Enforceability Status
Oregon recognizes an implied warranty of habitability for new residential construction under Yepsen v. Burgess (1974). Oregon also provides statutory protections through the Oregon Construction Contractors Board (ORS Chapter 701) and the Oregon Unlawful Trade Practices Act (ORS 646.605 et seq.). The state's protective legal framework makes contractual waivers of the implied warranty likely unenforceable.
Legal Analysis
Oregon recognizes the implied warranty of habitability for newly constructed homes. The Oregon Supreme Court in Yepsen v. Burgess (1974) held that a builder-vendor of a new home impliedly warrants that the home is built in a workmanlike manner and is suitable for habitation. This warranty exists as a matter of law and reflects the policy of protecting buyers who rely on the builder's expertise.
Oregon's Construction Contractors Board, established under ORS Chapter 701, provides a regulatory framework for residential construction. Licensed contractors are subject to bonding and surety requirements, and the CCB provides a dispute resolution process for homeowners. These regulatory protections exist independently of contractual warranty provisions and cannot be contractually waived.
The Oregon Unlawful Trade Practices Act (ORS 646.605 et seq.) prohibits unfair or deceptive practices in consumer transactions. A warranty waiver provision that misleads buyers about their rights or effectively eliminates fundamental protections may constitute an unlawful trade practice under this statute. The Act provides remedies including actual damages and attorney fees.
Oregon's statute of repose for construction claims, ORS 12.135, provides a ten-year period from substantial completion or abandonment of the construction. This statutory limitation applies regardless of contractual warranty provisions. The combination of the implied warranty, regulatory protections, consumer protection statutes, and the lengthy repose period makes a habitability waiver likely unenforceable in Oregon.
Relevant Oregon Law
Oregon Supreme Court recognized the implied warranty of habitability for new residential construction, holding builders warrant fitness for habitation.
Establishes the regulatory framework for construction contractors, including licensing, bonding, and dispute resolution processes.
Prohibits unfair or deceptive practices in consumer transactions, with remedies including damages and attorney fees.
Establishes a ten-year statute of repose for claims arising from construction of improvements to real property.
Related Cases
Established the implied warranty of habitability for newly constructed homes in Oregon, providing foundational protection for homebuyers.
Builders in Oregon Using This Clause
What Oregon Buyers Should Know
- Understand strong implied warranty protections Oregon law provides robust implied warranty protections for new home buyers. A contractual waiver of the implied warranty of habitability faces significant enforceability challenges.
- Verify contractor licensing Confirm that your builder is properly licensed with the Oregon Construction Contractors Board. Licensed contractors are subject to bonding and regulatory requirements that provide additional protection.
- Consider unlawful trade practices claims If a builder uses misleading warranty waiver provisions, the Oregon Unlawful Trade Practices Act may provide additional remedies including damages and attorney fees.
- Note the ten-year repose period Oregon provides a ten-year statute of repose for construction defect claims. Document all defects and maintain records throughout this extended period.