End-of-Warranty Inspections in Texas: Preserving Construction-Defect Claims Before the Record Goes Cold

In Texas residential construction-defect matters, the end-of-warranty (EOW) inspection is often the last opportunity to document code violations and construction defects while contractual leverage still exists. Once the express warranty expires, builders predictably narrow their obligations, dispute causation, and challenge notice sufficiency.

From a litigation and pre-litigation standpoint, a properly executed EOW inspection functions as evidence preservation, not consumer education. When performed correctly, it establishes contemporaneous documentation of defective construction tied directly to the adopted codes and mandatory manufacturer standards in effect at the time of permitting.

The Strategic Significance of the End-of-Warranty Window

Most Texas builders provide a one-year express warranty that runs concurrently with the period in which latent defects begin to manifest. That timing is not accidental.

By months 9–11 of occupancy, the residence has typically experienced:

• Seasonal moisture variation

• Thermal expansion and contraction

• Initial foundation movement

• Normal system loading

This is the first point at which many defects become observable without destructive testing.

From a claims-management perspective, the EOW inspection window represents:

• Maximum factual clarity

• Maximum contractual leverage

• Minimum builder defenses based on waiver, notice, or intervening causation

Once that window closes, the evidentiary burden shifts materially toward the homeowner.

Municipal Approval Is Not a Defense

Builders routinely rely on municipal approvals—final inspections or certificates of occupancy—as a proxy defense to defect allegations. That reliance is misplaced.

Municipal inspections in Texas are:

• Limited in duration and scope

• Frequently visual only

• Not comprehensive defect evaluations

• Not designed to verify concealed or system-level compliance

A green tag or CO authorizes occupancy. It does not constitute a legal determination that the house complies with the adopted building, energy, or electrical codes.

From an evidentiary standpoint, municipal approval does not rebut a later showing of noncompliance with the applicable codes.

Codes, Not Warranties, Define Defects

Texas construction-defect claims ultimately rise or fall on code compliance, not warranty language.

For one- and two-family dwellings, Texas municipalities generally adopt versions of:

• The International Residential Code (IRC)

• The International Energy Conservation Code (IECC)

• The National Electrical Code (NEC)

Each of these codes incorporates by reference:

• Manufacturer installation instructions

• Referenced industry standards

Where the code references those materials, they become mandatory construction requirements, not discretionary guidance.

Builder warranty provisions attempting to exclude “code issues,” redefine defects as “cosmetic,” or impose tolerance thresholds do not negate minimum code requirements.

Why End-of-Warranty Inspections Matter in Disputed Claims

In contested matters, the absence of a timely EOW inspection often leads to predictable builder defenses:

• Alleged homeowner maintenance failures

• Claims of post-occupancy damage

• Arguments that conditions were not timely reported

• Disputes over whether defects existed during the warranty period

A properly documented EOW inspection directly counters these defenses by establishing:

• Condition existence before warranty expiration

• Code-based defect characterization

• Photographic and narrative documentation

• A contemporaneous record independent of the builder

This documentation frequently becomes foundational in:

• RCLA notice packages

• Mediation and arbitration submissions

• Expert designation disclosures

• Trial exhibits

  
  

Typical Defects Identified at the End-of-Warranty Stage

In practice, EOW inspections routinely document defects including, but not limited to:

• Foundation and slab-edge clearance violations

• Inadequate flashing and water-management detailing

• Missing or improper fireblocking and draftstopping

• Improperly supported, protected, or sloped plumbing systems

• HVAC condensate disposal and combustion-air violations

• Insulation and air-sealing noncompliance under the IECC

• Electrical grounding, bonding, AFCI, and GFCI violations

These conditions are frequently mischaracterized by builders as maintenance issues or cosmetic concerns, despite clear code implications.

Documentation Standards That Withstand Scrutiny

For attorney use, an EOW inspection report must be more than descriptive. At a minimum, it should:

• Identify the observed condition with precision

• Cite the applicable code section(s)

• Reference manufacturer instructions where required

• Include clear photographic documentation

• Be organized for legal and expert review

Builder punch lists, homeowner correspondence, and informal warranty requests rarely meet this threshold and often weaken otherwise viable claims.

Timing Considerations

From a strategic standpoint, the inspection should be scheduled 30–60 days prior to warranty expiration. This allows sufficient time for:

• Inspection and report preparation

• Formal notice to the builder

• Builder response or refusal

Waiting until the final days of the warranty period frequently eliminates practical leverage and invites procedural disputes.

Inspector Qualifications Matter

Not all inspectors are equipped to perform EOW inspections suitable for litigation or arbitration.

For attorney-facing purposes, the inspector should:

• Inspect to adopted codes, not real-estate SOPs

• Understand concealed construction and sequencing

• Be independent of the builder and warranty administrator

• Produce citation-driven, defensible documentation

Checklist-based transaction inspections are not designed for this role.

Conclusion

In Texas residential construction-defect matters, the end-of-warranty inspection is not optional. It is a risk-management and evidence-preservation tool.

Once the warranty expires, defenses harden, causation arguments multiply, and the homeowner’s leverage diminishes. A timely, code-based EOW inspection materially alters that trajectory by anchoring the claim in objective, contemporaneous documentation.

From a legal standpoint, failing to obtain one is rarely neutral—and almost always advantageous to the builder.

End-of-warranty inspections are performed with downstream dispute resolution in mind—not marketing, not checklists, and not builder convenience.