Business Forum: New Home Warranties

If you don’t offer your customers a written new home warranty, that doesn’t mean you haven’t provided a warranty. According to the law, when you build a home, you make an “implied warranty” that it meets certain standards of construction and service. The trouble is, without a written warranty, the courts decide what those standards are and whether you’ve met them. To avoid the risk of leaving your financial future in the hands of a judge, you need an explicit warranty. An explicit warranty can also provide marketing appeal in a slow market. But providing your own is expensive and risky. In today’s quick-to-sue atmosphere, a small firm is better off relying on “thirdparty” warranty programs. They’re relatively inexpensive and take