While many homebuilders in Florida already offer warranties on new construction, a new state law goes into effect July 1 of this year that will require a one-year transferable warranty on any new residential construction of up to four units.
The rule was signed into law by Gov. Ron Desantis in April 2024 and can be found in Section 553.837 of the Florida Statutes. It requires builders of stick-built, factory-built, modular and manufactured residences to guarantee against “construction defects of equipment, material, or workmanship furnished by the builder or any subcontractor or supplier resulting in a material violation of the Florida Building Code….”
The warranty takes effect on the date of initial occupancy or when title transfers to the initial owner – whichever comes first. It doesn’t apply to renovations, remodeling projects or commercial construction.
The rule is designed to establish a statewide minimum level of warranty coverage. Builders that already offer new home warranties that meet or exceed the state standards won’t have to change terms of those policies.
But “the builder’s written warranty must state that it is longer than the statutory warranty, and state whether the warranty is transferrable for a duration beyond one year and the terms under which the warranty may be transferred,” according to C. Ryan Maloney, with the Florida law firm Shutts & Bowen.
Here’s what the new warranties are NOT required to cover:
Florida law defines a builder as “the primary contractor who possesses the requisite skill, knowledge, and experience, and has the responsibility, to supervise, direct, manage, and control the contracting activities of the business organization with which she or he is connected and who has the responsibility to supervise, direct, manage, and control the construction work on a job for which she or he has obtained the building permit. Construction work includes, but is not limited to, foundation, framing, wiring, plumbing, and finishing work.”
This definition means that subcontractor trades or others who work at the builder’s direction aren’t required to provide their own warranties, Maloney points out.
The law states that a builder must repair any defects covered by the warranty at their own expense. If work to fulfill the warranty results in any other damage, the builder must cover that as well.
Builders are permitted to cover their own risk by purchasing a warranty from a state-licensed home warranty association, as described in Chapter 634 Part II of Florida law.
As a result of the new law, “General contractors and subcontractors will be under increased pressure to produce work that is free from defects, and warranty provisions in their contracts will likely become more stringent,” according to the Florida Roofing and Sheet Metal contractors Association. “Meanwhile … and careful builders should ensure that these warranty requirements are reflected in their subcontracts to adequately protect themselves.”
Here are the most common home construction defects in Florida homes, according to Wilson, Reeder & Zudar law firm.
From among the pandemic, higher interest rates and natural disasters like Hurricane Ian in 2022, housing starts in parts of Florida served by Best Supply (Orlando, Sarasota and Fort Myers) have been up and down over the past several years. Even so, the long-term trend has been steadily upward since bottoming out during the 2008 financial crisis.
According to the U.S. Census Bureau, permits for 1,491 new houses were authorized in the Cape Coral-Fort Myers area in February, compared to 1,350 for the same period last year. Orlando-Kissimmee-Sanford saw 1,267 permits (vs. 907); and North Port-Sarasota-Bradenton had 1,506 permits (vs. 964).
Best Supply’s regional distribution centers follow best practices to ensure that products are kept in pristine condition and delivered on time so you have one less worry about maintaining schedules and providing defect-free construction. Let us help with your next job. Request a quote here.