Buying New Construction in California: Contracts, SB 800 and What to Check

By Matthew Martinez, Founder, CEO & Managing Broker, Diamond Real Estate Group. California DRE #01869679.

When you buy a new home from a California builder, you usually sign the builder’s own purchase contract rather than the standard resale form, and your protections come largely from the Right to Repair Act (Civil Code 895–945.5, often called SB 800), the subdivision public report and the builder’s warranty. Before you sign, bring your own agent on the first visit, read the public report, Notice of Special Tax and HOA documents, and plan for an independent inspection and a supplemental tax bill.

This guide walks through how builder contracts differ from resale, how the SB 800 claim process and time limits work, what the Department of Real Estate (DRE) public report covers, and the tax and HOA costs that come with new subdivisions. For the bigger decision of new versus resale, see our blog post on new construction vs. existing homes.

Builder contracts vs. the standard California purchase agreement

On a resale, most buyers and sellers use the California Association of REALTORS® residential purchase agreement, with familiar contingencies for inspection, appraisal and loan. Our guide to the California residential purchase agreement explains that form. A builder almost always uses its own contract, written by its attorneys. In practice, that tends to mean:

• Deposit and upgrade terms are the builder’s. Deposits, design-center upgrade payments and whether they are refundable are set in the builder’s paperwork. Read the refund language before you pay for options.
• Completion dates can move. Builder contracts commonly let the closing date float with construction progress. Ask what happens to your rate lock and your deposit if completion slips.
• Dispute terms are chosen up front. Under Civil Code 914, a builder must tell you when the sales agreement is signed whether it is using the statutory SB 800 prelitigation process or its own alternative nonadversarial process. Once it elects its own process, that choice is binding on the builder.
• Inspection and loan contingencies may be narrow or missing. Negotiate them in writing rather than assuming resale terms apply.

Bring your own agent to the builder’s site

The builder’s on-site sales staff work for the builder. If you want your own representation, some builders expect your agent to be identified or present on your first visit or registration, so ask the builder about its policy before you walk the models. Since January 1, 2025, Civil Code 1670.50 requires a written buyer-broker agreement no later than when you submit an offer; see our buyer-broker agreement guide. Your agent can review the builder’s contract, track deadlines and document the walkthrough.

The DRE public report

Under Business and Professions Code 11018.2, lots or units in a subdivision covered by the Subdivided Lands Act cannot be sold, leased or offered until the Real Estate Commissioner issues a public report. Section 11018.1 then requires the owner, subdivider or agent to:

• give you a copy of the public report before you sign a binding purchase contract, and get your signed receipt;
• give a copy to anyone who asks, at any time, and post the report (or a notice that it is available) in each sales office; and
• in a common interest development, also give you a general information statement about mandatory HOA membership, governing documents, assessments and lien rights.

The DRE’s Residential Subdivision Buyer’s Guide (2014) lists what the report covers: nearby land uses and geologic, soils and drainage hazards; utilities, water and sewer; title items such as CC&Rs, easements, taxes, assessments and transfer fees; special purchase contract terms; and HOA assessments and governance. The guide says the report does not judge whether a particular home suits you. The DRE’s new residential housing FAQ describes it as a disclosure document provided before a sales contract is signed.

SB 800: California’s Right to Repair Act

The Right to Repair Act sets building standards for new homes sold as individual dwellings and a required claim process before a homeowner can sue. Civil Code 896 lists the standards, covering water intrusion, structural, soils, fire protection, plumbing and sewer, electrical and other areas. Some standards carry their own time periods, while the general deadline to sue is in Civil Code 941: 10 years after substantial completion of the improvement.

Time periods stated in the statute

Manufactured products such as windows and appliances are measured against their useful-life representation, with a minimum of one year if none is given (896(g)(3)). The 10-year limit does not apply to a claim on a contract or express contractual provision, so a builder’s written warranty can follow its own terms.

How a claim works, step by step

If the builder uses the statutory process (not its own elected alternative), the sequence and deadlines are:

1. Written claim to the builder. Under Civil Code 910, you or your legal representative send notice to the builder’s designated address by certified mail, overnight mail or personal delivery, with your name, address, preferred contact method and a reasonably detailed description of the claim. Calling customer service does not satisfy this notice requirement.
2. Acknowledgment within 14 days of receipt (Civil Code 913).
3. Inspection within 14 days after acknowledgment, at the builder’s cost, on a mutually agreed date (Civil Code 916). A second inspection is allowed if the builder explains why in writing within 3 days and completes it within 40 days of the first. If the builder misses these deadlines, you are released from the process and may file suit.
4. Written offer to repair within 30 days after the inspection (Civil Code 917), describing the work, naming the insured, licensed contractors, and telling you that you may ask for up to three additional contractors to choose from.
5. Repairs start and finish. Work generally begins within 14 days after you accept, and the statute’s goal is completion within 120 days, allowing for the nature of the repair and events outside the builder’s control (Civil Code 921).

