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.
Arizona Home Builder's Warranty Agreement is a legal document that provides homeowners with protection and assurance for the quality and durability of their newly constructed home. This agreement is specifically designed to safeguard the interests of homeowners in Arizona by outlining the builder's responsibilities, limitations, and warranty coverage for various aspects of the home. One type of Arizona Home Builder's Warranty Agreement is the Structural Warranty, which is usually provided by the builder to cover major structural components of the home, such as the foundation, load-bearing walls, and roofs. This warranty ensures that the home is built in compliance with applicable building codes and is structurally sound. Another type of warranty is the Systems and Appliances Warranty, which covers various systems and appliances installed in the home, such as heating, ventilation, air conditioning (HVAC), plumbing, electrical, and kitchen appliances. This warranty typically lasts for a specified period and protects homeowners from unforeseen issues or malfunctions in these essential components of their home. Additionally, some Arizona Home Builder's Warranty Agreements may include a Workmanship Warranty, which guarantees the quality and craftsmanship of the home's construction. This warranty covers defects or issues that may arise due to poor workmanship, such as improper installation of fixtures, flooring, or mechanical systems. Furthermore, some builders offer a Warranty of Habitability, which ensures that the home is safe, livable, and meets certain minimum standards of habitability. This warranty covers issues related to plumbing, electrical, ventilation, and other essential aspects of the home that directly impact the residents' comfort and well-being. It is important for homeowners in Arizona to carefully review and understand the specifics of the Home Builder's Warranty Agreement before signing any contracts. This agreement serves as a binding agreement between the builder and the homeowner, highlighting the rights and obligations of both parties, and the remedies available in case of disputes or warranty claims. Overall, an Arizona Home Builder's Warranty Agreement is a crucial document that provides homeowners with valuable protection, ensuring their new home is built to high standards and giving them peace of mind knowing that their investment is backed by warranty coverage.
