As you consider buying a newly constructed home, it is important to be aware of what is often referred to as a one-year builder warranty.

Technically, what we are referring to are "Implied warranties on new homes" per Virginia statute 55-70.1.


What is covered by the warranty?

The builder warrants that the "dwelling with all its fixtures is, to the best of the actual knowledge of the vendor or his agents, sufficiently (i) free from structural defects, so as to pass without objection in the trade, and (ii) constructed in a workmanlike manner, so as to pass without objection in the trade." Essentially, no structural defects, and workmanlike construction.


When does the one year start?

The earlier of when the title is transferred, or when the buyer takes possession of the property.


I bought a house three months ago and have discovered structural defects. The builder is telling me a warranty doesn't exist, because "as is" was written into the contract. Is this possible?

It is possible to modify or exclude the Virginia statute based implied warranty. However --- it is likely that the builder did not follow the statute when selling the property to you as is.

To sell a new property "as is" and exclude the implied home warranty, the fact that the house is being sold "as is" must be written on the face of the contract, in capital letters, in a font size at least two points larger than the other type in the contract. This doesn't happen too often.


I have a structural issue, what do I do?

The statute specifies that you have a cause of action against the builder, but that you must first notify the builder of the defect and allow them a reasonable period of time (no longer than six months) to cure the defect.


What about the foundation?

The foundation is warrantied for five years (instead of just one) --- though if a foundation issue exists, it must be reported to the builder within two years of when it is discovered.


The Virginia statute keeps referring to a "structural defect" --- what is that?

Per the code, "a defect or defects that reduce the stability or safety of the structure below accepted standards or that restrict the normal use thereof." Yes, that is about as vague as you can get.


My builder is asking me to sign a warranty document at closing --- why? And should I sign it?

First, take time to read the document.  In most cases, such a document includes verbiage that limits the (vague) rights you would have had under the broad Virginia statute.  Builders ask buyers to sign these documents to narrow the scope of buyer's possible warranty requests --- and this desire often comes from past buyers who have been unreasonable in asking the builder to address cosmetic (or other non-structural) issues within the first year. 

If the document only includes language that restricts or eliminates your rights under the broad Virginia statute, kindly refuse to sign the document.  Unless all parties agreed in the sales contract that a warranty document would be signed at closing, the builder can not require you to sign the document --- it is imposing a new contract term on the buyer, when that was not included in the original negotiations. 

One caveat --- sometimes the document serves both the builder and the buyer --- it can do so by specifically stating items that the builder will indeed repair that might otherwise be in a gray area given the vague nature of the Virginia statute.