Understanding Builder Warranties on Raleigh New Homes

Buying a brand-new home in Raleigh should feel simple. Still, the warranty details can be confusing when you are juggling closing dates, inspections, and move-in plans. You want to know what is covered, what is not, and how to get help fast if something goes wrong. This guide explains how builder warranties typically work in Raleigh so you can protect your investment and avoid missed deadlines. Let’s dive in.

The 1-2-10 warranty model

Many builders use a layered warranty often described as 1-2-10. Exact terms vary by builder, so always read the written warranty booklet.

Year 1: Workmanship and materials

Year 1 usually covers fit and finish items and general workmanship. Think drywall seams, paint touchups, trim issues, door adjustments, and similar punch list items. Cosmetic thresholds often apply, so minor variations that meet published tolerances may not be considered defects.

Year 2: Systems and mechanicals

Year 2 typically covers defects in plumbing, electrical, HVAC, and related mechanical systems. Equipment like your furnace or condenser may also have manufacturer warranties that overlap or extend coverage. Your builder’s warranty usually directs you to the manufacturer for certain parts or repairs.

Year 10: Structural coverage

Structural coverage is usually limited to major load-bearing components such as the foundation, beams, and load-bearing walls. Most contracts define a “major structural defect” narrowly as a failure that materially affects structural integrity and safety. Hairline cracks or non load-bearing settlement usually do not meet this threshold.

When coverage starts in Raleigh

Your warranty start date is critical because it sets every claim deadline. Builders commonly start the clock on the closing date or the date of occupancy shown on your Certificate of Occupancy. In Raleigh, the city issues the Certificate of Occupancy after inspections are complete. Confirm your start date in writing with the builder and note it on your calendar.

Transferability if you sell

Many builder warranties are transferable to a new owner for the remainder of the term. Some require a one-time transfer, a fee, or written notice within a specific time frame. If you plan to resell during the warranty period, ask the builder how to transfer coverage and what paperwork is required at closing.

What is usually excluded

Exclusions vary, but you will commonly see:

• Routine maintenance items like filters, caulking, sealants, landscaping, and HVAC tune-ups.
• Normal settling or shrinkage, including hairline cracks that do not affect structural integrity.
• Damage from neglect, misuse, alterations, or poor maintenance, such as clogged gutters or improper grading.
• Damage from weather events or other external causes, unless covered by a different policy.
• Appliances and certain system components that are governed by manufacturer warranties.

Raleigh’s humid summers and winter freeze-thaw cycles can stress caulking, flashing, and HVAC systems. Keep maintenance records because your warranty often requires proof you cared for the home properly.

How to file a claim

Follow a clear process to keep your claim on track.

1. Document the issue. Note the date, location, and description. Take photos or video.
2. Read your warranty booklet. Confirm coverage, the start date, and the required notice method.
3. Notify the builder in writing. Email your description and photos. Use certified mail if the warranty recommends it, and keep copies.
4. Allow inspection and repair. Most warranties require reasonable access for evaluation and work.
5. Get timelines in writing. Ask for estimated repair dates and written confirmation of completed items.
6. Check for third-party administration. If a third-party company backs the warranty, verify whether you should submit directly to them after notifying the builder.
7. Escalate as directed. If unresolved, follow the warranty’s dispute steps, which may include mediation or arbitration. For legal questions, consider consulting a North Carolina construction or real estate attorney.

Typical response timelines

Every builder sets their own service policies, so the written warranty controls. In general, you can expect:

• Acknowledgement of your claim within about 7 to 14 days for non-urgent items.
• Inspection scheduling within about 14 to 30 days. Loss of heat or active water intrusion should be prioritized as emergencies.
• Repair timing that depends on scope, parts, and contractor schedules. Cosmetic items tend to be faster. Structural or system repairs may require engineering review and more scheduling.

What to keep on file

Good records protect your coverage and simplify resale.

