Investment propertyDon"t Throw Away All That Builder Paperwork!
How often have you owned something and after a while, some issue comes up
that finds you scrambling to find receipts, brochures, warranties, or
whatever you can find on it? Keeping a file on your new home may be one of
the most important record-keeping endeavors of your life, since buying a home
is one of the biggest investments you may ever make.
Let"s start at the very beginning, however, just before you decided to sign
on the dotted line. What was one of the first things you ever received from
the new home sales person? The brochure? This marketing and informational
piece can be among the most valuable items with which to start a file. Why?
Because the renderings and the detailed amenities contained there may someday
mean the difference between permitting a Realtor to market your home
effectively when you are ready to sell, or give only sketchy, generic details
about the house based on its appearance and your improvements to it. Floor
plan options are usually illustrated there as well, so that potential buyers
can understand where non-load-bearing walls may be removed, or doors can be
added if they wished to alter the plan themselves. You also will have the
opportunity to look up original features to your home, so that you can
describe what replacements and improvements you have made over the years.
Any piece of paper given to you by the builder, with or without your
signature on it, should be kept in your new home file. In addition to the
contract or purchase agreement itself, important addenda, pamphlets,
Covenants, Conditions and Restrictions, public reports, or title reports sent
to you by the builder"s title company may someday come into question. Did
the builder itself or another document disclose those abandoned railroad
tracks at the base of the hill that may now be used for light rail? Was it
told to you somewhere in writing that you couldn"t park a car in your
driveway on a regular basis? If you are to defend your stance or to
understand theirs, you will need to reference the materials you saved when
you purchased the home. Some of this paperwork must also be handed over to
any subsequent buyer of your home, such as the C.C & R"s.
When your home is complete and ready to be presented to you, the builder will
undoubtedly give you reams of papers having to do with your walk-through,
your new home builder warranty, the care and maintenance of your new home,
and individual warranties and subcontractor phone numbers in case you need
them. Some warranty cards and informational items may be stuffed into
drawers in the kitchen or attached to appliances as well. Keep all of these
together for future reference. Appliances are usually warranted for the
first year; heating and air conditioning systems for two; check the terms of
each warranty and, if you have, time, make an expiration list for yourself in
calendar form. When the builder offers warranty calls within the first year
or two that you own the home, you will be able to reference this list and
know what you still have coverage for.
Keep a running list in a logical location for items covered by the builder"s
warranty that need attention. If you discover shoddy workmanship or
defective parts, itemize these as you go. The most important list you will
submit to the builder may be the last list - usually at the end of the first
year. This is the last opportunity many builders will give you to report
problems, short of any structural problem that may be covered within a much
longer time frame. Once the work has been performed, save the signed-off
copies given to you by the customer service representative or field
personnel. This paperwork may come in handy someday if a dispute arises, or
a new owner needs the information as to when some items were repaired or
replaced.
Many homebuyers naturally keep records without prompting from anyone else, so
this advice may appear as needless rhetoric to some. Despite your urge to
purge during spring cleaning this year, however, don"t throw away paperwork
relating to your new home even if it seems past its prime. You just never
know when you may become that frantic person turning the house upside down in
an effort to find one of these documents.