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10/25/2008
Do Builder Repairs Have to Be Disclosed?


Multiple new home buyers have told me that their builders, some of whom are national builders, have advised them that once the builder has repaired construction defects in the home, including structural and foundation repairs, that they would not have to disclose that in a subsequent sale. 

This is not true!!!!

If the item is listed on the Sellers' Disclosure Notice, whether the builder repaired it or not, you may have to answer "YES" and then you can explain that the builder repaired it. 

For instance, if the house gets wet on the inside because of a drainage issue in the yard and the builder later repairs the cause of that problem, you will have to disclose the following in Section 4:

      PREVIOUS FLOODING

      IMPROPER DRAINAGE

      WATER PENETRATION

You should check "YES" on all of the above and then explain below that water would flow into the house from the back yard during rains until the builder repaired the drainage. 

Not only is this truthful  and required by law, you have now removed the possibility that they can blame or sue you later if the same thing happens to them.  They might have to blame the builder for not repairing it properly.  In this scenario, if you followed the builder's advice, you would be totally on the hook and the builder would be far less responsible than you because of your misrepresentation. 

In short, you should never follow a builder's advice on what and what not to disclose on the Sellers' Disclosure Notice and there is no excuse or exception to disclosure just because or even if a builder makes repairs of something in the house. 





Previous Entry
Disclose Everything!

10/23/2008
There is no law against too much disclosure, only to little.
   
All entries
10/25/2008 - Do Builder Repairs Have to Be Disclosed?
10/23/2008 - Disclose Everything!
10/3/2008 - What is a Mediation?
10/1/2008 - How To Get an Honest Appraisal
9/25/2008 - Mortgage Fraud
4/16/2008 - What To Expect in a Deposition
2/27/2008 - Subdivision Drainage
2/20/2008 - Why Termite Inspectors Can't Find Termites
1/23/2008 - Why a Home Inspection is Not What You Think it Is
1/17/2008 - Trusting Your Home Inspector
1/16/2008 - Home Inpectors Respond to My Criticism
1/16/2008 - How To Pick a Home Inspector
1/4/2008 - Beware of Home Inspectors
12/26/2007 - Intermediary Agent Scam
12/19/2007 - What is an Intermediary Agent?
12/12/2007 - Ask Your Neighbor
12/5/2007 - IF A DEFECT WAS REPAIRED, DO YOU HAVE TO DISCLOSE IT?
11/28/2007 - Does Seller Have To Disclose Old Defects & Conditions?
11/21/2007 - When Real Estate Disclosures NOT Required
10/29/2007 - The TRCC aka "The Builders Defense Program"
10/22/2007 - The Texas Residential Construction Commission
9/26/2007 - House Foundation Settlement
9/19/2007 - Homeowners for Better Building (HOBB) is another national organization to assist you when you have a new home construction defect.
9/18/2007 - Builder Fails to Attend SIRP Inspection
9/13/2007 - Homeowners Against Deficient Dwellings (HADD) is a Resource When your New Home Has a Construction Defect
9/2/2007 - Water damage and termites in our homes.
8/22/2007 - Construction Defects and Water Damage
8/19/2007 - The Importance of Keeping Good Records When Things Don't Go Right
8/16/2007 - Construction Defects and the Mortgage Subprime Market Hurts All of Us
8/15/2007 - Being a Witness in a Construction Defects Case
8/13/2007 - BAD BUILDERS IN WASHINGTON STATE
8/13/2007 - Free Speech
7/19/2007 - Texas Residential Construction Commission Is Bad for Texans
7/3/2007 - Lennar Homes is the Biggest Not Because They are Good
6/5/2007 - Is ReMax Really Behind Your Agent?
Evin G. Dugas - Attorney at Law 512.261.0044 Evin@housedefects.com
2303 RR 620 South,   Suite 135 PMB 361,   Austin, Texas 78734
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