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 Los Angeles California Home Builder's Warranty Agreement is a legally binding document that outlines the terms and conditions of a warranty provided by home builders in Los Angeles, California. This agreement offers protection and peace of mind to both home builders and buyers, ensuring that the home is constructed to meet certain quality standards and addressing any potential defects or issues that may arise after the completion of the construction project. The primary purpose of the Home Builder's Warranty Agreement is to establish the responsibilities and obligations of the builder towards the buyer, as well as to define the remedies available to the buyer in case of any construction-related issues. The agreement typically covers a specified period, typically ranging from one to ten years, and is commonly divided into different types: 1. Standard Warranty Agreement: This is the most common type of Home Builder's Warranty Agreement, offering coverage for a specific timeframe after the completion of the construction. It generally includes provisions for repairs or replacements of faulty materials or workmanship during the warranty period. The buyer is generally required to report any defects within a specific timeframe to be eligible for coverage. 2. Structural Warranty Agreement: This type of warranty specifically focuses on the structural components and systems of the home, such as the foundation, load-bearing walls, roof structure, and mechanical systems. It typically offers a longer coverage period compared to the standard warranty, as structural issues may take longer to manifest. This agreement aims to provide assurance that the home's structural integrity is maintained over an extended period. 3. Systems and Appliance Warranty Agreement: In addition to the structural components, this type of warranty covers the major systems and appliances of the home. These may include electrical, plumbing, heating, ventilation, air conditioning (HVAC), and kitchen appliances. This warranty ensures that these essential components are in proper working condition and addresses any malfunctions that occur within the specified warranty period. 4. Limited Warranty Agreement: Some builders may offer a limited warranty that provides coverage for specific items or systems, rather than offering comprehensive coverage for the entire home. For example, the warranty may only cover the roof or HVAC system. This type of agreement enables builders to tailor the warranty to the specific needs and constraints of the construction project. It is important for both home builders and buyers to carefully review and negotiate the terms of the Home Builder's Warranty Agreement to ensure clarity and understanding of the coverage and limitations. Seeking legal advice and conducting thorough inspections are also essential steps when entering into such agreements to safeguard the interests of both parties.
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.
