Do Builder Warranties Transfer to New Homeowners?

When you purchase a new home, you expect it to be well-built, safe, and suitable for habitation. In Colorado, there are legal protections in place to ensure that home buyers receive what they've paid for.

Understanding the implied warranty of habitability and fitness, along with the responsibilities of builders and contractors, is crucial for anyone facing construction defects in their property. As a construction defect attorney, one question that comes up often after the purchase of a new home is whether a builder's warranty extends to a subsequent purchaser of the property.

This article will answer that question based on current Colorado law.

The Implied Warranty of Habitability and Fitness

The implied warranty of habitability and fitness is a fundamental aspect of Colorado's construction law. It originates from the contractual relationship between the builder and the first purchaser.

This warranty encompasses various aspects, including:

• Compliance with building codes

• Assurance that the home is constructed in a workmanlike manner

• Guarantee that the home is suitable for habitation

Does the Implied Warranty Extend to Subsequent Home Buyers?

Key legal cases such as Cosmopolitan Homes, Inc. v. Weller have shaped the landscape of construction defect law in Colorado. These cases establish that the implied warranty primarily extends to the first purchasers of the property only.

As such, a subsequent purchaser is not permitted to assert a claim for breach of warranty against a builder, because there is no privity of contract.

Legal Protections for Subsequent Purchasers

However, subsequent purchasers are not left unprotected. Builders and contractors are held to a standard of reasonable care in their duties, which includes ensuring the safety and structural integrity of the property for all foreseeable users.

Duty of Care vs. Contractual Relationship

This duty of care is not dependent on a contractual relationship but is grounded in public policy considerations aimed at safeguarding home buyers from potential harm caused by negligent construction practices.

Negligence Claims for Economic Losses

Despite the absence of direct contractual privity, subsequent purchasers have legal recourse in Colorado. In particular, they can bring forth actions in negligence to seek compensation for economic losses resulting from latent structural defects.

This principle, established in cases like Cosmopolitan Homes, Inc. v. Weller and Yacht Club II Homeowners Ass'n v. A.C. Excavating, underscores the importance of holding builders accountable for their actions, irrespective of the buyer's position in the chain of ownership.

Key Takeaways for Colorado Homeowners

Whether you're the first purchaser or a subsequent buyer, understanding your rights is essential when dealing with construction-related issues. Here's what you need to know:

• First purchasers: Protected by implied warranty of habitability and fitness

• Subsequent purchasers: Can pursue negligence claims for latent structural defects

• All purchasers: May benefit from express warranties in construction contracts that specifically transfer to new owners

Getting Legal Help

Navigating construction defect cases in Colorado requires a comprehensive understanding of the state's implied warranty laws and relevant legal precedents. If you find yourself facing challenges regarding construction defects in your property, consulting with a knowledgeable construction defect attorney can provide you with the guidance and representation needed to protect your interests and seek appropriate remedies.

Understanding Colorado's Construction Defect Action Reform Act and other relevant statutes is also crucial for protecting your rights as a homeowner, regardless of when you purchased your property.