NEW
HOME DEFECTS - article
NEW HOME DEFECTS - PowerPoint
The
Following Article was Prepared by
Homeowners Against Deficient Dwellings
March 2004 -
Members of Homeowners Against Deficient Dwellings and homeowners contributed
to this report. http://www.hadd.com
This
organization and their web site have many great resources.
Common Defects in New Home Construction: A List of Common Defects in New Homes
Experienced by Homeowners
Table
of Contents:
PURPOSE OF THIS LIST
LIMITED
WARRANTIES AND INADEQUATE PERFORMANCE STANDARDS
CONTRACTUAL OBLIGATIONS
FOUNDATION
OTHER CONCRETE
TILE, CARPET, FLOORING
EXTERIOR
WINDOWS
PAINT
ROOF
PLUMBING
AIR CONDITIONING AND HEATING
DOORS
ELECTRICAL
STRUCTURAL
INTERIOR
OTHER
RESOURCES
DONATE TO HADD
ABOUT HOMEOWNERS AGAINST DEFICIENT DWELLINGS
Purpose of this List
This compilation of common defects in new homes was created from input
by
homeowners, research of news articles, and review of complaints from
various agencies.
This list should be used to help identify possible causes of these
common defects and to
encourage better building policies. It is disturbing that after decades
of building homes;
the home building industry continues to condone the underlining causes
of these common
defects. It would seem that after this much time the root cause of
these problems would
have been addressed and the defects prevented.
Many
defects are caused by underlying problems, for instance, a crack
in the tile could be
a symptom of a much more serious problem, caused by foundation movement
and
possibly incorrect installation of the tile. And many defects happen
outside of the
warranty timeframe. Again,
cracked tile is a good example. Most of the popular
warranties only cover cracked tile if it was noticed PRIOR to move
in, yet a foundation
can settle over a period of years causing the cracks to appear.
This
document attempts to identify the different defects commonly reported
by
homeowners HADD has been in contact with. Because of the complexity
of homes and
contracts this list should not be considered a litmus test for
defects. This document does
not attempt to document every defect known to the builders, but
instead identifies the
common defects that have been reported to HADD and via the media.
This
report references new home warranties with the Homebuyers Warranty
(HBW) or 2-
10 warranty being used as an example. The HBW is very similar
to other common
warranties. The reader is urged to read “New Home Warranties.
Protection or
Deception?” available for free download at www.hadd.com.
Limited
Warranties and Inadequate Performance Standards
In 1989 Texas passed the Residential Construction Liability
Act (RCLA pronounced
wreck-la) as the first right to repair law in the country.
RCLA at the time was touted as
the panacea to a “rush to the court house” and
new home construction defects. Since then
many states are now passing their form of RCLA using Texas
as a shining example of
good legislation.
Unfortunately,
while states are passing their own RCLA’s, Texas
in 2003 has passed yet
another shining example of good legislation, the Texas
Residential Construction
Commission (TRCC) because of the complete failure of
the original shining example,
RCLA.
The
overwhelming influence of the building industry has now created a
Commission that
will create performance standards and warranty standards.
This is now being touted as the
new model of legislation by the building industry.
It is feared that the extremely limited
new home warranties such as the HBW or the Residential
Warranty Corporation warranty
will be adopted as a standard for the state. Many of
the defects identified in this
document are not covered by these warranties or any
performance standards such as the
Common Defects in New Home Construction standards
created by the National Association of Homebuilders. It is hoped that
the
Commission will research the common defects in new
home construction and create
standards to prevent the defects instead of relying
upon and adopting the extremely
limited new home warranties such as the HBW. Since
this legislation is being touted as
model legislation, other states in the country should
be aware of it’s
decisions in the near
future.
Contractual
Obligations
The following is a brief description of common contractual
problems with homebuilders.
These issues can halt the construction of a home,
indefinitely delay the closing, or delay
the resolution of a defect. There are no industry
standards to address these types of
problems.
ß Builder
does not follow up on walkthrough items. After the walkthrough homeowners
expect the walkthrough items to be repaired in a timely
manner.
Many times the builder will dispute the defects
noted on the list and will refuse to
repair. It becomes much harder to have the defects
addressed once the
homeowners has accepted the home.
ß Builder
is not building home to specifications. Many times the home is not
being built to the agreed upon specifications
resulting in a halt in the work.
ß Builder
will not refund earnest money or down payment. If the builder does
not resolve defects or contractual problems
prior to closing, the homeowners will
back out of the home and they expect to receive
their down payment back. Many
times builders will not provide the payment
or will provide a reduced payment.
ß Builder
will not honor warranty. This is a common problem. The builder just
refuses to honor the warranty.
