What are Implied Warranties?

Implied warranties are legal assurances that arise from the nature of the transaction and the relationship between the parties involved, rather than being specifically stated in a written contract. In the context of residential real estate and construction, an implied warranty often guarantees that the property is habitable, meets building codes, and is suitable for its intended use. These warranties are automatically in place due to the expectations of the parties based on common law principles, providing a layer of protection for buyers even if such warranties are not explicitly mentioned in a sales agreement.

For example, when a builder constructs a home, there is an expectation that the home is built to a certain standard and will be free from significant defects. This assurance does not need to be written down to be enforceable; it is inherent in the contract of sale. This contrasts with warranties that must be explicitly stated or those that only apply to written contracts, which do not provide the same level of automatic consumer protection.