What is a Home Builder’s Warranty Agreement?
When a new construction home is completed by a home builder, the client should be confident that the manufacturer or seller they’ve hired will provide high-quality products and perform high-quality work. In the construction industry, client confidence becomes even more critical as the high standards expected of contractors directly impact safety. In such situations, warranty contracts come in handy.
A construction warranty is a legal document in which the contractor provides a covenant that guarantees to the client (homeowner) that they will perform all works following building codes and standards and project specifications without flaws or defects. Breaching such an agreement results in monetary recovery of related damages and costs for material replacement or reparation works to be carried out at the contractor's expense.
The Magnuson-Moss Warranty Act, a US federal law enacted in 1975, regulates warranty contracts. It states that while not all products and services require written guarantees, if parties conclude one, then such an agreement must comply with the Act. This law aims to prevent manufacturers from misleading clients with inappropriate and unfairly made disclaimers on the guarantees.
Types of warranties
There are two general types of contractor warranty agreements:
- Express warranty is a written or verbal guarantee from the seller that the purchased product is of a certain quality and that the seller can replace or repair it if there are any defects.
- Implied warranty is a guarantee that the purchased product operates as it should.
Builders’ warranties operate under another classification because of industry specifics:
- Time-based warranty is the contractor’s promise to provide a particular thing in a defined condition at a specified time (for example, to guarantee the construction is waterproof for a certain number of years).
- General warranty is a guarantee to perform defined works according to the project blueprints and specifications without a time reference.
Preparing a new Home builder warranty To complete your paperwork correctly, use a verified home builder’s timely-based guarantee agreement from the US Legal Forms library. This multi-state editable and printable legal template requires you to fill out the following information:
- Name and contact details of the contractor and the buyer;
- Newly-constructed house description;
- List of items that are under builder’s guarantees (can be expanded);
- List of items the builder doesn’t take responsibility for (can be changed);
- Name of the state that will govern the agreement.
The New York Home Builder's Warranty Agreement is a comprehensive and legally binding contract between a home builder and the homeowner, offering protection and assurance for new construction projects. This agreement outlines the terms and conditions under which the builder provides warranty coverage for various aspects of the home, ensuring that the homeowner receives a structurally sound and defect-free property. The primary purpose of the New York Home Builder's Warranty Agreement is to safeguard the homeowner's investment and provide recourse in the event of any defects or issues arising from the construction process. It establishes the builder's responsibility to repair or replace any faulty components, systems, or materials that fail to meet the agreed-upon standards or exhibit defects within a specified period after the completion of construction. Under this agreement, the warranty coverage typically includes protection against defects in workmanship, defects related to the home's structural integrity, and issues with major systems such as plumbing, electrical, and HVAC. The time period for warranty coverage can vary depending on the specific terms negotiated between the builder and homeowner, but it generally spans one to ten years. Different types of New York Home Builder's Warranty Agreements may exist based on the level and duration of coverage offered. Here are some commonly known variations: 1. Standard Warranty Agreement: This agreement encompasses the basic warranty coverage for a new home, usually provided by the builder to comply with legal requirements and industry standards. It typically includes coverage for one to two years, addressing defects in materials and workmanship. 2. Extended Warranty Agreement: Some builders offer extended warranty options, allowing homeowners to purchase additional protection beyond the standard warranty period. This may include coverage for major structural components, systems, and appliances for up to five or ten years. 3. Systems Warranty Agreement: This specific warranty agreement focuses primarily on the major systems within the home, such as plumbing, electrical, and HVAC systems. It ensures that these vital components are defect-free and functional for a specified period after construction completion. 4. Structural Warranty Agreement: This type of agreement places emphasis on the structural integrity of the home and covers potential defects or issues that may arise concerning the foundation, load-bearing walls, roof, and other structural elements. It typically offers coverage for a longer duration, ranging from five to ten years. These variations in New York Home Builder's Warranty Agreements provide flexibility in terms of duration and covered aspects, allowing homeowners to choose the level of protection that best suits their needs. It is important for both builders and homeowners to carefully review the terms and conditions of the agreement and ensure that all relevant information is documented accurately to guarantee a smooth and satisfactory home construction experience.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
