Your Home’s Statutory Warranty Roles and Responsibilities

To protect the statutory warranty during the first two years of possession, a home buyer must follow a few important steps:

 Conduct a thorough inspection: Before taking possession of the home, the buyer should conduct a detailed inspection to identify any defects or issues. The buyer should document any problems in writing and bring them to the builder’s attention before closing.

Communicate with the builder: If the buyer notices any issues with the home after taking possession, they should notify the builder immediately and document the issue in writing. The builder is required to address any defects covered by the warranty within a reasonable amount of time.

 Perform regular maintenance: The home buyer is responsible for performing regular maintenance on the home to prevent damage and ensure that the systems are functioning properly.

 If the buyer fails to do their part in protecting the statutory warranty, they may lose coverage for any defects or issues that arise as a result of their negligence. For example, if the buyer fails to perform regular maintenance on the home’s heating system, and a problem arises that could have been prevented with proper care; the warranty may not cover the cost of repairs.

Home buyers need to understand their responsibilities under the statutory warranty and take proactive steps to protect their investment. By communicating with the builder, documenting any issues, and performing regular maintenance, buyers can help ensure that their new home remains in good condition for years to come.

The statutory warranty provided by the builder during the first two years of possession typically includes coverage for defects in workmanship and materials, as well as problems with the electrical, plumbing, and heating systems. Specific coverage can vary by jurisdiction, but in general, the following items are usually covered:

One-year warranty: This covers any defects in workmanship and materials used in the construction of the home, such as problems with the flooring, drywall, and trim.

Two-year warranty: This covers any defects in the electrical, plumbing, and heating systems, as well as defects in workmanship and materials that affect the home’s exterior cladding, windows, and doors.

If the buyer notices any issues with their home during the first two years of possession, they should notify the builder immediately and document the issue in writing.

The builder is required to address any defects covered by the warranty within a reasonable amount of time. If the builder fails to address the issue, the buyer may have the option to file a claim with the warranty provider or take legal action against the builder.

After seven years, the warranty is limited to major structural defects. This warranty may cover issues such as foundation problems, roof leaks, and other defects that affect the structure’s integrity.

For condominiums, the common elements (such as the roof, walls, and floors of the building) are typically covered by the condo corporation’s insurance policy. However, the specifics of this coverage can vary depending on the policy and the terms of the purchase agreement or construction contract.

The coverage limits for builder warranties and condo insurance policies can also vary. In some cases, there may be a maximum dollar amount or a percentage of the purchase price that the builder or insurer will cover in the event of a claim. It’s important to review the specific terms of the warranty or insurance policy to understand the coverage limits and any exclusions or limitations that may apply.

It’s also worth noting that some jurisdictions may have additional protections for home buyers, such as mandatory warranty programs or regulations governing construction standards. If you have questions about builder warranties or condo insurance coverage, consulting with a real estate lawyer or another qualified professional may be helpful.