Oklahoma State Guide
Oklahoma New Home
Warranty Rights
A complete reference for buyers of newly built homes in the State of Oklahoma — covering the Jeanguneat implied warranty, the Oklahoma Consumer Protection Act, the contract triggered § 765.6 right to repair, and the 10 year statute of repose under 12 O.S. § 109.
This document is a general reference. It is not legal advice and does not create an attorney client relationship. Before taking action, consult a licensed Oklahoma attorney.
Download the Complete Document Package
- Legal Warranty Reference — Oklahoma implied warranty, OCPA, § 765.6 right to repair, 10 year repose, complaint channels
- Builder Defect Walkthrough Intake Form (OK specific) — room by room checklist for documenting every defect
Executive Summary
- Oklahoma recognizes a common law implied warranty of habitability and skillful construction running from the builder vendor to the original purchaser of a new home (Jeanguneat v. Jackie Hames Construction Co., 1978 OK 17, 576 P.2d 761).
- The warranty covers latent defects, workmanship, and basic fitness for habitation. It is independent of the deed and survives closing.
- The Oklahoma Court of Civil Appeals extended the warranty to subsequent purchasers for latent defects in Bridges v. Ferrell, 1984 OK CIV APP 41.
- Disclaimers must be clear, specific, conspicuous, and supported by consideration. Boilerplate “AS-IS” language is disfavored.
Foundational Case Law
Jeanguneat v. Jackie Hames Construction Co., 1978 OK 17, 576 P.2d 761 (Okla. 1978)
Oklahoma’s foundational implied warranty case. The Jeanguneats bought a newly built home from the builder vendor; the well water proved so turbid it was unfit for human consumption. The Oklahoma Supreme Court abandoned strict caveat emptor for new home sales and adopted, following Missouri’s Smith v. Old Warson Development Co., 479 S.W.2d 795 (Mo. 1972), an implied warranty of habitability and skillful construction running from the builder vendor to the first purchaser. The Court held that “major defects which render the house unfit for habitation, and which are not readily remediable, entitle the buyer to rescission and restitution.”
Bridges v. Ferrell, 1984 OK CIV APP 41, 685 P.2d 409 (Okla. Civ. App. 1984)
Key follow on decision. The Court of Civil Appeals extended the implied warranty of habitability to subsequent purchasers (the Bridges bought from a second owner, not directly from builder Ferrell), held that a builder vendor’s disclaimer must be clear and conspicuous to be effective, and held that the presence of a limited express warranty does not by itself displace the builder’s implied warranty liability for defective work.
Patterson v. Beall, 2000 OK 92, 19 P.3d 839 (Okla. 2000)
A widely cited modern OCPA decision. The case arose from a $105 consumer dispute filed in small claims court. The Oklahoma Supreme Court held that OCPA claims are viable under the Small Claims Procedure Act and that summary judgment is generally inconsistent with that streamlined procedure. The Court confirmed that whether a practice is unfair under the OCPA is a fact intensive question to be decided case by case — reinforcing the statute’s broad reach to ordinary consumer transactions including residential sales.
What the Warranty Covers — and Doesn’t
Covered
- Latent defects not discoverable on reasonable inspection at closing
- Workmanship — the skill of an ordinary competent builder in the community
- Habitability — fitness for residential occupancy; safety, sanitation, basic fitness
- Subsequent purchasers for latent defects discovered within reasonable time (Bridges)
Not Reached
- Patent defects that should have been discovered at closing
- Cosmetic imperfections that don’t render the home unfit
- Resale of a used home from one homeowner to another
- Defects with a clear, specific, conspicuous, bargained for disclaimer
Remedies under Jeanguneat
Remedies include rescission and restitution (return of the purchase price plus consequential damages) where defects render the home unfit for habitation and are not readily remediable, and damages measured by the cost of repair or the diminution in value where the home is habitable but defective. Plaintiffs commonly plead the implied warranty alongside breach of contract and OCPA claims to broaden the available remedies and reach attorney’s fees.
Most Misstated Fact
Oklahoma has no statewide statutory new home warranty regime, no state license for residential general contractors, no state contractor recovery fund, and no mandatory state administered dispute resolution program. The homeowner’s protection comes from the common law Jeanguneat implied warranty, the Oklahoma Consumer Protection Act, the contract triggered § 765.6 right to repair, ordinary contract law, and any written limited warranty the builder voluntarily provides.
The Construction Industries Board (CIB) regulates only specific specialty trades under 59 O.S. § 1000.1 et seq.: plumbing, mechanical / HVAC, electrical, and home inspectors. Roofing contractors register under the Oklahoma Roofing Contractor Registration Act, 59 O.S. § 1151.1 et seq. There is no CIB program — and no other state program — for residential general contractors.
