55-491 - Statute of limitations for warranties.
§ 55-491. Statute of limitations for warranties.
A. A judicial proceeding for breach of any obligation arising under § 55-488or § 55-489 must be commenced within six years after the cause of actionaccrues, but the parties may agree to reduce the period of limitation to notless than two years. With respect to a unit that may be occupied forresidential use, an agreement to reduce the period of limitation must beevidenced by a separate instrument executed by the purchaser of thecooperative interest for that unit.
B. Subject to subsection C, a cause of action for breach of warranty ofquality, regardless of the purchaser's lack of knowledge of the breach,accrues:
1. As to a unit, at the time the purchaser to whom the warranty is first madeenters into possession if a possessory interest was conveyed, or at the timeof acceptance of the instrument of conveyance if a nonpossessory interest wasconveyed; and
2. As to each common element, at the time the common element is completed or,if later: (i) as to a common element that may be added to the cooperative orportion thereof, at the time the first cooperative interest for a unittherein is conveyed to a bona fide purchaser; or (ii) as to a common elementwithin any other portion of the cooperative, at the first time a cooperativeinterest in the cooperative is conveyed to a bona fide purchaser.
C. If a warranty of quality explicitly extends to future performance orduration of any improvement or component of the cooperative, the cause ofaction accrues at the time the breach is discovered or at the end of theperiod for which the warranty explicitly extends, whichever is earlier.
(1982, c. 277.)