Section 777-A. Housing merchant implied warranty

1. Notwithstanding the
  provisions of section two hundred fifty-one of the real property law,  a
  housing  merchant  implied  warranty  is  implied  in  the  contract  or
  agreement for the sale of a new home and shall survive  the  passing  of
  title. A housing merchant implied warranty shall mean that:
    a.  one  year  from  and after the warranty date the home will be free
  from defects due to a failure to have been  constructed  in  a  skillful
  manner;
    b.   two  years  from  and  after  the  warranty  date  the  plumbing,
  electrical, heating, cooling and ventilation systems of the home will be
  free from defects due to a failure by the builder to have installed such
  systems in a skillful manner; and
    c. six years from and after the warranty date the home  will  be  free
  from material defects.
    2.  Unless  the contract or agreement by its terms clearly evidences a
  different intention of the seller, a housing merchant  implied  warranty
  does not extend to:
    a.  any  defect  that does not constitute (i) defective workmanship by
  the builder or by an agent, employee or subcontractor  of  the  builder,
  (ii)  defective  materials  supplied  by  the  builder  or  by an agent,
  employee or subcontractor of the  builder,  or  (iii)  defective  design
  provided  by  a design professional retained exclusively by the builder;
  or
    b. any patent defect which an examination ought in  the  circumstances
  to  have  revealed,  when  the  buyer  before  taking title or accepting
  construction as complete has examined the home as  fully  as  the  buyer
  desired, or has refused to examine the home.
    3. In the case of goods sold incidentally with or included in the sale
  of  the  new  home,  such  as  stoves, refrigerators, freezers, room air
  conditioners,  dishwashers,  clothes  washers  and  dryers,  a   housing
  merchant  implied warranty shall mean that such goods shall be free from
  defects due to  failure  by  the  builder  or  any  agent,  employee  or
  subcontractor  of  the  builder  to  have  installed  such  systems in a
  skillful  manner.    Merchantability,  fitness  and  all  other  implied
  warranties  with  respect  to  goods  shall be governed by part three of
  article  two  of  the  uniform  commercial  code  and  other  applicable
  statutes.
    4.  a.  Written  notice  of  a  warranty claim for breach of a housing
  merchant implied warranty must be received by the builder prior  to  the
  commencement  of any action under paragraph b of this subdivision and no
  later than thirty days after the expiration of the  applicable  warranty
  period,  as  described in subdivision one of this section. The owner and
  occupant of the home shall afford the builder reasonable opportunity  to
  inspect,  test  and repair the portion of the home to which the warranty
  claim relates.
    b. An action for damages or other relief caused by  the  breach  of  a
  housing  merchant  implied  warranty  may  be  commenced  prior  to  the
  expiration  of  one  year  after  the  applicable  warranty  period,  as
  described in subdivision one of this section, or within four years after
  the  warranty date, whichever is later. In addition to the foregoing, if
  the builder  makes  repairs  in  response  to  a  warranty  claim  under
  paragraph  a  of  this subdivision, an action with respect to such claim
  may be commenced within one year after  the  last  date  on  which  such
  repairs  are  performed.  The measure of damages shall be the reasonable
  cost  of  repair  or  replacement  and  property  damage  to  the   home
  proximately  caused  by  the  breach  of  warranty,  not  to  exceed the
  replacement cost of the home exclusive of the value of the land,  unless

  the  court  finds that, under the circumstances, the diminution in value
  of the home caused by the defect is a more equitable measure of damages.
    c.  In  addition to any other period for the commencement of an action
  permitted by law, an action for contribution or indemnification  may  be
  commenced  at  any  time  prior  to the expiration of one year after the
  entry of judgment in an action for damages under  paragraph  b  of  this
  subdivision.
    5.   Except   as   otherwise   provided   in   section  seven  hundred
  seventy-seven-b  of  this  article,  any  provision  of  a  contract  or
  agreement  for  the  sale  of  a  new  home which excludes or modifies a
  housing merchant implied warranty shall be void as  contrary  to  public
  policy.
    6.   Except   as   otherwise   provided   in   section  seven  hundred
  seventy-seven-b of this article, other implied warranties may arise from
  the terms of the contract or agreement or  from  course  of  dealing  or
  usage of trade.