Enforceability Status
Express warranty exclusion clauses in Ohio new construction contracts are generally enforceable. Ohio does not have a comprehensive residential construction defect statute with mandatory warranty minimums. Warranty claims are governed by general contract law, the UCC (Ohio Rev. Code Ch. 1302), and the ten-year statute of repose for improvements to real property (Ohio Rev. Code section 2305.131).
Legal Analysis
Ohio law permits builders to establish express warranty terms in residential construction contracts. Under Ohio Rev. Code section 1302.29, sellers may exclude or modify implied warranties through conspicuous disclaimer language. Ohio courts enforce warranty limitations that are clearly stated and agreed to by the parties.
Ohio courts recognize an implied warranty of habitability in new home construction. In Mitchem v. Johnson (1966), the Ohio Supreme Court held that builders of new homes impliedly warrant that the home is constructed in a workmanlike manner and suitable for habitation. This warranty has been recognized as extending to latent defects not discoverable at closing.
Ohio Rev. Code section 2305.131 establishes a ten-year statute of repose for claims arising from improvements to real property. This provides a significant window for construction defect claims beyond the builder's typical express warranty periods.
The Ohio Consumer Sales Practices Act (Ohio Rev. Code § 1345.01 et seq.) prohibits unfair or deceptive consumer sales practices. Misleading warranty representations or failure to honor warranty obligations may give rise to claims under this statute, which provides for attorney's fees and treble damages in some circumstances.
Relevant Ohio Law
Establishes a ten-year statute of repose for claims arising from improvements to real property.
Prohibits unfair or deceptive consumer sales practices, providing remedies including attorney's fees and treble damages.
Governs express and implied warranties in sales transactions, including provisions for exclusion and modification of warranties.
Related Cases
The Ohio Supreme Court recognized an implied warranty of habitability in new home construction, holding that builders warrant their homes are suitable for habitation.
Builders in Ohio Using This Clause
What Ohio Buyers Should Know
- Understand the Implied Warranty of Habitability Ohio recognizes an implied warranty that new homes are suitable for habitation. This warranty covers latent defects and may provide rights beyond the builder's express warranty terms.
- Note the Ten-Year Statute of Repose Ohio provides a ten-year statute of repose for construction defect claims from substantial completion. This extended period may provide recourse for defects discovered well after the builder's express warranty expires.
- Consider Consumer Sales Practices Act Remedies If warranty exclusions were presented in a misleading manner or the builder fails to honor warranty obligations, the Ohio Consumer Sales Practices Act may provide treble damages and attorney's fees.
- Review Cold-Climate Exclusions Ohio builder warranties commonly exclude damage from freeze-thaw cycles, ice damming, condensation, settling, and homeowner modifications. These exclusions can cover significant issues in Ohio's climate.