The Richardson family had been in their new Union County house for several years when the floors separated from the walls.

The foundation was sinking.

But when Ben Richardson asked his builder to fix the problem, he learned of a gap in state law that was even bigger than the one between his floor and his walls: N.C. homeowners have only six years after a home is completed to sue builders for problems.

"The builder never denied that there were defects," said Richardson, who spent $8,000 on repairs. "He just said he wasn't responsible because it had been more than six years."

It's one example of a gap in state homeowners' rights outlined Tuesday in a report released by the N.C. Public Interest Research Group, a consumer watchdog. The report listed loopholes in state laws that leave homeowners vulnerable.

"Homes are the most important investments a family will ever make,' said Rob Thompson, the group's consumer advocate, "yet it's one of the least protected."

Many of the same problems were revealed in a 1998 Observer series, "Home Buyer Beware."

Tom Bartholomy, president of the local Better Business Bureau, said builders and contractors are among the top subjects of consumer complaints. Last year, the agency fielded 152 complaints against builders, a 50 percent jump over the previous year.

The public interest agency will lobby the legislature to adopt a Homeowners' Bill of Rights, Thompson said. Among the recommendations:

• Give owners of new homes 10 years to sue builders over defects, instead of six.

• Require a license for contractors who perform any work that costs more than $5,000. Now, they need a license only for jobs over $30,000.

• Add at least three consumer representatives to the N.C. Licensing Board for General Contractors, which oversees complaints against contractors.

• Loosen the rules so more homeowners will be eligible for money from the state's homeowner-recovery fund, which helps those who suffer losses caused by negligent builders.

• Change the law so homeowners can sue the manufacturers of building materials as well as general contractors.

Tips Before Building

• Check out the builder. Call the N.C. Licensing Board for General Contractors at (919) 571-4189 or the S.C. Residential Builders Commission at (803) 896-4696 to check for complaints.

• Spend time at the site.

• Hire a private inspector or structural engineer to inspect the home twice: once before the builder puts up sheetrock and again before closing.

• Hire a real estate attorney to examine the contract to ensure that all warranties and rights are protected.

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