[AL] What can homeowners do when a builder’s faulty plumbing causes mold damage and there is no written contract?

I’m sorry to hear about the issues your parents are facing with their new home; that sounds very distressing. Can you tell me if your parents have already contacted the builder about the plumbing issue?

Have they documented any evidence of the mold growth and the plumbing problem, such as photos or reports?

Is there anything else the Real Estate Lawyer should know before I connect you? Rest assured they’ll be able to help with your plumbing issue.

Hello, and welcome to our service. My name is Daniel, and I’ve been a licensed attorney for over 22 years. I’m sorry you’re dealing with this situation, and I’ll do everything I can to help. To ensure I fully understand, your parents discovered that the plumbing under their new home was not capped, causing mold growth, and there was no written contract with the builder. Is that right?

Have your parents had any discussions with the builder about fixing the plumbing issue or addressing the mold damage? If so, what was the builder’s response?

Did your parents receive any warranties or guarantees from the builder regarding the construction of the home, including the plumbing and A/C systems?

Thank you, I appreciate you clarifying that. I’m finalizing your answer now and will have it ready for you shortly.

Under Alabama law, a home builder generally has a duty to perform construction work in a reasonably workmanlike manner, meaning the work should meet the basic standards expected of a competent builder. Alabama’s Home Builders Licensure Law also allows the state licensing board to discipline a builder who fails to perform residential home building in a reasonable manner (AL Code § 34-14A-8), and it requires licensed residential home builders to use a valid written contract (AL Code § 34-14A-7). Even without a written contract, a verbal agreement can still create legal obligations, and the lack of proper plumbing installation that caused sewage and water to sit under the home for seven months may support a claim for construction defects and resulting damage. The immediate priorities are preserving evidence, preventing further damage, and making sure any repairs do not destroy proof of what happened.

Your first option is to thoroughly document the damage before allowing the builder to make major repairs. Your parents should take extensive photos and videos of the affected areas, including the plumbing, standing water or moisture, mold growth, damaged materials, and any areas where flooring, walls, or other parts of the home may be affected. They should also write down a timeline showing when they moved in, when the issue was discovered, what the builder said, and what actions were taken. If possible, they should avoid removing damaged materials until they have been documented because those materials may become important evidence later. They should also keep all texts, emails, receipts, and conversations with the builder.

One possible approach is to notify their homeowners insurance company and open a claim, or at least report the situation and ask how they want the damage handled. Insurance policies vary, and coverage for construction defects can be complicated, but the policy may provide coverage for certain resulting damage, such as water damage, mold remediation, or damage to parts of the home. When contacting the insurer, your parents should provide the facts accurately and avoid making assumptions about fault. They should also ask what steps they need to take before repairs begin so they do not accidentally affect coverage.

Another option may be to allow the builder an opportunity to inspect and propose repairs, but only after your parents have protected their position. They can tell the builder they want to cooperate with correcting the problem, but they need a written plan describing what will be repaired, how the mold and moisture will be addressed, and who will perform the work. They should be cautious about signing any document stating the matter is resolved or releasing the builder from responsibility before they know the full extent of the damage. Given that the A/C drainage issue may also be contributing to water problems, that should be documented and included as part of the overall concern.

The best starting point based on these facts is to immediately document everything and notify the homeowners insurance company before substantial repairs are completed. The biggest uncertainty right now is the full extent of the damage, because seven months of moisture and possible sewage exposure under a new home could involve more than just the visible mold. Your parents should also consider obtaining written evaluations from qualified professionals who can identify the source of the moisture, the extent of mold contamination, and the repairs needed. The absence of a written construction contract makes documentation especially important because they will need other evidence showing what was agreed upon and what went wrong. Timing also matters, because claims against a builder over the construction of a home are generally subject to a two-year limitations period and a seven-year statute of repose (AL Code § 6-5-221).

Thank you for reaching out and sharing your questions with me. I truly appreciate the opportunity to help.