Ind. Code ch. 32-27-2

Ind. Code ch. 32-27-2
in effect

Ind. Code § 32-27-2-1 Effective date of warranties

Sec. 1. The warranties defined by this chapter (or IC 34-4-20.5 or IC 32-15-7 before their repeal) become effective on the warranty date attributed to a new home or model home. [Pre-2002 Recodification Citation: 32-15-7-1.] As added by P.L.2-2002, SEC.12. Amended by P.L.137-2023, SEC.2.

Ind. Code § 32-27-2-2 "Initial home buyer" defined

Sec. 2. As used in this chapter, "initial home buyer" means a person who: (1) executes a contract with a builder to buy a new home; and (2) either: (A) occupies the new home as: (i) the home's first occupant; and (ii) a residence; or (B) rents the new home to an individual who occupies the new home as: (i) the home's first occupant; and (ii) a residence. [Pre-2002 Recodification Citation: 32-15-7-2.] As added by P.L.2-2002, SEC.12. Amended by P.L.137-2023, SEC.3.

Ind. Code § 32-27-2-3 "Major structural defect" defined

Sec. 3. As used in this chapter, "major structural defect" means actual damage to the load bearing part of a new home or model home, including actual damage due to: (1) subsidence; (2) expansion; or (3) lateral movement; of the soil affecting the load bearing function, unless the subsidence, expansion, or lateral movement of the soil is caused by flood, earthquake, or some other natural disaster. [Pre-2002 Recodification Citation: 32-15-7-3.] As added by P.L.2-2002, SEC.12. Amended by P.L.137-2023, SEC.4.

Ind. Code § 32-27-2-3.5 "Model home" defined

Sec. 3.5. (a) As used in this chapter, "model home" means a new dwelling that is used for the first time after construction as: (1) a model; (2) a sales office; (3) a design center; or (4) any combination of subdivisions (1) through (3). (b) After June 30, 2023, the term does not include a mobile home, a manufactured home, or an industrialized residential structure. As added by P.L.137-2023, SEC.5.

Ind. Code § 32-27-2-4 "New home" defined

Sec. 4. (a) As used in this chapter, "new home" means a new dwelling occupied for the first time as a residence after construction. (b) The term does not include: (1) a detached garage; (2) a driveway; (3) a walkway; (4) a patio; (5) a boundary wall; (6) a retaining wall not necessary for the structural stability of the new home; (7) landscaping; (8) a fence; (9) nonpermanent construction material; (10) an off-site improvement; (11) an appurtenant recreational facility; (12) other similar item; or (13) a model home. (c) After June 30, 2023, the term does not include a mobile home, manufactured home, or an industrialized residential structure. [Pre-2002 Recodification Citation: 32-15-7-4.] As added by P.L.2-2002, SEC.12. Amended by P.L.137-2023, SEC.6.

Ind. Code § 32-27-2-5 "Home buyer" defined

Sec. 5. (a) As used in this chapter, "home buyer" means a purchaser of a new home or a model home. (b) The term includes any owner of the new home or model home before the expiration of the warranties defined by this chapter. [Pre-2002 Recodification Citation: 32-15-7-5.] As added by P.L.2-2002, SEC.12. Amended by P.L.137-2023, SEC.7.

Ind. Code § 32-27-2-6 "Builder" defined

Sec. 6. As used in this chapter, "builder" means a person who constructs new homes for sale, including the construction of new homes on land owned by home buyers. [Pre-2002 Recodification Citation: 32-15-7-6.] As added by P.L.2-2002, SEC.12.

Ind. Code § 32-27-2-7 "Warranty date" defined

Sec. 7. As used in this chapter, "warranty date" means the following: (1) In the case of a new home, the date of the first occupancy of the new home as a residence by one (1) of the following: (A) The builder. (B) An individual renting the home from the builder. (C) An individual living in the home at the request of the builder. (D) The initial home buyer. (E) An individual renting the home from the initial home buyer. (2) In the case of a model home, the date that the home was first used as a model home. [Pre-2002 Recodification Citation: 32-15-7-7.] As added by P.L.2-2002, SEC.12. Amended by P.L.165-2005, SEC.9; P.L.137-2023, SEC.8.

Ind. Code § 32-27-2-8 Warranties of builder; survival of warranties

Sec. 8. (a) In selling a completed new home, and in contracting to sell a new home to be completed, the builder may warrant to the initial home buyer the following: (1) During the two (2) year period beginning on the warranty date, the new home will be free from defects caused by faulty workmanship or defective materials. (2) During the two (2) year period beginning on the warranty date, the new home will be free from defects caused by faulty installation of: (A) plumbing; (B) electrical; (C) heating; (D) cooling; or (E) ventilating; systems, exclusive of fixtures, appliances, or items of equipment. (3) During the four (4) year period beginning on the warranty date, the new home will be free from defects caused by faulty workmanship or defective materials in the roof or roof systems of the new home. (4) During the ten (10) year period beginning on the warranty date, the new home will be free from major structural defects. (b) The warranties provided in this section (or IC 34-4-20.5-8 or IC 32-15-7 before their repeal) survive the passing of legal or equitable title in the new home to a home buyer. (c) An individual identified in section 7(1)(A), 7(1)(B), or 7(1)(C) of this chapter who is selling a new home shall notify the purchaser of the home in writing on or before the date of closing or transfer of the new home of: (1) the warranty date (as defined in section 7 of this chapter); and (2) the amount of time remaining under the warranty. [Pre-2002 Recodification Citation: 32-15-7-8.] As added by P.L.2-2002, SEC.12. Amended by P.L.165-2005, SEC.10; P.L.137-2023, SEC.9.

