When a Homeowner Dispute Happens, What Comes Next?

Most builders think about a home warranty in terms of one question:

What does it cover?

That matters. But there’s another part of a warranty that can become incredibly important when a homeowner and builder don't agree:

How will the dispute be resolved?

Dispute resolution is a key part of the Maverick Warranty. It establishes a defined process for addressing warranty disagreements and gives builders and homeowners a path forward when an issue can't be resolved easily.

Why Dispute Resolution Matters

Building a home comes with obligations long after construction is complete.

Courts have established implied warranty obligations for home builders, and those obligations can vary from state to state. Without clearly defined written standards, questions about a builder's responsibility can ultimately be left for others to interpret.

An express written warranty helps create clarity.

The Maverick Warranty defines applicable performance standards, terms, conditions, limitations, and the process for resolving disputes.

When disagreements arise, the warranty's dispute-resolution provisions can provide for mediation and binding arbitration rather than leaving the parties without an established process.

That's an important distinction.

The warranty doesn't just help define the builder's obligations. It helps define what happens when those obligations are disputed.

Does the Warranty Follow the Home?

One question we recently received from a builder was:

If the original homeowner sells the home, are subsequent owners still bound by the warranty?

The Maverick Warranty specifically addresses successors and assigns.

Its General Warranty Provisions state that the warranty is binding upon the builder, homeowner, and their respective heirs, executors, administrators, successors, and assigns.

That means the applicable warranty terms—including its dispute-resolution provisions—are intended to continue to apply to successors, subject to the terms and conditions of the warranty.

For builders, that's an important provision to understand when thinking about potential obligations beyond the original buyer.

Your Sales Contract Can Strengthen the Process

The warranty shouldn't be considered in isolation.

Maverick encourages builders to work with their attorneys to include appropriate dispute-resolution language in their sales contracts as well.

Why?

Because strong alignment between the sales contract and the warranty can help establish the dispute-resolution process from the beginning of the builder-homeowner relationship.

The warranty provides its own terms and dispute provisions. The sales contract can reinforce how disputes between the builder and buyer are to be handled more broadly.

Builders should consult their own legal counsel for specific contract language and advice.

The important point is alignment: your sales contract and your warranty should work together.

What If a Builder Gets Sued?

This is another important distinction.

The Maverick Warranty does not provide legal defense to a builder who is sued. A warranty and General Liability insurance serve different purposes.

If litigation occurs, applicable legal defense may fall under the builder's General Liability insurance, depending on the claim and the terms of the policy.

However, when a builder has an applicable arbitration agreement in place, their legal counsel can evaluate whether those contractual provisions affect how the dispute should proceed.

That's one reason dispute-resolution language matters before a disagreement ever happens.

The time to think about the process isn't after the lawsuit arrives.

It's when the contracts and warranty are put in place.

A Better-Defined Path Forward

Litigation can be public, expensive, time-consuming, and uncertain.

A defined alternative dispute-resolution process gives builders and homeowners an established framework for working through disagreements.

Under the applicable Maverick Warranty provisions, a warranty dispute may move through steps including claim review, mediation, and binding arbitration.

Homeowners do not pay a fee simply to submit a Maverick Warranty claim. If a dispute proceeds to mediation or arbitration, the applicable costs are addressed according to the warranty's terms.

The goal is simple:

Define the process before you need the process.

That's why we believe dispute resolution deserves more attention when builders evaluate a warranty provider.

A warranty isn't simply a piece of paper handed to a homeowner at closing.

It is part of the builder's risk-management strategy.

And at Maverick, warranty expertise is just one part of a larger approach that can include insurance, contract alignment, and HomeCare—helping builders spend less time managing risk and more time doing what they do best.

Building homes.

Know your warranty. Align your contracts. Have a process before there's a dispute.

Talk to Maverick about how our warranty and dispute-resolution approach can support your business.

This article is for general educational purposes and does not constitute legal advice. Warranty rights, obligations, and dispute-resolution requirements are governed by the applicable warranty documents. Builders should consult qualified legal counsel regarding their contracts and specific legal obligations.