Which implied warranty is applicable to the sale of a new home by its builder?

The sale of a new home by its builder is governed by the implied warranty of fitness/habitability. This warranty ensures that the home is constructed in a way that is suitable for living and meets certain standards of safety and quality. Builders are held to this standard because they possess the specialized knowledge and experience in constructing homes, and buyers rely on their expertise.

When a builder sells a newly constructed home, the implied warranty of fitness/habitability obligates them to deliver a house that is free from significant defects and suitable for human habitation. This means that essential elements such as plumbing, electrical systems, and structural integrity should function properly at the time of sale. If the builder fails to meet these criteria, the buyer may have a legal claim for damages or repairs.

Other options do not apply in the context of a new home sale. The implied warranty of title pertains to ensuring that the seller has the legal right to transfer ownership of the property, but this is not as common in the context of new construction. The implied warranty of merchantability applies to the sale of goods and is not relevant to real property sales. Therefore, recognizing that the implied warranty of fitness/habitability is specifically designed to protect homebuyers in the context of new construction distinguishes it as