Ind. Code § 32-27-2-8.5 Model home warranty

Sec. 8.5. (a) In selling a model home, the builder may warrant to the home buyer that during the ten (10) year period beginning on the warranty date the model home will be free from major structural defects. (b) The warranty provided in this section survives the passing of legal or equitable title in the model home to a subsequent home buyer. (c) The home buyer who purchases the model home from the builder shall, in writing on or before the date of closing or transfer of the model home to a subsequent home buyer, notify the subsequent home buyer of: (1) the warranty date (as defined in section 7 of this chapter); and (2) the amount of time remaining under the warranty. As added by P.L.137-2023, SEC.10.

Ind. Code § 32-27-2-9 Disclaimer of implied warranties

Sec. 9. (a) A builder may disclaim all implied warranties on a new home or model home only if the following conditions are met: (1) The warranties defined in this chapter are expressly provided for in the written contract between a builder and: (A) an initial home buyer of a new home; or (B) the home buyer of a model home. (2) The performance of the warranty obligations is backed by an insurance policy in an amount at least equal to the purchase price of the new home or model home. (3) The builder carries completed operations products liability insurance covering the builder's liability for reasonably foreseeable consequential damages arising from a defect covered by the warranties provided by the builder on a new home. (b) The disclaimer must be printed in a minimum size of 10 point boldface type setting forth that the statutory warranties of section 8 of this chapter for a new home or section 8.5 of this chapter for a model home are in lieu of the implied warranties that have been disclaimed by the builder, and the initial home buyer of a new home or the home buyer of a model home must affirmatively acknowledge by complete signature that the initial home buyer of a new home or the home buyer of a model home has read, understands, and voluntarily agrees to the disclaimer. Additionally, the initial home buyer or home buyer must acknowledge the disclaimer of implied warranties by signing, at the time of execution of the contract, a separate one (1) page notice, attached to the contract, that includes and begins with the following language: "NOTICE OF WAIVER OF IMPLIED WARRANTIES I recognize that by accepting the express warranties and the insurance covering those warranties for the periods of time provided in this contract, I am giving up the right to any claims for implied warranties, which may be greater than the express warranties. Implied warranties are unwritten warranties relating to the reasonable expectations of a homeowner with regard to the construction of the homeowner's home, as those reasonable expectations are defined by the courts on a case by case basis.". (c) If there is a default of either: (1) the insurance for the performance of the warranty obligations; or (2) the completed operations products liability insurance; the disclaimer by the builder is void from and after the default. [Pre-2002 Recodification Citation: 32-15-7-9.] As added by P.L.2-2002, SEC.12. Amended by P.L.137-2023, SEC.11.

Ind. Code § 32-27-2-10 Breach of warranty; actions against builder; damages; attorney's fees

Sec. 10. (a) If a builder provides and breaches a warranty set forth in section 8 or 8.5 of this chapter (or IC 34-4-20.5-8 or IC 32-15-7-8 before their repeal), the home buyer may bring an action against the builder for: (1) damages arising from the breach; or (2) specific performance. (b) If damages are awarded for a breach of a warranty set forth in section 8 or 8.5 of this chapter (or IC 34-4-20.5-8 or IC 32-15-7-8 before their repeal), the award may be for not more than: (1) the actual damages, which are either: (A) the amount necessary to effect repair of the defect that is the cause of the breach; or (B) the amount of the difference between the value of the new home without the defect and the value of the new home with the defect; (2) the reasonably foreseeable consequential damages arising from the defect covered by the warranty; and (3) attorney's fees, if those fees are provided for in the written contract between the parties. [Pre-2002 Recodification Citation: 32-15-7-10.] As added by P.L.2-2002, SEC.12. Amended by P.L.137-2023, SEC.12.

Ind. Code § 32-27-2-11 Warranties in addition to contract rights; other remedies

Sec. 11. (a) The warranties set forth in this chapter (or IC 34-4-20.5 or IC 32-15-7 before their repeal) are in addition to any rights created by contract between the parties. (b) The remedies provided in section 10 of this chapter (or IC 34-4-20.5-10 or IC 32-15-7-10 before their repeal) do not limit any remedies available in an action that is not predicated upon the breach of an express or implied warranty set forth in this chapter (or IC 34-4-20.5 or IC 32-15-7 before their repeal) or otherwise existing. [Pre-2002 Recodification Citation: 32-15-7-11.] As added by P.L.2-2002, SEC.12.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/32Fetched: 10/17/2026

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