Construction companies in North Carolina have been building new homes at a rapid rate over the last 15 years. According to a 2023 report, about 800,000 houses have been built in the Tar Heel State since 2010, giving it the sixth-highest rate of new home builds nationally.
If you’re either a new home builder or someone interested in purchasing a new house in North Carolina, understanding the ins and outs of NC construction warranty laws is important. It’ll shine a spotlight on the builder obligations that construction companies must keep in mind when creating new homes. It’ll also highlight whether those who buy new homes can file warranty claims in the future.
Many new construction laws have replaced older ones and made it difficult for North Carolinians to keep up. Learn more about them below.
The Uniform Commercial Code
North Carolina was one of the many states that adopted the Uniform Commercial Code (UCC) in the 1960s. It’s now found under Chapter 25 of the North Carolina General Statutes. The UCC provides laws that oversee commercial transactions in NC and offer warranty coverage on many products.
The UCC does not extend any warranties on the services that construction companies provide when building new homes or working on existing ones. However, it does provide warranty coverage for many materials commonly used for construction projects. If these materials don’t deliver in the quality department, the UCC may cover both North Carolina construction companies and property owners with implied warranties.
This is as far as the warranty coverage goes when it comes to the construction industry, though. The services and workmanship that construction companies provide typically fall under North Carolina common law.
Express Warranties
North Carolina common law provides two types of warranty coverage within the construction industry. An express warranty is the first kind of warranty, and it’s the easier of the two to understand when exploring the ins and outs of NC construction warranty laws.
Express warranties are clearly defined, often within the context of construction contracts signed by companies performing services and their customers. There are also instances in which express warranties can be delivered orally, though this isn’t the preferred option since they can present difficulties if they’re ever challenged in court.
Construction companies that offer warranties usually prefer express warranties. They utilize them to lay out:
- Which industry-accepted practices they’ll use to complete construction projects
- How long they’ll agree to fix any issues related to workmanship
- What their warranties won’t cover when they’re finished with construction projects
Implied Warranties
While express warranties are often written out or, at the very least, verbally expressed, implied warranties land on the opposite end of the spectrum. These warranties are both unwritten and unspoken, which is why they can sometimes create confusion.
To further complicate matters when discussing the ins and outs of NC construction warranty laws, there are several different types of implied warranties. Find out more about each one.
Warranty of Workmanship
The implied warranty of workmanship is designed to show that construction companies have met the local standards when providing services. It’s extended to the original buyers of homes, and it delivers warranty coverage on major workmanship-related defects.
Warranty of Habitability
The implied warranty of habitability is designed to prove that construction companies have built structurally-sound homes. It allows property owners to file lawsuits against contractors if they find houses were poorly constructed and feature major structural defects.
Warranty of Suitability of Plans and Specifications
The implied warranty of suitability of plans and specifications, known as the Spearin doctrine, provides coverage for construction companies by implying the plans and specifications for projects are accurate. It allows contractors to provide services without enduring extra costs caused by last-second changes requested by property owners.
North Carolina’s Statute of Repose for Construction Disputes
You can’t discuss the ins and outs of NC construction warranty laws and issues like contractor liability without mentioning North Carolina’s statute of repose for construction disputes. It states that construction companies and property owners have six years from the start of disputes to take legal action.
This statute of repose for construction disputes protects North Carolina contractors from having to worry about facing lawsuits stemming from projects they worked on many years ago.
Contact Us To Discover More About the Ins and Outs of NC Construction Warranty Laws
North Carolina’s construction laws can confuse even experienced and knowledgeable contractors. If you have questions about the ins and outs of NC construction warranty laws, Anderson Jones, PLLC has answers. Contact us at 919-277-2541 to speak with a construction lawyer.