In the fifth year after possession, a load-bearing beam in a new home bought in 2024 cracks and fails, and part of the house can no longer be used. Which part of the statutory new home warranty applies?
Correct Answer
A) The seven-year major structural defect warranty
A defect that causes a structural load-bearing element to fail is a major structural defect, and Reg. 892 lets the claim be made in the period ending on the seventh anniversary of the date of possession. The one-year and two-year warranties have already expired by the fifth year, but the seven-year major structural defect warranty still applies.
Why This Is the Correct Answer
Failure of a structural load-bearing element is a major structural defect, and the claim period runs to the seventh anniversary of possession under Reg. 892.
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