So what recourse do you have against a builder who did a poor job? We talked to real estate and legal professionals in order to walk you through your options.<\/p>\n Even if you’re just day-dreaming at this point, it’s never too early to ask a local real estate agent for advice on building a house.<\/p>\n \n Before you escalate the issue, first refer to any contracts and warranties<\/a> that might apply. Most builders issue warranties for homeowners, and these would be reflected in the contract. Aspects of your home are likely to have different term lengths \u2014 for instance, you\u2019ll be covered for shorter amounts of time for plumbing or electrical systems, but longer for structural problems.<\/p>\n Albert Vasquez<\/a>, a top-selling real estate agent in the Miami<\/a> region (who works with 72% more single-family homes than the average agent in his area), explains that it behooves buyers to \u201cbe very well educated upfront and know what you\u2019re getting yourself into\u201d when it comes to signing builder contracts. Read them carefully so you know what to expect. If possible, do so with a lawyer.<\/p>\n Kevin Hirzel, managing partner at Farmington, Illinois-based condominium and real estate law firm Hirzel Law<\/a>, says, \u201cmost builders will provide some form of a limited express warranty. If a builder did a poor job, the owner may be able to sue for breaching any express warranties that are provided.<\/p>\n \u201cHowever, prior to entering into a contract, it is important to have an attorney review the contract to determine what the warranty covers. Many potential purchasers get excited about building a new home or about a major project and forget to read the warranty disclaimers in the contract.\u201d<\/p>\n Hirzel says there may be reasonable claims for breach of contract or negligence if a builder did a poor job.<\/p>\n \u201cIt is important to be as specific as possible regarding the scope of work in contract,\u201d he says. \u201cThe builder’s responsibility will largely be determined by the contract. In most cases, a builder is responsible for construction defects.\u201d<\/p>\n But the builder may not be responsible for certain issues at all. For instance, if your problem is related to an appliance, then you may need to contact the manufacturer<\/a> instead. Home appliances<\/a> \u2014 such as a refrigerator, dishwasher, and oven \u2014\u00a0typically come with their own warranties and are therefore usually excluded from any builder warranty.<\/p>\n \u201cSometimes developers will just make the claim through the manufacturer as well,\u201d Vasquez notes.<\/p>\n The builder won\u2019t be responsible for problems that crop up after a certain amount of time has passed. Typically, the builder covers various different elements of the home at one year, two years, and 10 years \u2014\u00a0but this varies by case.<\/p>\n \u201cI usually tell our buyers to be on high alert if anything were to happen within the first 12 months,\u201d Vasquez says. \u201cIf you see something weird, don\u2019t wait another month or two to say it \u2014\u00a0I would go to the developer within the first 12 months of ownership.\u201d<\/p>\n In addition to the appliances, these issues fall under typical exclusions<\/a>, according to a breakdown by the Cincinnati-based firm Craig T. Matthews & Associates<\/a>:<\/p>\n What exactly is wrong, and how is it the builder’s fault? You\u2019ll need to be able to prove this to the builder\u2019s satisfaction, so collect your evidence and document it all<\/a>.<\/p>\n Did the builder breach the contract by misrepresenting the materials they would use? Exceeding the budget without your say-so? Unreasonable delays in getting the home built? Shoddy workmanship?<\/p>\n Document your contact with the builder, too. If things escalate, you will want to be able to prove when and how you were in touch. Take notes on every conversation, including the date of each interaction.<\/p>\n Put everything<\/i> in writing. Many builders will require you to file a claim in writing before you can take any other steps. (Others might have a phone number to call.) Information you document demonstrates your intentions to pursue the issue and can also be used as evidence in legal proceedings.<\/p>\n Include all relevant information: your name, your address, your contact information, and details about the problem, including what you want the builder to do and when you want it resolved. Be polite but firm. Show your determination and your intention to act quickly when you present your documentation to the builder.<\/p>\n A home inspector<\/a> can help you determine the extent of any damage and offer an opinion as to whether the builder was responsible for it.<\/p>\n If it\u2019s not too late, Vasquez underscores the importance of getting a home inspection before<\/i> you close on your new-build home for this very reason.<\/p>\n \u201cMy biggest recommendation would be to get a licensed home inspector to go through every nook and cranny before<\/i> you sign that closing,\u201d he says. \u201cWe try to avoid these situations if we can prevent them. If you have a good home inspection, you know what you’re getting yourself into.\u201d<\/p>\n You can complain to the Better Business Bureau, FTC, and licensing boards in your state.<\/p>\n Contacting the Better Business Bureau will put the builder on notice that you are serious. You can also register your complaints with the Federal Trade Commission, which collects complaints and investigates certain situations. This step won\u2019t resolve your complaint, but it can be a good way to report a problem.<\/p>\n\n\n\n\n\n HomeLight-recommended real estate agents are top-tier negotiators who understand the market data that helps you save as much as possible when buying your dream home.<\/p>\n \n ![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/10\/what-recourse-do-i-have-against-a-home-builder-1-666x381.png\")
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\n <\/div>\n \n Step one: Talk to an expert!<\/h3>\n
Refer to the contract and warranties<\/h2>\n
Is the builder responsible for the problem?<\/h2>\n
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<\/a>Are there expiration dates to pay attention to?<\/h2>\n
Are there any exclusions?<\/h2>\n
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Document the issues<\/h2>\n
Talk to a home inspector<\/h2>\n
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<\/a>Register complaints<\/h2>\n
\n <\/div>\n \n Save thousands when buying a home<\/h3>\n