ß Builder
will not live to advertisements. As an example, a builder in Houston,
TX advertised guaranteed electricity
bills based upon their energy efficiency
homes. When the bills were excessive,
the builder did not honor the guarantee.
The homeowners are now in a very long
process of trying to resolve the problem.
ß Builder(s)
abandons the subdivision without finishing promised amenities. Promised
golf courses, and other amenities are not completed.
ß Non-disclosure
of known defects. Defects in model homes with known problems, or
homes that were refused by a homebuyer due to defects,
were not
disclosed to the subsequent buyer.
ß Inspections
not performed. Inspections by officials or by the builders were not
completed or verified resulting
in homes with code violations or
not
built to
industry standards.
ß Home
not completed by closing, outstanding defects. Homebuyers
are asked to“
trust” the builder in an attempt to close the home before completion.
If any
defects arise, it becomes very
difficult to resolve them after
closing.
ß Homes
built upon land not suitable for occupation. Homes built upon known
toxic dumps (Brio Site Friendswood
TX) or upon land with high
water content
(San Antonio) or upon known
target bombing ranges (Dallas)
or upon
lead
contaminated ground from an
old sheet shooting range. (Ryland
Homes)
ß Non-Disclosure
of future use of surrounding land. Homeowners are surprised when
adjacent property is used for other purposes such as a quarry
instead of
being open land.
ß Workers begin repairs but never finish.
ß Workers
break other components in the home while fixing the original defect.
ß Homeowner
warranty demands arbitration against FHA rules. Homeowners with an
FHA mortgage are not required to agree to arbitration,
yet the warrant
company will attempt
to force this upon
the owner.
This
is resolved
only if FHA
is notified and contacts
the warranty company.
ß Builder
refuses to fix code defects. Builders do not respond to third party
inspectors, which
find code violations.
Code
violations are also
exempt from most
warranties.
ß Builders
put arbitration clauses in the contract even though it is an FHA/VA
contract.
ß Home
not built to windstorm codes. Homes are built in windstorm areas,
but
not to the windstorm
codes as dictated
by the insurance
commission.
ß Home
not built on correct property lines. Homes have been built crossing
a
property line,
most of time
it is just
a few
feet, but
nevertheless
it is
incorrect.
ß Builder
refuses to respond to complaints. Builder refuses to respond to phone
calls, emails,
or mail.
ß Builder
withholds information. Builders have withheld information concerning
defects that they are aware of.
ß Builder
uses stalling tactics. Builder will resort to inspections of the
property
followed
by subsequent
inspections
by
different
people,
then
followed
by different
management
teams
and
foreman. This
drags
the
process out.
ß Hidden
charges in the contract. Numerous hidden charges in the contract
with
most
buyers
having
to
incur
thousands
of
dollars
of
unexpected
charges.
ß Home
not completed on homeowners land. This applies to homes
built on a
homeowner’s
lot. The
home is
not completed
due to
defects and
the builder
stops building.
This is
a problem
because a
buy back
option is
not feasible.
ß Foremen
are changed periodically. Foremen are switched periodically causing
a
delay
in resolving
a defect.
Foundations
Foundation
problems are
by far
some of
the most
common and
most expensive
to
resolve.
Unusual settlement
of a
foundation can
cause problems
ranging from
doors and
windows
sticking to
cracks in
tile, brick,
flooring, and
more. Most
warranties cover
only “
Major Structural Damage” or MSD, which requires the home to
be unsafe or unlivable,
before
coverage will
be initiated.
This is
a very extreme
limitation especially
since
foundation
repairs are
generally very
expensive. Even
multiple cracks
in the
walls, floor
and
foundations under
these extremely
limited warranties
are not
covered.
ß Settling
and active soils. Homebuilders and warranty companies use this
as their
first
line of
defense claiming
the home
is built
on active
soil and
they cannot
be
responsible
for the
damage, yet
many homes
especially those
in Texas
are built
on
active
soils and
have no
problems. Foundations
move not
because of
the soils,
but instead
because of
the lack
of preparation
of the
soil or
a defective
foundation.
ß Unreasonable
maintenance. After reviewing a
foundation failure, the warranty
and
builder claims
the foundation
must be “maintained” with
adequate watering. This
is considered
by FHA
to be
unreasonable. This
is an
unreasonable
requirement
since there
are no
specifications about
the moisture
content of
the
soil.
ß A
Hot Foundation. This is a foundation that is not allowed
to cure
correctly. It
causes
a weak slab
and possible
water intrusion
into the
house.ß Cracked slab. This causes cracks to other items in the house,
tile,
walls,
windows,
etc.