• Purchase agreement and all addenda.
• The builder’s warranty booklet and any third-party warranty documents.
• Final walk-through punch list and confirmation of completed items.
• Certificate of Occupancy and closing documents.
• All claim communications and service request numbers.
• Photo and video evidence with dates.
• Maintenance records for HVAC, gutters, caulking, and similar items.
• Independent inspection reports, including pre-closing and an 11 to 12 month check.

Your 11-month inspection plan

Most workmanship items fall under Year 1. Do not let that window close without a thorough review.

• Calendar an independent inspection at 11 months.
• Walk every room with your report and flag items in writing to the builder before the Year 1 date.
• Include photos and simple, specific descriptions.
• Track the builder’s responses and schedule follow-ups as needed.

Compare Raleigh builders with this checklist

Use these side-by-side questions before you sign a contract.

• Coverage scope: How exactly are Years 1, 2, and 10 defined? What counts as a major structural defect?
• Start date: Closing, occupancy, or another trigger?
• Remedy: Repair only, or can you receive a cash settlement in some cases?
• Administration: Builder only, or third-party backed? How do you file a claim with the administrator if needed?
• Transferability: Is it transferable once or multiple times? Any fees or notice requirements?
• Dispute process: Court, mediation, or arbitration, and in what sequence?
• Service timelines: Any stated response times or emergency procedures?
• Exclusions and maintenance: What do you need to do to keep coverage valid?
• Appliances and HVAC: Builder responsibility or manufacturer only?
• Reputation: Ask for examples of recent warranty service and how long repairs typically take.

Common pitfalls and how to avoid them

• Relying on verbal promises. Get the full written warranty before you sign, and keep all communications in writing.
• Missing the one-year window. Schedule your 11-month inspection now and give written notice before the deadline.
• Skipping maintenance. Keep receipts for HVAC service, gutter cleaning, and caulking to show compliance.
• Assuming every issue is structural. Read the definition of major structural defect to set realistic expectations.
• Forgetting transfer rules. If you might sell, confirm how to transfer the warranty and any fees.

Local guidance for Raleigh buyers

• City inspections and occupancy: The Certificate of Occupancy often ties to your warranty start date. Confirm the trigger in your contract.
• North Carolina consumer protection: For questions about complaint processes and timelines, review state resources or consult an attorney familiar with construction claims.
• Legal timelines: North Carolina has statutes that govern construction claims. If a dispute arises, talk with a qualified attorney to understand deadlines.

Final thoughts

A clear warranty strategy protects your Raleigh new home and lowers stress. Know your start date, document issues early, and keep maintenance records. Plan an 11-month inspection so you can submit Year 1 items on time. If you want a second set of eyes on your plan or you are weighing builders, our team is happy to help you evaluate coverage terms and set up your punch list timeline. Connect with Ace Development Group to talk through your next steps.

FAQs

What is a 1-2-10 builder warranty on a Raleigh new home?

• It is a common model where Year 1 covers workmanship and materials, Year 2 covers systems like plumbing, electrical, and HVAC, and Year 10 covers defined structural elements.

Does my warranty start at closing or the Certificate of Occupancy in Raleigh?

• Builders often use either the closing date or the occupancy date on the Certificate of Occupancy, so confirm the trigger in your contract and write it on your calendar.

Are hairline foundation cracks covered under structural warranties?

• Usually not, because structural coverage is often limited to major load-bearing failures that affect safety, while minor settlement or hairline cracks typically fall outside that definition.

Can I transfer my builder warranty when I sell in Wake County?

• Many warranties are transferable during the term, sometimes with a fee or written notice, so check the warranty booklet and follow the required steps at resale.

How do manufacturer warranties for appliances interact with the builder warranty?

• The builder warranty may direct you to the manufacturer for covered parts or service on appliances and certain equipment, so keep those manufacturer documents handy.

What should I do if my builder does not respond to a warranty claim?

• Document your notices, follow the contract’s escalation steps like mediation or arbitration if required, and consider consulting a North Carolina attorney for guidance on deadlines.

Do I still need an 11-month inspection if my home passed city inspections?

• Yes, because city inspections check code compliance during construction, while an 11-month inspection helps you catch Year 1 workmanship items before the coverage window closes.