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.
Arkansas Home Builder's Warranty Agreement is a legally binding contract that provides buyers with protection and assurance for their newly constructed homes. This agreement outlines the terms and conditions regarding the warranty coverage and the responsibilities of both the builder and the buyer. The Arkansas Home Builder's Warranty Agreement typically consists of several key sections that address various aspects of the warranty, including: 1. Warranty Coverage: This section outlines the specific items or components of the home that are covered under the warranty. Commonly covered items include the structure, foundation, plumbing, electrical systems, HVAC, and appliances. 2. Duration of Coverage: The agreement specifies the duration of the home warranty, which is typically divided into different timeframes for various components. For example, structural defects may be covered for a longer period than appliance failures. 3. Limitations and Exclusions: The agreement also mentions any limitations or exclusions to the warranty coverage. For instance, damages caused by natural disasters, improper maintenance, or homeowner negligence may not be covered under the warranty. 4. Builder's Responsibilities: This section outlines the builder's obligations, such as repairing or replacing the covered items that develop defects or fail during the warranty period. It also specifies the timeframe within which the builder must complete the repairs. 5. Homeowner's Responsibilities: The agreement highlights the responsibilities of the homeowner, such as reporting any defects in a timely manner and taking appropriate steps to maintain the home and its components. 6. Dispute Resolution: In case of any dispute or disagreement related to the warranty, the agreement may include provisions for mediation, arbitration, or other dispute resolution methods. Different types of Arkansas Home Builder's Warranty Agreements may exist based on the specific terms, duration, and coverage provided. These variations may include: 1. Standard Warranty Agreement: This is the most common type of warranty agreement offered by builders, providing coverage for a specific duration and listing the covered components as per industry standards. 2. Extended Warranty Agreement: Some builders may offer an extended warranty at an additional cost, which prolongs the duration of coverage beyond the standard warranty period. 3. Structural Warranty Agreement: This type of warranty focuses primarily on the structural integrity of the home, providing an extended duration of coverage for structural defects. 4. Systems/Components Warranty Agreement: Builders may offer separate warranties exclusively for certain systems or components of the home, such as plumbing, electrical, or HVAC systems. In conclusion, the Arkansas Home Builder's Warranty Agreement is a crucial document that outlines the warranty coverage and responsibilities related to newly constructed homes. It ensures that buyers have peace of mind and protection against any potential defects or failures. Different types of warranty agreements may exist, offering various durations and coverage for specific components or structural integrity.
