NC Supreme Court rules builders must stand by extended warranties

by: Eric Philips Updated:

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CHARLOTTE, N.C. - A new North Carolina Supreme Court ruling means home builders who provide extended warranties must stand by their promises despite a long-standing state law that seems to be conflicting.
 
A couple in Chapel Hill sued their stucco manufacturer after their home started leaking and the company refused to honor a 20-year warranty. 
 
The company said the owners had surpassed the six-year time limit allowed by law to report problems.  A lower court agreed with the company and so did an appeals court. 
 
The NC Supreme Court reversed those decisions saying the warranty supersedes that six year statute.  Construction attorney John Boutwell said it's an important decision for consumers.
 
“If they find themselves in a situation where they've purchased a home and there’s a written warranty the supreme court case says they can hold that manufacturer, that builder or whoever issued that warranty their feet to the fire," Boutwell said.
 
Boutwell said there is a flip side. He said builders may take another look at their extended warrantees and perhaps shorten them to match state law, so this won't be an issue.

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