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.
Oakland Michigan Home Builder's Warranty Agreement serves as a written contract between a home builder and a homeowner, providing assurance that the builder will rectify any defects or issues with the newly constructed home. This warranty agreement ensures homeowners have recourse if any problems arise after the completion of the construction process. The Oakland Michigan Home Builder's Warranty Agreement typically covers a specific time period, usually ranging from one to ten years, depending on the type of warranty chosen and the specific builder. It is essential for homeowners to thoroughly review the agreement to understand the extent of the warranty coverage, terms, and conditions. Some key elements often found in the Oakland Michigan Home Builder's Warranty Agreement include: 1. Structural Warranty: This type of warranty covers the home's structural integrity, including the foundation, load-bearing walls, and roof. It typically spans several years, providing peace of mind to homeowners regarding major structural defects. 2. Systems and Appliances Warranty: This category includes coverage for essential home systems such as electrical, plumbing, and HVAC systems, as well as appliances provided by the builder. It ensures that these systems are in proper working order and offers protection against defects or malfunctions. 3. Workmanship Warranty: This warranty covers any defects resulting from poor workmanship or inadequate construction practices. It is crucial for homeowners as it pertains to the quality standards of construction and ensures that any deficiencies are addressed by the builder. 4. Manufacturer's Warranty: Many builders include manufacturer's warranties on specific components or products used in the construction of the home, such as roofing materials or kitchen appliances. These warranties are often passed on to the homeowner and provide additional coverage for those specific items beyond the builder's own warranty. It is important to carefully read and understand the terms and limitations mentioned in the Oakland Michigan Home Builder's Warranty Agreement. Homeowners should be aware of procedures for reporting and addressing defects, as well as any requirements for regular maintenance or inspections to maintain warranty coverage. Additionally, the warranty agreement may outline the builder's responsibility for repair or replacement, potential limitations or exclusions, and procedures for dispute resolution, including mediation or arbitration. By signing the Oakland Michigan Home Builder's Warranty Agreement, homeowners can secure protection against potential defects or issues that may arise during the specified warranty period. This agreement provides peace of mind, ensuring that the builder takes responsibility for any necessary repairs, helping homeowners to enjoy their new home without undue stress or financial burden.
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.
