Are home builders required to provide a one-year warranty on new construction?
(This article, written by Bill Gifford, Martin & Gifford, PLLC was released on April 12, 2018 and published with NC Realtors)
QUESTION: I represent a builder who recently completed construction of a spec home on a lot owned by the builder. I listed the home in the MLS and received an offer to purchase from a local agent. In the offer, the buyer’s agent attached her firm’s “Supplemental Provisions Addendum” which included a paragraph relating to new construction. That paragraph stated that the seller shall provide the buyer with a one-year warranty from the builder “as provided by applicable North Carolina law.” Does North Carolina law obligate home builders to provide a one-year builder’s warranty?
ANSWER: It does not. This is a common misperception. While builders may offer a written (or express) warranty, there is no legal obligation to do so.
Agents involved in the purchase and sale of new construction are encouraged to review the New Construction Addendum (Standard Form 2A3-T) and the Offer to Purchase and Contract - New Construction (Standard Form 800-T), both of which are jointly approved by the North Carolina Bar Association and the North Carolina Association of REALTORS®. In the situation presented, the proper form would be 2A3-T (as an addendum to Form 2-T) because the improvements have been completed. However, forms 2A3-T and 800-T both include a “Limited Warranty of Construction.” If either of those forms is used, the seller-builder warrants that, for a period of one year, the seller will make all necessary repairs and corrections to the home that shall become necessary by reason of faulty construction, labor, or materials. In lieu of this express warranty, the builder can use its own form of written warranty. However, no express or written warranty is required by law.
Agents should recognize that another form of warranty, called an implied warranty, may exist whether or not the builder has provided an express warranty. In 1974, the North Carolina Supreme Court recognized the existence of an implied warranty of workmanlike construction and no major structural defects subject to the following requirements: (1) the contract must be for the sale of a recently completed dwelling or a dwelling under construction; (2) the seller must be in the business of residential construction; and (3) the warranty is only for the benefit of the original buyer(s) of the dwelling. This implied warranty is limited to latent defects - defects that are not visible or apparent to a reasonable person upon inspection of a dwelling.
NC REALTORS® provides articles on legal topics as a member service. They are general statements of applicable legal and ethical principles for member education only. They do not constitute legal advice. The services of a private attorney should be sought for legal advice.
Check out this cute home at an affordable price for sale in Wilmington, NC near Monkey Junction!
What are the features at 226 Richelieu Road?
Wooded front and back area
3 bedrooms, 1.5 bathrooms
1 car garage
Hardwood laminate floors
3 bedrooms, 1.5 bathroom Home for Sale in Wilmington, NC
This home, located near Monkey Junction is perfect for someone who loves a little extra peace and quiet. The wooded area in the front and the back allows for an extra sense of privacy.
Nicely Sized Kitchen
Check out this kitchen located next to the family room.
Family Room/Den Has Beautiful Natural Light
This is our favorite room in the house! Look at all of that light pouring through the windows.
Living Room with Plenty of Space
Much like the rest of the house, this living room has hardwood laminate floors throughout and is very spacious. Perfect for the extra space you are wanting or maybe a large couch that you have!
3 bedroom
1.5 bathroom
1 car garage
Wooded area in front and back of house for extra privacy
Hardwood Laminate Floors
Natural lighting throughout home
NO HOA - NO RULES / NO DUES!
Close to Monkey Junction
Close to Carolina Beach
To view all of the details on this property including more photos and information, click here.
Schedule a Private Showing tour of 226 Richelieu Road, Wilmington, NC 28412 - Contact Regina Drury 910-232-4919
Located in Holly Tree, Roland Grise, and Hoggard School District in the subdivision of Kingsland Woods, this 4+ bedroom home has many great features.
To view all of the details on this property including more photos and information, click here.
Facebook Live House Tour Video
Take a peek at 3113 Braemar Lane with our Facebook Live House Tour.
What are the features of 3113 Braemar Lane, Wilmington, NC 28409?
