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State of maryland new building warranty

First, read the warranty or service contract carefully to make sure that your problem is covered. Pay particular attention to the duration of specific types of coverage. Next, file your claim according to the instructions in your warranty, and put your request for repair in writing, even if the company provides a hotline for urgent requests.

Request a return receipt, and keep a record of your correspondence and conversations with the company. Occasionally, a dispute arises between a home owner and a builder or third-party company over whether a defect is covered or whether repair work was done properly.

Builder Warranty Claims for Death, Disappearance or Insolvency of the Builder

Many warranties on newly built homes provide for mediation of disputed warranty claims, followed by mandatory binding arbitration. In mediation, a neutral third party — a mediator — helps the home owner and the company resolve the problem by facilitating discussion between both parties. It is up to the home owner and the company to reach an agreement.


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If mediation fails to resolve the dispute, it is likely that the home owner would be required to submit any claim to arbitration, instead of going to court. Some warranties allow home owners to pick an arbitrator from a list acceptable to the builder or the third-party warranty company. If your loan is financed through the FHA or VA and you file a claim against the third-party warranty company, you can choose between arbitration or going to court.

Boards & Commissions

If you choose arbitration, be aware that you are bound by the decision. Although arbitration is generally less expensive than going to court, home owners can expect to pay up to several thousand dollars to take their claim through the process, depending on the complexity of the arbitration.

Read your warranties carefully to determine what arbitration costs or expenses the homeowner is responsible for and what costs or expenses the builder must pay. Warranty companies have generally extended this coverage to ten years; giving rise to the common reference to ten-year policies. But, as a practical matter, the coverage is quite limited.

About Warranties - Home Improvement Commission

It is difficult to envision a set of circumstances in which a significant structural defect could exist without the applicable building code having been violated. These include exclusion of specific building components which the policies choose to define as non-structural. New home buyers, therefore, should be very cautious with the extent to which they place confidence in builder warranty plans.

Special attention should be given to the specific terms of the applicable coverage so that the buyer has a clear understanding of whether the warranty plan truly offers any meaningful benefit. Burke, a shareholder in Baker Donelson's Construction Group.

Knowing how to efficiently manage them can save time and money while Back to blog. Table of Contents. Article Name. Did you know that ALL construction work has an implied workmanship warranty? Learn why contractors and subs are liable for their work even if it's not in the contract.


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