Table of NOV Conditions & Requirements (continued)

NOV Item

Instructions for Preparing the NOV

Construction Warranty

Check this item if the property was appraised as either

·   “proposed or under construction,” or

·   “new construction” and the builder will provide a one-year VA builder’s warranty (instead of a ten-year insured protection plan).

In both of the above situations, the veteran purchaser must be provided with a one-year builder’s warranty on VA Form 26-1859, Warranty of Completion of Construction, signed by an authorized official.

See “NOV Item – Ten Year Insured Protection Plan” in this Section if the property will be covered by a ten-year protection plan.

Use the following to determine how to handle cases involving manufactured homes classified as real estate.

When cases …

Then …

processed as “proposed or under construction” (See the definition in Section 10.10)

the contractor responsible for the construction of the foundation and other onsite features must provide the one-year warranty.

involve a new manufactured home unit

the manufacturer must provide the purchaser with a one-year warranty on VA Form 26-8599, Manufactured Home Warranty.

Note:  This warranty will cover the manufactured home unit only.