Many people who buy new homes later find serious defects, such as leaks, cracks in walls or foundations, damaged roofs, rotting wood, mold, and mechanical, plumbing and electrical problems. According to a report by a national consumer organization, approximately 15% of new homes have serious problems -- with many of the problems not discovered for months or even years after the buyers move in.
Several factors have increased the amount of litigation in recent years involving defects in new homes. To reduce costs and construct homes quickly, many builders cut corners and lower quality of materials and workmanship. In addition, people are more aware of their rights in buying a home, including their right to make claims for construction defects. Also, because certain defects take longer to notice, state laws give people more time to sue for them.
Types of Construction Defects
There are generally four main types of construction defects:
• Design defects. People who design the house, like architects and engineers, sometimes design systems that don't work right. They may have been designing to make something look better or to save money, but the end result is a defect. For example, many roofing problems are a result of poor design, where the wrong material was called for or the drainage system is inadequate.
• Substandard materials. Using low quality materials can lead to problems. For example, windows that don't work right -- which can lead to water and air leaks -- may be due to inferior materials that were used to save money.
• Poor workmanship. This is another common cause of construction defects. Substandard workmanship can be due to poor training or supervision, inadequate skills or simply not paying attention to the work. Water intrusion is often caused by poor workmanship. Other signs which may indicate substandard workmanship include cracks in the foundation or walls, dry rot, electrical and mechanical problems, and plumbing leaks.
• Below surface problems. Some areas of the country have soil that can expand. This can lead to problems for homes built in areas where the foundation is not solid or stable. If the right steps were not taken during construction, the home may suffer from cracked foundations, floor slabs and other damage. Below surface problems can be very serious, and can even lead to the home being uninhabitable or uninsurable.
If you have any of these problems, you are not alone. But the good news is that you may be able to make a claim for these problems. Many years ago, real estate was sold on a caveat emptor basis, meaning buyers assumed the risk of problems when they bought a home. But now, builders of homes are on the same legal footing as many other products. If they build a defective product, they are legally responsible for defects.
There can be various legal theories to hold a developer, architect, contractor, subcontractor or someone else who worked on the home liable. They include:
• Negligence. A party may have been negligent, meaning he or she fell below the standard of skill and care normally used by other professionals in the industry.
• Breach of contract. The builder or seller of the home may have violated a contract obligation that everything will be in good working order.
• Breach of warranty. When someone performs a service or sells a product, there is typically an implied warranty that the service will be performed in a workmanlike manner or the product will not be defective. In the case of a home, there is usually an implied warranty that the home will be built in a good and workmanlike manner, it will be suitable for its intended use, and there won't be serious defects. If there are problems affecting the home's habitability, there may be a breach of this implied warranty.
These are some of the grounds for recovering damages for construction defects. Depending on the facts of the particular case, there can be others. The grounds needed to recover under these or other legal theories can vary. Our law firm can advise you which grounds for recovering damages are available in your case as well as the potentially liable parties.
Damages You Can Recover
Each construction defects claim is different, and the damages you can recover depend on the facts of your case. However, some common types of damages buyers can often receive include costs of repairing the problems, costs of hiring inspectors and other experts to investigate the problem, costs of temporary housing in the event you must move out of your home while it's being repaired and the loss in value of the home.
Time Limits for Making Claims
There are deadlines for making claims for construction defects. The time limits vary between states, and they can also vary depending on whether or not the problem is readily visible. Because of these deadlines, and because the longer you wait after discovering a problem the more likely memories will fade and evidence will get lost or deteriorate, it is advisable to seek legal help promptly.
If You Discover Defects
If you discover defects after buying the house – whether soon after you moved in or even years later – tell the seller in writing what you found. Give the seller a reasonable, but prompt, opportunity to fix the problems. If they don't, then call us to learn about the steps you can take. Your legal options as well as the proper steps to take can vary based on several factors, including whether you bought the home from the original builder or a later owner, the contract you have with the seller of the home, how long the problem has existed and when you discovered it. There are other complicated issues in construction defect claims as well, including which parties you can make a claim against. Because of this, you may even want to talk with us before making your first demand. We can explain your rights, help you describe the claim, help prepare your repair request to improve your chances of getting the proper remedy, make sure you act within the time allowed by law to make a claim, and take the case further if you do not get a satisfactory resolution to your repair request.
By being alert to possible defects and acting promptly when you discover a defect, you can reduce the risk of problems with defects in a home you buy. You can also improve your chances of getting the problem fixed and recovering the maximum amount of compensation the law entitles you to receive if the home has a serious defect.
Contact an attorney at Triscaro & Associates today. Please call us for all your legal needs. We offer a full range of legal services to individuals, families and businesses, including personal injury, estate planning, real estate, family law and business matters. We are dedicated to providing the highest quality legal services at a reasonable cost.