Warranties, the Law, and Your New Home

      Nevada, especially the area around Las Vegas, has seen some of the fastest rates of development of anywhere in the country. In the last few years, thousands of new homes have been built in the north and northwest Las Vegas area. Many of these homes have been, and are being, built in areas near significant populations of families.
      As one of the biggest purchases that any family will make, the purchase of a home must be done cautiously and with the purchasers armed with some basic legal knowledge. As a result of the construction boom that has occurred over the past decade, there are unfortunately, many examples of shoddy construction in the region. However, with some basic knowledge, the new homeowner can feel assured that they are being protected by the law, and they can also take advantage of some protections if repairs are needed or the home suffers from some problems down the road. One particular area of confusion is the issue of new home warranties. Many times, a person may purchase a new house or condominium and as part of the deal with the builder they may get a written warranty. The warranty may be for any period of time, but a typical written warranty will be for one or two years. The warranty may include any needed repair on the home, or it may be limited to certain problems.
      These warranties offer some peace of mind to the new homeowner, and developers or builders are usually responsive in addressing issues of repair or defects when a homeowner is covered under such a warranty. However, homeowners should know that, as a matter of law, their home must be free from warranty violations for up to six years. Also, if the home shows either patent (obvious) or latent (hidden) defects for any time up to ten years after the home was built, a homeowner can seek recovery against the builder or developer for those defects. This is in addition to any one, two or five year warranty that homeowners may have received when they first purchased their home. In fact, some such written warranties may even state that they are in place of any other warranties or remedies. Unfortunately, many homeowners take this to mean that after their written warranty is up, they have no recourse even if their home is falling apart only a few years after being built. This is simply not true.
      For one thing, the law implies a warranty on a new home whether or not a written (or express) warranty is given. This means, even if your new home does not have a written warranty covering it, that your home is still warranted to be free from defective materials and constructed in accordance with sound standards of engineering and construction, and in a workmanlike manner. This warranty is implied, meaning the law has put it into place whether you have discussed these issues with the builder or not.
      The second thing to remember is that a written warranty does not necessarily replace the implied warranty discussed above. Courts tend not to enforce one-sided clauses in written warranties which say things like “this warranty replaces all other warranties under the law.” So, even if you’ve had a written one year warranty on your home, and it’s now two years later, you may still be covered under the law’s “implied warranty”.
      How long does this “implied warranty” last? If a breach of the warranty occurs within six years of the home being built, the homeowner can still file suit to recover for those damages. If a defect in the construction occurred, then the homeowner can file suit for up to ten years from when the house was built.
      The result of all of this law is simply this: Even after a written warranty on a home expires, a homeowner is not without protection if deficiencies in the home begin to appear a few years later. As long as it has not been over ten years since the house has been built, a builder or developer is still obligated to repair defects or deficiencies in the home. The only exception is where a homeowner waits an unreasonable period of time before notifying the builder of the defect. A homeowner should let the builder know about the problem as soon as possible in order to give them a chance to repair the problem. If the builder is unresponsive to these requests, then a homeowner should promptly seek the advice of experienced legal counsel.

Disclaimer- These materials prepared by Shinnick, Ryan & Ransavage P.C. are for informational purposes only and are not legal advice. Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship. Online readers should not act upon this information without seeking professional counsel.  [Full Disclaimer]

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