Enforceability Status
Warranty exclusion clauses in Wisconsin new construction contracts face notable constraints. Wisconsin's dwelling warranty statute (Wis. Stat. section 895.07) establishes specific warranty protections for new residential construction. Wisconsin also maintains broad consumer protection remedies under its Deceptive Trade Practices Act. These statutory frameworks limit the effectiveness of contractual warranty exclusions.
Legal Analysis
Wisconsin Statutes section 895.07 establishes statutory warranty protections for new residential construction. The statute provides specific warranty obligations for builders of new homes, including warranties against defects in workmanship, materials, and structural components. These statutory protections provide a floor below which builder warranty exclusions cannot reduce coverage.
Wisconsin courts recognize an implied warranty of habitability in new home construction. In Crowley v. Knapp (1979), the Wisconsin Supreme Court held that builders of new homes impliedly warrant that the home is constructed in a workmanlike manner and suitable for habitation.
The Wisconsin Deceptive Trade Practices Act (Wis. Stat. § 100.18) provides broad consumer protections against false, misleading, or deceptive representations. This statute has been applied to construction warranty disputes, and violations can result in actual damages and statutory damages of up to $10,000.
Wis. Stat. section 893.89 establishes a ten-year statute of repose for claims arising from improvements to real property. This provides a significant window for construction defect claims from the date of substantial completion.
Relevant Wisconsin Law
Establishes statutory warranty protections for new residential construction, providing specific builder obligations for workmanship, materials, and structural components.
Prohibits false, misleading, or deceptive representations, providing actual damages and statutory damages up to $10,000 for violations.
Establishes a ten-year statute of repose for claims arising from improvements to real property.
Related Cases
The Wisconsin Supreme Court recognized an implied warranty of habitability in new home construction, holding that builders warrant their homes are suitable for habitation.
Builders in Wisconsin Using This Clause
What Wisconsin Buyers Should Know
- Know Your Statutory Warranty Rights Wisconsin law provides specific warranty protections for new home buyers under the dwelling warranty statute. These protections provide a floor that contractual exclusions cannot reduce.
- Understand Implied Warranty Protections Wisconsin recognizes a strong implied warranty of habitability in new construction. This may provide rights for serious defects beyond what the builder's express warranty covers.
- Consider Deceptive Trade Practices Remedies Misleading warranty practices may violate Wisconsin's Deceptive Trade Practices Act, which provides actual damages and statutory damages up to $10,000 per violation.
- Review Cold-Climate Exclusions Wisconsin builder warranties commonly exclude damage from freeze-thaw cycles, ice damming, condensation, settling, and snow loading. These exclusions can affect significant issues in Wisconsin's climate.