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.
Alabama Home Builder's Warranty Agreement is a legally binding document that outlines the terms and conditions of the warranty provided by home builders in Alabama. This agreement aims to protect homeowners from any defects or issues that may arise in newly constructed homes. It ensures that the builder is responsible for resolving any problems related to construction quality, material defects, or structural issues within a specified timeframe. The Alabama Home Builder's Warranty Agreement typically covers various aspects of the home, including its foundation, walls, roof, electrical systems, plumbing, and appliances. It guarantees that the builder will address any necessary repairs or replacements that may be required. The agreement also specifies the duration of the warranty, which is typically one year, and any additional coverage options available. There are different types of Alabama Home Builder's Warranty Agreements based on the level of coverage offered. These include: 1. Structural warranty: This type of warranty covers defects or issues related to the structural integrity of the home, such as foundation problems, walls, and roof. 2. Systems warranty: This warranty focuses on the major systems of the home, such as electrical, plumbing, and HVAC systems. It ensures that these systems will function properly for a specified timeframe. 3. Workmanship warranty: This warranty covers issues arising from poor workmanship or construction practices. It ensures that the builder will rectify any defects or problems caused by shoddy craftsmanship. 4. Appliance warranty: Some builders may include a separate warranty for appliances installed in the home. This covers repair or replacement of appliances like refrigerators, ovens, or dishwashers that may malfunction within a specified period. It is crucial for homeowners in Alabama to carefully review the terms and conditions of the Home Builder's Warranty Agreement before signing. They should understand the scope of coverage, duration, claim procedures, and any limitations or exclusions mentioned in the agreement. Additionally, it is advisable for homeowners to conduct thorough inspections and communicate any concerns or issues to the builder promptly to ensure timely resolution of problems covered by the warranty.
