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.
California Home Builder's Warranty Agreement is a legally binding contract that outlines the terms and conditions of a warranty provided by home builders in the state of California. This agreement ensures that the builder will repair or replace any defects or issues that arise in a newly constructed home within a specified period after the closing of the sale. The purpose of the California Home Builder's Warranty Agreement is to give homeowners peace of mind and protection against any structural or mechanical problems that may occur after purchasing a new home. It sets forth the rights and responsibilities of both the builder and the homeowner regarding the repair or replacement of any covered components of the home. The specific terms and conditions of the warranty are outlined in the agreement and may vary depending on the home builder and the type of warranty offered. There are different types of California Home Builder's Warranty Agreements, including: 1. Structural Warranty: This type of warranty covers any significant defects in the structural components of the home, such as the foundation, walls, roof, and load-bearing elements. It typically provides coverage for a period of 10 years. 2. Systems and Appliance Warranty: This warranty covers the major systems and appliances in the home, such as heating and cooling systems, plumbing, electrical systems, and kitchen appliances. It usually offers coverage for a period of 2 to 5 years. 3. Workmanship Warranty: This warranty protects against any issues caused by faulty workmanship during the construction process, including defects in materials, construction techniques, or installation. It typically provides coverage for a period of 1 to 2 years. 4. Limited Warranty: Some builders may offer a limited warranty that covers specific components or systems of the home for a defined period. This type of warranty may have different coverage durations and terms depending on the builder. The California Home Builder's Warranty Agreement also specifies any limitations or exclusions to the warranty coverage, such as damage caused by homeowner negligence, normal wear and tear, or acts of nature. It may require the homeowner to report any issues promptly and allow the builder a reasonable opportunity to repair or replace the defective components before seeking legal recourse. It is essential for homeowners to carefully review and understand the terms of the California Home Builder's Warranty Agreement before purchasing a newly constructed home. Consulting with a real estate attorney or a knowledgeable professional can ensure that all aspects of the agreement are clear and aligned with the homeowner's expectations and legal rights.