ß Inadequate
Draining. Water does not drain away from foundation. Many
times
the
builder will
install French
drains to
solve a
foundation problem
claiming the
water
was not
draining properly.
This is
a reactive
repair instead
of a
preventative
measure.
ß Consequential
damage. Damage done to the home caused by a failed foundation
including tile, interior walls, etc.
ß Wet
foundations. Leaks water under the flooring causing wet
carpets,
wet grout,
mold
ß Foundation
chipping. The concrete of the foundation can be chipped
off usually
causing
buckling of
floor coverings
and water
intrusion.
ß Built
not according to specifications. Home is built without
a brick
ledge.ß Non-engineered foundations. Foundation design does not have an
engineering approval causing a multitude of problems.
ß Post
tension foundation failures. Cables snap or are not tensioned.
Cables are
missing.
ß Ground
not prepared correctly. Soil not compacted. Soil not fit for
foundations.
ß Organic
material under foundation. Trees, trash. Lot not cleaned
prior
to
foundation
being poured.
ß Built
over a water-saturated area. Homes have foundation problems
due
to a
water
source under
the ground.
Other
Concrete
This
includes defects
in other
concrete areas.
Usually the
warranties will
not address
the
defects
unless they
are found
within the
first year
and the
cracks are
1/4” wide
causing
very
unsightly appearance.
ß Cracks
in sidewalk and driveway. Cracks that exceed hairline
and continue
to
grow.
ß Sagging
driveway and sidewalk. Driveway sections sag.
ß Angle
of driveway too steep. Driveway entrance is too steep causing
cars to
scrape.
ß Cracks
in garage floor. Exceeding hairline width and continue to grow.
ß Cracks
continuing to grow. Small cracks continue to grow in width and
length.
Tile,
Carpet, Flooring
This
includes carpets,
vinyl, hardwood
floors and
tile. Most
of these
defects are
not
covered
in the
warranty past
the first
year.
ß Hardwood
floor buckles. Due to a number of reasons such as water, or
bad
wood.
ß Hardwood
floors rot. Water from under the foundation or exterior.
ß Hardwood
floors discolors. Reasons unknown.
ß Carpet
is wet. Water from under the foundation or exterior.
ß Carpet
sags. Causing tripping hazard. Limits life of carpets.
ß Carpet
seams noticeable. Carpet seams should not be seen.
ß Carpet
discolors. Color fades
ß Carpet
comes apart. Comes apart from normal vacuuming.
ß Tile
cracks. Hairline to larger.
ß Tile
comes loose. Grout does not hold tile to the floor
ß Tile
grout is wet. From water under the foundation or from exterior.
ß Vinyl
shrinks. Baseboards exposed
ß Vinyl
bubbles. Unknown cause.
Exterior
Includes exterior bricks, synthetic stucco, vinyl and siding. Many
of the warranties
include
little if
any protection
for these
items. Cracks
in the exterior
walls usually have to
be 1/8” to 1/4” of an inch wide before
it is considered a defect. Usually cracks are
covered
for only
1 year. The
fact that
it may
be caused
by a
faulty foundation
does not
come
into consideration.
ß Bricks
crack. Cracks seen in the exterior bricks could be a sign of
foundation
movement
ß Weep
holes plugged. Does not allow water to escape from the walls.
ß Bricks
fall off the home. Due to foundation movement or grout.
ß Grout
is coming apart. Due to incorrect mixture.
ß EIFS
Cracks. Unnoticeable hairline cracks an cause water intrusion
ß EIFS
Leaks into wall cavity. Could cause wood rot. Hard to identify
and find.
ß EIFS
Rotting of structure. Wood rot due to EIFS draining.
ß EIFS
Rot caused over the years. This is a long-term event. The rot
is caused by moisture
build up
within the
walls. It
takes time,
sometimes years,
to find.
ß EIFS
causes mold contamination. The leaks in EIFS can cause mold
contamination
of a home.
ß Siding
installed incorrectly. Not to specification. Voids the warranty.
ß Siding
Nails rust. Voids the warranty. Could cause the siding to fall.
Unsightly.
ß Siding
inadequately caulked. Voids warranty. Leaks into the home.
· Vinyl siding fades. Or discolors.
· Vinyl siding comes off. Due to high winds or incorrect installation.
Windows
The warranties usually do not address window defects and any that
are
covered, are only
covered for one
year.
ß Leak
from defective windows. Windows leak from around the panes of
glass.
ß Leak
from the bottom lip. Windows leak from water buildup on the lip.
ß Leak
into wall. Water leaks into the wall due to inadequate flashing,
incorrect
installation,
defective windows
or installation
of alarm
system.
