Enforceability Status
Express warranty exclusion clauses in Indiana new construction contracts are generally enforceable. Indiana does not have a comprehensive residential construction defect statute with mandatory warranty minimums. Warranty claims are governed by general contract law, the UCC (Ind. Code Art. 26-1-2), and the ten-year statute of repose for improvements to real property (Ind. Code section 32-30-1-5).
Legal Analysis
Indiana law permits builders to define the scope of express warranties in residential construction contracts. Under Ind. Code section 26-1-2-316, sellers may exclude or modify implied warranties through conspicuous disclaimer language using recognized terms such as 'as is' or by specifically naming the warranty being excluded.
Indiana courts recognize an implied warranty of habitability in new home construction. In Theis v. Heuer (1972), the Indiana Supreme Court held that builders of new homes impliedly warrant that the home is constructed in a workmanlike manner and suitable for habitation. The court further held that this implied warranty extends to subsequent purchasers within a reasonable time.
Indiana's statute of repose for improvements to real property (Ind. Code § 32-30-1-5) provides a ten-year outer limit for construction defect claims from substantial completion. This is one of the longer statutes of repose among states, providing a more extended window for claims.
The Indiana Deceptive Consumer Sales Act (Ind. Code § 24-5-0.5-1 et seq.) prohibits unfair, abusive, or deceptive acts in consumer transactions. Misleading warranty representations may give rise to claims under this statute.
Relevant Indiana Law
Establishes a ten-year statute of repose for claims arising from improvements to real property.
Prohibits deceptive and unfair consumer sales practices, which may apply to misleading warranty representations.
Governs express and implied warranties in sales transactions, including provisions for exclusion and modification of warranties.
Related Cases
The Indiana Supreme Court recognized an implied warranty of habitability in new home construction, holding that builders warrant their homes are fit for habitation, extending the warranty to subsequent purchasers.
Builders in Indiana Using This Clause
What Indiana Buyers Should Know
- Understand the Implied Warranty of Habitability Indiana recognizes an implied warranty of habitability in new construction that extends to subsequent purchasers. This provides baseline protection for serious defects regardless of express warranty exclusions.
- Note the Ten-Year Statute of Repose Indiana provides a ten-year statute of repose for construction defect claims, which is longer than many states. This may provide a window for claims well beyond the builder's express warranty period.
- Review Warranty Exclusions Carefully Indiana builder warranties commonly exclude cosmetic defects, settling, landscaping, and damage from homeowner modifications or severe weather. Understand each category before closing.
- Provide Prompt Written Notice While Indiana does not have a mandatory pre-suit notice statute for residential construction defects, providing timely written notice of any defects is essential to preserving your contractual and implied warranty rights.