Enforceability Status
Warranty exclusion clauses in New York new construction contracts face significant statutory constraints. New York General Business Law Article 36-B (the Housing Merchant Implied Warranty) establishes mandatory implied warranty protections for new residential construction. The statute provides a six-year warranty for material defects, a two-year warranty for systems, and a one-year warranty for workmanship. These implied warranties cannot be waived or modified by contract.
Legal Analysis
New York General Business Law Article 36-B (GBL §§ 777-777-b) establishes the Housing Merchant Implied Warranty, which provides mandatory warranty protections for new home buyers. The statute creates a six-year implied warranty against material defects, a two-year warranty against defects in plumbing, electrical, heating, cooling, and ventilation systems, and a one-year warranty against defects arising from faulty workmanship or defective materials.
Under GBL section 777-b, the housing merchant implied warranty is nonwaivable. Any agreement that purports to waive, limit, or modify the statutory implied warranty is void. This makes New York one of the most protective states for new home warranty rights, as builder warranty exclusions cannot reduce coverage below the statutory minimums.
New York courts have interpreted the Housing Merchant Implied Warranty broadly. The six-year warranty for material defects covers any defect that would be considered a significant deficiency in the construction of a new home, providing substantial protection beyond the builder's express warranty terms.
New York General Business Law section 349 prohibits deceptive acts and practices in consumer transactions. This statute provides actual damages, treble damages up to $1,000, and attorney's fees. Misleading warranty representations may constitute violations of this statute.
Relevant New York Law
Establishes mandatory nonwaivable implied warranties for new residential construction: six years for material defects, two years for systems, and one year for workmanship.
Prohibits deceptive acts and practices in consumer transactions, providing actual damages, treble damages up to $1,000, and attorney's fees.
Governs express and implied warranties in sales transactions, including provisions for exclusion and modification of warranties.
Builders in New York Using This Clause
What New York Buyers Should Know
- Know Your Nonwaivable Warranty Rights New York law provides mandatory implied warranty protections that cannot be waived by contract: six years for material defects, two years for systems, and one year for workmanship. Any contract term that attempts to reduce these protections is void.
- Understand the Scope of Material Defects New York's six-year warranty against material defects is broadly defined and covers significant construction deficiencies. This may cover many items that the builder's express warranty excludes.
- Compare Express and Statutory Warranties Review the builder's express warranty alongside the statutory Housing Merchant Implied Warranty. The statutory warranty provides a nonwaivable floor, and the express warranty may provide additional coverage beyond the statutory minimum.
- Consider Consumer Protection Remedies Misleading warranty representations may violate New York General Business Law section 349, which provides actual damages, treble damages, and attorney's fees as remedies.