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Implied Warranties On All New Home Sales Including Condominiums

Pursuant to Md. Real Prop. Code Title 10, certain implied warranties are applicable to the sale of every newly constructed home in Maryland. These warranties are applicable to all “improvements,” which are defined as “every newly constructed private dwelling unit, and fixture and structure which is made part of a newly constructed private dwelling unit at the time of its construction.” Section 10-201(b). They are enforceable against a “vendor,” defined as “any person engaged in the business of erecting or otherwise creating an improvement on realty, or to whom a completed improvement has been granted for resale in the course of his business.” Section 10-201(e). The broadly worded implied warranties provide 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. (more…)

Warranties and Rights of Action

            For most individuals, the purchase of a new house or condominium unit is the largest investment that they will have ever made.  Moreover, that investment is also a home and place of refuge and relaxation that they share with family and friends.  Few things, therefore, have the potential to be more disturbing than the discovery of construction defect issues that diminish both the enjoyment of the home and its value.  For that reason, new home purchasers in Maryland are afforded various protections in the form of statutory warranties.  They also may receive specific warranties from the seller as part of their purchase agreement.  Additionally, homebuyers may have other statutory and common law rights of action that arise as a result of construction deficiencies.  However, none of these possible remedies provides a certain or easy path to relief.  All such claims are governed by strict statutes of limitations that require considerable diligence or order to preserve the intended benefits.  Pursuing claims is also an expensive and often protracted process that, in addition to the retention of capable legal counsel, also requires the involvement of building consultants who can identify defects, recommend repairs, and offer opinion evidence to support the claim.

In response to various comments and questions some of you have been kind enough to share on this blog, I am going to be authoring a series of posts that address some of these issues, as they relate to condominium and new home warranties, homeowner association warranties, seller’s warranties, contract claims,  and common law causes of action.  These matters will be addressed from the standpoint of both associations and individual owners.  In the meantime, if there are any issues along these lines that are of particular interest, please feel free to send a comment.