Legal Question in Real Estate Law in California
Is there a standard builders warrenty for new construction and what is the time period it is in effect. Where would I locate that information?
Thank you for your quick response.
Susie
2 Answers from Attorneys
If the defect was apparent or would have been discoverable by reasonable non-destructive inspection (a "patent defect"), the limitations is four years from substantial completion. If the defect could not have been found by reasonable inspection (a "latent defect") the period is ten years after substantial completion. Note that these limits run from completion, not discovery of the defect.
In general, work done under a construction contract may be covered by two kinds of warranties, an express warranty and an implied warranty. With express warranties, the warranty runs for whatever period is set forth in the warranty itself, sort of like an automobile manufacturer's warranty coering the power train for 18 months or 50,000 miles, whichever occurs first. Construction warranties are usually not that explicit, and since the contracts for small jobs are written by or for the contractor, not by or for the owner, they are often omitted altogether, or are limited to whatever the owner can find to criticize before the final payment is made.
An implied warranty also accompanies a construction contract, and some contracts may attempt to lessen or eliminate the implied warranty by expressly denying its existence - but denying an implied warranty is often legally ineffective in a boilerplate contract.
Mr. McCormick correctly states the time limit for bringing suit based upon statutes of limitations. In many situations, the statute of limitations is, for all practical purposes, also the duration of the warranty. However, length of warranty and statute of limitations are separate concepts. One deals with whether there is a right to recover damages at all; the other with whether the contractor has that particular defense (limitations) to the suit. It is at least thinkable that there could be a shorter, or even longer, period some thing, or some workmanship, should have lasted.
By the way, the implied warranty in construction work can probably be summed up in general terms as the contractor warranting that the work and materials would pass in the trade as being workmanlike and satisfactory, and that the contractor has done the work and furnished the materials in substantial compliance with the plans, drawings and specifications as well as applicable codes. Work and materials to a lesser standard arguably but not necessarily would breach the implied warranty.