What type of warranty does a typical MI builder offer on new construction?

Asked by Jeff, Ann Arbor, MI Wed Jun 18, 2014

My wife and I are building a house and the builder offers the following warranty which we thought was pretty thin.

"Seller warrants the home to be of good quality, free from defects in workmanship and materials for one-year from the date of the occupancy permit. This is a LIMITED WARRANTY to repair or replace any defective item, at Seller's sole discretion. Once a final punch list is established and completed, the agreement is fulfilled in full, and no further action can take place. THERE ARE NO OTHER WARRANTIES, EXPRESSED OR IMPLIED, EXCEPT AS CONTAINED IN THIS AGREEMENT. THERE IS NO WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE."

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Dan Tabit, Agent, Issaquah, WA
Wed Jun 18, 2014
The problem with a builders warranty is that it's only as good as the builder behind it. Many builders go out of business or go bankrupt and leave their home owners stuck. I hope you researched the builder well and choose them for their great reputation.
Now, with every home I help buyers purchase I INSIST on a top quality independent inspection. Builders often state, "you don't need this we have a warranty" but the warranty eventually expires and flaws in construction can lead to problems way past that date. Having the home professionally inspected before you finalize your deal with the builder and requiring the issues, if any that the inspector uncovers be resolved before you finalize the deal should be your next step.
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