Recent Changes to Warranty Requirements for New Homes Impact Contractor Agreements

Builders in Florida must remain on constant alert of the ever-changing landscape of Florida law. One recent change in law that affects residential homebuilders is the passage of a new law setting forth minimum warranty standards for newly constructed residences. The new law which began as Florida House Bill 623 was approved during last year’s state legislative session, and became effective as law on July 1, 2025, as Section 553.837, Florida Statutes. Section 553.837 affects residential builders (including builder developers) of new construction and is applicable to new real residential real property including single family, duplex, triplex, or quadruplex dwellings, and newly manufactured or modular homes.

More specifically, Section 553.837 requires builders to provide a transferable minimum one-year warranty for all construction defects of equipment, material, or workmanship that result in material violations of the Florida Building Code. Normal settling, wear and tear, damage from homeowner’s work and Acts of God are excluded from the warranty requirements, as are appliances and equipment that are covered under a manufacturer’s warranty. The one-year construction defect warranty begins from the conveyance of title to the initial owner or upon initial occupancy, whichever is earlier.

The warranty is implied by statute and exists when builders act as the primary contractor for a newly constructed home, although these builders are able to provide their own express warranty if it offers equal or greater protection. Furthermore, these builders may purchase a warranty from a home warranty association to cover their statutory warranty obligations.

Builders will want to work with their legal, insurance, and homebuilder warranty coverage experts to carefully analyze their current contracts to ensure compliance with the new law and to identify and address any insurance coverage gaps. Existing language in a builder’s form agreement which limits or appears to limit builder responsibility or homeowners’ remedies for defects within the one-year statutory warranty period should be analyzed by builder’s legal expert. It may need to be revised. Builders should also review their agreements with subcontractors and materialmen to ensure that the risk of loss is appropriately allocated and that any liability gaps created by the new statute are addressed.