4 bedrooms, 2.5 bathroom
Bonus room and bathroom above Detached garage
Saltwater Inground Pool
2 Car Attached Garage
2 Car Detached Garage
Carport
Perfect garage space for Contractor or Handyman looking for a place for all their tools
Hardwood Floors throughout the house
Wood Burning Fireplace
Granite Counters
Sprinkler System uses Well Water
Lots of Available Parking
Fenced Back Yard
Rocking Chair Front Porch
4 bedrooms, 2.5 bathroom home in Wilmington, NC
This charming house has many amazing features. Upon entering the property, you are greeted by a 2 car attached garage with a nice front porch--just perfect for a day to relaxing. Don't stop just at the front of the house though, because there are so many other things that make this property stand out from the rest.
Large Living Room with Lots of Space
Enjoy this large living room with vaulted ceilings just beside the kitchen area. This living room has a wood burning fireplace and beautiful hardwood floors throughout.
Kitchen with Cabinets Galore
With the dining room right beside it, this kitchen is perfect for someone who likes to cook! Stainless steel appliances, glass door cabinets, tile back splash, generous counter space--what more can you ask for?
Inground Swimming Pool Out Back
Summer is coming and if you know anything about Wilmington, you know a nice pool day is very refreshing in our neck of the woods. Why not have a pool day from the comfort of your own home?
Detached Garage with An Extra Room
As if 4 bedrooms and 2.5 bathrooms weren't enough, there's also a BONUS room AND bathroom with heating and air above the detached 2 car garage.
4 bedroom
2.5 bathrooms
Bonus bedroom with bathroom above the detached garage
2 car attached garage
Carport
Saltwater Inground Pool
Huge fenced in backyard
Hardwood floors
Natural light
Formal dining room
Spacious kitchen cabinets
Master bathroom has dual sinks and separate tub and shower
Sprinkler connected to well
To view all of the details on this property including more photos and information, click here.
Schedule a Private Showing tour of 3113 Braemar Lane, Wilmington, NC 28409 - Contact Regina Drury 910-232-4919
The newest home on the market is this adorable 3 bedroom, 1.5 bathroom home located in Lehigh Estates just a few minutes drive to Carolina Beach. This home is in a NO HOA zone, meaning you can park your boat or RV right in your backyard with no worries!
More details on this property including more photos and information can be found by clicking here.
Facebook Live House Tour Video
Take a peek at 133 Lehigh Road with our Facebook Live House Tour!
3 bedroom, 1.5 bathroom home in Wilmington NC
Properties like this, for this cost, and this close to Carolina Beach are getting harder to find, so don't miss out on your chance to own this home and live close to the beach...and for under 200k!
Updated Kitchen Features!
This house features an updated kitchen with new cabinets and new beautiful granite countertops!
A nice addition is the wine refrigerator
Sip on your wine that comes straight out of the wine refrigerator. ;) This is a fun little addition to the home!
Check Out This Living Room!
Not only does this living room have beautiful natural light coming in through this large window, but it also just received a new update as well: new tile floors that look quite similar to hardwood floors!
3 bedrooms
1.5 bathrooms
New tile floors in living room
Natural light
Wine fridge
New granite countertops in kitchen
New cabinets in kitchen
Large laundry room
Bonus room!
Large backyard with chain link fence
Covered patio in the back
Short drive to Carolina Beach
NO HOA rules or dues - Park your RV right in the backyard! ;)
USDA eligible
More details on this property including more photos and information can be found by clicking here.
Schedule a Private Showing tour of 133 Lehigh Road, Wilmington, NC 28412 - Contact Regina Drury 910-232-4919
This cute 3 bedroom, 2 bathroom house in Lords Creek is move-in ready and waiting for you!
To view all the details on this property including more photos and information, click here.
Facebook Live House Tour Video
Take a peek at 6703 Dorrington Ave with our Facebook Live House Tour.
What are the features of 6703 Dorrington Ave, Wilmington, NC 28412?
USDA eligible!
Hardwood Floors
Screened in Porch
3 bedroom, 2 bathroom home in Wilmington, NC
This cute house is located in the Lords Creek subdivision, very close to the schools for this area: Anderson, Murray, and Ashley. This house is also less than 6 miles from Carolina Beach! Not a bad drive to go spend a day at the beach. ;)
Spacious Living Room and Dining Room
Take a look at this living room with these big windows, allowing for a lot of light to come through! Additionally, this living room, along with the other common areas in the house andthe master bedroom boast beautiful hardwood floors. Perfect for sliding across them like Tom Cruise in Risky Business.
