Updated Sept 2026Every factual claim links to its sourceGeneral information, not legal advice

Building Defects Guide

Resolving a Construction Defect Dispute: Notice, Mediation, Arbitration, Litigation

A construction defect dispute usually moves through set stages. You give the builder written notice, the builder inspects and makes a repair or money offer, and unresolved claims go to mediation, arbitration or a lawsuit. Many states, including Texas, Florida and California, require the notice-and-offer steps before suit. A state warranty program, such as New Jersey’s, can be a separate path.

Last reviewed: September 2026. Sources are listed at the end of this page.

What are the steps in a construction defect dispute?

Most disputes follow the same order, from written notice to a final decision. Your state law, your contract and your warranty decide which steps apply and how long each one takes.

StageWhat happensWhere the rule comes from
1. Written noticeYou describe each defect to the builder in writing.State right-to-repair law, warranty, FTC guidance
2. Builder response and inspectionThe builder answers and may inspect the home.State right-to-repair law
3. Repair offerThe builder offers a repair, money, both, or refuses.State right-to-repair law
4. MediationA neutral third party helps you and the builder negotiate.Contract, warranty or state law
5. ArbitrationAn arbitrator hears both sides and decides.Contract or warranty
6. LitigationA court decides the claim.State law, subject to deadlines
7. Warranty program claimA state program reviews the claim.State warranty program rules

The Federal Trade Commission (FTC) describes the basic dispute paths for new-home warranty problems.[1] The state rules below come from the statutes themselves.

How do you give a builder written notice of a defect?

You put the problem in writing and keep proof that the builder received it. The FTC advises putting repair requests in writing, ideally by certified mail with a return receipt, and keeping a record of your correspondence and conversations.[1]

In states with a right-to-repair law, the notice is a formal step before suit. Texas requires written notice by certified mail, return receipt requested, at least 60 days before suit or arbitration (Tex. Prop. Code ch. 27).[5] Florida requires notice at least 60 days before suit, or 120 days for associations representing more than 20 parcels (Fla. Stat. ch. 558).[4] California’s Civil Code § 910 requires a claimant to start prelitigation procedures before filing an action.[3] See how to document a construction defect for what to include.

What happens after the builder gets your notice?

The builder responds within a deadline, often asks to inspect, and then makes an offer or refuses. Most right-to-repair laws follow these common steps:

  1. The builder answers within a set period. Nevada allows 90 days to say whether it will repair (NRS 40.6472).[6] Florida allows 45 days for a written response (§ 558.004).[4]
  2. If the builder asks, you give it access to inspect. Texas allows up to 3 inspections within 35 days.[5]
  3. The builder makes a written offer to repair, pay, or both, or it refuses. Texas sets a 60-day deadline for the offer.[5]
  4. You accept or reject within the time the statute allows. Rejecting an offer a court later finds reasonable can limit what you recover in some states, including Alaska and Texas.[5][7]

Deadlines, delivery methods and contract disclosure rules differ by state. Our right-to-repair laws table compares 21 states with a full procedure and 5 states with warranty-notice rules.

What is mediation in a construction defect dispute?

Mediation uses a neutral third party to help you and the builder reach a settlement, according to the FTC.[1] Some states build it into the process.

  • Hawaii: if the claim is unresolved, the parties shall attempt to resolve it through mediation (HRS 672E-7).[8]
  • Missouri: mediation is optional and is held within 45 days of a request (RSMo 436.362).[9]
  • Texas: a party may move to compel mediation if the claim exceeds $7,500 (Tex. Prop. Code § 27.0041).[5]
  • Minnesota: if you and the builder cannot agree on a repair scope, the statutory warranty law sends the dispute to a neutral from a state panel, whose decision is nonbinding (Minn. Stat. 327A.051).[10]

What is arbitration, and when does it apply?

In arbitration, an arbitrator hears each side’s case and then makes a decision or award, as the FTC describes it.[1] It usually comes from your contract or warranty. The FTC notes that warranties may offer or require mediation and arbitration.[1]

Several statutes address arbitration directly. Ohio and Texas require the pre-suit notice before arbitration as well as before a lawsuit.[5][11] In Texas, starting arbitration counts as filing suit for limitation purposes (§ 27.008).[5] Louisiana’s New Home Warranty Act permits arbitration (La. R.S. 9:3149).[12] West Virginia’s right-to-repair article does not apply to contracts with an alternative dispute resolution (ADR) clause (W. Va. Code 21-11A-2).[13]

When can a construction defect dispute go to court?

