The Warranty of Merchantability for new homes is an important thing to know about when purchasing one. This warranty ensures that goods sold are fit for their intended purpose, and, the context of real estate, is often applied through implied warranties tied to new construction homes.
What Is the Warranty of Merchantability?
The warranty of merchantability is an implied warranty under the Uniform Commercial Code (UCC) that applies to goods sold by merchants. It guarantees that the goods are of fair quality, are fit for their ordinary purpose, and match their description.
While the UCC primarily governs the sale of goods, its principles influence the implied warranties recognized in real estate.
Implied Warranties in New Home Construction
In real estate, the warranty of merchantability is part of a broader concept – the implied warranty of habitability or the implied warranty of workmanship. These warranties ensure that a new home is constructed in a workmanlike manner, is free from significant defects, and is suitable for habitation.
Courts in many states, including Oklahoma, recognize these implied warranties to protect buyers from construction defects that render a home unfit for ordinary use.
Key Aspects of the Warranty of Merchantability for New Homes
There are a few key aspects of the warranty of merchantability that homeowners and buyers should understand, such as:
a. Applicability
The implied warranty of merchantability applies primarily to new homes sold by builders, developers, or contractors. However, it does not typically extend to existing homes sold by private individuals.
b. Coverage
This warranty covers issues that affect the home’s livability, safety, or structural integrity, such as defective plumbing, foundation issues, or drainage problems.
c. Duration
n Oklahoma, implied warranties typically last for a reasonable period, often one to two years after the completion of construction.
Legal Remedies for Breach of Warranty
If the builder fails to honor the warranty, buyers may pursue legal action, including:
a. Repairs or Replacement
The builder may have to repair defective work or replace faulty materials.
b. Financial Compensation
Buyers may recover damages to cover the cost of repairs as well as other losses resulting from the defects.
c. Rescission
Occasionally, the court may allow the buyer to rescind the purchase agreement and recover the purchase price.
Wagoner Business Law Attorneys
The implied warranty of merchantability offers essential protection for buyers of new homes by ensuring that the property meets basic standards of both quality and livability. Understanding how this warranty applies and knowing your rights as a buyer can help you address potential defects and hold builders accountable.
If you encounter issues with your new home, contact Kania Law Office – Wagoner Custody Attorneys at (918) 283-7394 or online for guidance tailored to your situation.
