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 Alaska Home Builder's Warranty Agreement is a comprehensive contract that outlines the terms and conditions between a homeowner and a home builder. This agreement ensures that the builder guarantees their workmanship, materials, and systems used to construct a new home or perform major renovations. It provides the homeowner with peace of mind knowing that their investment is protected for a specific period. One of the most common types of Alaska Home Builder's Warranty Agreement is the Structural Warranty. This warranty covers any defects or damage to the structural components of the home, including the foundation, walls, roof, and other load-bearing elements. It typically lasts for ten years, guaranteeing that the home will be free from structural defects that may compromise its integrity. Another type of warranty is the Systems Warranty, which covers various mechanical, plumbing, and electrical systems installed in the home. This warranty typically lasts for one to two years and ensures that these systems are in proper working order and free from any faults or malfunctions due to installation errors or defective components. Additionally, there is the Workmanship Warranty, which guarantees the quality of the builder's craftsmanship and the materials used during construction. This warranty typically covers a period of one to two years and protects against any flaws or defects that may arise from the builder's negligence or substandard work. It's worth mentioning that Alaska Home Builder's Warranty Agreement can also include specific provisions related to appliances, fixtures, and other installed amenities within the home. These may carry their own warranties that are separate from the builder's overall warranty. In conclusion, the Alaska Home Builder's Warranty Agreement is a crucial document that safeguards the homeowner's investment by providing a guarantee against various defects or issues that may arise during a specific period. It encompasses different types of warranties, including the Structural Warranty, Systems Warranty, and Workmanship Warranty, each serving a specific purpose to ensure the home's quality and durability.
