Indiana § 32-27-2-9 Disclaimer of implied warranties

Indiana Statutes

§ 32-27-2-9 — Disclaimer of implied warranties

Indiana·Title 32 PROPERTY·Art. 27 CONSTRUCTION WARRANTIES ON REAL·Ch. 2 New Home Construction Warranties

(a)A builder may disclaim all implied warranties on a new home or model home only if the following conditions are met:

(1)The warranties defined in this chapter are expressly provided for in the written contract between a builder and:

(A)an initial home buyer of a new home; or

(B)the home buyer of a model home.

(2)The performance of the warranty obligations is backed by an insurance policy in an amount at least equal to the purchase price of the new home or model home.

(3)The builder carries completed operations products liability insurance covering the builder's liability for reasonably foreseeable consequential damages arising from a defect covered by the warranties provided by the builder on a new home.

(b)The disclaimer must be printed in a minimum size of 10 point boldface type

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(a) A builder may disclaim all implied
warranties on a new home or model home only if the following
conditions are met:
(1) The warranties defined in this chapter are expressly provided
for in the written contract between a builder and:
(A) an initial home buyer of a new home; or
(B) the home buyer of a model home.
(2) The performance of the warranty obligations is backed by an
insurance policy in an amount at least equal to the purchase price
of the new home or model home.
(3) The builder carries completed operations products liability
insurance covering the builder's liability for reasonably
foreseeable consequential damages arising from a defect covered
by the warranties provided by the builder on a new home.
(b) The disclaimer must be printed in a minimum size of 10 point
boldface type setting forth that the statutory warranties of section 8 of
this chapter for a new home or section 8.5 of this chapter for a model
home are in lieu of the implied warranties that have been disclaimed by
the builder, and the initial home buyer of a new home or the home
buyer of a model home must affirmatively acknowledge by complete
signature that the initial home buyer of a new home or the home buyer
of a model home has read, understands, and voluntarily agrees to the
disclaimer. Additionally, the initial home buyer or home buyer must
acknowledge the disclaimer of implied warranties by signing, at the
time of execution of the contract, a separate one (1) page notice,
attached to the contract, that includes and begins with 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 of time
provided in this 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
construction of the homeowner's home, as those reasonable
expectations are defined by the courts on a case by case basis.".
(c) If there is a default of either:
(1) the insurance for the performance of the warranty obligations;
or
(2) the completed operations products liability insurance;
the disclaimer by the builder is void from and after the default.
[Pre-2002 Recodification Citation: 32-15-7-9.]