There are many property owners, commercial and residential, who sleep better at night knowing they have a 20-year guaranteed warranty on their new roof.
But a recent Georgia Court of Appeals ruling in a case involving a leaky chemical tank 250 miles south of Atlanta could give some members of the real estate industry nightmares. The three-judge panel found that all warranties longer than eight years — even ones already on the books — are no longer legally enforceable, according to multiple attorneys Bisnow consulted.
“Owners of commercial real estate need to be very concerned about this ruling because it cuts off their warranties on their structures at eight years as a matter of law," said AGG partner Jeffrey Lewis, an attorney who worked on the case. "And it denies them their fundamental right of contract."
Lewis plans to appeal the case to the Georgia Supreme Court. But, he said, unless and until it decides to take the case, he believes that the appeals court's decision effectively voids all warranties that have been in place for longer than eight years.The impact of the decision has potentially huge…
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