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.
A home builder warranty template for new construction is a document that outlines the terms and conditions of the warranty provided by the builder for a newly constructed home. This template serves as a standardized reference for both the builder and the homeowner to understand their rights and responsibilities in the event of any defects or issues that may arise after the completion of the construction project. The home builder warranty template typically includes the following key components: 1. Introduction: This section provides an overview of the warranty and establishes the builder's commitment to rectify any defects or deficiencies arising from the construction process. 2. Coverage: The template details the specific areas or systems covered by the warranty, such as the structural components, plumbing, electrical systems, HVAC, appliances, and other aspects of the home. It may also specify the warranty duration for each category. 3. Exclusions: This section outlines any conditions or circumstances that may exempt certain items from warranty coverage, such as normal wear and tear, acts of nature, homeowner negligence, or any modifications made without prior builder approval. 4. Warranty Claims Process: The template outlines the procedure through which the homeowner can report a warranty claim, including the timeframes for notification, the requirement for written documentation, and any subsequent inspections or assessments to be conducted by the builder. 5. Builder's Obligations: This section defines the responsibilities of the builder in addressing the warranty claims, including the timeline for repairs or replacements, procuring necessary materials and labor, and resolving any disputes that may arise during the process. 6. Homeowner's Obligations: The template also outlines the responsibilities of the homeowner, including routine maintenance requirements, timely reporting of defects, and cooperation during the warranty claim process. 7. Dispute Resolution: In the case of disagreements between the builder and the homeowner regarding warranty claims, this section may outline the preferred methods of resolving disputes, such as mediation or arbitration. Different types of home builder warranty templates for new construction may include: 1. Structural Warranty: This type of warranty focuses primarily on the structural integrity of the home, covering defects or issues related to foundation, load-bearing walls, roof, and other major structural components. 2. Systems Warranty: A systems warranty template would specifically address the various systems installed in the home, such as plumbing, electrical, HVAC, and security systems. It ensures that these systems function as intended. 3. Appliance Warranty: This template covers the warranty for all installed appliances in the newly constructed home, such as refrigerators, ovens, dishwashers, and laundry machines. 4. Comprehensive Warranty: This type of template combines all aspects of the home, including structural elements, systems, and appliances, providing a comprehensive warranty package that covers the entire home. In conclusion, a home builder warranty template for new construction is a crucial document that outlines the terms, coverage, and procedures of the warranty provided by the builder. It helps establish clear expectations, protect the rights of both the builder and homeowner, and ensure a smooth resolution process in case of any defects or issues that may arise after the completion of the construction project.
