MESSAGE ABOUT CORONAVIRUS  More Link

Q&A: Waiving Warranty of Habitability?

Q I am buying a condo. The developer wants me to waive the implied warranty of habitability? Is this normal? His reason being they rehabbed the building and didn't build it from scratch. Should I be alarmed?

—Prospective Shopper

A “Illinois courts have held that purchasers of residential real estate can waive the implied warranty of habitability,” says partner James Erwin of the Chicago-based law firm Erwin & Associates LLC, “though they have also delineated specific requirements for a valid waiver, including the fact that it must refer to the implied warranty of habitability by name. Developers now routinely include waivers of the implied warranty of habitability in their contracts. This is typically the case regardless of whether the developer has rehabilitated an existing structure or has built the structure from scratch.

“You should consult with a real estate attorney for advice on the particulars of the waiver you are being asked to sign. An attorney should review the document and give you advice regarding what the implied warranty of habitability constitutes, when it applies and what you are forgoing if you waive that warranty. He or she can request that the waiver of implied warranty be removed but the occasion on which that request is granted is extremely rare. It is the norm for a developer to instead provide limited warranties which expressly cover certain specified defects for a specific term after closing and which also expressly exclude other types of defects, so your attorney should also advise you as to any express limited warranties you may be getting in lieu of the implied warranty of habitability or, if none is being offered by this developer, your attorney can assist in negotiating for such limited warranties.

“Finally, you must remember that any warranty, whether implied or express, is only as good as the developer’s ability to back it up. Especially in these tougher economic conditions, many developers are struggling and lack financial stability. You should conduct as much due diligence into the background and history of the developer as possible to see if they appear to have a good track record and solid financial footing.”

Related Articles

Q&A: What about the Warranty of Habitability?

Q&A: What about the Warranty of Habitability?

 

2 Comments

  • Listen you are most likely on a month to month agmeerent right now. You'd be under obligation to give the landlord 30 days notice. Just move out. He can come after you and potentially sue you for the 30 days due to him, but it will still be worth it to get out now. Go ahead and take some pictures and document the living conditions. There may be recourse to go to your city government and get him in trouble or fight things out in court but why do that? It will be worth it to you and your family to just get out now. Don't pay him if you can't afford to right now but make arrangements to pay him the final month. It will be best to educate yourself online. This sleaze bag may try to push you around but the more you know the better. Best thing to do is get out now and make arrangements to pay the 30 days off with him as soon as you can.
  • I would never sign away your rights by signing a waiver for the implied warranty of habitability. THIS WOULD BE A HUGE MISTAKE IN MY OPINION AND EXPERIENCE.