In California, warranties for work performed by contractors are governed by a combination of statutory law, case law, and contractual agreements. Here’s an overview of the key aspects:
1. Implied Warranties
In California, certain warranties are implied by law in every construction contract:
Implied Warranty of Workmanlike Quality
- Definition: This warranty implies that the contractor will perform the work in a manner consistent with the standards of the trade.
- Duration: Typically, the duration of this implied warranty is determined by the statute of limitations for construction defects, which is generally 4 years for patent defects (obvious defects) and 10 years for latent defects (hidden defects) under California Code of Civil Procedure Sections 337.1 and 337.15.
Implied Warranty of Habitability
- Definition: This warranty ensures that the construction of residential properties meets basic living standards and is fit for human habitation.
- Duration: This is usually applicable for the duration of the structure’s useful life, but practical enforcement aligns with the statute of limitations for latent defects (10 years).
2. Express Warranties
Contractors and homeowners can agree to specific warranties that are explicitly stated in the contract. These express warranties can cover aspects such as materials, workmanship, and performance for a specified period.
- Duration: The duration and terms of express warranties are determined by the language in the contract. Contractors may offer warranties that extend beyond the statutory implied warranties.
3. California Civil Code Section 896
This section, part of the “Right to Repair Act” (also known as SB 800), outlines the standards that residential construction must meet. It establishes a statutory framework for addressing construction defects in new residential units sold after January 1, 2003.
- Actionable Defects: The Act provides a list of specific construction standards and the defects that would violate these standards.
- Builder’s Obligations: Builders must provide homeowners with a copy of these standards and a process for addressing any violations.
- Pre-Litigation Procedures: Homeowners are required to follow certain pre-litigation procedures, including notifying the builder of defects and allowing the builder an opportunity to repair before filing a lawsuit.
4. Breach of Warranty Claims
If a contractor breaches either an implied or express warranty, the homeowner may have legal recourse:
- Statute of Limitations: Homeowners have a limited time to file a claim, typically 4 years for patent defects and 10 years for latent defects, from the date of substantial completion of the construction.
- Remedies: Homeowners can seek remedies including repair costs, diminution in value, and in some cases, punitive damages if the contractor’s conduct was particularly egregious.
5. Limitation and Exclusion Clauses
Contractors may include limitation or exclusion clauses in their contracts that attempt to limit their liability or the duration of warranties. However, such clauses must comply with California law and cannot waive statutory protections provided to homeowners.
Practical Tips for Homeowners
- Review Contracts Carefully: Ensure that all warranties, both implied and express, are clearly stated in the contract.
- Document Issues: Keep detailed records of any defects or issues that arise during and after construction.
- Follow Procedures: Adhere to any pre-litigation procedures required under the Right to Repair Act or specified in the contract.
Conclusion
Understanding your rights and the warranties applicable to construction work in California is essential for ensuring that your contractor meets their obligations and your investment is protected. If you encounter any issues, it may be beneficial to consult with a real estate attorney who can provide guidance based on the specifics of your situation.