HB 623: Mandatory Builder Warranties for Florida General, Building, and Residential Contractors

July 27, 2024
Amy Thayer

In a significant move to enhance consumer protection in Florida's housing market, Governor DeSantis signed House Bill 623 (HB 623) into law on April 15, 2024. This new legislation mandates that builders provide a warranty for newly constructed homes, aiming to safeguard new home buyers from potential defects and construction issues.

Key Provisions of HB 623

Mandatory Builder Warranty: One of the cornerstone requirements of HB 623 is the introduction of a mandatory builder warranty for all newly constructed homes. This warranty is designed to ensure that builders are held accountable for the quality and durability of their construction, providing homeowners with peace of mind and financial protection against unforeseen construction defects.

Effective Date: The new law will officially go into effect on July 1, 2025. This gives builders ample time to adjust their practices and ensure compliance with the new warranty requirements.

Detailed Requirements: For those seeking more detailed information on the specific requirements and provisions of the mandatory builder warranties, the full text of the law can be reviewed in Chapter 2024-95, Laws of Florida. The document outlines the scope, duration, and conditions of the warranties that builders must provide, ensuring transparency and clarity for both builders and home buyers.

Benefits for Home Buyers

Enhanced Protection: The mandatory builder warranty provides a significant layer of protection for new home buyers, covering various aspects of construction quality. This includes structural integrity, plumbing, electrical systems, and other critical components of a new home.

Financial Security: In the event of construction defects or failures, the builder warranty ensures that homeowners are not left to shoulder the financial burden of repairs. This can lead to substantial savings and avoid the stress associated with major home repairs soon after purchase.

Increased Accountability: By mandating builder warranties, HB 623 increases accountability within the construction industry. Builders are incentivized to adhere to higher standards of quality and craftsmanship, knowing that they are responsible for rectifying any defects covered under the warranty.

What Builders Need to Know

Compliance Requirements: Builders must familiarize themselves with the specific compliance requirements outlined in HB 623 to ensure they are ready for the July 1, 2025, implementation date. This includes understanding the scope of the warranties they must provide and making any necessary adjustments to their construction practices and contracts.

Documentation and Records: Proper documentation and record-keeping will be crucial for builders under the new law. Builders must maintain detailed records of the warranties provided, including any claims made by homeowners and the actions taken to resolve them. This documentation will be essential in demonstrating compliance with HB 623.

Conclusion

House Bill 623 represents a significant step forward in protecting new home buyers in Florida. By requiring mandatory builder warranties for newly constructed homes, the law ensures greater accountability in the construction industry and provides homeowners with vital financial and structural protections. As the effective date of July 1, 2025, approaches, both builders and home buyers should familiarize themselves with the new requirements to fully understand their rights and responsibilities under this important legislation.

For more details on the requirements for mandatory builder warranties, please review the new law here: Chapter 2024-95, Laws of Florida.

Stay informed and prepared as Florida continues to lead the way in protecting its residents and enhancing the quality of life for new home buyers.