New Construction Warranty Problems in NC: Next Steps

Caul Group Residential, brokered by eXp Realty

If your new North Carolina home has a grading, drainage or other problem and the builder's fix does not solve it, start with your written warranty: report the problem in writing, document it, and follow the warranty's claim steps. If that stalls, a licensed home inspector or engineer can give you an independent opinion, and an NC attorney can explain your options, because time limits apply.

Here is a step-by-step guide, plus what the local inspections office and the NC Licensing Board for General Contractors can and cannot do. This is general information, not legal advice.

Step 1: Read your written warranty and purchase agreement

Your builder's written warranty and your purchase agreement set out what is covered, for how long, and how to file a claim. Look for:

• What is covered. For example workmanship, systems, structure, and grading or drainage. Check each item your problem touches.
• How to report. Check whether it requires written notice and where to send it (a portal, email or a form).
• Deadlines. Coverage periods and claim windows differ by builder and by item.
• Dispute steps. Check whether it calls for mediation or arbitration. An attorney can explain what yours means.

Step 2: Document the problem and report it in writing

A clear record helps every next step.

• Take dated photos and videos, especially during and after heavy rain for drainage problems (standing water, water near the foundation, erosion, wet crawl space or basement).
• Keep a simple log: date noticed, what you saw, who you reported it to and their reply.
• Report the problem in writing, even if you also call. Save copies of every message and work order.
• When a repair is done, note what was done and whether the problem comes back.

Step 3: Get an independent opinion

If the fix looks cosmetic, an independent professional can tell you what is going on.

• A licensed home inspector. NC licenses home inspectors through the Home Inspector Licensure Board at the Office of State Fire Marshal. If your warranty has a one-year period, consider having a licensed inspector look at the home before it ends so you can report anything found in time. Find the NC Home Inspector Licensure Board.
• A licensed professional engineer. For questions about structure, foundations, grading or drainage, an engineer can evaluate the cause and write a report. Check an NC engineer's license.

Share written reports with the builder as part of your warranty claim and keep copies.

Step 4: Check permits and inspections

New homes are built under a building permit and inspected by the local inspections department. Under NCGS 160D-1104, those departments enforce state and local construction laws, issue certificates of compliance and can issue orders to correct violations.

What that means for you:

• You can look up the permit and inspection history for your home through the county or town that issued it.
• If you believe something was built against the NC building code, you can ask that inspections department about it.
• The inspections office enforces the code, not your warranty. It does not decide warranty claims or order cosmetic fixes.

In Wake County, the county provides permitting and inspection services for some towns, so check whether your town or the county issued your permit. Wake County Permits and Inspections FAQ.

Step 5: Know what the NC contractor board can and cannot do

The NC Licensing Board for General Contractors (NCLBGC) licenses general contractors. In NC, a general contractor must be licensed for contracts of $40,000 or more (GS 87-1).

What the Board can do:

• Let you verify a contractor's license.
• Take a complaint against a licensed contractor, or against an unlicensed contractor on a project of $40,000 or more, and investigate it.
• Act on the contractor's license if it finds cause, since its authority is over the license.

What the Board cannot do, per its own consumer FAQ:

• Require a contractor to make repairs.
• Require a contractor to pay you back.
• Impose civil fines or penalties.

The Board represents neither the homeowner nor the contractor. If you file a complaint, you are a key witness in the Board's case, not a party to it.

The Homeowners Recovery Fund. The Board runs this fund as a last resort for homeowners who lost money because of a dishonest or incompetent general contractor. You must try every other way to recover first, full recovery is not guaranteed, and the Board says it is usually not a quick process. Read the NCLBGC consumer FAQ.

Step 6: Talk with an attorney (time limits apply)

If the builder will not fix the problem or you disagree about what the warranty covers, talk with an NC attorney. Time limits apply to claims about construction and improvements to real property (see NCGS 1-50), and your contract may have its own deadlines and dispute steps. Ask an attorney early so you do not miss one.

Before you buy new construction

A few steps help before you sign:

• Read the warranty before the contract. Ask for a copy of the written warranty and claim process.
• Plan your own inspections. In NC, the first sale of a home no one has lived in is exempt from the Residential Property Disclosure Statement (G.S. 47E-2(b)(1)), so your own inspections matter. The mineral and oil and gas rights disclosure (G.S. 47E-4.1) still applies.
• Look at the lot. Notice how water flows on and around the lot after rain, where possible.

Frequently asked questions

What should I do if my builder's warranty repair does not fix the problem?

Report it again in writing with photos, ask what the warranty requires next, and consider an independent report from a licensed home inspector or engineer. If it is still not resolved, talk with an NC attorney, because time limits apply.

Can the NC Licensing Board for General Contractors make my builder fix my house?

No. The Board's consumer FAQ says it cannot require a contractor to make repairs or pay you back. It can investigate a complaint, and its authority is over the contractor's license.

Who should look at grading or drainage problems on a new home?

A licensed professional engineer can evaluate the cause of grading, drainage or structural problems and write a report. A licensed home inspector can do a broader check of the home.

Should I get a home inspection before my one-year warranty ends?

If your warranty has a one-year period, consider having a licensed home inspector check the home before it ends so you can report items in time. Check your warranty for the exact dates.

Does a new home come with a seller disclosure in NC?

Not the standard one. The first sale of a home no one has lived in is exempt from the NC Residential Property Disclosure Statement under G.S. 47E-2(b)(1). The mineral and oil and gas rights disclosure still applies.

Is there a deadline to take legal action over construction problems in NC?

Yes, time limits apply. NCGS 1-50 covers claims about improvements to real property, and your contract may add its own steps. Ask an NC attorney about your situation.

Questions about buying new construction?

Our founder, Tina Caul, has been in real estate since 2001. If you are thinking about a new build or a resale home, we can help you compare them and plan your inspections. For warranty disputes, talk with an NC attorney.

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• Contact us or call (919) 263-7653

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