2014 Indiana Code TITLE 32. PROPERTY ARTICLE 27. CONSTRUCTION WARRANTIES ON REAL PROPERTY CHAPTER 1. STATUTORY HOME IMPROVEMENT WARRANTIES
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IC 32-27
ARTICLE 27. CONSTRUCTION WARRANTIES ON
REAL PROPERTY
IC 32-27-1
Chapter 1. Statutory Home Improvement Warranties
IC 32-27-1-1
Application of chapter
Sec. 1. (a) This chapter applies only to a home improvement that
is made under a home improvement contract.
(b) This chapter applies only to a home improvement contract
entered into after June 30, 1992.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-2
Warranty effective date
Sec. 2. The warranties defined by this chapter become effective on
the warranty date.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-3
"Home" defined
Sec. 3. (a) As used in this chapter, "home" means an attached or
detached single family dwelling.
(b) The term includes an attached garage.
(c) The term does not include:
(1) a driveway;
(2) a walkway;
(3) a patio;
(4) a boundary wall;
(5) a retaining wall not necessary for the structural stability of
the home;
(6) landscaping;
(7) a fence;
(8) an offsite improvement;
(9) an appurtenant recreational facility; or
(10) other similar item.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-4
"Home improvement" defined
Sec. 4. As used in this chapter, "home improvement" means any
alteration, repair, or other modification of an existing home.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-5
"Home improvement contract" defined
Sec. 5. As used in this chapter, "home improvement contract"
means a written agreement between a remodeler and an owner to
make a home improvement.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-6
"Load bearing parts of the home" defined
Sec. 6. As used in this chapter, "load bearing parts of the home"
means the following:
(1) Foundation systems and footings.
(2) Beams.
(3) Girders.
(4) Lintels.
(5) Columns.
(6) Walls and partitions.
(7) Floor systems.
(8) Roof framing systems.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-7
"Major structural defect" defined
Sec. 7. As used in this chapter, "major structural defect" means
actual physical damage to the load bearing functions of the load
bearing parts of the home that:
(1) were installed, altered, or repaired by the remodeler in the
course of remodeling the home; or
(2) although not installed, altered, or repaired by the remodeler,
were directly damaged by the work of the remodeler;
to the extent that the home becomes unsafe, unsanitary, or otherwise
unlivable.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-8
"Owner" defined
Sec. 8. As used in this chapter, "owner" means a person who:
(1) owns the home; and
(2) contracts with the remodeler to perform the home
improvement work in the home improvement contract.
The term includes any of the owner's successors in title before the
expiration of the warranties defined by this chapter.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-9
"Person" defined
Sec. 9. As used in this chapter, "person" means an individual, a
corporation, a limited liability company, a business trust, an estate,
a trust, a partnership, an association, a cooperative, or other legal
entity.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-10
"Remodeler" defined
Sec. 10. As used in this chapter, "remodeler" means a person who
contracts with an owner to alter, repair, or modify the owner's home.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-11
"Warranty date" defined
Sec. 11. As used in this chapter, "warranty date" means the date
by which all home improvements and work under the home
improvement contract have been substantially completed so the
owner can occupy and use the improvement in the manner
contemplated by the home improvement contract.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-12
Warranty coverage; warranties survive legal or equitable title
Sec. 12. (a) In performing home improvements and in contracting
to perform home improvements, a remodeler may warrant to the
owner the following:
(1) During the two (2) year period beginning on the warranty
date, the home improvement must be free from defects in
workmanship or materials.
(2) During the two (2) year period beginning on the warranty
date, the home improvement must be free from defects caused
by faulty installation of:
(A) new plumbing systems;
(B) new electrical systems;
(C) new heating, cooling, and ventilating systems; or
(D) extended parts of existing systems.
The warranty does not cover appliances, fixtures, or items of
equipment that are installed under the home improvement
contract.
(3) During the four (4) year period beginning on the warranty
date, the home improvement must be free from defects caused
by faulty workmanship or defective materials in the roof or roof
systems of the home improvement.
(4) During the ten (10) year period beginning on the warranty
date, the home improvement and affected load bearing parts of
the home must be free from major structural defects.
(b) The warranties provided in this section survive the passing of
legal or equitable title in the home to subsequent persons.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-13
Warranty disclaimers; conditions; acknowledgment; default
Sec. 13. (a) A remodeler may disclaim all implied warranties only
if all of the following conditions are met:
(1) The warranties defined in this chapter are expressly provided
for in the home improvement contract between a remodeler and
an owner.
(2) The performance of the warranty obligations is guaranteed
by an insurance policy in an amount equal to the contract price
made under the home improvement contract.
(3) The remodeler carries completed operations products
liability insurance covering the remodeler's liability for
reasonably foreseeable consequential damages arising from a
defect covered by the warranties provided by the remodeler.
(b) The disclaimer must be printed in a minimum size of 10 point
boldface type setting forth that the warranties defined by this chapter
replace the implied warranties that have been disclaimed by the
remodeler. The owner must affirmatively acknowledge by complete
signature that the owner has read, understands, and voluntarily agrees
to the disclaimer.
(c) The owner must acknowledge the disclaimer of implied
warranties by signing, at the time of execution of the home
improvement contract, a separate one (1) page notice attached to the
home improvement contract that includes the following language:
"NOTICE OF WAIVER OF IMPLIED WARRANTIES
I recognize that by accepting the express warranties and the
insurance covering those warranties for the periods provided in
this home improvement contract, I am giving up the right to any
claims for implied warranties, which may be greater than the
express warranties. Implied warranties are unwritten warranties
relating to the reasonable expectations of a homeowner with
regard to the remodeling and home improvement of the
homeowner's home, as those reasonable expectations are
defined by the courts on a case by case basis.".
(d) If there is a default of the:
(1) insurance for the performance of the warranty obligations;
or
(2) completed operations products liability insurance;
the disclaimer by the remodeler is void.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-14
Breach of warranty; award of damages
Sec. 14. (a) If a remodeler breaches a warranty set forth in section
12 of this chapter, the owner may bring an action against the
remodeler for:
(1) damages arising from the breach; or
(2) specific performance.
(b) If damages are awarded for a breach of a warranty set forth in
section 12 of this chapter, the award may not be for more than:
(1) the actual damages that are:
(A) necessary to effect repair of the defect that is the cause
of the breach; or
(B) the difference between the value of the home without the
defect and the home with the defect;
(2) the reasonably foreseeable consequential damages arising
from the defect covered by the warranty; and
(3) attorney's fees, if those fees are provided for in the written
contract between the parties.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-15
Warranties in addition to contract rights; remedies
Sec. 15. (a) The warranties defined in this chapter are in addition
to any other rights created by contract between the parties.
(b) The remedies provided in section 14 of this chapter do not
limit any remedies available in an action that is not predicated on the
breach of an express or implied warranty defined by this chapter.
As added by P.L.2-2002, SEC.12.
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