ß Glue
in windows is defective. Glue begins to fail. Panes fall out of
frame.
ß Windows
do not perform to specifications or standards. Windows do not
meet
the
standard they
are stamped
with.
ß Cannot
open or close. Windows do not operate.
ß Cannot
lock. Windows shift to the point they do not lock.
ß Condensation
in between panes. Seals are broken.
ß Installed
backwards. Does not provide insulation due to the film inside
of the
window
facing the
wrong way.
ß Leaks
around the windows. Windows not installed properly.
ß Leaks
into the wall. No flashing. Incorrect installation.
ß Windows
are scratched.
ß Sills come apart. Due to condensation on composite wood products.
Paint
Paint is rarely covered in any warranty, especially exterior. Many
times the builders will
blame the homeowner
for lack of maintenance even
during the
first year. Builders
have
claimed
that the
homeowners must
wash their
entire
home
with a
bleach/water
solution
every
6 months.
Paint
for
cars are
guaranteed
for
5 years
by law.
Homes
painted
with a 15-year
paint
are
not guaranteed
at all.
Homes painted
by a
third party
are
usually guaranteed
for
5
years.
ß Peeling. Peeling of the paint due to incorrect preparation of the surface.
ß Fading. Paint fades due to weather.
ß Discolored. Paint discoloring due to weather.
ß Water down paint. Paint mixed with water to extend the use of the paint.
Roof
The roof is not considered a structural component of the home except
for FHA homes.
Roofs built
by a third party
are usually guaranteed
for 5-10
years. Roofs built
on a new
home
are rarely guaranteed
for more than
1 year.
ß Shingles
fly off. Shingles pull off during high winds. Insurance will
not cover if
installed
incorrectly.
ß No felt paper. Incorrectly installed.
ß Leaks. Leaks from the roof into the interior of the home for various
reasons.
ß No flashing. Leaks into wall cavity.
ß No ventilation installed. Hot attics and premature deterioration of
roof.
ß Incorrect support structure. Incorrect trusses.
ß Defective shingles. Shingles, which decompose prematurely.
ß Incorrect installation. Incorrect installation of roof causing multiple
problems.
ß Shingles buckle. Waves in the roof.
Plumbing
With the problems with mold contamination, plumbing should be high
on the priority list
to insure correct
installation. Most warranties including
the HBW only guarantee
the
plumbing
for 1
year. Some
of the leaks
are slow
to occur
and are unnoticeable
for a long time.
ß Hot/Cold
crossed. Water is crossed into the tubs or sinks.
ß Toilets overflow. Overflow due to incorrect pipe width or incorrect
installation.
ß Toilets continue running. Incorrect installation.
ß Toilets leak into sub floor. Causing mold and health risk.
ß Shower pan leaks. Causing damage to surrounding frame, wood rot, mold,
and
health
risk, Unseen
for long
periods of
time.
ß Tile leaks into the wall. Leaks behind the tiles into the wall cavity.
Unseen for
long
periods of
time.
ß Cracks in tile. Causing leaks into the wall, which will cause more
swelling and
more
leaks.
ß Drain clogged. Will not drain adequately. Easily clogged.
ß Sewer smell. Coming from shower, toilet, or sink.
ß Sink does not seal. Causing leaks into cabinet.
ß Faucets drips. Broken seals.
ß Pinhole leaks. Leaks develop over years causing pinhole leaks into
the wall
cavity.
This sometimes
requires replumbing
of the
house at
a very large
price.
ß Transition joints leak. Transition joints within the walls leak.
ß Nail in pipe. Or nail driven next to a pipe causing a leak.
ß Leaks behind the wall. Causing a slow undetectable leak.
ß Bangs when water is turned on. Noisy pipes caused by water or by unsecured
pipes.
ß Excessive noise when running. Reverberating through the house.
ß Not insulated. Possible freezing hazard.
ß Plumbing in foundation not protected. Causing expensive leaks after
many
years.
ß Plumbing leak under foundation. Causing foundation movement.
ß Sewer leak under foundation. Causing foundation movement.
ß Water heater does not heat. Cold water.
ßToilet
not secured. Moves or leaks into sub floor.
Air
Conditioning and Heating
Air conditioning and heating is covered for only 2 years in most
warranties
like the
HBW,
yet when a
new unit is installed
a 5-10 year
guarantee is
normal. A/Cs
on cars are
guaranteed
for at
least 3
years.
ß Fails
to maintain cooling/heating difference. Sometimes requires
constant changing of dampers.
ß Fails to cool adequately. A/C undersized for house.
ß Power surge. Causes power drops when A/C kicks in.
