Alabama New Home
Implied Warranty Rights

Foundational Case Law

Scope of the Warranty

Disclaimer, Waiver, and “As Is”

Silence by the builder (no written warranty) does not defeat the implied warranty — there is nothing to disclaim and the implied warranty is the default.

Express written disclaimers are routinely enforced under Turner v. Westhampton Court and Stewart v. Bradley, provided the disclaimer is clear, conspicuous, and signed or initialed by the buyer. Production builder closing packages typically pair such a disclaimer with an express limited warranty (RWC, 2-10 Home Buyers Warranty, Quality Builders Warranty Corporation, etc.). Many Alabama homeowners do not realize they signed away the implied warranty at closing.

Remedies

• Diminution in fair market value — Sims v. Lewis sets this as the measure for implied warranty damages.
• Cost of repair — admissible as evidence of diminution and recovered where reasonable and not disproportionate to the diminution.
• Consequential damages — temporary housing, damaged personal property, recoverable if foreseeable at contract formation and not validly excluded by the limited warranty.
• Punitive damages — available only on a separate tort claim (fraud, fraudulent suppression, wanton conduct), and capped by Ala. Code § 6-11-21.
• Attorney’s fees — Alabama follows the American Rule. Fees are not recoverable unless authorized by contract or statute.

Three clocks run in parallel. Whichever expires first controls the claim.

Two Overlapping Repose Provisions

Alabama law contains two repose statutes that cover essentially the same conduct. Section 6-5-218 (Article 13, real property actions generally) and Section 6-5-221 (Article 13A, architects, engineers, and builders specifically) both impose a seven year cap from substantial completion. § 6-5-221 contains a narrow exception for an architect, engineer, or builder who actually knew of the defect and failed to disclose; § 6-5-218 does not. For non-fraud cases, the seven year period operates as an absolute bar even where the defect could not reasonably have been discovered.

Written Express Warranties Bypass the Repose

Section 6-5-227 confirms that a civil action in contract on a written express warranty must be brought within two years of accrual, but the seven year repose does not bar a written warranty claim. A 10 year structural warranty therefore remains enforceable in years 8 through 10 of the warranty period, so long as the homeowner files within two years of accrual.

Discovery Rule for Latent Defects

Section 6-5-221(a)(2) provides that a cause of action accrues when the damage or injury occurs, and for latent defects, when the damage is or reasonably should have been discovered. Alabama’s discovery rule applies to latent construction defects. The date of first noticeable symptom often controls the entire case — document it carefully.

What Pre Suit Procedures Actually Apply

• HBLB complaint procedure. If the homeowner files a notarized consumer complaint with the Home Builders Licensure Board, the licensee receives 20 days to attempt informal resolution before the Board opens a formal investigation.
• Contractual notice provisions. Most builder contracts and limited warranties impose their own written notice and inspection opportunity provisions — typically 30 days, sometimes 60. Alabama courts enforce these as written. A homeowner who sues without first complying can face dismissal or a stay.
• Good faith demand letter. Although not statutorily mandated, counsel typically sends a written demand identifying each defect, attaching photographs and any third party inspection reports, and offering a reasonable cure window before filing. A demand letter is useful evidence of mitigation and good faith if the matter reaches a jury.
• Recovery Fund 10 day notice. If the homeowner intends to claim against the HBLB Recovery Fund, the Board must be notified by certified mail with a copy of the complaint within 10 days of filing the civil lawsuit. Missing this 10 day window can forfeit Recovery Fund eligibility.

The HBLB Administrative Process at a Glance

A compliant pre suit demand letter under Alabama law should contain:

• Homeowner’s full legal name(s) and the property address
• Date of closing or first occupancy and date of substantial completion
• Identification of the builder, HBLB license number, contractor, and known subcontractors
• A reasonably detailed description of each defect, with location, nature, and observed symptoms
• For each defect, the legal theory being asserted (implied warranty under Cochran/Sims, express limited warranty, negligence, fraud)
• Any third party inspection report (general home inspection, structural engineer, master plumber, master electrician)
• A proposed inspection access protocol and reasonable dates
• Statement of the remedy sought — repair by builder, repair by independent contractor at builder’s cost, diminution in value, refund — with a dollar figure where known
• A reasonable cure period (typically 30 days from receipt) and an express statement that suit will be filed if the cure is not completed
• Reservation of all rights, including under the limited warranty, the HBLB administrative process, and the Recovery Fund under Ala. Code § 34-14A-15
• Signature and certified mail tracking number
• Attached evidence appendix — photo log, defect schedule, communications log, inspection report

Evidence Preservation Checklist

• Dated, geotagged photographs and video of every defect, including progression over time
• Written log of every communication with the builder (date, channel, content, who)
• Retain all closing documents, plans, specs, change orders, punch lists, marketing materials
• Obtain an independent third party inspection report
• Preserve physical evidence in place where feasible; if mitigation requires removal, photograph extensively first
• Notify the builder in writing before any destructive testing or repair
• Keep receipts for any mitigation or repair expenses
• Maintain a single chronological case file (paper plus digital backup)

Use these regulatory and consumer channels in parallel with the attorney/demand letter track — not in place of it.

