Chapter 827 - New Home Warranties

Sec. 47-117. Express warranties. (a) Express warranties by a vendor are created as follows: (1) Any written affirmation of fact or promise which relates to the improvement and is made a part of the basis of the bargain between the vendor and the purchaser shall create an express warranty that the improvement conforms to such affirmation or promise; (2) any written description of the improvement, including plans and specifications thereof which is made a part of the basis of the bargain between the vendor and the purchaser shall create an express warranty that the improvement conforms to such description; and (3) any sample or model which is made a part of the basis of the bargain between the vendor and the purchaser shall create an express warranty that the improvement conforms substantially to such sample or model.

(b) No formal words, such as “warranty” or “guarantee”, nor any specific intention to make a warranty shall be necessary to create an express warranty, provided a simple affirmation of the value of the improvement or a statement purporting to be an opinion or commendation of the improvement shall not of itself create such a warranty.

(c) No words in the contract of sale or the deed, nor merger of the contract of sale into such deed shall exclude or modify any express warranty made pursuant to subsection (a) of this section. Such warranty may, at any time after the execution of the contract of sale, be excluded or modified wholly or partially by any written instrument, signed by the purchaser, setting forth in detail the warranty to be excluded or modified, the consent of the purchaser to such exclusion or modification and the terms of the new agreement.

(d) An express warranty shall terminate: (1) In the case of an improvement completed at the time of the delivery of the deed to the purchaser, one year after the delivery or one year after the taking of possession by the purchaser, whichever occurs first; and (2) in the case of an improvement not completed at the time of delivery of the deed to the purchaser, one year after the date of the completion or one year after taking of possession by the purchaser, whichever occurs first.

(P.A. 75-637, S. 2.)

Cited. 196 C. 509; 232 C. 666.

Cited. 11 CA 289.

Subsec. (c):

Clear language of Subsec. precluded finding that express new home warranties were effectively disclaimed by language in sales contract. 62 CA 113.

Sec. 47-118. Implied warranties. (a) In every sale of an improvement by a vendor to a purchaser, except as provided in subsection (b) of this section or excluded or modified pursuant to subsection (d) of this section, warranties are implied that the improvement is: (1) Free from faulty materials; (2) constructed according to sound engineering standards; (3) constructed in a workmanlike manner; and (4) fit for habitation, at the time of the delivery of the deed to a completed improvement, or at the time of completion of an improvement not completed when the deed is delivered.

(b) The implied warranties of subsection (a) of this section shall not apply to any condition that an inspection of the premises would reveal to a reasonably diligent purchaser at the time the contract is signed.

(c) If the purchaser, expressly or by implication, makes known to the vendor the particular purpose for which the improvement is required, and it appears that the purchaser relies on the vendor's skill and judgment, there is an implied warranty that the improvement is reasonably fit for the purpose.

(d) Neither words in the contract of sale, nor the deed, nor merger of the contract of sale into the deed is effective to exclude or modify any implied warranty; provided, if the contract of sale pertains to an improvement then completed, an implied warranty may be excluded or modified wholly or partially by a written instrument, signed by the purchaser, setting forth in detail the warranty to be excluded or modified, the consent of the purchaser to exclusion or modification, and the terms of the new agreement with respect to it.

(e) The implied warranties created in this section shall terminate: (1) In the case of an improvement completed at the time of the delivery of the deed to the purchaser, one year after the delivery or one year after the taking of possession by the purchaser, whichever occurs first; and (2) in the case of an improvement not completed at the time of delivery of the deed to the purchaser, one year after the date of the completion or one year after taking of possession by the purchaser, whichever occurs first.

(P.A. 75-637, S. 3; P.A. 07-217, S. 178.)

History: P.A. 07-217 made technical changes in Subsec. (a), effective July 12, 2007.

Cited. 196 C. 509; 212 C. 816; 215 C. 286; 232 C. 666.

Cited. 7 CA 435; 11 CA 289; 19 CA 280; 26 CA 601. Implied warranties created by section are owed by a builder/vendor in every sale of an improvement to the original purchaser where home is sold by intermediary vendor. 207 CA 630.

Subsec. (d):

Language of purported disclaimer of implied new home warranties fell so far short of complying with disclaimer provisions that court determined “it warrants no further discussion”. 62 CA 113.

Subsec. (e):

Statutory 1-year limitation relates to the time within which a cause of action must arise, not to the time within which an implied warranty action must be commenced. 196 C. 509.

Sec. 47-119. Vendor not to evade by intermediate transfer. Any vendor who conveys an improvement to an intermediate purchaser to evade the provisions of this chapter shall be liable to the subsequent purchaser as if the subsequent conveyance had been effectuated by the vendor to the subsequent purchaser.

(P.A. 75-637, S. 4.)

Cited. 212 C. 816; 215 C. 286.

Cited. 19 CA 280.

Sec. 47-120. Warranties created by chapter additional to any other warranties. The warranties created in this chapter shall be in addition to any other warranties created or implied in law.

(P.A. 75-637, S. 5.)

Cited. 232 C. 527.

Sec. 47-121. (Formerly Sec. 52-563a). Implied warranty with certificate of occupancy. Subject to the provisions of section 29-265, the issuance by the building department of any municipality of a certificate of occupancy for any newly constructed single-family dwelling shall carry an implied warranty to the purchaser of such dwelling from the vendor who constructed it that such vendor has complied with the building code or the customary application and interpretation of the building code of such municipality. No action shall be brought on such implied warranty but within three years next from the date of the issuance of such certificate of occupancy.

(1963, P.A. 385; P.A. 75-637, S. 6; P.A. 80-108, S. 2.)

History: P.A. 75-637 referred to vendors rather than to persons, firms or corporations; P.A. 80-108 added qualifying phrase “subject to the provisions of section 19-400”; Sec. 52-563a transferred to Sec. 47-121 in 1983.

Annotations to former section 52-563a:

Builder-vendor is not liable under section to subsequent purchasers of home built and sold by him for defective workmanship in such home. 173 C. 567. Cited. 176 C. 432; 190 C. 299.

Cited. 1 CA 652.

Cited. 31 CS 316. Section is to be read and construed with Ch. 827 since that chapter and this section were all part of P.A. 75-637. 35 CS 177.

Annotations to present section:

Cited. 196 C. 509; 232 C. 527.

Secs. 47-122 to 47-199. Reserved for future use.