Enforceability Status
Express warranty exclusion clauses in Georgia new construction contracts are generally enforceable. Georgia's Right to Repair Act (O.C.G.A. section 8-2-35 et seq.) establishes a mandatory pre-litigation process for residential construction defect claims. Georgia follows traditional contract principles that permit builders to define the scope and duration of express warranties.
Legal Analysis
Georgia's Right to Repair Act (O.C.G.A. § 8-2-35 et seq.) requires homeowners to provide written notice to the builder at least 90 days before filing a construction defect lawsuit. The builder has an opportunity to inspect, offer repairs, or make a settlement offer. This process applies to all construction defect claims, including warranty-related disputes.
Georgia courts have recognized an implied warranty of habitability in new home construction. In Wharton v. McBride (1989), the Georgia Court of Appeals held that builders impliedly warrant that new homes are constructed in a workmanlike manner. However, Georgia courts have also permitted builders to limit implied warranty obligations through clear and conspicuous express warranty terms.
Under Georgia's adoption of the UCC (O.C.G.A. Title 11, Art. 2), sellers may disclaim implied warranties through conspicuous language. For real property transactions, Georgia courts apply similar principles, requiring that warranty exclusions be clear and prominently placed in the contract.
O.C.G.A. section 9-3-51 establishes a four-year statute of limitations for breach of contract claims, and O.C.G.A. section 9-3-30 provides a four-year limitation for property damage claims. The statute of repose for improvements to real property is eight years under O.C.G.A. section 9-3-51(b).
Relevant Georgia Law
Establishes a 90-day pre-litigation notice and repair process for residential construction defect claims.
Establishes an eight-year statute of repose for claims arising from improvements to real property.
Governs express and implied warranties in sales transactions, including provisions for exclusion and modification of warranties.
Related Cases
The Georgia Court of Appeals recognized an implied warranty of workmanlike construction in new home sales, while acknowledging that builders may limit warranty obligations through express terms.
Builders in Georgia Using This Clause
What Georgia Buyers Should Know
- Follow the 90-Day Right to Repair Process Georgia law requires at least 90 days' written notice to the builder before filing a construction defect lawsuit. Compliance with this pre-litigation process is mandatory.
- Understand the Implied Warranty of Workmanlike Construction Georgia courts recognize an implied warranty that new homes are built in a workmanlike manner. While builders may limit this through express terms, it provides a baseline protection for serious construction defects.
- Be Aware of Limitation Periods Georgia has a four-year statute of limitations for breach of contract and an eight-year statute of repose for construction defect claims. These statutory periods may extend beyond the builder's express warranty period.
- Review Exclusions for Humidity and Moisture Georgia builder warranties commonly exclude damage attributed to humidity, condensation, mold resulting from homeowner maintenance failures, and landscaping. Understand these exclusions given Georgia's humid climate.