Home Builders Licensure Board (HBLB)

Alabama licenses residential home builders at the state level under Ala. Code §§ 34-14A-1 et seq. A license is required where the cost of the undertaking exceeds $10,000 for a residence not more than three stories and not more than four units. Residential roofer registration is required where the cost exceeds $2,500.

• HBLB: hblb.alabama.gov
• Consumer Complaint Procedures: hblb.alabama.gov/consumer complaint procedures
• Mail: HBLB, P.O. Box 303605, Montgomery, AL 36130-3605

HBLB Homeowners’ Recovery Fund — Ala. Code § 34-14A-15

HBLB Recovery Fund FAQ · Recovery Fund consumer information

Alabama Attorney General — Consumer Interest Division

Files consumer complaints and tracks deceptive trade practice patterns. Generally does not litigate individual cases.

• Online complaint: alabamaag.gov/consumer complaint
• Phone: 1-800-392-5658 | (334) 242-7335
• Division page: alabamaag.gov/divisions/consumer interest-division

Local Building Code Enforcement

Inside corporate limits — Birmingham, Huntsville, Mobile, Montgomery, Tuscaloosa, and most other municipalities — the city Building Inspections Department issues permits and conducts rough and final inspections. A code violation complaint can trigger a reinspection, stop work order, or certificate of occupancy revocation. Outside corporate limits, many Alabama counties have no permit-and-inspection regime, which limits leverage at the local level.

Alabama Manufactured Housing Commission

Regulates manufactured (HUD Code) housing and the modular building program. Receives complaints against manufacturers, retailers, and installers.

• amhc.alabama.gov

Industry & Mediation Channels

• Home Builders Association of Alabama (HBAA): hbaa.org. Local chapters include the Greater Birmingham Association of Home Builders, the Huntsville/Madison County HBA, the Greater Mobile HBA, and the Baldwin County HBA. Chapters do not generally run binding dispute resolution programs but may offer informal mediation referrals.
• Better Business Bureau: bbb.org/file-a-complaint. Non binding complaint and mediation services; useful for paper trail and public facing pressure.

Court Jurisdiction

Venue is the circuit court of the county where the property sits.

This is a general sequencing template, not a fixed timeline. Specific deadlines depend on substantial completion date, the date the homeowner first noticed the defect, the terms of the limited warranty, and any contractual notice provision.

1. Alabama has no statutory right to cure or right to repair act. Multiple national “by-state” summaries incorrectly list one.
2. The implied warranty runs only to the original purchaser. Subsequent buyers must rely on negligence, fraud, or an assigned express warranty.
3. Builder limited warranty disclaimers are routinely enforced. Most production builder closing packages strip out the Cochran/Sims implied warranty at the moment of closing.
4. The seven year statute of repose is an absolute bar for non-contract tort and statutory claims, even where the defect could not have been discovered earlier. The fraud / actual knowledge exception in § 6-5-221 is narrow.
5. A written express warranty can outlast the seven year repose under § 6-5-227. A 10 year structural warranty remains enforceable in years 8–10, though the two year limitations clock still runs from accrual.
6. Recovery Fund caps are low — $30,000 per transaction, $90,000 per licensee — and recovery requires a non consent judgment. The 10 day post filing notice is easy to miss.
7. Outside corporate limits in many counties, there is currently no permit or inspection regime. The January 1, 2027 statewide residential building code requirement will change that. Until then, leverage at the local code enforcement level depends on geography.
8. HBLB licensees must display the license number in advertising and contracts as of March 17, 2025. Missing license number disclosure is a regulatory violation and a useful screening red flag.
9. The Alabama Deceptive Trade Practices Act is narrower than its name suggests. Its 1 year/4 year clocks and its focus on deceptive marketing make it a poor fit for most construction defect claims unless paired with documented fraud.
10. Cochran v. Keeton is a 1971 case, not 1973. Frequently miscited in homeowner facing materials.