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Tina
Tina, Lawyer
Category: Real Estate Law
Satisfied Customers: 5436
Experience:  17 years of legal experience including real estate law.
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Purchased a 2yr home (June 21,2016) built by Richmond

Customer Question

Purchased a 2yr home (June 21,2016) built by Richmond America(RA) -I was the 3rd owner. Shortly after move-in, suspected structural foundation problem. Met with RA rep who advised that since I was the 3rd owner and we had just passed the 2 yr period, I would have to file a claim with the Residential Warranty Corp- which I did in September 2016. Result was failure in the foundation and I was issued a check for $136,433.32 March 28 for repairs -I sighed a release for the check. Repair project commenced. In April I filed another claim- this time for back half of the house. RWC retained their Engineer who subsequently said the problems were cosmetic, not structural, hence the claim was denied. Yesterday, I received from the contractor performing the repair work on claim one an indication that additional underpinning would be required on the back half of the house to stabilize the home. I conferred with the structural engineer I had retained as an owner representative on the project and he agreed with the contractor's engineer. The estimate for this additional project was $52,785.07. I have submitted to RWC reconsideration of the earlier rejection on the basis of the findings of two licensed structural engineers. Also, earlier in May I had asked RA if they would cover the expenses I am incurring as a result of 1) having to move the furniture out of the finished basement and vacating the house during construction, a period of time that will be over 3 months. The cosmetic repairs of walls, door jams, moving and storing the furniture was included in my request as none of the funds received from RA go for displacement or cosmetic repairs -they only address structural damage. RA denied my request as they have no responsibility after the two yr period. My question is-do I have any legal action against RA for gross negligence in the construction of a home that I paid $600,000 and which after just 2yrs and 9 months since first occupancy has structural repairs of over $200,000. We have had to be out of the house and the stress to say the least is significant. I am 77 and my wife is 75.
Submitted: 5 months ago.
Category: Real Estate Law
Expert:  Law Educator, Esq. replied 5 months ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

Since RA denied this claim as beyond their warranty period, did you file a claim with RWC, as you did on the last claim?

Expert:  Law Educator, Esq. replied 5 months ago.

Also, what was the reason RWC is trying to deny the claim, since they covered the last claim?

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