Most cities (Oklahoma City, Tulsa, Norman, Edmond, Broken Arrow) require contractor registration at the municipal level, but municipal registration is separate from CIB licensing and does not create state level disciplinary jurisdiction.
OkHBA Certified Professional Builder — Voluntary Industry Credential
The Oklahoma State Home Builders Association offers a voluntary Certified Professional Builder credential. Holders commit to industry standards and must provide a written warranty of at least one year on workmanship and materials, with code compliance and code of ethics adherence. The credential is private and self policed; it is not a state license and the Association has no statutory enforcement authority.
Third Party Structural Warranty Products
Many Oklahoma builders bundle a third party structural warranty product (2-10 HBW, RWC, StrucSure, QBW). These products are regulated as home service contracts under the Oklahoma Home Service Contract Act, 36 O.S. § 6751 et seq., administered by the Oklahoma Insurance Department. Typical structures: 1 year on workmanship/materials, 2 years on plumbing/electrical/HVAC delivery systems, 10 years on major structural defects — often with binding arbitration. Read the warranty book carefully at intake — coverage, exclusions, and dispute resolution procedures vary materially across products.
The OCPA, 15 O.S. § 751 et seq., prohibits unfair and deceptive trade practices in consumer transactions. The Act reaches residential sales by a builder vendor as part of “consumer transactions” — sales of merchandise or services to consumers for personal, family, or household use.
Key Provisions
- § 752 / § 753 — defines unfair, deceptive, and unconscionable trade practices.
- § 754 — contains statutory exemptions, including for actors regulated by other state agencies under specific statutes.
- § 761.1 — private right of action for the consumer. Actual damages plus reasonable attorney’s fees and costs to the prevailing consumer. Civil penalty up to $10,000 per violation in actions brought by the Attorney General (not available to private plaintiffs).
- No statutory treble damages. Punitive damages must be sought separately under 23 O.S. § 9.1 on a showing of reckless disregard, fraud, or malice.
Home Repair Fraud Act Does NOT Apply
The Home Repair Fraud Act (15 O.S. § 765.1 et seq.) is a related but separate statute that creates criminal and civil liability for deceptive home repair practices. Under 15 O.S. § 765.2, the Act expressly does not apply to “the original construction of any single family or multi family residential building or structure.” Homeowners with new construction defects must rely on the general OCPA (§ 751 et seq.) — not the Home Repair Fraud Act.
Statute of Limitations
Most OCPA claims are governed by 12 O.S. § 95(A)(2) — 3 years for liability created by statute. Discovery accrual applies under Oklahoma’s general discovery rule jurisprudence: the clock runs from when the consumer discovered or, in the exercise of reasonable diligence, should have discovered the deceptive act.
Permissive, Not Mandatory
Oklahoma does NOT have a mandatory statewide right to repair statute. Unlike Texas (RCLA), Florida (Ch. 558), Nevada (NRS Ch. 40), or California, Oklahoma’s pre suit notice and cure procedure is contract triggered — it applies only if the residential construction contract itself includes the clause. Almost all professional builder contracts do.
How § 765.6 Works
15 O.S. § 765.6 provides that residential construction contracts may include notice and offer to repair provisions. Where the contract includes such a provision, the homeowner must, before filing suit:
- Give the contractor written notice of the construction defects, with reasonable detail describing each defect and any supporting evidence.
- Allow the contractor a reasonable opportunity to inspect the alleged defects.
- Allow the contractor 30 days to issue a written response — an offer to repair, an offer to compensate, or a denial of the claim.
If the homeowner files suit without complying with a contract mandated notice and cure procedure, the contractor is entitled to a stay until the conditions precedent are satisfied. The case is paused, not dismissed.
Statutory Definition of “Construction Defect”
Under § 765.6, “construction defect” includes deficiencies in the design, specifications, surveying, planning, supervision, or construction of a residential improvement; defective or insufficient materials or products; violations of applicable building codes; and failure to construct in a good and workmanlike manner. This is a broad definition that captures most homeowner complaints.
2023 Amendments — Effective November 1, 2023
The 2023 amendments to 15 O.S. § 765.6 refined the notice and cure provisions and clarified the contractor’s 30 day response window. Contracts signed on or after November 1, 2023 should reference the current statutory text; contracts signed before that date may operate under the prior version, and counsel should consult the version in force at the time of contracting.
Practical Effect
The homeowner’s first step in any defect dispute is to read the contract carefully, identify the notice procedure, send written notice by a method that creates a delivery record (certified mail return receipt requested), document the defects with photos and any inspection reports, and grant a reasonable inspection opportunity. Skipping these steps invites a stay motion and delays the case by months. The homeowner does not have to accept any offer the contractor makes, but does have to comply with the contract’s notice procedure if one exists.
