Legal Question in Real Estate Law in North Carolina

Concealed Construction Problem

We bought a new home in July 2002 that included a one year builder warranty and an extended 10 year structural warranty. We found evidence in March 2005 of a concealed plumbing problem that was created during the original construction. The cost is approx $500-$1000 to repair. The builder says they are not responsible because it is more than a year since purchase, the extended warranty company says they are not responsible because it is not structural, and the insurance company says it is not covered. Because of the concealed nature of the problem, I do not think the builder's position on this issue is reasonable. The one year warranty and the fact that the home passed the town's plumbing inspection during construction causes me to doubt if we we have any legal basis for action on this issue. Hopefully I am wrong. Thanks for your help.


Asked on 4/01/05, 7:26 am

1 Answer from Attorneys
John Kirby Law Offices of John M. Kirby

Re: Concealed Construction Problem

You probably need to consult a lawyer with more information, including the actual contract documents. As a general matter, there is an "implied warranty" with the sale of a new home, which should include the plumbing system. The most pertinent issue is whether the sales documents excluded the implied warranty. In general, the builder-vendor must use very conspicuous language to disclaim this warranty; otherwise, the disclaimer is invalid. You should probably consult a lawyer with the documents and information, or approach the builder again and indicate that you are pursuing your rights under imlied warranties (i.e. as opposed to the one year express warranty).

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Answered on 4/01/05, 9:47 am


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