§ 1357 - Protection of purchasing leaseholders - Vermont Statutes

§ 1357. Protection of purchasing leaseholders

(a) Express warranties of quality:

(1) Express warranties made by a declarant to a purchasing leaseholder of a site, if relied upon by the purchasing leaseholder, are created as follows:

(A) Any affirmation of fact or promise which relates to the site, its use or rights appurtenant to it, area improvements to the mobile home park that would directly benefit the site, or the right to use or have the benefit of facilities not located in the mobile home park, warranties conformity of the site and related rights and uses.

(B) Any model or description of the physical characteristics of the mobile home park, including plans and specifications for improvement, warranties conformance of the mobile home park to the model or description.

(C) Any description of the quantity or extent of the real estate comprising the mobile home park, including plats or surveys, warranties conformity of the mobile home park to the description, subject to customary tolerances.

(D) Any provisions that a purchasing leaseholder may put a site only to specified use warranty the legality of the specific use.

(2) Neither the use of "warranty" or "guarantee," nor a specific intention to make a warranty, are necessary to create an express warranty of quality, but a statement purporting to be merely an opinion or commendation of the real estate or its value does not create a warranty.

(3) A conveyance of a site transfers to the purchasing leaseholder all express warranties of quality made by previous declarants.

(b) Implied warranties of quality:

(1) A declarant and any dealer warrant that a site will be in at least as good condition at the time of the conveyance or delivery of possession, whichever is earlier, as it was at the time of contracting, reasonable wear and tear excepted.

(2) A declarant and any dealer impliedly warrant that a site and the common elements in the mobile home park are suitable for the ordinary uses of real estate of its type and that any improvements made or contracted for by him or her, or made by any person before the creation of the mobile home park, will be:

(A) free from defective materials; and

(B) constructed in accordance with applicable law, according to sound engineering and construction standards, and in a workerlike manner.

(3) In addition, a declarant and any dealer warrant to a purchasing leaseholder of a site that may be used for residential use that an existing use, continuation of which is contemplated by the parties, does not violate applicable law at the time of conveyance or delivery of possession, whichever is earlier.

(4) Warranties imposed by this subsection may be excluded or modified as specified in subsection (c) of this section.

(5) For purposes of this section, improvements made or contracted for by an affiliate of the declarant are made or contracted for by the declarant.

(6) A conveyance of a site transfers to the purchasing leaseholder all the declarant's implied warranties of quality.

(c) Exclusion or modification of implied warranties of quality:

(1) Except as limited by subdivision (2) of this subsection, with respect to a purchasing leaseholder of a site that may be used for residential use, implied warranties of quality:

(A) may be excluded or modified by agreement of the parties; and

(B) are excluded by express disclaimer, such as "as is," "with all faults," or other language that implies the exclusion of warranties.

(2) With respect to a purchasing leaseholder of a site that may be occupied for residential use, no general disclaimer of implied warranties of quality is effective, but a declarant and any dealer may disclaim liability in an instrument signed by the purchasing leaseholder for a specified defect or specified failure to comply with applicable law, if the defect or failure was part of the basis of the bargain.

(d) Statute of limitations for warranties:

(1) A judicial proceeding for breach of any obligation arising under subsection (a) or (b) of this section shall be commenced within six years after the cause of action accrues. In the case of a site that may be occupied for residential use, an agreement to reduce the six-year period shall be evidenced by separate instrument executed by the purchasing leaseholder.

(2) Subject to subdivision (3) of this subsection, a cause of action for breach of warranty of quality, regardless of the purchasing leaseholder's lack of knowledge of the breach, accrues:

(A) as to a site, at the time the purchasing leaseholder to whom the warranty is first made enters into possession if a possessory interest was conveyed or at the time of acceptance of the instrument of conveyance if a nonpossessory interest was conveyed; and

(B) as to each common element, at the time the common element is completed or, if later, as to

(i) a common element that may be added to the mobile home park or portion of it, at the time the first site is conveyed to a bona fide purchasing leaseholder; or

(ii) a common element within any other portion of the common interest community, at the time the first site is conveyed to a bona fide purchasing leaseholder.

(3) If a warranty of quality explicitly extends to future performance or duration of any improvement or component of the mobile home park, the cause of action accrues at the time the breach is discovered or at the end of the period for which the warranty explicitly extends, whichever is earlier. (Added 1993, No. 97, § 1.)