Implied Warranty of Habitability - Definition
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Implied Warranty Of Habitability Definition
In the mortgage or real estate industry, when a property (house) is considered habitable and up to standards of safety, it has an implied warranty of habitability. An implied warranty of habitability is a guarantee that a property put up for rent or lease if fit and safe for living throughout the period of rent or lease.
A Little More on What is Implied Warranty Of Habitability
An implied warranty of habitability holds that a rental property is certified worthy of habitation during the period of occupancy. This means that all the basic things needed for comfortable living are supplied in the apartment, for instance, anyone (tennant) who rents the apartment will have access to electricity cup-ply, water, goods locks, doors and windows, among others. Usually, an implied warranty of habitability is not applicable to commercial properties but for rental properties. This is however excluding office spaces, shops and business outlets rented by individuals since people would not be living in them. For a rental property meant for human occupancy, not only inside the building should meet the basic requirements of safety standards, outside the apartment or premises should also be fit for human habitation. For a building to have an implied warranty of habitability, certain standards must be met, they are;
- Functional electricity
- Steady water supply
- Provision to suit different weather conditions; heat for winter, air conditioner for summer.
- Proper bathroom and toilet
- Good doors and windows
- Locks and securities
- Healthy premises
- Smoke detector.
It is however important to know that the above standards are provided by the Local building codes. In accordance to laws, landlords are mandated to make appartements for rental fit and habitable during the period of occupancy. The landlord has the duty of making the apartment to be rented out meet safety standards and the standards outlined by the Local building codes. A tenant has nothing to worry about. However, renting an apartment that does not meet the required qualifications to be declared habitable is a violation of law and punishable. Landlords who violate the implied warranty can be sued by tenants. For the landlord that owns that rental unit with seemingly bad conditions, the landlord is tagged a slumlord. If issues arise during the period of occupancy, a landlord has about 30 days to fix the issues.
References for Implied Warranty Of Habitability
- https://www.investopedia.com Investing Real Estate