Information Center Housing & Construction Defects
Implied Warranty of Habitability and Fitness
When homeowners purchase a new home, they receive certain warranties on the workmanship and suitability of the home as a residence. These warranties include the implied warranty of habitability and fitness. If you have purchased a home that suffers from a construction defect, contact Herrig & Vogt LLP in Sacramento, California. An attorney experienced in construction defect cases can evaluate your claim and help determine whether the builder breached his or her duties to you.
Implied Warranties
Homebuilders are required by law to warrant the quality of the homes they build and sell to homebuyers. Specifically, they warrant that the new homes are habitable and fit for use as a residence. This warranty, known as the warranty of habitability and fitness, is implied - meaning that the warranty does not have to be included in the contract or deed (known as express warranties) to be binding on the builder. Further, builders are not allowed to waive this implied warranty in their contract with homebuyers.
The implied warranty of habitability and fitness may be referred to by different names, depending on your jurisdiction. But it basically means that a homebuyer who purchases a new home from a homebuilder (builder-vendor) can hold the homebuilder liable for any latent defects in the home. The warranty also extends to anything sold as an integral part of the purchase of the new home, but which may not be used for living space, such as a garage.
The requirement of a "new home" means it must be new construction. In some situations, subsequent purchasers of a new home from the original purchaser also may be entitled to the warranty if the original purchaser lived in the house for a limited amount of time. The new home can be a house, condominium or townhouse. In some states, a house that has been significantly renovated or reconstructed may qualify as a new home and subject to the implied warranty.
For the warranty to apply, the homeowner must have purchased the home from a "builder/vendor." Courts generally have defined a builder/vendor as someone in the business of building homes and selling them to homebuyers, either during construction or after construction is completed. This does not mean the builder/vendor must have been in the business for a certain period of time - even first time builders may owe the implied warranty if their primary reason for building the home was to sell it.
Latent Defects
A latent defect, or hidden defect, is any defect that cannot be determined by a reasonable inspection of the premises. Latent defects can include things such as:
- Problems with the building's foundation
- Cracked walls
- Leaky basements and roofs
- Defective chimneys
- Incorrectly installed heating, ventilation and air conditioning systems (HVAC)
Latent defects also can include conditions that make the property where the home was built unsuitable, such as improper grading of the land, soil instability and poor drainage conditions. Some courts will not extend the implied warranty of habitability and fitness to defective conditions in the land if the problems with the land were not enhanced by the construction of the house.
Proving a Claim for Breach of the Implied Warranty
Most states require a homeowner to first notify the homebuilder of any defects in the home or property and provide the homebuilder an opportunity to fix (or cure) the defect. Only after this notice and opportunity to cure have been provided may the homeowner file a lawsuit to recover damages from the defect.
In order to win a defective construction suit based on breach of an implied warranty, the homeowner must be able to prove that the defect has impaired the use and enjoyment of the house for its intended purpose as a residence and because of the defect, the homeowner has suffered damages.
Damages
If the damages caused by the defect can be repaired at a reasonable cost, then any damages awarded to the homeowner will be those necessary for repairing the defect. In some situations, the homeowner may also be awarded the loss in market value of the home. If the defect has made the home unsafe or unfit for habitation, then the homeowner may be entitled to rescission. Rescission means the contract is "unmade" and the parties are returned to their original positions before the contract was made.
Conclusion
You have a limited amount of time to seek remedies from the homebuilder for the defect in your property. If you purchased a new construction house and have discovered a defect has damaged your home, contact Herrig & Vogt LLP in Sacramento, California today.
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