Spacious Seating Areas - Perfect for the Entertainer
Plenty of space not only in the living room and dining room, but also beside the kitchen for extra seating if you prefer to have more space.
Screened In Patio
Enjoy a relaxing day out on the screened in patio! Additionally, this house has a well with a sprinkler system attached to it!
3 bedrooms
2 bathrooms
2 car garage
Hardwood floors in living room and kitchen
Hardwood floors in master bedroom
Screened in Patio
Sprinkler System is Hooked Up to a Well
Split bedroom floor plan
Laundry room
Spacious dining room
Kitchen with Pantry
Close to Schools
Less than 6 miles from Carolina Beach
USDA eligible
Schedule a Private Showing tour of 6703 Dorrington Dr, Wilmington, NC 28412 - Contact Regina Drury 910-232-4919
Buying a home is not as simple as it may seem; there are many mistakes that can be made. When you are getting ready to buy a house, here are some common mistakes to avoid.
Not Checking your Credit or Speaking to a Lender
You may be thinking it’s time to buy your first home, but have you checked your credit score yet? Have you spoken with a lender to see if you can get a preapproval for a mortgage? Knowing where you stand in terms of buying capabilities is super important to the process of buying a house. For instance, the bank or the mortgage company says you may be able to afford a home, but you may have a different understanding of what you are comfortable paying in terms of monthly mortgage payments and what kind of price range you are looking for.
The best way to get ahead of that issue is to budget out your monthly expenses. We’re talking student loan payments, vehicle payments and insurance, credit card bills, groceries, health insurance, monthly activities that you may not want to give up—you have to know what you’re paying currently, and what you can afford to add on from the beginning. Set a budget and stick to it—that way, when you get ready to buy your first home, you know what to expect and what you are getting into financially.
Not Optimizing Your Credit Score
Want to know how to have a better interest rate and ultimately pay less in interest? Optimize your credit score! If your credit score is just average, then make waves to improve it before applying for a mortgage. We actually wrote a blog about this. Click here to learn more about how your credit affects buying a home.
Not Picking the Right Real Estate Agent
Many agents are not out there with your best interests in mind. When it comes to buying a home, you want an agent who truly represents your best interests, desires, and knows your yes’s from your no’s. You also want an agent who is well acquainted with the area and is very knowledgeable when it comes to buying and selling real estate. Some agents are just that—agents. They take on buyers and sellers as clients, but they don’t have the slightest clue about the current real estate market. You want an agent who is well informed on all aspects and very active in the business.
You may look at a property and think to yourself “This is my dream home!” Yet, you look at the school districts and they are less than average, or your neighbors are a riot, or the neighborhood, in general, is in a less than ideal area. It’s important to do your research on not just the home, but also the neighborhood. You can always find another home that meets all your needs, but you can’t change a home that’s in the wrong neighborhood.
Before buying, consider the neighborhood’s overall value, the crime rate in the neighborhood, the school zone that it’s in, surrounding churches, and how close it is to shopping, grocery stores, etc. Factor in what’s important to you when it comes to living in specific neighborhoods.
Not Considering Your Home’s Resale Value
Usually, when you are in the process of buying a home, you are only thinking about a couple of things. Maybe you’ve been tired of apartment life and so you wanted to buy a home that you could call your own. You’ve entertained the thoughts of settling down, so you are not in the frame of mind to think about what might happen in the future. But—unexpected things happen sometimes, so you just never know!
With that being said, when you are looking to buy a home, you should consider a few things concerning your home’s resale value. If you had put your home on the market, would it be easy to sell or would it be difficult? While you’re on your search for your future home, it’s important to at least consider whether or not the home would be of interest to a future prospective buyer.
Failing to Consider Other Expenses
With a home that you are renting, your main expense is usually rent and utilities, with the occasional property management company that requires renter’s insurance to protect against accidents. With purchasing your own home, you have additional expenses on top of the monthly mortgage payment. Now, you also have property taxes and home insurance. On top of that, gone are the days when you can just call the maintenance guy to fix the problem with your AC or toilet, or the property management company to tell them of your ceiling leaking all of a sudden. As a homeowner, you are now responsible for making the calls and taking care of home repairs. Additionally, many townhomes and condos also have an HOA management company with its own charges for grounds upkeep and amenities, depending on the company.
