Also known as: builder vendor · builder-vendors · builder/vendor
Written by attorneys — see sources below.
An entity that constructs and sells new residential dwellings as part of its business. The entity impliedly warrants that the homes are built in a reasonably workmanlike manner and are fit for human habitation.
Briarwood Capital built and sold a new condominium to Lopez. Lopez later sold the unit to the Nguyens. The Nguyens discovered sewage backups from defective original plumbing. In a jurisdiction allowing subsequent purchasers to enforce the implied warranty, the Nguyens may proceed against Briarwood despite lacking privity.
Vanguard Capital built and sold a new unit to Harper. Harper resold it to the Lopezes. The Lopezes found sewage backups from original construction flaws. In a jurisdiction limiting the implied warranty to parties in privity with the builder-vendor, the Lopezes cannot recover from Vanguard.
In 1974, IRM Corporation acquired a 36-unit apartment complex that had been built in 1962 and 1963. George Becker later leased one of the apartments in the complex. On November 21, 1978, Becker slipped and fell against the frosted glass shower door in his apartment; the door was made of untempered glass, broke on impact, and severely lacerated his arm. Prior to the acquisition, two IRM officers walked through most of the apartments and observed that all shower doors were of frosted glass and appeared identical. From acquisition until the 1978 accident, IRM received no reports of accidents involving the shower doors and was not advised that any were made of untempered glass. After the accident, IRM learned that 31 of the 36 shower doors were untempered; its maintenance man replaced them and stated that the only way to differentiate the glass types was by a very small mark in the corner of each piece, which was not visible upon ordinary inspection. Becker sued IRM for personal injury, asserting causes of action for strict liability and negligence. IRM moved for summary judgment. Becker filed no opposing affidavits. The trial court granted summary judgment and denied reconsideration. While the case was pending, Becker settled with the builder and a door assembler and installer for $150,000 plus an additional $50,000 contingent on the outcome against remaining defendants.
View caseCourts are split. Some jurisdictions allow subsequent purchasers to enforce the warranty against the original builder-vendor when defects trace to original construction and affect habitability. Others require privity and limit enforcement to the first buyer.
Supporting sources
The plaintiff must prove the home was not constructed in a reasonably workmanlike manner and is unsuitable for human habitation. The defects must be latent and traceable to the original construction by the builder-vendor.
Supporting sources
The warranty attaches when the sale is commercial rather than casual or personal. It requires that the dwelling was built for purposes of sale by an entity in the business of building such homes.
Supporting sources
Some courts limit the warranty when the home is no longer new because of prior occupancy. Others focus on whether the defects remained latent and affect habitability regardless of the time gap.
Supporting sources
…underlying reasons for the enforcement of strict liability against the manufacturer, seller or lessor of products or the mass builder-vendor of homes do not apply to the ordinary landlord of a multiple family dwelling. "Such a landlord is not engaged in mass production whereby he places his product — the apartment — in a…