IMPLIED WARRANTY IN NEW HOMES

Caveat Emptor - let the buyer beware - but not with the sale of new homes in New York: Article 36-B of the New York General Business Law imposes a warranty in favor of the buyers of new homes. But not for every newly built home as illustrated recently by a court in CARMEN E. MAESTRO FAMILY TRUST v. 449 WASHINGTON LLC, 2020 NY Slip Op 32054 - NY: Supreme Court June 22, 2020:

"The cause of action for breach of the implied housing merchant warranty, however, must be dismissed, since General Business Law article 36-B, which codified the common law housing warranty, applies only to new single-family homes or new for-sale units in a multi-unit residential structure of five stories or less, and not the seven story condominium at issue (see General Business Law § 777[5]). The common-law housing warranty embodied in Caceci v Di Canio Constr. Corp. (72 NY2d 52 [1988]) was supplanted by General Business Law article 36-B (see Fumarelli v Marsam Dev., 92 NY2d 298 [1998]). The statutory housing merchant warranty scheme codified under General Business Law article 36-B applies only to buildings of five stories or less, and not to the subject condominium, and the ruling in Fumarelli abrogates whatever common-law housing warranty may have existed with respect to buildings taller than five stories prior to the statutory codification (see Board of Mgrs. of Beacon Tower Condominium v 85 Adams St., LLC, 136 AD3d 680, 683 [2d Dept 2016]; 20 Pine St. Homeowners Assn. v 20 Pine St. LLC, 109 AD3d 733, 734 [1st Dept 2013])."