Not Opting for a Home Inspection
So you’ve walked into what you are hoping to be your future home and you’ve checked everything out. Everything looks great, right? Not always. While everything may look great on the outside (and the inside), you might not see the things that inspectors see in terms of the more nitty-gritty details of a property. So, it’s always wise to schedule a home inspection and be sure that there is nothing that is overly awry with the property—this way you can go into closing on the home with the knowledge that you are not walking into a money pit or something that’s going to take a lot of work. Granted, you may love the property so much that it doesn’t quite matter, but it’s still wise to know what you’re getting yourself into.
Not Being Willing to Compromise or Compromising Too Much
In order to get the home you can afford, sometimes there are things you have to compromise on. You might not like little details to a home, but are they able to be updated at a future date? If the home is in a nice area, is the size you want, and is at a manageable price, then compromising on things that ultimately can be replaced might not be a bad idea. Don’t like the wallpaper? Easily fixable.
At the same time, however, don’t compromise on the big things—if you have your heart set on a 3 bedroom home because you know you are eventually going to want to have kids, then that should be non-negotiable. Know your yes’s and no’s and relay that to your top real estate agent so they can help you with picking the perfect home—for you.
We Can Help!
Are you looking for the best real estate agency in Wilmington, NC? When choosing a real estate agent, be sure to go with someone who has expert knowledge of listings and selling a property. The Regina Drury Real Estate Group has that and more. We are a Full-Time real estate company in Wilmington, NC; our crew can provide you with all of our expert knowledge and focus on maintaining a high degree of customer service that will leave a lasting impression. Contact us today to talk more about your Wilmington, NC Real Estate needs.
Located in popular Mallory Creek this adorable 3 Bedroom 2 Bathroom home is located about 15 minutes from Downtown Wilmington.
To view all the details on this property including more photos and information, click here.
What are the features of 113 Tylers Cove Way, Winnabow, NC 28479?
USDA eligible!
Fenced in backyard
Wood laminate floors
3 bedroom, 2 bathroom home for sale in Winnabow, NC
3 bedroom, 2 bathrooms and just right for the first time homebuyer! Located in Winnabow, NC, this home is priced right and is in highly desireable Mallory Creek Plantation, just about 15 minutes from downtown Wilmington, NC.
Lovely Kitchen with a Pantry
Plenty of cabinets and counter space, joined by a pantry.
Lots of Space in the Living Room
Check out this living room with vaulted ceilings and wood laminate floors.
Nicely Sized Fenced in Backyard
Looking for enclosed space for your fur baby to run? This fenced in backyard is perfect for that! Or just for that extra sense of privacy to your home.
3 bedrooms
2 bathrooms
1 car garage
Wood laminate floors in common areas
Carpet in bedrooms
Fenced in backyard
Vaulted ceilings
Community Pool
Community Clubhouse
Easy access to Brunswick Forest
*USDA eligible
Schedule a private showing of 113 Tylers Cove Way, Winnabow, NC 28479. Contact Regina Drury 910-232-4919.
To search more Homes for Sale in Winnabow, NC, click here.
For a market report on Mallory Creek Plantation, click here.
Wondering what your home could sell for? Click here for a Free Instant Home Value Report.
To view all the details on this property including more photos and information, click here.
We Can Help!
Are you looking for the best real estate agency in Wilmington, NC? When choosing a real estate agent, be sure to go with someone who has expert knowledge of listings and selling a property. The Regina Drury Real Estate Group has that and more. We are a Full-Time real estate company in Wilmington, NC; our crew can provide you with all of our expert knowledge and focus on maintaining a high degree of customer service that will leave a lasting impression. Contact us today to talk more about your Wilmington, NC Real Estate needs.
If you are looking for the most lovely 4 bedrooms, 3 bathroom house in Hampstead, NC, look no further than this one we have just put on the market in the Forest at Belvedere plantation. This home will sell fast, so don't wait!
