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Construction defects can lower the value of a home and pose safety risks. They can be patent or latent and fall into four categories: design deficiencies, material shortages, construction deficiencies, and subsoil/geotechnical problems. Homeowners can file claims to recover damages.
When selling or buying a home, homeowners and real estate agents® may be concerned about possible construction defects. A construction defect is a condition resulting from defective materials or from builders’ errors. Depending on the specific nature of the problem, this could lower the monetary value of a home or even present possible safety risks for residents.
Construction defects are unlimited and as varied as the errors and materials that cause them. Structural failure, electrical and heating problems, dry rot and cracks within the foundation, walls or floor are all potential construction defects. Defects can also exist around and outside your home, such as landscaping issues, mold growth, faulty drainage, and other water-related issues. They can be serious, minor, or somewhere in between.
There are two basic types of construction defects. Patent defects are problems that can be seen immediately, like cracked walls. Latent defects may not be visible until the house has aged or circumstances cause the defect to show itself, such as a leaky basement only discovered after an unusually heavy rain.
There are four main categories of construction defects recognized by the Construction Defects Act. Design deficiencies, often involving roofing and water issues, are usually attributable to the engineers or architects who designed the home. This often occurs due to negligence or regulatory restraint to accommodate cost or aesthetic desires.
Material shortages occur when the use of substandard or defective materials causes defects to occur. Using inferior quality building materials can produce unsafe results as well as leaks and premature failure of the structure. Construction deficiencies are considered to be the result of poor workmanship. If a home has cracks, dry rot, pest infestation, leaks, or electrical malfunctions, it could be due to construction deficiencies.
Subsoil and geotechnical problems are the fourth type of shortage. If the land on which a house is built is not analyzed or prepared properly to create a stable foundation, defects can occur over time. Poor planning and selection of the site itself can also be a factor. Floods, landslides and other disasters can be prevented through careful site selection.
If defects are found within a home, construction defect claims can be filed to correct the damage. Following an investigation involving building experts, a homeowner may be able to recover damages based on the circumstances in question. Recovery usually includes the cost of repairing the home, as well as the value of any lost property. In some cases, other expenses may be reimbursed, such as court costs, construction defect attorneys’ fees, or temporary accommodation, if applicable. These costs are normally paid for by the defendant’s insurance company.
