In this article, the authors, whose first jointly written article on new home construction was published 22 years ago, will cover developments, which have occurred over that span of time, regarding important questions New York courts have been asked to address, respecting three significant legal issues, affecting the rights and obligations of builder-vendors vis à vis purchaser-vendees of “new home” condominium and co-op residential construction.

The ‘New Home’ Warranty

In Caceci v. Di Canio Construction, 72 NY2d 52 (1988), the rule of “Caveat Emptor” (buyer beware) was declared dead in New York consumer real estate transactions involving “new home” construction. In doing so, the Court of Appeals “recognize[d] the ‘Housing Merchant’ warranty, imposing by legal implication a contractual liability on a homebuilder for skillful performance and quality of a newly constructed home the defendant builder contracted for and sold to plaintiffs” (emphasis added).