To view all the details of this property including more photos and information, click here!
Facebook Live House Tour Video
Take a peek at 402 Azalea Drive with our Facebook Live House Tour! You want to see the amazing features of this property for sale in Hampstead.
What are the features of 402 Azalea Drive, Hampstead, NC 28443?
4 bedroom, 3 bathroom
High-end wood laminate floors
Wrap-around front porch
Screened in back porch with golf course views
4 bedroom, 3 bathroom home in Hampstead, NC
This home charmed us as soon as we stepped foot in front of it. With a wrap around porch filled with all the dainty little rocking chairs and outside decorations, it really adds an extra homey and relaxing feel. You could do this to the home as well once it's yours!
Plenty of Cabinet Space in the Kitchen
Take a look at this beautiful kitchen with all that cabinet space and counter space. This house has all the things! Can't you imagine yourself hosting a nice dinner with your friends and family here?
All the Light Through the Windows
Not only does this living room boast of vaulted ceilings, lots of light pours through this living room during the day.
Bathroom Set Up For Relaxation
Take note! This bathroom is set up by the current owners to be super relaxing but you could draw some inspiration for your own bathroom too. Cute succulents in the windows, accents hung on the walls, and check out the live video to see the really neat shower!
Screened in To Keep You from the Summer Mosquitos ;)
This home hits to all of the relaxation points! This screened in back porch has golf course views but still allows for a bit of privacy.
4 bedroom
3 bathroom
Natural light in living room
Wrap-around front porch
2 car garage
Golf course views
High-end wood laminate floors
Vaulted ceilings in living room
Plenty of cabinet space
Custom details throughout the home
Close to Topsail Beach
*May be eligible for USDA financing!
Schedule a private showing of 402 Azalea Drive, Hampstead, NC 28443. Contact Regina Drury 910-232-4919.
To search more Homes for Sale in Hampstead, NC, click here.
For a market report on Forest at Belvedere, click here.
Wondering what your home could sell for? Click here for a Free Instant Home Value Report.
We Can Help!
Are you looking for the best real estate agency in Wilmington, NC? When choosing a real estate agent, be sure to go with someone who has expert knowledge of listings and selling a property. The Regina Drury Real Estate Group has that and more. We are a Full-Time real estate company in Wilmington, NC; our crew can provide you with all of our expert knowledge and focus on maintaining a high degree of customer service that will leave a lasting impression. Contact us today to talk more about your Wilmington, NC Real Estate needs.
In a little over a week, Wilmington will celebrate its 70th annual community celebration called the Azalea Festival. This is a festival that celebrates the warm, southern hospitality of the Wilmington area and is a huge festival in the state of North Carolina. This year, the featured headliners are Billy Currington and Ludacris. Every year, this event unites visitors and Wilmington locals alike to have fun, enjoy the company of others, and to celebrate with parties, events, galas, and tours.
In case you wanted a refresher on all the events happening during Azalea Festival week next week, here's a list that we created for you. ;)
Queen’s Coronation: April 11th, 3:00 PM
Join Festival Celebrity Guests, Board Members, City Officials, and Cape Fear Garden Club Azalea Belles for this annual event where the Queen is officially crowned the North Carolina Azalea Festival Queen Azalea. This free event is held at Riverfront Park in downtown Wilmington, NC.
Billy Currington Concert: April 12th, 7:00 PM
With Drake White and the Big Fire and Kenton Bryant, this show will be held at CFCC parking lot. Tickets and more information are available by visiting ETix.com and ncazaleafestival.org
Airlie Luncheon Garden Party: April 13th
A premier event in Wilmington, the Garden Party kicks off spring with big hats, seersucker and bow ties on the beautiful grounds of Airlie Gardens. More information about the Garden Party is available at ncazaleafestival.org.
Cape Fear Garden Club Azalea Garden Tour: April 13-April 15
Sponsored by the Cape Fear Garden Club, this tour has been featured in Southern Living and is one of the longest-running and most popular garden tours in the South. Tickets are $25 and the gardens are open from 10a-6p.
