NY Gen Bus L § 777-A (2021)
2021 New York Laws GBS - General Business Article 36-B - Warranties on Sales of New Homes 777-A - Housing Merchant Implied Warranty.

§  777-a.  Housing  merchant  implied warranty. 1. Notwithstanding the   provisions of section two hundred fifty-one of the real property law,  a   housing  merchant  implied  warranty  is  implied  in  the  contract  or   agreement for the sale of a new home and shall survive  the  passing  of   title. A housing merchant implied warranty shall mean that:a.  one  year  from  and after the warranty date the home will be free   from defects due to a failure to have been  constructed  in  a  skillful   manner;b.   two  years  from  and  after  the  warranty  date  the  plumbing,   electrical, heating, cooling and ventilation systems of the home will be   free from defects due to a failure by the builder to have installed such   systems in a skillful manner; andc. six years from and after the warranty date the home  will  be  free   from material defects.2.  Unless  the contract or agreement by its terms clearly evidences a   different intention of the seller, a housing merchant  implied  warranty   does not extend to:a.  any  defect  that does not constitute (i) defective workmanship by   the builder or by an agent, employee or subcontractor  of  the  builder,   (ii)  defective  materials  supplied  by  the  builder  or  by an agent,   employee or subcontractor of the  builder,  or  (iii)  defective  design   provided  by  a design professional retained exclusively by the builder;   orb. any patent defect which an examination ought in  the  circumstances   to  have  revealed,  when  the  buyer  before  taking title or accepting   construction as complete has examined the home as  fully  as  the  buyer   desired, or has refused to examine the home.3. In the case of goods sold incidentally with or included in the sale   of  the  new  home,  such  as  stoves, refrigerators, freezers, room air   conditioners,  dishwashers,  clothes  washers  and  dryers,  a   housing   merchant  implied warranty shall mean that such goods shall be free from   defects due to  failure  by  the  builder  or  any  agent,  employee  or   subcontractor  of  the  builder  to  have  installed  such  systems in a   skillful  manner.    Merchantability,  fitness  and  all  other  implied   warranties  with  respect  to  goods  shall be governed by part three of   article  two  of  the  uniform  commercial  code  and  other  applicable   statutes.4.  a.  Written  notice  of  a  warranty claim for breach of a housing   merchant implied warranty must be received by the builder prior  to  the   commencement  of any action under paragraph b of this subdivision and no   later than thirty days after the expiration of the  applicable  warranty   period,  as  described in subdivision one of this section. The owner and   occupant of the home shall afford the builder reasonable opportunity  to   inspect,  test  and repair the portion of the home to which the warranty   claim relates.b. An action for damages or other relief caused by  the  breach  of  a   housing  merchant  implied  warranty  may  be  commenced  prior  to  the   expiration  of  one  year  after  the  applicable  warranty  period,  as   described in subdivision one of this section, or within four years after   the  warranty date, whichever is later. In addition to the foregoing, if   the builder  makes  repairs  in  response  to  a  warranty  claim  under   paragraph  a  of  this subdivision, an action with respect to such claim   may be commenced within one year after  the  last  date  on  which  such   repairs  are  performed.  The measure of damages shall be the reasonable   cost  of  repair  or  replacement  and  property  damage  to  the   home   proximately  caused  by  the  breach  of  warranty,  not  to  exceed the   replacement cost of the home exclusive of the value of the land,  unless    the  court  finds that, under the circumstances, the diminution in value   of the home caused by the defect is a more equitable measure of damages.c.  In  addition to any other period for the commencement of an action   permitted by law, an action for contribution or indemnification  may  be   commenced  at  any  time  prior  to the expiration of one year after the   entry of judgment in an action for damages under  paragraph  b  of  this   subdivision.5.   Except   as   otherwise   provided   in   section  seven  hundred   seventy-seven-b  of  this  article,  any  provision  of  a  contract  or   agreement  for  the  sale  of  a  new  home which excludes or modifies a   housing merchant implied warranty shall be void as  contrary  to  public   policy.6.   Except   as   otherwise   provided   in   section  seven  hundred   seventy-seven-b of this article, other implied warranties may arise from   the terms of the contract or agreement or  from  course  of  dealing  or   usage of trade.