Marvin Mandel, Governor                         1071

Subtitle 2. Express and Implied Warranties

10-201. Definitions.

As used in this subtitle, unless the context otherwise requires:

(a)    "Improvements" includes all newly constructed private dwell-
ing units and all fixtures and structures which are made a part of
the newly constructed private dwelling units at the time of their
construction by building contractors and subcontractors.

(b)    "Realty" includes both freehold and redeemable leasehold
estates.

(c)    "Seller" means any person or corporation whose business it
is to erect or otherwise create an improvement upon realty, or to
whom a completed improvement has been conveyed for resale in the
course of his (its) business.

(d)    "Buyer" means the original purchaser of improved realty,
and the heirs and personal representatives of the original purchaser.

10-202. Creation of express warranties; exclusion or modification of
express warranty.

(a)    Express warranties by a seller are created as follows,

(1)    Any written affirmation of fact or promise which relates
to the improvement and which is made a part of the basis of the
bargain between the seller and the buyer creates an express war-
ranty that the improvements shall conform to the affirmation or
promise.

(2)    Any written description of the improvement, including plans
and specifications thereof, which is made a part of the basis of the
bargain between the seller and the buyer creates an express war-
ranty that the improvements shall conform to the description.

(3)    Any sample or model which is made a part of the basis of
the bargain between the seller and the buyer creates an express
warranty that the improvement shall conform substantially to the
sample or model.

(b)    It is not necessary to the creation of an express war-
ranty that formal words such as "warranty" or "guarantee" be
used or that there be a specific intention to make a warranty, but
an affirmation merely of the value of the improvement or a state-
ment purporting to be an opinion or commendation of the improve-
ment does not create a warranty.

(c)    If an express warranty is made under subsection (a), neither
words in the contract of sale, the deed, or other instrument of con-
veyance, nor merger of the contract of sale into the deed or any
other instrument of conveyance shall be effective to exclude or
modify such warranty, provided, however, that at any time after
the execution of the contract of sale such a warranty may be ex-
cluded or modified in whole or in part by a written instrument,
signed by the buyer, which sets forth in the detail the warranty to be
excluded or modified, the consent of the buyer to such exclusion or
modification, and the terms of the new agreement with respect
thereto.