Over the years, I have conferred with many clients as to whether they should bring legal action for a defectively or improperly constructed house. Because such lawsuits can be expensive and are often complicated, the decision to bring suit must be made carefully. The amount of damages will largely control your options.
If damages are relatively low (less than $8,000), your choices are generally limited to negotiation with the builder or pursuing the matter in small claims court. Surprisingly, builders will often work quickly to rectify even small problems where the buyer shows resolve which might include the involvement of a lawyer. Obviously, there are many good builders that will handle problems simply because they value their customers and reputation. However, others may need some prodding such as raising the prospect of bad publicity and legal fees. If negotiations fail, an action before the local District Justice can be efficient and productive. However, the builder has a right to take an appeal which can cause costs to mount. In smaller cases, some mixture of diplomacy and legal intervention is often necessary.
With cases involving higher damages, there are more options but the complexity and cost generally increases. It is not unusual to spend $20,000 or more in fees and costs taking such a case through trial. Also, it will be necessary to retain an expert who can inspect the house and offer an opinion on the existence of construction defects and the cost to fix them. Now that legal fees may be recoverable under the Pennsylvania Unfair Trade Practices and Consumer Protection Act, pursuing remedies through a lawsuit may be more advisable. However, the degree of poor workmanship, defects, and bad faith conduct of the builder will certainly be significant factors in determining whether legal fees can be recovered.
Early contact with an attorney and qualified construction expert can help in deciding how best to proceed. A buyer should record all relevant events and information in a detailed log and should maintain a file with all plans, drawings, photos, and related documents. Such records are invaluable to an attorney and can enhance your chances of accomplishing a quick and satisfactory resolution of your problems. Because the purchase of a home is an expensive and significant event, you would be wise to handle it formally and in an attentive manner and, if trouble occurs with the builder, to use your legal remedies to get things back on track.
— Curt Ward