A Guide for Understanding Your Newly Constructed Home and the Builder’s Warranty as it Relates to the Foundation

It includes complete guidance around new construction, slab floors, foundation walls, slab-on-grade foundations, and your 1-year builder-supplied warranty. So, if you are planning to buy a newly constructed home in Newnan, Coweta or Fayette counties this will help you make an informed choice. 

Some Suggestions When buying a new home

1. Find out from the builder if they cover you for the full 12-month warranty period or if you are covered by a warranty company after closing. 
2. If your warranty is going to be with a warranty company, you should ask to have any promises made by the builder for future repairs in writing.
3. Ask for a copy of the warranty prior to closing; reading it will give you a clear understanding of how or if your concerns about the basement, garage concrete slab floor, or foundation wall are covered.   

When purchasing a new home, you are supplied with a 1-year warranty. You should ask to see a copy of that warranty to be familiar with what and how items in the home will be covered.

When a nationwide builder or a smaller builder promises to review an issue for repair at the 11-month mark of your 1-year warranty, you could end up in serious disappointment if you are not familiar with the warranty or the builders’ procedures during the 12-month warranty period prior to closing. A professional 11-month warranty home inspection in Newnan can arm you with the knowledge. 

As an example, if you notice before closing, your newly constructed home has what appears to be a typical hairline or 1/16-inch settlement crack in the basement or garage slab floor or basement foundation wall.

You may ask the builder if these can be filled or repaired. The response you receive may be that they will review them for repair at the 11-month warranty time when the home is done settling.  Sounds like common sense. 

However, during the time period after closing you may pass from the builder care to now be under a warranty company’s definition of a deficiency.

A Sample of Commonly Used Warranty Supplied by New Home Builder

Read the standards below of one version of a commonly used warranty, supplied by builders of new homes. 

Continuing with the example. Now 11 months into the 12-month warranty, the crack in the slab floor has grown to 3/16 inch in width. You ask the builder for it to be repaired, only to be told it does not meet the Warranty companies’ definition of a deficiency and nothing will be done. A 1/8- to 3/16-inch-wide crack is alarming in appearance especially if you are not sure it is done moving.  See the pictures below.

This same example can be applied to concrete foundation walls. These types of cracks commonly show up when the home goes from ground level at the front of the home, down one story to a walk-out basement. Exterior foundation walls step down like stairs every 15 or more feet as you go from the front to the walkout basement at the backside. Stress or settlement cracks commonly form in the foundation wall at the 90’ change from vertical to horizontal. See the pictures below.

If you are building a home with a slab-on-grade foundation, you should arrange with the builder to view the exposed concrete slab floor before it is covered with finishing material. This is basically your one chance to view the floor before it is covered and to ask any questions you may have or reach an agreement on any major issues you notice.

I should say, a 3/16 wide cracks in the basement or garage slab floors are not a common occurrence. However, to the person who is experiencing this, it is a major issue.

Some 1-Year Warranty Company Definitions 

Basement Slab Floors:

Home Buyers Warranty, states if the crack is greater than 1/4 inch and or 3/16 vertical displacement is considered a deficiency.  

Concrete Foundation Walls:

Home Buyers Warranty: Minor cracks in concrete basement walls are common. Cracks exceeding 1/4 inch in width or that allow exterior water to leak into the basement are considered deficiencies.

Garage Floor:

Cracks in the garage floor greater than 3/16 inch in width or 3/16 in vertical displacement are deficiencies.

Garage Floor: 

Concrete garage floor should not settle, heave, or separate in excess of 1 inch from the structure.

Slab Floor:

Except for BASEMENT floors, or where a floor or a portion of the floor has been designed for specific drainage purposes, concrete floors in rooms finished for habitability by the builder or seller shall not have pits, depressions, or areas of unevenness exceeding 3/8 inch in 32 inches.

The pictures below are examples of the above conversation.