Civil Code 912 also requires the builder to give you, at the initial sale, its maintenance recommendations, product and limited warranty information, the agent or address for claims, and a copy of the statute, and to record a notice of the procedures. Within 30 days of a written request, it must provide maintenance information and, for structural, fire safety or soils issues, plans, soils reports and engineering calculations. Keep these documents and pass them to the next buyer.

Maintenance matters. Under Civil Code 945.5, a builder can raise defenses such as an owner’s failure to follow reasonable written maintenance schedules, failure to mitigate damage promptly, alterations, and normal wear and tear.

Independent inspections on a new home

A new home passes local building inspections for code compliance, but those inspections are not done on your behalf. Many buyers hire their own inspector for a pre-drywall review and a final inspection before the walkthrough, and again before the fit-and-finish warranty or the one-year standards run out. Ask in writing that the builder allow access and that the contract give you time to act on the findings. Our home inspection guide covers choosing an inspector, and our final walkthrough checklist helps you document items for the builder’s list.

Mello-Roos, HOA dues and other new-subdivision costs

New subdivisions often come with a community facilities district (Mello-Roos) special tax. Under Government Code 53341.5, the subdivider must give you a signed "Notice of Special Tax" before you sign the purchase contract or deposit receipt. You may cancel by written notice within 3 days of in-person delivery or 5 days after it is mailed. See our Mello-Roos guide for looking up a parcel.

If the community has an HOA, the public report and the general information statement under B&P 11018.1(c) are your first look at the budget and governing documents. The DRE buyer’s guide notes that assessments can rise when a developer’s subsidy ends and that regular assessments cannot go up more than 20% a year without member approval. Our HOA documents guide shows what to read.

Supplemental property tax on new construction

Under Revenue and Taxation Code 75.10, both a change in ownership and the completion of new construction trigger reassessment as of that date. Sacramento County’s Assessor explains that supplemental bills are prorated for the months left in the fiscal year, go to the owner rather than the lender’s impound account, and can take time to arrive. A home bought at or near completion may see the prior roll value reflect only the land or a partly built home, so the supplemental bill can be large. Budget for it; our supplemental tax bill guide explains the math.

New construction in the counties Diamond serves

Builder activity and local fees vary by city. For current communities and local notes, see our pages on new construction in Sonoma County, Placer County and Sacramento County. In any county, confirm special taxes and assessments with the levying agency named on the tax bill, and check the preliminary title report for recorded notices.

Questions people ask

Do I need my own agent to buy new construction in California?

It is not required, but the on-site sales team represents the builder. If you want representation, ask the builder about its agent registration policy before your first visit, since some builders expect the agent to be identified at the start.

Is SB 800 a warranty?

Not exactly. The Right to Repair Act sets building standards and a claim process. The only warranty it requires is the builder’s written limited fit-and-finish warranty of at least one year under Civil Code 900. Builders often add their own written warranties, which follow their contract terms.

How long do I have to make a construction defect claim?

The general limit under Civil Code 941 is 10 years after substantial completion. Shorter periods apply to certain items, such as one year for irrigation and drainage and four years for plumbing and electrical, measured from close of escrow.

How fast must a builder respond to a defect claim?

Under the statutory process, the builder acknowledges within 14 days, inspects within 14 days after that, and makes a written repair offer within 30 days after the inspection. Repairs should be completed within 120 days where reasonably possible.

Why did I get a big tax bill after moving into a new home?

Completion of new construction and your purchase both trigger supplemental assessments. Those bills go to you, not your lender’s impound account, so set the money aside.

Sources & notes

1. Civil Code 896: building standards and item-specific time periods.
2. Civil Code 900: fit-and-finish warranty, at least one year.
3. Civil Code 910, 912, 913, 914, 916, 917, 921: claim notice, builder documents, acknowledgment, election of procedure, inspection, repair offer and repair timing.
4. Civil Code 941 and 945.5: 10-year limit and builder defenses.
5. Business and Professions Code 11018.1 and 11018.2: public report delivery and requirement.
6. DRE, Residential Subdivision Buyer’s Guide (2014) and DRE FAQ: New Residential Housing.
7. Government Code 53341.5: subdivider Notice of Special Tax and cancellation.
8. Revenue and Taxation Code 75.10 and Sacramento County Assessor: Guide to the supplemental assessment process.
9. Civil Code 1670.50: written buyer-broker agreement.

Statute text was reviewed through a public mirror of the California codes; confirm current wording on leginfo.legislature.ca.gov. The table lists only periods stated in the statute; read Civil Code 896 in full for each standard, and have an attorney review any defect claim or builder contract.

General information, not legal, tax or lending advice. Updated November 2026. Primary sources are linked in this guide.

Related: New construction vs. existing homes · Mello-Roos in California · Buy with Diamond