From "useless" to eye-opening -- the feedback on our Housing Headaches special report has been varied. But I'm glad to hear every bit of feedback, be it positive or negative.
Speaking of eye-opening, one thing I found very interesting while we were putting this report together was the discussion about home warranties. Greenville Realtor Ida Lynn Stox and Greenville home inspector Jimmy Hughes -- who both served as incredible resources -- suggested that home buyers purchase a home warranty. On the surface, these warranties sound like a great deal. They can provide protection to home buyers should they experience problems with their appliances -- and some even provide protection against structural defects. Even state Attorney General Roy Cooper says there are some great home warranties out there -- but he says consumers have to be very careful when it comes to choosing the right warranty (if they buy a warranty at all).
So here are some things he recommends:
*Make sure you understand exactly what would and would not be covered under the warranty. Many warranties define "major structural defects" more narrowly that you might expect.
*Find out exactly what conditions must be met before the home warranty company will pay for a repair. Many contracts state that they will replace your equipment, but only with a specific brand -- or will cover the work only if you use the company's contractor.
*If you are working with a small contractor who offers his or her own warranty, you may be able to negotiate more favorable terms.
*Before you sign of accept a home warranty contract, have your attorney review it carefully.
*Never let the offer of a home warranty stop you from having the house and its appliances thoroughly checked out by a licensed home inspector well before the closing.
*Home warranty contracts often include a provision that requires you to use the company's private arbitration process to settle disputes and to give up your right to take the company to court. If your home turns out to have serious defects, your legal rights to recover compensation might be greater if you don't have a home warranty.
I hope these tips help! If you have any further questions, click the "Comments" button, or visit the Attorney General's website.
1 comment:
In regards to your story about the Grays' home I feel the need to inform you of the real limitations of "private home inspectors". By NC law they are not allowed to identify or report building code violations. Check with the state and they will verify that for you. Contractors board refers to them as "cosmetic inspectors". They give the public a false sense of security. Most people aren't aware of their limitations so the only way to know if you are getting a descent home is to hire a construction consultant or structural engineer. I also have a new home I could never live in due to structural building code voilations missed by the wayne county inspection dept. My story was on channel 11 last Monday. And I did call the Attorney Generals office several times and they cut me off and just said "hire a lawyer". I already had a lawyer but wanted them to address the negligent building officials in wayne county. I had video proof of this inspector signing off without actually doing inspection time and again but they wouldn't talk about that. That's what you call defrauding the public at large. And the legislatures DO KNOW about all this because NCPIRG gave them a detailed report last April outlining deficiencies in their system and profiled my home along with others. On their web-site NCPIRG.org. Report called "Who pays for faulty construction". But the main thing everybody is missing or ignoring is the limitations of Private Home Inspectors. Just because they say your home is OK does not mean it is. One told me that also. But I actually had over 33 building code voilations and home is unlivable. They are NOT building inspectors and NC law says they are not required to identify or report building code violatins ex(wiring, plumbing, framing, flashing, siding code violations). Please research what they actually do and run a story about that. They have numerous limitations. And the NC Contractors Board should not make you go all thru the court system becoming more financially damaged when they could pay you out of that fund. They took my builders license, agreed with my engineer report that home is worthless but can't pay me out of that fund until I have spent 200,000.00 in the court system??? If you prove your damages to them, they should pay you from the fund. I've been fighting 8 yrs. and will never recover. They intentionally set this system up this way so homeowners will fail and corrupt builders and inspectors win. Did a little deeper into this industry and state laws and you'll really have a story. Legislature and AG's office tell you what they want you to hear but they slam the door in the homeowners face. All us defrauded and ruined homeowners need to band together and start making these public officials answer for all this.
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