The 10 Year Outer Ceiling
Under 12 O.S. § 109, no action arising out of the defective and unsafe condition of an improvement to real property may be brought against any person who designs, plans, supervises, observes, or performs construction more than 10 years after substantial completion. This is an absolute outer bar — it is not extended by the discovery rule. The repose runs even on undiscovered defects.
All Relevant Limitations Clocks
| Theory of Liability | Period | Trigger / Accrual |
|---|---|---|
| Breach of written contract | 5 years (§ 95(A)(1)) | Date of breach. Discovery rule applies for latent defects under general Oklahoma jurisprudence. |
| Oral contract / liability created by statute (OCPA) | 3 years (§ 95(A)(2)) | Date of breach or statutory violation. Discovery rule applies. |
| Trespass to real property; negligence; injury to rights | 2 years (§ 95(A)(3)) | Date of accrual or discovery for latent defects. |
| Fraud | 2 years (§ 95(A)(12)) | Statutory discovery rule — does not accrue until the aggrieved party discovers the fraud. |
| Breach of implied warranty (Jeanguneat) | 5 years if written contract; otherwise 3 | Treated as a contract action by Oklahoma courts. Discovery rule applies for latent defects. |
| Statute of repose — improvements to real property | 10 years (§ 109) | Date of substantial completion. Absolute outer bar; not subject to the discovery rule. |
Discovery Rule for Latent Defects
Oklahoma applies a discovery rule to latent construction defects under both contract and tort theories. The clock runs from when the homeowner knew or, in the exercise of reasonable diligence, should have discovered the defect. The discovery rule extends the start date; it does not extend the 10 year § 109 ceiling.
Tolling and Equitable Doctrines
Fraudulent concealment may toll the statute of limitations where the defendant actively concealed the wrong. Equitable estoppel may apply where the defendant induced the plaintiff to delay filing. Minority and incapacity tolling under 12 O.S. § 96 applies in limited circumstances. None of these doctrines extends the 10 year statute of repose under § 109.
Oklahoma Attorney General — Consumer Protection Unit
Accepts complaints alleging deceptive trade practices, fraud, and OCPA violations. The Unit does not litigate individual consumer cases but maintains complaint records, may mediate informally, and may pursue enforcement actions on behalf of the State.
- Complaints: oklahoma.gov/oag/complaints
- Email: ConsumerProtection@oag.ok.gov
Construction Industries Board (CIB)
Licenses and disciplines plumbing, mechanical (HVAC), electrical, home inspection, and roofing registration trades under 59 O.S. § 1000.1 et seq. and the Oklahoma Roofing Contractor Registration Act. The CIB has no jurisdiction over residential general contractors because Oklahoma does not license them.
- License lookup and complaint filing: oklahoma.gov/cib
- Office: 2401 NW 23rd St., Suite 2F, Oklahoma City, OK 73107
Oklahoma Insurance Department
Administers the Oklahoma Home Service Contract Act (36 O.S. § 6751 et seq.), which regulates third party structural and home warranty products sold by 2-10 HBW, RWC, StrucSure, QBW, and similar providers. Complaints against the warranty provider — not the builder — go here.
- Consumer assistance: oid.ok.gov
Local Building & Code Enforcement
Permits and inspections are administered at the municipal level under the International Residential Code with Oklahoma amendments adopted by Oklahoma City, Tulsa, Norman, Edmond, Broken Arrow, and other home rule cities. There is no statewide residential building code authority. Code violation complaints can trigger reinspection, stop work orders, or certificate of occupancy revocation. Check city code enforcement contacts directly.
Industry & Mediation Channels
- Oklahoma State Home Builders Association: okhba.org. Trade association; runs the voluntary Certified Professional Builder credential. Local affiliates operate in OKC, Tulsa, Stillwater, Lawton, Bartlesville, Enid, and elsewhere.
- Better Business Bureau: bbb.org/local/0975. Non binding complaint and mediation services.
Court Jurisdiction
| Court | Dollar Limit | Statute | Notes |
|---|---|---|---|
| Small Claims Division (within District Court) | Up to $10,000 | 12 O.S. § 1751 et seq. | Streamlined pleadings; counsel optional. |
| District Court — general civil | Over $10,000 — no upper limit | Okla. Const. art. VII | Most construction defect litigation. Equitable remedies available. Jury trial right preserved. |
| Federal Court (N.D., E.D., W.D. Okla.) | Diversity over $75,000 | 28 U.S.C. § 1332 | Diversity cases — typically where the builder is a non Oklahoma entity. |
Many Oklahoma builder contracts require binding arbitration of construction defect disputes. Third party warranty products typically incorporate the warranty company’s arbitration program. Arbitration is enforceable under the Federal Arbitration Act and the Oklahoma Uniform Arbitration Act, 12 O.S. § 1851 et seq.
