expectations that I would house hack it. Before closing, the seller was to replace the AC and fix electrical wiring in the attic.  I just recently found out that the heater wasn't working. I contacted the original HVAC tech that installed it but he's with another company, I had to call a new HVAC company to remedy it. They found out that the thermostat wiring was not installed properly and there were a bunch of other things that should have been replaced but weren't and it's not up to code. Now I informed my RA about this and he contacted the seller. The old HVAC tech wouldn't honor the warranty and said he's not gonna touch it anymore as another tech already did. The new HVAC company also found some electrical wirings that are a fire hazard. Is this covered under home warranty? Should I just file for a claim? Or should I get a litigation attorney for this? I'm not sure where to proceed at this point. I have called local attorney's in my area but they're too busy to do consults. Could anybody suggest a litigation attorney around central FL? I'm in Polk County. Thanks for all your help!

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Julien J.
Investor · CO · Member since 2016 · 757 posts · 1k+ votes
2y

@Sharlene Ko

Call the home warranty company to figure out if it is covered. That's likely your best options. litigation is expensive and slow. You'll end up out of pocket until it is resolved and unlikely to recover litigation cost anyway.

Call the local BAR association if you choose the attorney road. In my state they refer you to an attorney with 30min free consultation.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Sharlene Ko:

    Hello! First time home buyer here. I bought a flipped house last July 2023 in expectations that I would house hack it. Before closing, the seller was to replace the AC and fix electrical wiring in the attic.  I just recently found out that the heater wasn't working. I contacted the original HVAC tech that installed it but he's with another company, I had to call a new HVAC company to remedy it. They found out that the thermostat wiring was not installed properly and there were a bunch of other things that should have been replaced but weren't and it's not up to code. Now I informed my RA about this and he contacted the seller. The old HVAC tech wouldn't honor the warranty and said he's not gonna touch it anymore as another tech already did. The new HVAC company also found some electrical wirings that are a fire hazard. Is this covered under home warranty? Should I just file for a claim? Or should I get a litigation attorney for this? I'm not sure where to proceed at this point. I have called local attorney's in my area but they're too busy to do consults. Could anybody suggest a litigation attorney around central FL? I'm in Polk County. Thanks for all your help!


     Litigation will cost you 3x the amount of the work and there is no guarantee you will win. It depends on what your contract reads. Home Owners insurance typically WILL NOT cover this as its not an insurance claim if anything its a contract claim.

    Did you have a warranty from the seller? Who is the guarantor of that warranty? If so, you can start there. If there is no home warranty, you are most likely on your own if the seller does not come to the table, which they probably will not as its some fix and flipper who was cheap and there first project they probably did (if so, lesson learned to understand when buying a flip knowing the experience and reputation of the flipper).


    Unfortunately at the end of the day you will probably have to pony up and pay for it. Welcome to the lovely world of owning real estate. 

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  • Julien J.
    Investor · CO · Member since 2016 · 757 posts · 1k+ votes
    2y

    @Sharlene Ko

    Call the home warranty company to figure out if it is covered. That's likely your best options. litigation is expensive and slow. You'll end up out of pocket until it is resolved and unlikely to recover litigation cost anyway.

    Call the local BAR association if you choose the attorney road. In my state they refer you to an attorney with 30min free consultation.

    2Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    2y

    If you have a home warranty, file a claim with them.

    As for a warranty from the tech that installed it, are you sure there is one? And if so, did it pass to the new owner? You should never assume a warranty is transferrable.

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  • Kevin Sobilo
    Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    2y

    @Sharlene Ko, I suspect there isn't much you can do.

    First, you were able to verify the condition of the property before closing. So, unless you can show the seller actually KNEW the heat wasn't working and didn't disclosure that the seller isn't liable.

    Second, the HVAC tech who installed it wouldn't warranty the original work the company they worked for would potentially do that. So, not sure why you tracked down the tech rather than dealing with the company they used to work for. Also, they cannot easily verify what the situation was once you have someone else work on it and fixing it themselves is what they are typically promising and you didn't choose that. So, again, I think you are out of luck there.

    Another thing to keep in mind that work "not up to code" is often CORRECT and "UP TO CODE"! I know it sounds strange, but part of the work could have been from an older system installed years ago UNDER AN OLDER SET OF CODES. The work needs to conform to the code in existence when it was installed and that may not be the current codes.

    Tradespeople looking to up-sell you on doing more work will often point out that the work "isn't up to code" because it isn't up to CURRENT codes even though they know that the work is correct and doesn't need to be changed because it was up to the code in place when the work was done. So, keep that in mind. 

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  • Sharlene Ko
    OP
    Member since 2022 · 11 posts · 7 votes
    2y

    Hello, thanks for replying and for the advice. Unfortunately, I might just end up paying for everything. I did try to file a claim and will see where it goes. 

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  • Ned J.Pro Member
    Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
    2y

    A big part of this depends on how much $$ we are talking. 

    Forget the lawyer unless you are talking HUGE $$$$

    At best you may have a claim with the home warranty company, but be prepared to have them turn you down unless you push HARD. 

    How long since the work was done? Contact the original company that did the work... not the tech- How did you even find that person after they moved to a different company? The COMPANY warrants the work, not the tech- maybe he works elsewhere because he does crap work- maybe he moved on because the company is trash....

    This is all about time, effort and chance of success vs $$$

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  • Alan F.
    Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes
    2y
    Quote from @Sharlene Ko:

    Hello, thanks for replying and for the advice. Unfortunately, I might just end up paying for everything. I did try to file a claim and will see where it goes. 

    I looked at Florida state website and it has a section 718.203 that's in regards to warranties from builders. I'm no lawyer nor very good at understanding legalize speak. But maybe this is something you could look into.
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  • Mohammed Rahman
    Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    2y

    Hey @Sharlene Ko - sorry for the unfortunate situation, seems like everyone is pointing the finger at everyone else... in reality this may be something you end up having to remedy yourself IF your warranty service won't cover it. 

    If you bought the house, and your bank approved it, and you also did inspections that gave you a due diligence period - technically the onus is on the buyer to go through everything before buying. 

    Flippers like this give a bad reputation to all flippers, they're also common here in NYC. 

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  • Sharlene Ko
    OP
    Member since 2022 · 11 posts · 7 votes
    2y
    Quote from @Mohammed Rahman:

    Hey @Sharlene Ko - sorry for the unfortunate situation, seems like everyone is pointing the finger at everyone else... in reality this may be something you end up having to remedy yourself IF your warranty service won't cover it. 

    If you bought the house, and your bank approved it, and you also did inspections that gave you a due diligence period - technically the onus is on the buyer to go through everything before buying. 

    Flippers like this give a bad reputation to all flippers, they're also common here in NYC. 


     Unfortunately. I do have to just put on my big girl pants and move forward. This is definitely a hard lesson. :)

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  • Sharlene Ko
    OP
    Member since 2022 · 11 posts · 7 votes
    2y
    Quote from @Alan F.:
    Quote from @Sharlene Ko:

    Hello, thanks for replying and for the advice. Unfortunately, I might just end up paying for everything. I did try to file a claim and will see where it goes. 

    I looked at Florida state website and it has a section 718.203 that's in regards to warranties from builders. I'm no lawyer nor very good at understanding legalize speak. But maybe this is something you could look into.

     Thanks for your response, unfortunately the seller was not a professional builder and I stupidly didn't think about asking for a warranty from them. Lesson learned. 

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