Enforceability Status
Express warranty exclusion clauses in Delaware new construction contracts are generally enforceable. Delaware does not have a comprehensive residential construction defect statute with mandatory warranty minimums. Warranty claims are governed by general contract law, the UCC (Del. Code Title 6, Art. 2-A), and the six-year statute of repose for improvements to real property (Del. Code section 8127).
Legal Analysis
Delaware law permits builders to establish express warranty terms in residential construction contracts. Under Del. Code Title 6, section 2A-214, sellers may exclude or modify implied warranties through conspicuous disclaimer language. Delaware courts enforce warranty limitations that are clearly stated and agreed to by the parties.
Delaware courts recognize an implied warranty of habitability in new home construction. In Dambro v. Meyer (Del. Super. 1989), the court applied implied warranty principles to new construction, recognizing that buyers are entitled to expect that a new home is constructed in a workmanlike manner and suitable for habitation.
Del. Code section 8127 establishes a six-year statute of repose for claims arising from improvements to real property. This period runs from substantial completion of the improvement and provides an outer boundary for construction defect claims.
The Delaware Consumer Fraud Act (Del. Code Title 6, § 2513) prohibits deceptive trade practices, which may apply to misleading warranty representations. The statute provides for actual damages, treble damages in some cases, and attorney's fees.
Relevant Delaware Law
Establishes a six-year statute of repose for claims arising from improvements to real property.
Prohibits deceptive trade practices, providing actual damages, treble damages, and attorney's fees for violations.
Governs express and implied warranties in sales and lease transactions, including provisions for exclusion and modification of warranties.
Builders in Delaware Using This Clause
What Delaware Buyers Should Know
- Understand Implied Warranty Protections Delaware recognizes implied warranty protections in new home construction. While builders may limit these through express terms, baseline protections exist for serious habitability defects.
- Note the Six-Year Statute of Repose Delaware provides a six-year statute of repose for construction defect claims from substantial completion. This may extend beyond the builder's express warranty period.
- Consider Consumer Fraud Act Remedies If warranty exclusions were presented in a misleading manner, the Delaware Consumer Fraud Act may provide treble damages and attorney's fees as remedies.
- Review All Warranty Exclusion Categories Delaware builder warranties commonly exclude cosmetic defects, settling, landscaping, and damage from homeowner modifications. Review each exclusion category carefully before closing.