Real Estate Term of the Day: Builder Warranty

Real Estate Term of the Day: Builder Warranty

BUILDER WARRANTY – a guarantee on the quality of construction offered by the developer or building contractor (Barron’s Dictionary of Real Estate Terms)

It is common for builders in Colorado to offer a 1-year builder warranty on material defects, systems and workmanship. Many builders offer other warranties for major structural defects (typically 10 years) and major mechanical systems (typically 2 years).  Warranties for appliances are usually provided through the appliance manufacture (to be eligible for warranty claims new owners are required to register the appliance with the manufacture upon closing of the new home ).

Most builders offer different time periods during the 1-year builder warranty in which claims are encouraged to be made.  The two most common are within 45 days of closing and at the 11 month mark (1 month before the builder warranty will expire).

If you have recently purchased a new home or are considering purchasing a new home, I would encourage you to have home your new home inspected 3 times, this includes:

  1. Pre-Dry Wall Inspection – Completed after all the trade work has been completed (plumbing, electrical, HVAC, etc) but before the insulation has been installed.  The purpose of the pre-dry wall inspection is to give the buyer an opportunity to understand how the structure works and to discover conditions that are not visible once the flooring and dry wall is installed.
  2. Final Inspection – Completed near the closing date after the home has been completed.  The purpose of the final inspection is to ensure your new home is in the condition that was agreed upon with the builder.  The inspector can help identify items that should be on the “punch list” (items to be completed by the builder before closing).
  3. Warranty Inspection – Completed prior to the expiration of the builder warranty.  The purpose of a warranty inspection is to identify defects with your home that you can present on your final warranty claim.

Considering a new home?  It is extremely important to have an advocate working with you (see several reasons why you should hire a real estate agent to represent you during a new home purchase).


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