ß Trips breakers. Breakers are tripped when A/C kicks in.
ß Leaks into attic. Air ducts not sealed.
ß Loss of freon. Freon should not leak. Loss of freon is a defect in
the A/C
ß Does not perform as advertised. Heating and A/C bills are over what
the builder
guarantees
with the
Environment for
Life program.
ß Condensation on the coils. Leaks into the walls.
ß Drip pan leaks. Causing leaks into the wall cavity.
ß A/C unit does not drain. Causes leaks.
Doors
This includes inside and outside doors. Doors are not covered in
the
warranties
specifically.
ß Not
balanced. Does not stay open.
ß Will not close. Does not close.
ß Will not lock. Will not line up with the plate.
ß Will not open. Sticks to frame due to foundation shifting or incorrect
installation.
ß Too much clearance. Space between the bottom of the door and floor.
ß Does not seal at threshold. Water and air leaks.
Electrical
Electrical items are covered only for 2 years. It would seem that a
component as
important
as electricity should
be covered
at the least for 5 years.
ß Power
surges. Causes flickering of lights.
ß Breakers tripped. Often tripping of breakers.
ß Bulbs burn out on power up. Often bulb burnout.
ß GFCI breakers are not wired. Incorrect wiring.
ß Receptacles do not work. No power.
ß Switches do not work. No power.
ß Inadequate loading. Over the entire house.
ß GFCI breakers. Often tripping of GFCI switches.
ß Burning smell.
Structural
This includes all non-foundations defects. Many of these are not covered
in any warranty.
ß Upper
floor is slanted. Causes a vertigo effect.
ß Upper floor sags. Not supported correctly.
ß Wall buckles. Stress from above.
ß Exterior wall moves. Actually will move if pushed. Brick walls also.
ß Roof not supported. Roof sags.
ß Rafters too far apart. Roof not supported correctly.
ß Lumber size too small in the roof. Could cause sagging.
Interior
Many of these are caused by other more serious defects. Many are also
not covered in the
warranties or the
coverage is limited.
ß Wall
separates from ceiling. Shifting foundation.
ß Walls are not plumb. Or out of square.
ß Trim separates. Separates from the wall.
ß Stair banisters move. Not secured correctly.
ß Stairs are too steep. Causing a tripping hazard.
Other
This is a set of miscellaneous defects.
ß Mold
growth. Growth throughout the home from various causes.
ß Outgassing of chemicals. Outgassing of chemicals from
various components
of
the
home.
ß Smoke drafts back into house. Causes smoke damage.
ß Water pools in the yard. Yards are unusable.
ß House built with defective products (Masonite). Siding,
plumbing, roofing materials many with recalls or lawsuits against them.
ß Garage does not accommodate average size cars. Cannot
close garage
or get
out
of the
car once
parked.
ß No insulation. Causes high utility bills.
ß Gutters leak. Causes wood rot.
ß Gutters do not drain. Causes overflow.
ß Floors squeak. Annoying.
Resources
The following are documents HADD has written. They can be found on
our website: www.hadd.com/downloads.html.
There is no charge for
downloading them.
New
Home Warranties. Deception or
Protection? A
report identifying
extreme
limitations
and loopholes
in new
home warranties.
The report
analyzes the
most
popular
warranties used
by builders
in the
United States
and highlights
the
limitations,
exclusions, and
unreasonable
maintenance
requirements common
to each
warranty.
This
is a
must read
for new
homebuyers to
understand
what
limited
rights you
will have
after your
purchase.
How
to Resolve
a New
Home
Construction
Defect
with
a Homebuilder. A
guide
to
help
homeowners
in
the
United
States
to
resolve
a
defect
with
an uncooperative
builder.
Includes
alternative
dispute
resolutions
available
and
a
description
of
the
various
complicated
laws,
which
protect
homebuilders.
This was
derived
from
the
guide
below.
The
Abuse
of
Arbitration
in
New
Home
Contracts. A
study
on
the
use
of
mandatory
binding
arbitration
in
new
home
contracts.
If
you
think
arbitration
is faster,
cheaper,
and
better
than
our
court
system,
then
this
is
a
must
read!Know
what
Constitutional
rights
you
could
lose
before
you
sign
your
contract
for
a
new home.
Applying
for
Hardboard
Siding
Settlements. A
guide
to
help
the
millions
of
homeowners
with
defective
siding
claims
and
the
application
process.
Learn
how to
identify
the
siding
on
your
home
and
how
to
avoid
costly
and
time
consuming problems.
This
includes
Masonite,
LP,
ABTco
and
more.
A
Report
on
the
Texas
