THE Document disadvantage
Replacing Missing Maintenance and Warranty Document

August 17, 2009 (San Diego, CA) –Randy and Lilia Cherry thought they were very lucky when they purchased their Saugus, CA home last year. It was the right neighborhood. It was the right price. It seemed perfect.

The house was inspected and passed. But this past winter, during the first storm of the season, they noticed a small puddle of water accumulating in one of the upstairs bathrooms. Later, Randy climbed to the roof and noticed several cracked tiles. The tiles and eroded sealing would need replacing and were probably still under warranty.

They searched their paperwork for any maintenance and warranty information and soon realized the previous owner never provided them. They knew without the original proof of purchase, without the warranty, any repair work would come out of their pocket.

The Cherry’s called the realtor. They called the bank. They called the community property manager. They even called the original builder. Certainly someone would have a comprehensive record of these things. But none could find the specific information, from the specific model in the specific community.

But leaky roofs are not the only culprit. The Avery’s in Pleasanton, CA recently bought a home in a short sale resulting from the previous owner’s default. Not an unusual occurrence during the current economy.

They knew the house had some shortcomings. Despite it being only three years old, the previous owner stripped everything that wasn’t nailed down and some that was; the oven range, the ceiling fans, door hardware, and yes, even the kitchen sink.

The Avery’s wanted to put the house back in order; back to its original setting. Problem was they had no idea which brands, which models or even which contractors installed any of the missing pieces…or if any of the original warranties were still enforceable.

These stories are not unique.

Despite laws (specifically California’s SB800) requiring that warranty and maintenance documentation be turned over to all owners, this transfer is not happening consistently.

And it is not the builder’s responsibility. Once the builder turns over the maintenance and warranty documents to the original owner (they typically sign a document confirming receipt), the responsibility for turning these documents over to any subsequent buyer falls to the owner. And that can be up to twelve years from the original sales date.

To be clear, with a new home, there are typically two kinds of warranties. The builder’s warranty (often called a Fit and Finish Warranty) and the manufacturer’s warranty. The Fit and Finish covers everything in the home up to one year. Some contracts may stipulate longer terms. There are some parts, such as the roof, the structure (walls, floors) that are covered against defects (cracks and other failure) for considerably longer.

The manufacturers warranty is for all the products that the builder installed in the home. This includes components like appliances, lighting, irrigation, heating/cooling, plumbing, etc. These warranties are guaranteed by the individual manufacturers who designed them. Sometimes, additional warranties are made by the specialists who installed them on behalf of the builder.

All these warranties, the Fit and Finish, the manufactured products and the subcontractor warranties should have been given to the original owner. Sometimes they were provided in a binder or book, sometimes on a CD or online and sometimes left in a drawer when the house was built.

But thousands of homes under ten years old are being bought and sold every day and too often the owner has not passed along the important maintenance and warranty information to the new buyer, putting them at a significant disadvantage when it comes time to care for the home, replace certain parts or know which warranties are still in effect.

Lastly, consider the Farraguts of Riverside, CA. They were preparing to sell their home last year. The five-year old house was in fairly good condition, but they realized the maintenance and warranty documentation they received when they bought the house had been misplaced. Not wanting to leave the next owner in the proverbial lurch, they searched high and low, but to no avail.

Luckily, when they called the original builder, they were referred to Compendia (the builders chosen vendor-partner) who originally collected and prepared the documents. And even though the Farraguts house was built back in 2004, Compendia still had quick and easy access to the exact documents the family was seeking. Within 48 hours, the Farraguts had recovered the information with an exact copy of all the maintenance requirements, performance standards, builder and manufacturer product warranties and even a list of subcontractors who originally installed many of the home’s original components.

There are numerous products in the home that are covered for extended periods of time; sometimes up to ten years. Carpets, roofing, tile, water heaters, countertops are some. Of course, each has unique terms and conditions, including transference to secondary ownership, but these are important components any homeowner should know and have access to the warranty and maintenance recommendations.

Legal language aside, what’s the big deal? Isn’t it so much less of a hassle to buy and install a new light fixture than to deal with the rigmarole of a warranty? Aren’t so many warranties written so that companies can find ways not to honor them? The fact is millions of dollars each year are left on the table by homeowners who do not take advantage of the tenets set forth in product warranties.

But the first step in recovering warranties is knowing that the warranty is available and still in effect. For that, homeowners must make certain they receive this information when they take possession of a house. And that’s where Compendia can help.

So what is the moral of the tale of these three families? The obvious one is when buying a home from a private seller make sure you ask for and receive the maintenance and warranty documents. On the chance that the owner is no longer in possession of them, contact the original builder. In each case, the builder used Compendia’s services and so the Cherry’s, the Avery’s and the Farraguts were able recover and replace all the warranty and maintenance information.

Many residential production builders use Compendia to help them develop, collect and distribute maintenance and warranty documentation. If the builder cannot immediately help, ask to be referred to the organization that originally created the manuals. San Diego-based Compendia has programs to help homeowners replace or recover missing documentation.

Homes are typically the largest investment people make over their lives and ensuring that they have all the documentation to keep that investment looking and functioning its best is something homeowners cannot afford to ignore. Whether a homeowner is looking to repair or replace an original component, verify the terms of a product’s warranty or looking to buy or sell the home the maintenance and warranty detail can be the key to saving money, saving time and preventing a long litany of home care headaches.

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