2023 New York Laws › GBS - General Business › Article 36-B - Warranties on Sales of New Homes › 777-B - Exclusion or Modification of Warranties.

§  777-b.  Exclusion  or  modification of warranties. 1. Except in the
  case of a housing merchant implied warranty, the builder or seller of  a
  new  home  may  exclude  or  modify  all  warranties  by  any  clear and
  conspicuous terms contained in the written contract or agreement of sale
  which call the buyer's attention to the  exclusion  or  modification  of
  warranties and make the exclusion or modification plain.
2.  Except  in  the  case  of a housing merchant implied warranty, the
  builder or seller of a new home may exclude or  modify  warranties  with
  respect  to  particular  defects  by  any  clear  and  conspicuous terms
  contained in the written contract or agreement of  sale  which  identify
  such   defects,   call   the  buyer's  attention  to  the  exclusion  or
  modification of warranties and make the exclusion or modification plain.
3. A housing merchant implied warranty may be excluded or modified  by
  the  builder  or  seller  of  a  new home only if the buyer is offered a
  limited warranty in accordance with the provisions of this subdivision.
a. A copy of the express  terms  of  the  limited  warranty  shall  be
  provided  in  writing  to the buyer for examination prior to the time of
  the buyer's execution of the contract or agreement to purchase the home.
b. A copy of the express  terms  of  the  limited  warranty  shall  be
  included  in,  or  annexed  to  and  incorporated  in,  the  contract or
  agreement.
c. The language of the contract or agreement for sale of the home must
  conspicuously mention the housing merchant implied warranty and  provide
  that  the  limited  warranty  excludes or modifies the implied warranty.
  Language to exclude all implied warranties is sufficient if  it  states,
  for  example, that "There are no warranties which extend beyond the face
  hereof."
d. The limited warranty shall meet or exceed the standards provided in
  subdivisions four and five of this section.
4. A limited warranty  sufficient  to  exclude  or  modify  a  housing
  merchant  implied  warranty  must  be  written in plain English and must
  clearly disclose:
a. that the warranty  is  a  limited  warranty  which  limits  implied
  warranties on the sale of the home; the words "limited warranty" must be
  clearly  and  conspicuously  captioned  at the beginning of the warranty
  document;
b. the identification of the names and addresses of all warrantors;
c. the identification of the party or parties to whom the warranty  is
  extended  and  whether  it is extended to subsequent owners; the limited
  warranty must be extended to the first owner of the home and survive the
  passing of title but may exclude any or all subsequent owners;
d. a statement of  the  products  or  parts  covered  by  the  limited
  warranty;
e.  the  clear and conspicuous identification of any parts or portions
  of the home or premises that are  excepted  or  excluded  from  warranty
  coverage,  and  the  standards  that will be used to determine whether a
  defect has occurred; provided, however, that:
i. any exception, exclusion or standard which does not meet or  exceed
  a  relevant specific standard of the applicable building code, or in the
  absence of such relevant specific standard a locally  accepted  building
  practice, shall be void as contrary to public policy and shall be deemed
  to  establish  the applicable building code standard or locally accepted
  building practice as the warranty standard; and
ii. any exception, exclusion or standard that fails to ensure that the
  home is habitable, by permitting conditions to exist  which  render  the
  home unsafe, shall be void as contrary to public policy.
f.  what  the  builder  and  any other warrantor will do when a defect
  covered by the warranty does  arise,  and  the  time  within  which  the
  builder and any other warrantor will act;
g.  the  term  of  the  warranty  coverage  and  when the term begins,
  provided, however, that such term  shall  be  equal  to  or  exceed  the
  warranty  periods  of a housing merchant implied warranty, as defined in
  subdivision  one  of  section  seven  hundred  seventy-seven-a  of  this
  article;
h.  step-by-step  claims  procedures  required to be undertaken by the
  owner, if any, including directions for notification of the builder  and
  any other warrantor; an owner shall not be required to submit to binding
  arbitration  or to pay any fee or charge for participation in nonbinding
  arbitration or any mediation process;
i. any limitations on or exclusions  of  consequential  or  incidental
  damages,  and  any  limitations  on  the builder's and other warrantor's
  total liability, conspicuously  expressed  on  the  first  page  of  the
  warranty. Notwithstanding the foregoing, a limited warranty shall not be
  construed to permit any limitation on or exclusion of property damage to
  the  home  proximately caused by a breach of the limited warranty, where
  the court finds that  such  limitation  or  exclusion  would  cause  the
  limited  warranty  to  fail  of  its essential purpose, except that such
  property damage may be limited by an express limitation on the builder's
  or other warrantor's total liability in accordance with  the  provisions
  of this paragraph.
5. a. This article shall not be construed to authorize or validate any
  covenant,   promise,  agreement  or  understanding  which  is  void  and
  unenforceable under section 5-322.1 of the general obligations law.
b. This article shall preempt any  local  law  inconsistent  with  the
  provisions  of  this article. This article shall not preempt any builder
  subject to its provisions from complying with any local law with respect
  to the regulation of home builders except as expressly provided herein.
c. Nothing in this article shall be construed to  repeal,  invalidate,
  supersede  or  restrict  any  right, liability or remedy provided by any
  other statute of the state, except where such construction would,  as  a
  matter of law, be unreasonable.