Full question:
I live in North Carolina; What is the length of time covered by law a new home contractor is responsible for defective workmanship? My builder installed two layers of tile on the shower floor and now I have a water problem. I'm told that this should not have been done and is not industry standard. The flooring will have to be torn out and replaced. The house is 4 years old. I have been told a builder is responsible for defective work for 12 years, is this correct?
- Category: Warranties
- Date:
- State: North Carolina
Answer:
In North Carolina, there is no specific state law outlining a builder's warranty obligations to homeowners. However, the Department of Housing and Urban Development (HUD) mandates that certain newly constructed homes must have a ten-year insurance-backed warranty to qualify for mortgage insurance from the Federal Housing Administration (FHA) when the mortgage exceeds ninety percent of the appraised value. If such a warranty is not in place, the express warranty in the builder's contract will apply.
North Carolina recognizes an implied warranty of workmanlike construction, which applies to all contracts for new homes. This warranty ensures that the home and its fixtures are free from major structural defects and have been constructed in a workmanlike manner according to local standards. This implied warranty only covers latent defects—those not visible or detectable through reasonable inspection at the time of closing. If a homeowner accepts the home without raising concerns about visible defects, they may not be able to make a claim later.
Claims under the implied warranty can be filed within three years after discovering a latent defect. However, there is a statute of repose that requires any suit for defects to be initiated within six years of closing, unless gross negligence is involved. If the home is occupied by the first purchaser and the defect is deemed latent, a claim can be made for up to six years after the home’s substantial completion.
For manufactured homes, specific warranty requirements exist, including a minimum warranty period of twelve months from the delivery date (N.C. Gen. Stat. § 143-143.16).
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.