Enforceability Status
Warranty exclusion clauses in Oregon new construction contracts face constraints under Oregon's consumer protection framework. Oregon courts recognize an implied warranty of habitability in new construction, and the Oregon Unlawful Trade Practices Act (ORS 646.605 et seq.) provides significant consumer protections. ORS 12.135 establishes a ten-year statute of repose for construction defect claims.
Legal Analysis
Oregon courts recognize an implied warranty of habitability in new home construction. In Yepsen v. Burgess (1974), the Oregon Supreme Court held that builders of new homes impliedly warrant that the home is constructed in a workmanlike manner and suitable for habitation. Oregon courts have been protective of this implied warranty.
The Oregon Unlawful Trade Practices Act (ORS 646.605 et seq.) provides broad consumer protections against deceptive or unfair trade practices. Misleading warranty representations or failure to honor warranty commitments may constitute violations, providing remedies including actual damages, statutory damages of $200, and attorney's fees.
ORS 12.135 establishes a ten-year statute of repose for claims arising from construction of improvements to real property. This provides a significant window for construction defect claims beyond the builder's typical express warranty periods.
Under Oregon's adoption of the UCC (ORS 72.3160), sellers may disclaim implied warranties through conspicuous language. However, for real property, Oregon courts have applied a more consumer-protective standard, particularly for new construction where there is a disparity in bargaining power and expertise between builder and buyer.
Relevant Oregon Law
Prohibits deceptive and unfair trade practices, providing actual damages, statutory damages, and attorney's fees for violations.
Establishes a ten-year statute of repose for claims arising from construction of improvements to real property.
Governs express and implied warranties in sales transactions, including provisions for exclusion and modification of warranties.
Related Cases
The Oregon Supreme Court recognized an implied warranty of habitability in new home construction, holding that builders warrant their homes are suitable for habitation.
Builders in Oregon Using This Clause
What Oregon Buyers Should Know
- Know Your Implied Warranty Rights Oregon provides implied warranty of habitability protections for new home buyers. Builder attempts to disclaim this warranty face scrutiny, particularly for serious habitability defects.
- Consider Unlawful Trade Practices Act Remedies Misleading warranty practices may violate the Oregon Unlawful Trade Practices Act, which provides actual damages, statutory damages, and attorney's fees as remedies.
- Note the Ten-Year Statute of Repose Oregon provides a ten-year statute of repose for construction defect claims, offering a significant window for claims beyond the builder's express warranty period.
- Review Moisture and Climate Exclusions Oregon builder warranties commonly exclude damage from moisture intrusion attributed to homeowner maintenance, condensation, mold, and landscaping. These exclusions are particularly significant given Oregon's wet climate.