A new law requires builders of newly-constructed homes to provide transferable warranties for a minimum period of one-year beginning July 1. Originally passed during Florida’s 2024 Legislative Session, HB 623, entitled, “Home Warranty Transfers” was approved by Governor Ron Desantis on April 15, 2024, and will be effective on July 1, 2025. The legislation was sponsored by Rep. Kevin Steele (R-Dade City) and Sen. Danny Burgess (R-Zephyrhills). Builders and their representatives should review their warranty contracts to ensure they are in compliance with the new law.
Although builders are presently permitted to, and often offer their own warranties to home purchasers, the new law mandates that all builders provide warranties for newly-constructed homes for any construction defects of equipment, material, or workmanship furnished by the builder or any subcontractor or supplier resulting in a material violation of the Florida Building Code for a period of one-year after either the date of title conveyance or the date of initial occupancy, whichever comes first. For purposes of the new law, “material violation” means “a Florida Building Code violation that exists within a completed building, structure, or facility which may reasonably result, or has resulted, in physical harm to a person or significant damage to the performance of a building or its systems.”[i]
The warranty requirements of this law are limited to builders of newly-constructed homes. Under the law, a builder is the primary contractor who has the responsibility to supervise, direct, manage, and control the construction work for the new home for which they have obtained a building permit.[ii] Although the law provides warranties for defects resulting from the subcontractors or suppliers, the law places the responsibility on the primary contractor, and therefore excludes subcontractors and suppliers from the requirements of the statute.
The law applies to any residential real property or manufactured building, modular building or factory-built building (single-family dwelling, duplex, triplex or quadruplex) that has not been previously occupied. Builders are required by the statute to warrant a newly-constructed home for one-year even if the home is sold or transferred by the initial owner. Therefore, subsequent buyers of a newly-constructed home will be covered by the warranties guaranteed by the statute during the first year of the home’s existence.
However, the law allows builders who provide express warranties offering the same or greater coverage than contemplated by the statute to satisfy the provisions of the new law. This may be achieved where the express written warranty provided by a builder to the initial owner contains a scope, coverage, and duration that is the same or greater than that which is statutorily required and automatically transfers to a new owner during the initial year of the warranty. In instances where a builder offers an express warranty that is longer in duration than the new law requires, the warranty must state the length of time for which the warranty is granted, whether the warranty is transferable for a duration beyond the one-year requirement, and any other terms regarding the transferability of the warranty.
Along with defining what the statutorily required warranties cover, the new law also defines exclusions from the requirements. The statute clarifies that defects with respect to appliances or equipment covered under a manufacturer’s warranty are excluded from the provisions of the statute. The following defects are also expressly excluded from the covered warranties:
- Normal wear and tear;
- Normal house settling within generally acceptable trade practices;
- Damages resulting from incidents caused by anyone other than the builder, its employees, agents or contractors; and
- Acts of God, such as a natural disaster or fire caused by lightning.
Lastly, the law is limited to private causes of action by purchasers against builders that fail to comply with the provisions of the new requirements. In order to protect their interests, builders should review any warranties they offer to purchasers of newly-constructed homes to ensure they meet or exceed the new requirements.
[i] s. 553.84, Fla. Stat. (2024).
[ii] s. 553.993, Fla. Stat. (2024).
