Builder Construction Defect Advice

[Ravi B.]

Hi BP Community,

We closed on a rental townhome (brand new construction) that immediately had a raw sewage leak that covered much of the first floor damaging tenant possessions on day one.  The builder has been giving us the run-around on compensation for damages to tenants possessions, and the issue appears to be systemic as the same issue happened with a couple of other units in the same community.  What recourse do I have here?  Is it worth pursuing my landlord policy for the claims adjuster to go after their insurance or filing a lawsuit?  Damages came out to slightly over $4k.  I got wind that the builder is checking their warranty language (outsourced to a third party I believe) to find a way out of responsibility.  This has dragged on for two months now that has created a lot of stress for myself and the tenants.  Any advice is greatly appreciated.  I assume filing a lawsuit will ultimately cost more money than what its worth, unless you all have different experiences.  

[Jason E. Smith]

Ravi,

Sorry to hear about your challenges, thankfully nobody was injured. I would file a complaint with the North Carolina Licensing board for General Contractors. And I would contact the county inspections office to let them know what happened. They should have been the ones who inspected it and issued a certificate of occupancy. Maybe there’s a defect in the plumbing they aren’t aware of and letting them know might prevent others from having the same challenges. I would also use social media and post your experience in as many places as the builder is found so others know what to expect. As you say, I would assume a lawsuit might cost more than $4k so it may not be worth it. But if many others are having the same issue it might be worth a call to an attorney about a class action lawsuit if many homeowners are having similar issues. Another great option is to call all the local news media. The builder might have a quick change of attitude if his reputation is portrayed all over the local news, he might be quick to help you to save his reputation. Best of luck! Have a great weekend!

Jason