I recently read an interesting article written by James Goldsmith, an attorney with Caldwell & Kearns discussing legal implications of warranties on new construction in Pennsylvania so I thought I'd pass it on.

  In common law all new construction comes with an implied broad based warranty that the home is reasonably constructed and habitable.  A four year statute of limitations exists, within which time one might bring suit for a breach of such a warranty.  This period can be extended under certain conditions.  There can also be written warranties which are much more specific, these can be offered directly from the builder or through a third-party warranty provider.

  Each type of warranty has its pros and cons.  An implied warranty, being broad, may actually cover more than a specific written warranty.  A warranty provided by a third party may offer better coverage than one provided by a builder that is protected by being incorporated or some other government entity that makes it difficult or impossible to acquire a judgement.  The key is, to know everything possible about what the warranty on your newly constructed home is.  Ask for all written warranty documentation before writing an offer, review it thouroughly, ask the advice of an attorney if you have any questions or concerns.  It is also a great idea to do some research on the builder and ask for references.  Knowing what you are getting into up front can be a great peace of mind.  Happy Home Hunting!