Enforceability Status
Express warranty exclusion clauses in Utah new construction contracts are generally enforceable. Utah's Residence Lien Restriction and Lien Recovery Fund Act and the Utah Construction Trades Licensing Act govern builder licensing but do not establish mandatory warranty minimums. Utah Code section 78B-2-225 establishes a six-year statute of repose for construction defect claims.
Legal Analysis
Utah law permits builders to define the scope of express warranties in residential construction contracts. Under Utah Code section 70A-2-316, sellers may exclude or modify implied warranties through conspicuous disclaimer language. Utah courts enforce warranty limitations that are clearly stated and agreed to by the parties.
Utah courts recognize an implied warranty of habitability in new home construction. In Davencourt at Pilgrims Landing Homeowners Association v. Davencourt at Pilgrims Landing, LC (2009), the Utah Supreme Court addressed implied warranties in the construction context, recognizing that builders warrant new homes are constructed in a workmanlike manner.
Utah Code section 78B-2-225 establishes a six-year statute of repose for claims arising from improvements to real property. Additionally, Utah has enacted a right-to-cure statute that requires homeowners to provide notice to builders before filing construction defect claims.
The Utah Consumer Sales Practices Act (Utah Code § 13-11-1 et seq.) prohibits deceptive and unconscionable sales practices. Warranty representations that conflict with the actual warranty terms may give rise to claims under this statute.
Relevant Utah Law
Establishes a six-year statute of repose for claims arising from improvements to real property.
Prohibits deceptive and unconscionable consumer sales practices, providing remedies for violations.
Governs express and implied warranties in sales transactions, including provisions for exclusion and modification of warranties.
Related Cases
The Utah Supreme Court addressed implied warranties in the construction context, recognizing warranty protections for new residential construction.
Builders in Utah Using This Clause
What Utah Buyers Should Know
- Understand Implied Warranty Protections Utah recognizes implied warranties in new home construction. Even if the builder's express warranty excludes certain items, you may have implied warranty rights for serious construction defects.
- Note the Six-Year Statute of Repose Utah provides a six-year statute of repose for construction defect claims from substantial completion. This statutory period may extend beyond the builder's express warranty period.
- Review Climate-Specific Exclusions Utah builder warranties commonly exclude damage from soil movement, altitude-related settling, freeze-thaw cycles, and arid climate conditions. These exclusions can cover significant issues in Utah's varied climate.
- Follow Notice Requirements Utah requires homeowners to provide written notice to builders before filing construction defect claims. Comply with applicable notice requirements to preserve your legal rights.