Home Builders not accepting 3rd party inspection reports

I typically average 4-5 11 month warranty inspections a week. Last week I had a client call me and say that their builder does not accept 3rd party inspection reports and if I had ever heard of this. My reply was “No”, and suggested he contact the K. Hovnanian (Builder) corporate office and make sure this just isn’t the local superintendent making his or her own rules. He said the email came from thier corporate office. The next day I called my client back and offered to cut and paste my summary report into a bulleted Microsoft word document that he could then submit to the builder as if he generated the list. He said he had already done that the night before and had already received a call from the builder. They asked him if he had gotten a Home Inspection performed, he answered yes. To his surprise, they wanted to see my pictures!. I’m like WTF. So today I performed an 11 month warranty inspection for a client, they too, said that their builder (Taylor Morrison) had already told them they do not accept 3rd party inspection reports. I curious if anyone else is experiencing this.

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I am no lawyer, as some HI’s on this forum claim to be. But it is really a losing game the Builder plays if he claims “non-acceptance” of an inspection that has been initiated with a “third-party” inspector at the homeowner’s expense. The homeowner has commissioned an impartial professional inspector as an observer to inspect for and document defects and deficiencies that may impact the homeowner (and their family) in terms of safety and/or financial well-being in the foreseeable future. And the homeowner, through an emailed (or printed copy of the report via registered mail), will have delivered constructive notice of the defects and deficiencies within the typical 12-month home warranty period as agreed upon in the original contract terms.

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To answer your question yes at every 11 month warranty inspection I perform and at many phase and final inspections. If you want a more clear understanding ask your warranty inspection clients for a copy of their warranty claims procedure and you will see why. Many builders have online claim process’ where clients will input their claim requests, some have forms they want the client to fill out with warranty requests, and others free form the request process. It is the Builder’s game and all you can do is what you offered to the client of a bullet list.

As for the issue of them asking for pictures I have and would tell the client to send the report and hopefully you have pictures of the more obscure issues you found. Those that are not obscure I would not bother with. If the Builder is claiming blindness then they are not going to repair it anyhow.

No matter what the client sends to the Builder the crap Builders will deflect, refuse, and/or claim “normal wear and tear” or “normal homeowner maintenance” for anything they can. It is the client that now has to push the issue with the Builder.

On the situation with 11 month warranty inspections many I have done the Buyer never had phase inspections or a final inspection. Instead they were convinced by someone (I’ll give you one guess who) that they should not waste the money on inspections since “The City” or “The Builder” inspects it throughout the process and they should save their money for an 11 month warranty inspection. Unfortunately when they do have the inspection and the Builder turns them down for those two reasons above, for items that were obviously improperly done during construction (i.e. no or failing sealants on exterior to name just one), they learn the importance of not having that final inspection.

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Brian I’m here in Arizona too, I don’t or have not at least run into this but I’m not doing four or five warranty inspections a week either. Couldn’t the owner or client just simply make a bullet list not even a word doc just a bullet list of what you have outlined and tell the Builder they walked around and did all this themselves there is no third party in other words. There is also a company called Burgess that acts as the builders third party building consultant and does phase inspections for the Builder and finals for the Builder so the stance that they’ve had their own third party independent inspection done already and won’t accept anymore third party inspections.

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That’s what they are having to do. I just can’t believe how difficult the builders are making it. Where’s the Customer Service!

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They don’t need any, as long as there is a housing shortage!

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It’s trying to keep the homeowner from submitting deficiency repair requests (and/or try to get them to not use a home inspector). They can say whatever they want, but that doesn’t absolve them from responsibility. It’s like the “Stay Back… Not responsible for broken windshields” stickers on haulers. They can put a sticker on the back, but that doesn’t mean they aren’t ultimately responsible for debris that falls off their truck.

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Most builders around here do the same thing. 95% of them won’t cover certain things no matter what. I always tell my clients to be sure they understand what is and is not covered regardless of what I call out and be ready for resistance from the builder to make any repairs. Many builders won’t even fix things discovered on pre-closing inspections until after closing so they can use the excuse of “that’s not covered under the warranty” .

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They (Builders) can do this, There is no Legality to what we might report or rather… We or Our Inspection is not like the City (Code inspection), where the builder is legally bound to build to code and be bound by what the Code inspector (finds) Demands be corrected.

The Builder has only one purpose in using the BS “We don’t accept Third Party Inspections”…They simply hope that this is just one more stumbling block (in front of their buyer/customer) that they hope will keep them from having to pay out $$ to fix “their mistakes” and defects (or shoddy work). Simply put they know that we HI will cost them money to fix things and that is money out of their pocket. It really does not matter who is discovering and reporting a defect, it will be up to the buyer/homeowner to follow through and demand correction. That might mean they will need to go directly to building departments if it is a code issue.

Buyers need to do their homework before contracting or purchasing a new home, just as you need to do research when purchasing anything. Find out what kind of reputation the builder/seller has with regard to Customer Service. Some are very good about fixing things no matter how it is reported or by whom. Others are only looking at their bottom line.

There are about Three builders in my area that have very good reputations when addressing issues. Pre-Closing or after 11 months.

I just turned down a new construction inspection yesterday as the Builder demanded I sign an agreement that put many limitations on How I was to Perform the Inspection for My Customer. Even how long I could take onsite…I’m no one’s Peon.

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There is absolutely a “Legality” in producing a physical inspection and written report including photos. It provides documentary evidence that the homeowner was provided with knowledge of a defect, or defects, during the Builder’s 12-month (or longer) warranty period as set forth in the sales contract for the home. And the homeowner can use the report to prove later in a court of law that he or she provided this information to notify the Builder within the Warranty period. Even a third-party layman with no formal construction experience or training could provide this documentation as a witness to the existence of defects in a court of law; but it carries more weight if the witness is a trained, certified, or licensed inspector or engineer.

"The Department of Buildings does not have enough of its own staff to inspect every building in New York City, so it relies on property owners to hire their own engineers and submit inspections to the city, which is what happened here.

Now, the DOB is re-inspecting the 40 other properties owned by this same landlord, as well as the more than 350 buildings in New York that have been inspected by this particular engineer."

Better yet… these clients should go directly to their Attorneys, if for no other reason than to put the Builder on notice that they are serious about their claim(s) and will not be ‘caving in’ and ‘going away’…, thus it WILL be costing the Builder money to continue fighting their claim(s)!

Yes happening all over (has got me wondering if all these builders are owned by Blackrock or other big corp) we did a warranty inspection early this year. When the home owner opened the door he told us that TM told him they do not accept our reports. He said his Son is a lawyer that specializes in Construction Litigation. His Son said they can’t “not accept the report”. About a week later we were at his neighbors house the home owner opened the door and soon told us the same story… that TM told her “they don’t accept our reports”. She immediately called BS and explained she was a realtor, and a TM was selling Real Estate and therefore falls under the rules governing Real Estate. Later that day the neighbors Son walked out of the house gave me a big smile and a thumbs up and shouted “Good job, thank you”.

Almost all the builders started doing this to our clients about 2 years ago. I can’t tell you how many times I’ve answered the phone and the homeowner said “are you the guy the builder doesn’t like?” Yes that’s me. “Excellent, You’re our guy”.

Later that day she told us that she recommends sending the report via email and sending a hard copy Certified Mail.

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