MBE Fast Fact: Real Property Warranties

An interesting issue that pops up on the MBE deals with the differences between warranties allowable under the UCC and warranties for the sale of real property. Under the UCC for the sale of goods there are both express and implied warranties to consider carefully but for the sale of real property no implied warranties of quality or fitness for a particular purpose are generally allowable.

But there is an important exception to keep in mind. This exception allowing for implied warranties only applies for the sale of real property if the seller of the real property is also the builder of the property. There is an implied warranty that the new property is designed and constructed in a reasonably workmanlike manner and suitable for human habitation. In general, for purposes of this issue, it's enough to understand that a buyer will have no claim based solely on implied warranties against a seller of real property unless the seller was also the builder of the property, in which case the buyer can make a claim that the house was not constructed in a reasonably workmanlike manner.