Does a Builder's Warranty Extend to Subsequent Purchasers? Answered by a Colorado Construction Defect Attorney

W. Neal Hollington
W. Neal Hollington

Apr 04, 2024

3 minute read

Construction Defects

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 and the assurance that the home is constructed in a workmanlike manner and suitable for habitation.

Does the Implied Warranty of Habitability and Fitness 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.

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. 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.

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.

Contact a Construction Defect Attorney Today

Navigating construction defect cases in Colorado requires a comprehensive understanding of the state's implied warranty laws and relevant legal precedents. Whether you're the first purchaser or a subsequent buyer, knowing your rights and obligations is essential when dealing with construction-related issues. 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.

The information provided on this website is for general informational purposes only and should not be construed as legal advice or legal opinion. You should not act or refrain from acting on the basis of any information provided on this website without seeking legal advice from an attorney.