[WSBARP] New construction warranty

[Kary Krismer]

A third party entity providing such a warranty needs to be approved by 
the insurance commissioner.  Maybe that's what they are thinking.  The 
only other thing that comes to mind is the relatively meaningless 
contractor bond if it's a warranty direct by the contractor.

Before getting too deep I'd look to see if the warranty even provides 
any meaningful coverage.  Many small builders tend to have warranties 
that are apparently written by attorneys designed to make sure there is 
never a claim that can be made against their client.  The warranty will 
merely warrant that the foundation, framing, etc. was to code, 
constructed of appropriate materials, or some such thing.

Kary L. Krismer
John L. Scott, Renton
206 723-2148

On 5/14/2019 4:11 PM, Craig Blackmon wrote:
> 'Mates, I have a listing agent who has convinced my buyer client that 
> the law requires a bond or other guarantee for new construction 
> warranties. Thus, according to the agent, there is no reason to worry 
> about the builder's ability to honor the warranty down the road.
>
> I know about the warranties imposed by law, but this is news to me 
> there is a bond or other security requirement. Does anyone have any 
> insight? Particularly if the listing agent is right and I am just 
> clueless.....
>
> Craig
> Craig Blackmon, Attorney at Law
> Seattle Real Estate Lawyer <http://www.seattlepropertylawyer.com/>
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