The Louisiana New Home Warranty Act (LNHWA) was enacted in the late 1980s by the Louisiana legislature to promote commerce and protect Louisiana homebuyers. The Act serves as a simple, mostly exclusive remedy for homeowners to recover damages from their contractors' defective work.
The Act provides three distinct warranties with different time periods:
For one year from the warranty commencement date, the builder warrants that "the home will be free from any defect due to noncompliance with the building standards or due to other defects in materials or workmanship not regulated by building standards.
The NHWA protects the homeowner from defects in the plumbing, electrical, heating, cooling, and ventilating systems (excluding equipment or appliances) for two years following the warranty commencement date.
The NHWA allows recovery for major structural defects up to five years following the warranty commencement date. A "major structural defect" refers to a significant issue that affects the home's ability to function as a dwelling, often related to the home's foundation, load-bearing walls, and overall structural integrity.
The commencement date for the warranties is the date the home is conveyed to the purchaser. However, if the purchaser occupied the home prior to transfer of title, then the warranty will begin on the date the home was occupied.
After the discovery of a defect, but before undertaking any repair or instituting an action for breach of warranty, the owner must give a builder written notice, by registered or certified mail, within one year after first knowledge of the defect, giving the builder a reasonable opportunity to comply with his obligations.
Builders are also required to give the owner written notice of the LNHWA at the time of closing or at the time of execution of a construction contract with the owner.
The warranty does not cover:
The purchaser or owner of the home may not waive the required warranties, and the builder may not reduce them, by contract or otherwise. These three warranties exist by operation of law and cannot be derogated.
If a builder fails to make a required warranty, the purchaser/owner has a legal cause of action against the builder and may be entitled to actual damages, including attorney's fees and court costs. Damages for all defects may not exceed the home's purchase price, and damages for a single defect are limited to the reasonable cost to fix the defect by repair or replacement.
The NHWA's peremptive period requires you to file a lawsuit within 30 days of expiration of the warranty. This creates a conflict with the notice requirement because the notice requirement extends past the time to file a lawsuit. The Louisiana New Home Warranty Act is found in Louisiana Revised Statutes § 9:3141 et seq. and is mandatory for all new home construction in Louisiana.
