The Statute of Repose

No, we’re not talking about a Statue of Repose, such as Rodin’s The Thinker!

Statue of Repose

There is actually a law, in virtually every state of the U.S., called a Statute of Repose, and that is our topic today.

Law repose 

Having a thriving business in the home construction industry means you must deal with certain daily realities and legalities. Knowing the basics and preparing for such risks will save you headaches and monetary loss down the road.

The Statute of Repose is a law that cuts off a right to bring a lawsuit after a specified time period has elapsed, regardless of when the cause of action comes into existence. Most states have statutes of repose specific to construction projects that prohibit claims for construction defects beyond a specified number of years after the construction is completed. These statutes vary widely with regard to the limitation periods, what is covered, and whom the statute protects. As an aside, a statute of repose differs from a statute of limitation in that the time periods specified in statutes of limitations usually do not begin to run until the injury or damage actually occurs, irrespective of when the work was performed or the product was sold.

An important purpose behind the statute of repose is providing certainty. Construction professionals can determine the date when they no longer face defect claims and plan accordingly. Record retention, budgeting and insurance decisions are easier when the construction professional knows the end of their liability.

Typically, the longest statute of repose in states is ten (10) years, although a few states (PA, IN, IA, & MD) have longer periods.

So what does the Statute of Repose mean to you, as a builder or remodeler? It means that even after your contract with your customer is completed, you bear liability on the work you performed for whatever length your individual state’s statute of repose mandates.

This is a huge financial risk for you if something goes wrong years after you leave the job site. You can choose to live under this cloud of risk, or you can do what profitable builders have done for decades and make sure that if a problem does arise, you have help dealing with it. That is where an express, written, limited warranty from American eBuilder can help.

On your own, if a house you have built develops a foundation defect six (6) years after you have completed the home, you alone would be responsible for fixing it. If however, similar to other prudent builders, you sold the home with an American eBuilder new home warranty; our insurance would be able to take care of the repairs for you.

The choice is simple – Do you want to spend tens of thousands of dollars of your own money? Or, do you want to provide a warranty with each home, then rest securely in the fact that American eBuilder will take care of any problems defined in the written warranty?

If protecting yourself and reducing your risk sounds like the right thing to do, why not join some of the largest builders in the U.S. and contact us today to learn how we can help you. Please feel free to contact us online here, or you may call us toll-free at (866) 526-2090.

This article is for general information, not legal advice and is not an exhaustive discussion of the complex issues associated with the statute of repose and any exceptions that may apply. If you have any questions or a case that concerns a statute of repose, you should consult an attorney of your choosing.

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