This is a general sequencing template, not a fixed timeline. Specific deadlines depend on the date of substantial completion, the date the homeowner first noticed each defect, the terms of any limited warranty, and whether the contract contains a § 765.6 notice and cure clause.
| When | Action |
|---|---|
| Day 0 | Homeowner first notices defect. Photograph and date stamp. Save voicemails, texts, emails. Pull the closing package, limited warranty book, construction contract, and any communications with the builder. Identify whether the contract contains a § 765.6 notice and cure clause. |
| Day 0–7 | Independent third party inspection — CIB licensed home inspector, structural engineer, or master trade specialist. The inspection report is often the most valuable single document at intake. |
| Day 7–14 | Engage Oklahoma counsel. Counsel will determine the applicable limitations clocks and whether the § 765.6 notice and cure clause governs. |
| Day 14 | If § 765.6 applies: serve the contractual notice on the builder by certified mail, return receipt requested. Describe each defect with specificity. If a third party structural warranty product applies, file the warranty claim in parallel. |
| Day 14–44 | Contractor’s 30 day response window. Allow the inspection opportunity. The contractor may offer to repair, offer to compensate, or deny the claim. |
| Day 44+ | If no acceptable resolution, file an AG Consumer Protection complaint and / or commence litigation. Confirm: (1) the 2 year clocks for negligence and fraud have not run from discovery; (2) the 3 year OCPA / oral contract clock is preserved; (3) the 5 year written contract clock is preserved; (4) the 10 year § 109 repose has not run. |
| At filing | Small Claims Division for claims up to $10,000. District Court for claims over $10,000 or where equitable relief (rescission, specific performance) is sought. Federal court for diversity cases over $75,000. Confirm whether the contract requires arbitration. |
- Oklahoma has no statewide residential general contractor license. The CIB regulates only plumbing, HVAC, electrical, home inspection, and roofing registration. Anyone can hold themselves out as a homebuilder without state credentialing.
- There is no state contractor recovery fund. Aggrieved homeowners cannot apply to a state fund for compensation when a builder defaults. The remedies are private litigation, the Attorney General’s Consumer Protection Unit, and informal channels.
- Oklahoma’s right to repair is contract triggered, not mandatory. Unlike Texas, Florida, Nevada, or California, Oklahoma’s § 765.6 notice and cure procedure applies only when the residential construction contract itself includes the clause.
- The Home Repair Fraud Act does NOT apply to original construction. 15 O.S. § 765.2 expressly excludes “original construction of any single family or multi family residential building or structure.” New construction homeowners must use the general OCPA, not the Home Repair Fraud Act.
- The OCPA does not provide statutory treble damages. Prevailing consumers recover actual damages and reasonable attorney’s fees under § 761.1. Punitive damages must be sought separately under 23 O.S. § 9.1 on a showing of reckless disregard, fraud, or malice.
- The 10 year § 109 repose is an absolute outer ceiling. It is not extended by the discovery rule, by fraudulent concealment doctrines, or by ordinary tolling — none of these doctrines push past year ten.
- Subsequent purchasers can sue under Jeanguneat. The Oklahoma Court of Civil Appeals in Bridges v. Ferrell (1984) extended the implied warranty to subsequent purchasers for latent defects, though the Oklahoma Supreme Court has not issued a controlling decision on subsequent purchaser standing.
- Disclaimers must be specific and conspicuous. Boilerplate “AS-IS” or general disclaimer language in a builder contract is disfavored by Oklahoma courts. To be effective, a disclaimer must be clear, specific, conspicuous, and supported by consideration.
- Most Oklahoma builder contracts require binding arbitration. Third party warranty products (2-10 HBW, RWC, StrucSure, QBW) typically incorporate the warranty company’s arbitration program. Read the contract and warranty book carefully — arbitration clauses are enforceable under the FAA and the Oklahoma Uniform Arbitration Act.
- Small Claims Division jurisdiction is $10,000. Anything above that figure must be filed in District Court general civil.
Download the Complete Document Package
- Legal Warranty Reference — Oklahoma implied warranty, OCPA, § 765.6 right to repair, 10 year repose, complaint channels
- Builder Defect Walkthrough Intake Form (OK specific) — room by room checklist for documenting every defect
Dealing With a
Construction Defect?
If you are a homeowner dealing with builder defects or considering purchasing a home that needs structural evaluation, Toni Schafer brings both Realtor expertise and General Contractor knowledge to help you understand what you are looking at and what your options are.