Question

The builder of a new house sold the house to a buyer, conveying it to the buyer by warranty deed. One year later, the buyer sold the house to a woman for $50,000 more than the buyer had paid, conveying it to the woman by a quitclaim deed. Four months after moving in, the woman discovered a number of latent defects in the foundation that caused the house's basement to take on water during heavy rains. The woman contacted the builder about the problem. Toward the end of their heated conversation, the builder yelled at her, "So get it fixed!" After the woman had the foundation repaired by a cement contractor at a cost of $25,000, she successfully sued the builder to recover that amount from him.What is most likely reason that woman was successfu?

Answer 1

Answer: To answer this question, we must first add the options.

A. The court found that by paying the buyer $50,000 more for the house than the buyer had paid the builder, the woman did not get the benefit of her bargain.

B. The court found that by yelling at the woman to "get it fixed," the builder had committed himself to paying for the repair.

C. The court found that the defects in the foundation were a breach of the covenant of further assurances in the warranty deed from the builder to the buyer.

D. The court found an implied warranty of habitability from the builder to the buyer that was enforceable by a subsequent buyer.

The correct option is D.

Explanation: When the builder sold house to the first buyer, it was done under a warranty deed. Therefore, builder is liable for any defects in the building because by selling the house under a warranty deed, a great amount of risk has been placed on him/her. Therefore he/she is responsible for any breach that may occur, with or without his/her knowledge.

Also, when using a warranty deed, a total description of the building is given, and it must have been in the description that the house is habitable without any defects, therefore, if the woman uses this against the builder, her claim will be valid and she will emerge successful.