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Warranty Management

13 minPRO
2/6

Key Takeaways

  • Product registration within 30-90 days is required to preserve most manufacturer warranties.
  • Installation not per manufacturer specifications voids product warranty.
  • Warranty documentation package at closing increases buyer confidence and reduces post-sale disputes.
  • Home warranty ($400-$600) reduces post-closing callbacks for flip sales.

Warranties provide post-completion quality protection. Understanding warranty types, durations, and claim requirements protects investors and provides buyer confidence at sale.

Decision Gates

Gate 1: Warranty Types

Contractor workmanship warranty: typically 1 year from substantial completion, covers defective installation. Manufacturer product warranty: varies widely (1-year appliances to lifetime shingles), covers product defects. Structural warranty: 2-10 years per state law, covers structural deficiencies. Home warranty (buyer protection plan): 1-year service contract covering systems and appliances, purchased at closing. Builder warranty programs (2-10 Home Buyers Warranty, StrucSure): third-party backed structural warranties.

Gate 2: Warranty Claim Requirements

To preserve warranty rights: register products with manufacturers (many require registration within 30-90 days), maintain installation documentation per manufacturer specifications, report defects within warranty period, allow manufacturer/contractor inspection and repair opportunity. Common warranty voidance triggers: improper installation (not per manufacturer specs), failure to maintain (HVAC filters, caulking), unauthorized modifications, failure to report promptly.

Gate 3: Warranty Documentation Package

Create for every project: warranty summary sheet (all warranties, durations, claim contacts), product registration confirmations, installation documentation and photos, maintenance requirements and schedules, contractor contact information. Transfer to buyer at closing—this package increases buyer confidence and demonstrates professional quality management.

Gate 4: Investor Warranty Strategy

For flips: 1-year contractor workmanship warranty minimum, transfer all manufacturer warranties to buyer, consider home warranty for buyer (cost: $400-$600, reduces post-closing callbacks). For rentals: maintain all warranty registrations, schedule warranty-period inspections before expiration, track maintenance requirements to preserve warranty rights, budget for post-warranty system replacements.

Risk Mitigation Plan

Not registering products with manufacturers after installation

Impact: Warranty claim denied for lack of registration

Mitigation

Register all major products within 30 days of installation—assign as GC responsibility

Allowing installation that does not meet manufacturer specifications

Impact: Product warranty voided even if product fails

Mitigation

Verify installer meets manufacturer certification requirements

Discarding receipts and installation documentation

Impact: Cannot prove purchase date, installer, or compliance for warranty claim

Mitigation

Digital archive all receipts and installation documentation immediately

Key Takeaways

  • ✓Product registration within 30-90 days is required to preserve most manufacturer warranties.
  • ✓Installation not per manufacturer specifications voids product warranty.
  • ✓Warranty documentation package at closing increases buyer confidence and reduces post-sale disputes.
  • ✓Home warranty ($400-$600) reduces post-closing callbacks for flip sales.

Sources

Common Mistakes to Avoid

Not registering products with manufacturers after installation

Consequence: Warranty claim denied for lack of registration

Correction: Register all major products within 30 days of installation—assign as GC responsibility

Allowing installation that does not meet manufacturer specifications

Consequence: Product warranty voided even if product fails

Correction: Verify installer meets manufacturer certification requirements

Discarding receipts and installation documentation

Consequence: Cannot prove purchase date, installer, or compliance for warranty claim

Correction: Digital archive all receipts and installation documentation immediately

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Test Your Knowledge

1.What is the standard contractor workmanship warranty period?

2.What should an investor do to preserve warranty rights?

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