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 or
IC 32-15-7 before their repeal) become effective on the warranty date
attributed 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 a
person who executes a contract with a builder to buy a new home and
who:
(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" means
actual damage to the load bearing part of a new home, including
actual 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 new
dwelling 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 of
the 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 a
purchaser of a new home.
(b) The term includes any owner of the new home before the
expiration 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 who
constructs new homes for sale, including the construction of new
homes 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 of
the first occupancy of the new home as a residence by one (1) of the
following:
(1) The builder.
(2) An individual or individuals renting the home from the
builder.
(3) An individual or individuals living in the home at the
request 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 to
sell a new home to be completed, the builder may warrant to the
initial home buyer the following:
(1) During the two (2) year period beginning on the warranty
date, the new home will be free from defects caused by faulty
workmanship or defective materials.
(2) During the two (2) year period beginning on the warranty
date, the new home will be free from defects caused by faulty
installation of:
(A) plumbing;
(B) electrical;
(C) heating;
(D) cooling; or
(E) ventilating;
systems, exclusive of fixtures, appliances, or items of
equipment.
(3) During the four (4) year period beginning on the warranty
date, the new home will be free from defects caused by faulty
workmanship or defective materials in the roof or roof systems
of the new home.
(4) During the ten (10) year period beginning on the warranty
date, the new home will be free from major structural defects.
(b) The warranties provided in this section (or IC 34-4-20.5-8 or
IC 32-15-7 before their repeal) survive the passing of legal or
equitable title in the new home to a home buyer.
(c) An individual identified in section 7(1), 7(2), or 7(3) of this
chapter who is selling a new home shall notify the purchaser of the
home in writing on or before the date of closing or transfer of the
new 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 if
all of the following conditions are met:
(1) The warranties defined in this chapter are expressly
provided for in the written contract between a builder and an
initial home buyer of a new home.
(2) The performance of the warranty obligations is backed by
an insurance policy in an amount at least equal to the purchase
price of the new home.
(3) The builder carries completed operations products liability
insurance covering the builder's liability for reasonably
foreseeable consequential damages arising from a defect
covered by the warranties provided by the builder.
(b) The disclaimer must be printed in a minimum size of 10 point
boldface type setting forth that the statutory warranties of this
chapter are in lieu of the implied warranties that have been
disclaimed by the builder, and the initial home buyer must
affirmatively acknowledge by complete signature that the home
buyer has read, understands, and voluntarily agrees to the disclaimer.
Additionally, the initial home buyer must acknowledge the
disclaimer of implied warranties by signing, at the time of execution
of the contract, a separate one (1) page notice, attached to the
contract, that includes and begins with the following language:
"NOTICE OF WAIVER OF IMPLIED WARRANTIES
I recognize that by accepting the express warranties and the
insurance covering those warranties for the periods of time
provided in this contract, I am giving up the right to any claims
for implied warranties, which may be greater than the express
warranties. Implied warranties are unwritten warranties relating
to the reasonable expectations of a homeowner with regard to
the construction of the homeowner's home, as those reasonable
expectations 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 warranty
obligations; 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's
fees
Sec. 10. (a) If a builder provides and breaches a warranty set forth
in section 8 of this chapter (or IC 34-4-20.5-8 or IC 32-15-7-8 before
their repeal), the home buyer may bring an action against the builder
for:
(1) damages arising from the breach; or
(2) specific performance.
(b) If damages are awarded for a breach of a warranty set forth in
section 8 of this chapter (or IC 34-4-20.5-8 or IC 32-15-7-8 before
their 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 that
is the cause of the breach; or
(B) the amount of the difference between the value of the
new home without the defect and the value of the new home
with the defect;
(2) the reasonably foreseeable consequential damages arising
from the defect covered by the warranty; and
(3) attorney's fees, if those fees are provided for in the written
contract 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 (or
IC 34-4-20.5 or IC 32-15-7 before their repeal) are in addition to any
rights created by contract between the parties.
(b) The remedies provided in section 10 of this chapter (or
IC 34-4-20.5-10 or IC 32-15-7-10 before their repeal) do not limit
any remedies available in an action that is not predicated upon the
breach of an express or implied warranty set forth in this chapter (or
IC 34-4-20.5 or IC 32-15-7 before their repeal) or otherwise existing.
As added by P.L.2-2002, SEC.12.