Legal Question in Real Estate Law in California

I cannot think of any possible reason for anyone to reimburse the builder for what amounts to insurance the he will meet his obligations under the Civil Code. A buyer may or may not want to buy insurance (although they are couched in the terms of warranty, they basically amount to insurance) to protect them in the event the builder is out of business or financially unable to answer for any latent defects that may cause problems over the next one or ten years, but that is the buyer's decision to make, not the builder's. Likewise, there is absolutely NO reason to sign an "As Is" agreement on new construction. It is most likely unenforceable but even asking for it is a HUGE red flag that the builder is seriously shady. If the builder refuses to stand behind his work for even a year, without the buyer paying to insure it won't cost him anything, you have a highly questionable builder.