After Garden Get Down: April 13th
The After Garden Get Down at Bluewater s a fun dockside party open to the public following the Airlie Luncheon Garden Party. Enjoy the waterfront bar & patio with live music, food and drink specials, and wonderful Intracoastal view.
Parade: April 14th, 9:30 AM-11:30 AM
The Azalea Festival Parade is one of Southeastern North Carolina’s largest annual events, with over 100,000 viewers each year. Floats, marching units and bands, clowns and horses, all highlighted by visiting celebrities, Queen Azalea and her court, and the Azalea Festival Princess await you at this downtown event. For the parade route and more information, visit ncazaleafestival.org
Ludacris with Childish Major: April 14 at 7:00p
Held in the CFCC parking lot, this will be an evening to remember. Known for his catchy tunes and presence in the Fast and Furious series, Ludacris is a main stage act that can’t be missed. Tickets are $46 per person and can be purchased at ETix.com.
Questions You Should Ask Before Buying New Construction
We want to keep you covered in all aspects, so we have come up with a list of questions to ask before buying a new construction home in Wilmington, NC. These are only a few of the many questions you could potentially ask, but here is at least a start for your process!
1. Do I need to use a real estate agent?
2. What's the builder's reputation?
3. What’s the average build time?
4. Choose square footage and location over upgrades.
5. Have you had a lawyer review the contract?
6. Have you gotten everything in writing?
7. Is there a builder's warranty on the home?
1. Use a real estate agent!
It’s always nice to have a real estate agent when making these kinds of decisions. A seller typically pays commission costs, so it costs nothing to the buyer to take advantage of the knowledge and expertise of the real estate agent. Top real estate agents generally know the builders and the communities that they are building in, so it would be beneficial to have their insight.
2. Check the builder.
What’s their reputation? When looking at new construction homes in areas or subdivisions that you are interested in, you always want to check the builder’s credentials. Their credentials, experience, and abilities will affect the quality of the new construction home. Check the builder’s reviews, ask around and talk to several different buyers, and cover all of your bases before you choose a builder. After all, you are pouring a lot of money into this new property—you want to be sure that you are checking to make sure your needs are being met.
3. What’s the average build time?
Planning is always nice, right? Although your salesman may inform you that the builder you chose has completed a home in 4-5 months, you may have a contract that states that a builder has longer than that before they have to complete the home. However, if you are renting currently or planning to sell your current home, you might want to gather a more accurate build time so that you can prepare to move into this new construction home that you have worked so hard for.
4. Choose square footage and location over upgrades.
In the long run, upgrades are much easier to incorporate as opposed to location and square footage. Location is impossible to change (which is a given) but you can upgrade your kitchen countertops later. If you are choosing between a house with an extra bedroom over a house with hardwood floors, choose the house with the extra bedroom, which would be way more expensive to add to later as opposed to putting in hardwood floors.
5. Have a lawyer review the contract.
Contracts for new construction can be complex and loaded with real estate jargon. It’s always beneficial to hire an expert who can be sure that you are not missing any crucial factor to the agreements that you are signing.
6. Get everything in writing.
Our previous points reminded us of something crucial—get everything in writing! Don’t sign anything until all aspects of the project have been negotiated, agreed upon, and written into a contract. Everything should be written down into that contract from what will happen if the construction is not completed on time, deadlines, what’s included, etc. Verbal conversations have no binding weight once deals are made, so make sure everything is in writing and signed by all the appropriate parties.
7. Check the warranties.
Check to see if the builder is offering a warranty on a new home that covers material and workmanship and even coverage of structural elements to the house. Types of warranty questions you should ask are: - What isn’t covered? - What happens if I have a claim or dispute? - What’s the extent of your liability?
Are you still not sure if buying a new construction home is right for you? Click here to learn more about advantages and disadvantages of buying a new construction home.
We Can Help!
Are you looking for the best real estate agency in Wilmington, NC? When choosing a real estate agent, be sure to go with someone who has expert knowledge of listings and selling a property. The Regina Drury Real Estate Group has that and more. We are a Full-Time real estate company in Wilmington, NC; our crew can provide you with all of our expert knowledge and focus on maintaining a high degree of customer service that will leave a lasting impression. Contact us today to talk more about your Wilmington, NC Real Estate needs.
