CHAPTER 2. NEW HOME CONSTRUCTION WARRANTIES
IC 32-27-2
Chapter 2. New Home Construction Warranties
IC 32-27-2-1
Effective date of warranties
Sec. 1. The warranties defined by this chapter (or IC 34-4-20.5 orIC 32-15-7 before their repeal) become effective on the warranty dateattributed to a new home.
As added by P.L.2-2002, SEC.12.
IC 32-27-2-2
"Initial home buyer" defined
Sec. 2. As used in this chapter, "initial home buyer" means aperson who executes a contract with a builder to buy a new home andwho:
(1) occupies the new home as its first occupant; and
(2) occupies the new home as a residence.
As added by P.L.2-2002, SEC.12.
IC 32-27-2-3
"Major structural defect" defined
Sec. 3. As used in this chapter, "major structural defect" meansactual damage to the load bearing part of a new home, includingactual damage due to:
(1) subsidence;
(2) expansion; or
(3) lateral movement;
of the soil affecting the load bearing function, unless the subsidence,expansion, or lateral movement of the soil is caused by flood,earthquake, or some other natural disaster.
As added by P.L.2-2002, SEC.12.
IC 32-27-2-4
"New home" defined
Sec. 4. (a) As used in this chapter, "new home" means a newdwelling occupied for the first time after construction.
(b) The term does not include:
(1) a detached garage;
(2) a driveway;
(3) a walkway;
(4) a patio;
(5) a boundary wall;
(6) a retaining wall not necessary for the structural stability ofthe new home;
(7) landscaping;
(8) a fence;
(9) nonpermanent construction material;
(10) an off-site improvement;
(11) an appurtenant recreational facility; or
(12) other similar item.As added by P.L.2-2002, SEC.12.
IC 32-27-2-5
"Home buyer" defined
Sec. 5. (a) As used in this chapter, "home buyer" means apurchaser of a new home.
(b) The term includes any owner of the new home before theexpiration of the warranties defined by this chapter.
As added by P.L.2-2002, SEC.12.
IC 32-27-2-6
"Builder" defined
Sec. 6. As used in this chapter, "builder" means a person whoconstructs new homes for sale, including the construction of newhomes on land owned by home buyers.
As added by P.L.2-2002, SEC.12.
IC 32-27-2-7
"Warranty date" defined
Sec. 7. As used in this chapter, "warranty date" means the date ofthe first occupancy of the new home as a residence by one (1) of thefollowing:
(1) The builder.
(2) An individual or individuals renting the home from thebuilder.
(3) An individual or individuals living in the home at therequest of the builder.
(4) The initial home buyer.
As added by P.L.2-2002, SEC.12. Amended by P.L.165-2005, SEC.9.
IC 32-27-2-8
Warranties of builder; survival of warranties
Sec. 8. (a) In selling a completed new home, and in contracting tosell a new home to be completed, the builder may warrant to theinitial home buyer the following:
(1) During the two (2) year period beginning on the warrantydate, the new home will be free from defects caused by faultyworkmanship or defective materials.
(2) During the two (2) year period beginning on the warrantydate, the new home will be free from defects caused by faultyinstallation of:
(A) plumbing;
(B) electrical;
(C) heating;
(D) cooling; or
(E) ventilating;
systems, exclusive of fixtures, appliances, or items ofequipment.
(3) During the four (4) year period beginning on the warrantydate, the new home will be free from defects caused by faulty
workmanship or defective materials in the roof or roof systemsof the new home.
(4) During the ten (10) year period beginning on the warrantydate, the new home will be free from major structural defects.
(b) The warranties provided in this section (or IC 34-4-20.5-8 orIC 32-15-7 before their repeal) survive the passing of legal orequitable title in the new home to a home buyer.
(c) An individual identified in section 7(1), 7(2), or 7(3) of thischapter who is selling a new home shall notify the purchaser of thehome in writing on or before the date of closing or transfer of thenew home of:
(1) the warranty date (as defined in section 7 of this chapter);and
(2) the amount of time remaining under the warranty.
As added by P.L.2-2002, SEC.12. Amended by P.L.165-2005,SEC.10.
IC 32-27-2-9
Disclaimer of implied warranties
Sec. 9. (a) A builder may disclaim all implied warranties only ifall of the following conditions are met:
(1) The warranties defined in this chapter are expresslyprovided for in the written contract between a builder and aninitial home buyer of a new home.
(2) The performance of the warranty obligations is backed byan insurance policy in an amount at least equal to the purchaseprice of the new home.
(3) The builder carries completed operations products liabilityinsurance covering the builder's liability for reasonablyforeseeable consequential damages arising from a defectcovered by the warranties provided by the builder.
(b) The disclaimer must be printed in a minimum size of 10 pointboldface type setting forth that the statutory warranties of thischapter are in lieu of the implied warranties that have beendisclaimed by the builder, and the initial home buyer mustaffirmatively acknowledge by complete signature that the homebuyer has read, understands, and voluntarily agrees to the disclaimer.Additionally, the initial home buyer must acknowledge thedisclaimer of implied warranties by signing, at the time of executionof the contract, a separate one (1) page notice, attached to thecontract, that includes and begins with the following language:
"NOTICE OF WAIVER OF IMPLIED WARRANTIES
I recognize that by accepting the express warranties and theinsurance covering those warranties for the periods of timeprovided in this contract, I am giving up the right to any claimsfor implied warranties, which may be greater than the expresswarranties. Implied warranties are unwritten warranties relatingto the reasonable expectations of a homeowner with regard tothe construction of the homeowner's home, as those reasonableexpectations are defined by the courts on a case by case basis.". (c) If there is a default of either:
(1) the insurance for the performance of the warrantyobligations; or
(2) the completed operations products liability insurance;
the disclaimer by the builder is void from and after the default.
As added by P.L.2-2002, SEC.12.
IC 32-27-2-10
Breach of warranty; actions against builder; damages; attorney'sfees
Sec. 10. (a) If a builder provides and breaches a warranty set forthin section 8 of this chapter (or IC 34-4-20.5-8 or IC 32-15-7-8 beforetheir repeal), the home buyer may bring an action against the builderfor:
(1) damages arising from the breach; or
(2) specific performance.
(b) If damages are awarded for a breach of a warranty set forth insection 8 of this chapter (or IC 34-4-20.5-8 or IC 32-15-7-8 beforetheir repeal), the award may be for not more than:
(1) the actual damages, which are either:
(A) the amount necessary to effect repair of the defect thatis the cause of the breach; or
(B) the amount of the difference between the value of thenew home without the defect and the value of the new homewith the defect;
(2) the reasonably foreseeable consequential damages arisingfrom the defect covered by the warranty; and
(3) attorney's fees, if those fees are provided for in the writtencontract between the parties.
As added by P.L.2-2002, SEC.12.
IC 32-27-2-11
Warranties in addition to contract rights; other remedies
Sec. 11. (a) The warranties set forth in this chapter (orIC 34-4-20.5 or IC 32-15-7 before their repeal) are in addition to anyrights created by contract between the parties.
(b) The remedies provided in section 10 of this chapter (orIC 34-4-20.5-10 or IC 32-15-7-10 before their repeal) do not limitany remedies available in an action that is not predicated upon thebreach of an express or implied warranty set forth in this chapter (orIC 34-4-20.5 or IC 32-15-7 before their repeal) or otherwise existing.
As added by P.L.2-2002, SEC.12.