Yes, a builder is responsible for any latent defects in the property. This is based on 2 different legal theories:
1. contract law; every contract has an implied covenant of good faith and fair dealing, which in real estate transactions involve full disclosure of known defects. Breach can result in the defendant being liable for the cost of repair, and any additional damages (flooding damage) so long as plaintiff attempted to mitigate damages. The idea is to put plaintiff in the position s/he would have been in but for the breach.
2. negligence- when a builder is hired to build a residence it is expected they will use due car and not perorm substandard work. The idea is that if work is substandard the builder must rectify it so it complies with local codes, and local standards of work.
3. express warranty-any express warranties would apply.
Construction defects have certain requirements that other cases don't have - please see the notice requirements here:
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Information provided is for educational purposes only. Consultation with a personal attorney is always recommended so your particular facts may be considered. The terms addressing this can be viewed here:
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