Pollard

Plaintiffs appeal from judgment denying recovery for structural defects in apartment buildings purchased from defendants.

This case presents the issue whether the doctrine of implied warranties of quality and fitness — now applicable to the sale of goods and to some contracts for labor and material — should also apply to the sale of newly constructed real property.

In 1960 and 1961, defendants entered written agreements with a general contractor for the construction of five apartment buildings in San Jose. 1 As each building was completed, defendants took possession, renting the units, and ultimately conveying the property to plaintiffs. Defendants represented themselves as developers — not as contractors.

*377 Plaintiffs took possession on 1 April 1963, and became aware of certain defects in the buildings at that time. The ceiling in one apartment was buckling, the sliding glass doors in two were sticking, and water remained on some of the patio decks after a rainfall, all resulting in the loss of rental in two apartments.

It was later determined that the defects resulted from the contractor’s having removed center posts and installed undersized headers or beams…