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New Home Warranties

Montgomery County Code 31C requires that new home builders be licensed before contracting to build new homes. In addition, this law also requires the builder to provide certain warranties to the new home buyer.

Warrany Requirements

  • For one year, the new home is warranted to be free from any defect in materials or workmanship, subject to the performance standards, limitations and exclusions listed below.
  • For two years, the new home is warranted to be free from any defect in the electrical, plumbing, heating, cooling, ventilating, and mechanical systems, subject to the performance standards, limitations, and exclusions listed below.
  • For five years, the new home is warranted to be free from any major structural defect, subject to the performance standards, limitations, and exclusions listed below.

Bonds and Financial Security

The builder is required to disclose in writing, prior to entering into a new home sales or construction contract, whether there is any bond, insurance, or other financial security which guarantees the builders warranty performance, and provide proof of the bond, insurance, or other financial security on request. In addition, the builder has to make the disclosures required under state law as to whether the builder participates in a new home warranty security plan approved by the state.

Notices

The builder is required to include the following notice in the sales or construction contract.  View the builder warranty responsibilities and sample notice & warranty here.   Sample Notice and Warranty

Finally, Montgomery County law does not require this builder to furnish any bond, insurance, or other financial security to guarantee the builder's performance of its warranty obligations. If a builder has promised you any other bond, insurance, or security to guarantee the performance of its warranty obligations, that bond, insurance, or security must be listed in the contract.

Complaints

If you need help with a new home builder warranty issue, contact OCP by calling 240.777.3636 to speak with the Investigator-on-Duty or file a  complaint  with our office.

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