2006 Code of Virginia § 55-70.1 - Implied warranties on new homes

55-70.1. Implied warranties on new homes.

A. In every contract for the sale of a new dwelling, the vendor shall be heldto warrant to the vendee that, at the time of the transfer of record title orthe vendee's taking possession, whichever occurs first, the dwelling with allits fixtures is, to the best of the actual knowledge of the vendor or hisagents, sufficiently (i) free from structural defects, so as to pass withoutobjection in the trade, and (ii) constructed in a workmanlike manner, so asto pass without objection in the trade.

B. In addition, in every contract for the sale of a new dwelling, the vendor,if he is in the business of building or selling such dwellings, shall be heldto warrant to the vendee that, at the time of transfer of record title or thevendee's taking possession, whichever occurs first, the dwelling togetherwith all its fixtures is sufficiently (i) free from structural defects, so asto pass without objection in the trade, (ii) constructed in a workmanlikemanner, so as to pass without objection in the trade, and (iii) fit forhabitation.

C. The above warranties implied in the contract for sale shall be held tosurvive the transfer of title. Such warranties are in addition to, and not inlieu of, any other express or implied warranties pertaining to the dwelling,its materials or fixtures. A contract for sale may waive, modify or excludeany or all express and implied warranties and sell a new home "as is" onlyif the words used to waive, modify or exclude such warranties areconspicuous (as defined by subdivision (10) of 8.1A-201), set forth on theface of such contract in capital letters which are at least two points largerthan the other type in the contract and only if the words used to waive,modify or exclude the warranties state with specificity the warranty orwarranties that are being waived, modified or excluded. If all warranties arewaived or excluded, a contract must specifically set forth in capital letterswhich are at least two points larger than the other type in the contract thatthe dwelling is being sold "as is".

D. If there is a breach of warranty under this section, the vendee, or hisheirs or personal representatives in case of his death, shall have a cause ofaction against his vendor for damages; provided, however, for any defectdiscovered after July 1, 2002, such vendee shall first provide the vendor, byregistered or certified mail at his last known address, a written noticestating the nature of the warranty claim. After such notice, the vendor shallhave a reasonable period of time, not to exceed six months, to cure thedefect that is the subject of the warranty claim.

E. The warranty shall extend for a period of one year from the date oftransfer of record title or the vendee's taking possession, whichever occursfirst, except that the warranty pursuant to subdivision (i) of subsection Bfor the foundation of new dwellings shall extend for a period of five yearsfrom the date of transfer of record title or the vendee's taking possession,whichever occurs first. Any action for its breach shall be brought within twoyears after the breach thereof. As used in this section, the term "newdwelling" shall mean a dwelling or house which has not previously beenoccupied for a period of more than 60 days by anyone other than the vendor orthe vendee or which has not been occupied by the original vendor orsubsequent vendor for a cumulative period of more than 12 months excludingdwellings constructed solely for lease. The term "new dwelling" shall notinclude a condominium or condominium units created pursuant to Chapter 4.2 (55-79.39 et seq.) of this title.

F. The term "structural defects," as used in this section, shall mean adefect or defects that reduce the stability or safety of the structure belowaccepted standards or that restrict the normal use thereof.

G. In the case of new dwellings where fire-retardant treated plywoodsheathing or other roof sheathing materials are used in lieu offire-retardant treated plywood the vendor shall be deemed to have assignedthe manufacturer's warranty, at settlement, to the vendee. The vendee shallhave a direct cause of action against the manufacturer of such roof sheathingfor any breach of such warranty. To the extent any such manufacturer'swarranty purports to limit the right of third parties or prohibit assignment,said provision shall be unenforceable and of no effect.

(1979, c. 282; 1988, c. 394; 1992, c. 431; 1994, cc. 483, 766; 2002, c. 795;2003, c. 353.)