Enforceability Status
Warranty exclusion clauses in California new construction contracts face significant limitations. California Civil Code sections 895-945.5 (SB 800, the Right to Repair Act) establish mandatory standards and warranty periods for residential construction that cannot be waived by contract. California also maintains strong implied warranty protections under the Song-Beverly Consumer Warranty Act and common law.
Legal Analysis
California's Right to Repair Act (Civ. Code §§ 895-945.5), enacted as SB 800, establishes detailed functionality standards for residential construction and creates a mandatory pre-litigation process. The Act defines specific performance standards for components including foundations, walls, roofs, plumbing, and electrical systems with prescribed time periods ranging from one to ten years. These standards operate independently of any builder warranty and cannot be waived.
The Song-Beverly Consumer Warranty Act (Civ. Code §§ 1790-1795.8) provides additional protections for express warranties on consumer goods, including building materials and appliances. Under this act, warranty limitations that are unconscionable or that fail to comply with the Act's disclosure requirements may be unenforceable.
California Civil Code section 1102 et seq. imposes disclosure obligations on sellers of residential property, and section 1794 provides remedies for breach of express warranties. Builder attempts to exclude warranty coverage for categories of defects that fall within the SB 800 standards may be unenforceable to the extent they conflict with statutory minimums.
California courts have taken a consumer-protective approach to warranty limitations. In Pollard v. Saxe & Yolles Development Co. (1974), the California Supreme Court held that implied warranties in new home sales cannot be fully disclaimed. Builder warranty exclusions that attempt to eliminate all implied warranties are unlikely to be enforced.
Relevant California Law
Establishes mandatory construction performance standards and a pre-litigation process for residential construction defect claims. Defines minimum warranty periods that cannot be shortened by contract.
Provides consumer protections for express and implied warranties on consumer goods, including disclosure requirements and remedies for breach.
Governs express and implied warranties in sales transactions under California's adoption of the Uniform Commercial Code.
Related Cases
The California Supreme Court held that implied warranties of quality attach to new residential construction and cannot be fully disclaimed by the builder.
Limited recovery in construction defect cases to actual physical damage, contributing to the legislative enactment of SB 800 to provide broader remedies.
Builders in California Using This Clause
What California Buyers Should Know
- Understand SB 800 Minimum Standards California's Right to Repair Act sets minimum performance standards for residential construction that cannot be waived by contract. Even if your builder's warranty excludes certain items, you may have statutory rights under SB 800 for defects that fall below these standards.
- Know Your Implied Warranty Rights California law protects implied warranties in new home sales. Builder attempts to fully disclaim implied warranties of habitability or fitness are unlikely to be enforceable under California precedent.
- Follow the SB 800 Pre-Litigation Process Before filing a construction defect lawsuit, California law requires you to provide the builder written notice and an opportunity to inspect and repair. The builder has specific response timelines under the statute.
- Review Warranty Periods Against Statutory Minimums Compare the builder's warranty periods for each component against the SB 800 statutory periods. If the builder's warranty is shorter than the statute provides, the statutory period controls for covered defects.