Houston, TX asked in Contracts, Real Estate Law, Tax Law and Small Claims for Texas

Q: What to do if company won't honor warranty?

I purchased a home in 2021 that came with 10 year warranty for the foundation. Recently, interior of home started having foundation issues on one side of the home. Company came out to take a look but refuse to fix the issue because warranty apparently has been voided for two reasons. 1. Warranty was not transferred within 30 days of purchase. 2. Soaker hoses weren't installed. However, the paper that was given to me when I purchased the home doesn't state that. Company claims the paper I got was the proposal for the work not the warranty. Company states the seller received the warranty and should've given it to me. Seller states she never received the document. How can I move forward? Who does this land on?

3 Lawyer Answers

A: This is a classic move by a home builder company. Unfortunately, it is time to sue.

You need to visit with an experienced lawyer who handles real estate contracts and litigation.

Your rights are in the agreement you entered into with the seller and/or builder. The details will matter in the paperwork. However, there are many Texas real estate laws that protect you also.

be sure you have a professional in home foundations give you a review and an estimate for the work and repairs that need to be done. Once you have that see an attorney like myself or another experienced pro.

I hope this helps.

Good luck!

John Michael Frick
John Michael Frick
  • Frisco, TX
  • Licensed in Texas

A: I think from your question you bought a previously-owned home which had foundation repair work performed by the previous owner and the foundation repair company gave the former owner a 10-year conditional transferable warranty.

Whoever told you that the home came with a 10 year warranty may be liable. The closing agent who prepared the documents to be executed at closing may be liable if they knew that the home was supposed to come with a warranty.

Your real estate agent may be liable if they did not follow through on the required documentation of the warranty.

Realistically, however, just because there is some foundation movement causing some interior issues does not necessarily mean that the foundation has failed to perform in accordance with the warranty. Texas has experienced some drought conditions recently. Normal foundation movement may have been exacerbated if you failed to properly maintain the moisture levels around your foundation. I would expect some drywall or floor tile cracks, maybe a door sticking, or some other minor interior issues. These standing alone do not mean your foundation has failed to perform.

If the home was a new home, see John Cucci Jr.'s answer. If it is new construction, your remedy is almost certainly against the home builder.

In either event, you need to retain a qualified foundation inspector to determine whether a breach of the warranty has even occurred or if you just have minor ordinary repair work to do because of the recent drought in a previously-owned home.

Jaime Victor Papa
Jaime Victor Papa
  • Plano, TX
  • Licensed in Texas

A: This sounds like it a may be a breach. I work on cases like this. I would need to review the details.

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