ChitownLiving | Chicago Real Estate + Life

Illinois law provides that every contract for the construction of a new home, as here, carries with it a warranty that when completed, the home will be free of defects and will be fit for its intended use as a home.  This law further provides that this Implied Warranty does not have to be in writing to be a part of the contract and it covers not only structural and mechanical defect such as may be found in the foundation, roof, masonry, heating, electrical and plumbing, but it also covers any defect in workmanship which may not easily be seen by the purchaser.  However, the law also provides that a seller-developer and purchaser may agree in writing that this Implied Warranty is not included as a part of their particular agreement. Developers may omit this Warranty in the Purchase Agreement, and in lieu of all Implied Warranties, present a Certificate of Limited Warranty.  The language used to accomplish this may look something like the following: “Seller agrees to remedy defects due to faulty construction and/or defective materials in the Dwelling Unit for a period of One Year from the date of closing hereunder or the date of occupancy, whichever occurs first.”   Developers like to propose their own Limited Warranty as the other Implied Warranties appear to be more comprehensive and may expose the Developer to much more repair obligations. As a Purchaser of new construction, it is important to be aware of the warranty provision in the event something arises within that one year period.  The Purchaser may want to avoid hiring their own contractor to perform the work as this may negate the coverage afforded by the Developer’s Warranty. Prior New Construction Series Posts

• Purchaser Litigation
• Appraisal Contingency
• Closing