Florida Imposes Mandatory 1-Year Warranty on Newly Constructed Homes

Effective July 1, Florida law will require builders of newly constructed homes to provide a mandatory 1-year warranty against material construction defects. The new statute, Section 553.837, Florida Statutes, establishes minimum warranty standards and remedies, and will have significant implications for residential builders, developers, and real estate professionals operating in Florida.

The new law applies to all newly constructed single-family, duplex, triplex, and quadruplex homes, including modular and factory-built buildings, which have not been previously occupied. Builders must warrant that the home is free from construction defects involving materials, equipment, or workmanship that result in a material violation of the Florida Building Code.

Builders must remedy covered defects at their own expense and restore any work damaged during the repair. And the warranty must transfer to subsequent owners during the first year, even if the home is sold.

The warranty lasts one year from the earlier of:

• Conveyance of title to the first owner, or
• Initial occupancy of the home.

Written Warranties and Enforcement

Express written warranties are allowed. Builders may provide their own written warranty if it:

• Offers equal or greater protection
• Automatically transfers during the first year and
• Discloses any extended coverage terms.

Enforcement is limited to a private civil cause of action by the home purchaser. This law does not extend the statute of repose for construction claims.

What Does This Mean for Businesses and Individuals

• Builders and Developers: Review and, if necessary, revise contract and warranty documents to ensure compliance with the statutory minimum. Consider the implications for risk management and insurance coverage, including whether contractual alternative dispute resolution like pre-suit mediation or arbitration should be included in your contracts. 
• Real Estate Professionals and Brokers: Ensure disclosures and sales materials reflect the new warranty requirements and transfer rules.
• Homebuyers: Gain statutory protection regardless of whether the builder offers a separate warranty, and regardless of whether the home is later resold during the first year.

Please contact Bret Feldman or any member of the Phelps Construction/Design team if you have questions about how this new law affects your contracts, warranty programs or potential liability exposure or need advice or guidance.