In most right-to-repair states, you can file once the pre-suit process ends without a resolution. Filing too early has consequences, and deadlines keep running in some states.

A suit filed before the process is complete may be paused or dismissed. Georgia lets you file if the statute of limitations would expire, but you must still complete the notice process. Texas abates the suit. Washington and Oregon dismiss it without prejudice.[5][14][15][16]

Statutes of limitations and repose still apply. Nevada bars construction deficiency actions more than 10 years after substantial completion (NRS 11.202(1)).[17] California bars Right to Repair Act actions more than 10 years after substantial completion (Civil Code § 941(a)).[18] Some states pause these deadlines during the notice process and some do not. Texas says its chapter does not extend a limitations period (§ 27.005).[5] See statutes of limitations vs. statutes of repose.

How does a state warranty program claim fit in?

A state warranty program is a separate claim path with its own notice rules and deadlines. It can also limit your other options.

New Jersey’s Department of Community Affairs (DCA) says that notice to your builder is not notice to the warranty administrator and does not count as filing a claim.[2] It also says that filing with the State Plan is an election of remedies that bars a court claim on the same matters.[19] In Maryland, the Attorney General’s Home Builder Guaranty Fund process starts with a written request to the builder, and the claim deadline is the earlier of 2 years after discovery or 2 years after the warranty expires.[20] See new-home builder warranties for details.

This page is general information, not legal advice. Laws change and vary by state. Check the current statute or talk to a licensed attorney in your state before acting.

Related guides

Sources

  1. Federal Trade Commission, “Warranties for New Homes,” updated June 26, 2026. https://consumer.ftc.gov/articles/warranties-new-homes
  2. New Jersey Department of Community Affairs, “New Home Warranty for Consumers,” modified Aug. 24, 2026. https://www.nj.gov/dca/codes/offices/nhw_for_consumers.shtml
  3. California Legislature, “Cal. Civ. Code § 910.” https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV&sectionNum=910.
  4. Florida Legislature, “Florida Statutes Chapter 558.” http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0500-0599/0558/0558.html
  5. Texas Legislature, “Property Code Chapter 27.” https://tcss.legis.texas.gov/resources/PR/htm/PR.27.htm
  6. Nevada Legislature, “NRS Chapter 40.” https://www.leg.state.nv.us/nrs/nrs-040.html
  7. Alaska State Legislature, “AS 09.45.881 to 09.45.899.” https://www.akleg.gov/basis/statutes.asp?media=print&secStart=09.45.881&secEnd=09.45.899
  8. Justia, “Hawaii Revised Statutes Chapter 672E” (2025). https://law.justia.com/codes/hawaii/title-36/chapter-672e/
  9. Missouri Revisor of Statutes, “RSMo 436.362.” https://revisor.mo.gov/main/OneSection.aspx?section=436.362
  10. Minnesota Office of the Revisor of Statutes, “Minn. Stat. 327A.051.” https://www.revisor.mn.gov/statutes/cite/327A.051
  11. Ohio Legislature, “Ohio Revised Code Chapter 1312.” https://codes.ohio.gov/ohio-revised-code/chapter-1312
  12. Louisiana State Legislature, “La. R.S. 9:3149.” https://legis.la.gov/Legis/Law.aspx?d=107372
  13. West Virginia Legislature, “W. Va. Code Chapter 21, Article 11A.” https://code.wvlegislature.gov/21-11A/
  14. Georgia Attorney General’s Consumer Protection Division, “Right to Repair Act.” https://consumer.georgia.gov/consumer-topics/right-repair-act
  15. Washington State Legislature, “RCW 64.50.” https://app.leg.wa.gov/RCW/default.aspx?cite=64.50&full=true
  16. Oregon State Legislature, “ORS Chapter 701.” https://www.oregonlegislature.gov/bills_laws/ors/ors701.html
  17. Nevada Legislature, “NRS Chapter 11.” https://www.leg.state.nv.us/nrs/nrs-011.html
  18. California Legislature, “Cal. Civ. Code § 941.” https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV&sectionNum=941.
  19. New Jersey Department of Community Affairs, “New Home Warranty Program Homeowner’s Booklet,” revised Sept. 2025. https://www.nj.gov/dca/codes/publications/pdf_nhw/homeowners_booklet.pdf
  20. Office of the Attorney General of Maryland, “File a New Home Builder Claim.” https://oag.maryland.gov/i-need-to/Pages/file-a-new-home-builder-claim.aspx