Skip to main content
Warranty Plans

How California’s Right to Repair Act Affects builders

Updated October 31, 2023

SB- 800: California Builder Warranty Law

California Civil Code Title 7 , also known as California’s Right to Repair Act or SB-800, has been around since 2003. Builders and homeowners often have questions about how Title 7 affects them. Today, we’ll go through why Title 7 is important, how it affects builders, and what 2-10 Home Buyers Warranty can do to help.

Related: California Home Builders Warranty

Table of Contents

    Why Title 7 Matters to California Builders

    In short, Title 7 codifies certain builder responsibilities regarding various issues in newly built homes by the creation of functional standards. It provides procedures homeowners must follow before they can file a formal arbitration or litigation claim against builders if a homeowner believes a home is failing to meet those standards.

    In setting these standards and procedures, the law provides builders with the right to repair defects as a means of avoiding formal claims and provides builders with certain legal defenses. 

    However, though the standards in Title 7 overlap in some ways with the provisions of an express warranty, it is not a warranty. Instead, it establishes construction standards, time frames, and procedures that homeowners must use to address allegations of “construction defects.”


    How Title 7 Affects Builders

    Title 7 affects builders in many ways, but the following includes highlights of the bill.


    Tough time frames and unclear definitions

    A key source of confusion with Title 7 is that it doesn’t always establish objective standards. For instance, it states that “Plumbing and sewer systems shall be installed to operate properly and shall not materially impair the use of the structure by its inhabitants.” 

    However, it doesn’t define the meaning of operate properly or materially impair, which leaves room for confusion.

    It’s important to note that Title 7 sets various time frames in which homeowners can assert claims for different categories of construction defects, commonly called statutes of repose. For example, the law includes a 10-year statute of repose for structural defects, which isn’t uncommon nationwide.

    But it also includes a five-year statute on how paints and stains interact with building surfaces. In addition, it includes a slew of four-year statutes regarding plumbing/sewer systems, electrical systems, and walkways and driveways.

    Learn More

    You Build it, We'll back you up.

    Learn why so many builders enroll their homes in the 2-10 New Home Warranty Program.

    Finicky fit and finish

    Title 7 requires a one-year fit-and-finish warranty. But once again, there is no definition for what fit and finish means, nor does it define anything that falls under the fit-and-finish warranty. If builders and homeowners don’t have a similar set of standards to work with, it can lead to disputes and even litigation.


    How 2-10 Can Help Builders

    Title 7 provides a bunch of rules to follow without precisely defining how to follow them. Fortunately, 2-10’s New Home Warranty Program helps address the problems stated above and more.

    For instance, the 2-10 Warranty Booklet for California includes a copy of Title 7 for homeowners and explanations of the pre-suit procedures homeowners must follow to allow builders to address potential construction defects. 

    Here are some other ways the 2-10 Warranty Booklet for California can help home builders.


    Offers clear definitions

    2-10’s warranty document clearly defines coverage, responsibilities, and terms like fit and finish. That helps establish common ground with homeowners so that everyone knows who’s responsible for what and when. Definitions are crucial for builders and their warranties, and 2-10 clearly states those definitions. 

    While this workmanship warranty is independent of and cannot change the standards stated in the law, it may help establish expectations for related standards by providing a reference where the law doesn’t include any objective provisions.


    Proven arbitration clauses

    2-10’s arbitration clauses have been upheld in several court proceedings. That’s a huge benefit for builders by itself, because challenges to arbitration language can add unnecessary expenses and delays to resolving the actual dispute.


    Outstanding dispute avoidance and resolution services for workmanship disputes

    The updated 2-10 Warranty Booklet includes an informational infographic that explains the pre-suit procedures. It also comes with administrative support for any questions homeowners or builders have for any of the coverages under the booklet.  

    All 2-10 Warranty Booklets include dispute mitigation and support services related to workmanship and structural disputes for Builder Members. 2-10’s Warranty Administration team helps move workmanship disputes through education, de-escalation, conciliation, and—if necessary—an experienced arbitration service.

    Arbitration services are available for the workmanship warranty, structural warranty, and statutory standards. However, 2-10’s Warranty Administration team cannot directly assist the parties through statutory standard disputes, as the law mandates the parties to follow the specific, statutory procedures.

    You Build it, We'll back you up.

    Learn why so many builders enroll their homes in the 2-10 New Home Warranty Program.

    Enhanced maintenance manual

    Title 7 strongly recommends that you provide a Maintenance Manual to express buyer responsibility and limit exposure. 2-10 provides this, which means you don’t have to create it.


    Including Title 7 in the California Warranty Booklet

    As of 2026, 2-10 includes the text of Title 7 in all California Warranty Booklets. This additional information further clarifies definitions of coverage, responsibilities, and terms, helping builders build their confidence that they are fulfilling the needs that Title 7 presents.

    If you are a California builder, please visit our FAQ page for more information.


    2-10 Helps Builders Bound by Title 7

    Following the law is obviously important, but Title 7 can sometimes be difficult for builders and homeowners to interpret. With a 2-10 New Home Warranty, builders can set clear expectations for homeowners. You also get access to 2-10’s dispute mitigation and support services, in addition to our court-tested arbitration clause.

    Don’t risk falling prey to vague and overly general legal language. Enroll all your homes with 2-10 to help protect yourself and your homeowners, and allow yourself to do what you do best—build quality homes.

    Disclaimer: 2-10 is not a law firm and is not providing legal advice. The information provided in this article is subject to the terms and conditions of this website, and is only intended to be used for informational purposes and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of and access to this information or any of the links contained herein does not create any obligation or relationship between you and 2-10.