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.
Delaware Home Builder's Warranty Agreement is a legally binding contract that outlines the terms and conditions of warranty coverage provided by a home builder to buyers of newly constructed homes in Delaware. This agreement ensures that the builder stands behind the quality of their workmanship and materials and provides support and protection for the homeowner. The Delaware Home Builder's Warranty Agreement typically includes provisions related to the duration of the warranty, which can vary depending on the type of coverage selected. It often covers major structural components, such as the foundation, roof, walls, plumbing, electrical systems, and heating/cooling systems. Additional coverage may be available for appliances, fixtures, and other components. The agreement also outlines the rights and obligations of both the homeowner and the builder. It typically clarifies the homeowner's responsibility to properly maintain the property and promptly report any issues to the builder. Conversely, the builder is obligated to address any eligible warranty claims within a reasonable timeframe and at their own expense. In Delaware, there are various types of Home Builder's Warranty Agreements that homeowners can opt for, depending on their specific needs and preferences. Some notable types include: 1. Structural Warranty: This warranty covers major structural elements of the home, including the foundation, load-bearing walls, beams, and columns. It ensures that the home is structurally sound and free from defects that could compromise its integrity. 2. Systems and Appliances Warranty: This type of warranty provides coverage for various mechanical systems and appliances in the home, such as HVAC systems, plumbing, electrical systems, water heaters, and kitchen appliances. It offers homeowners protection against unexpected breakdowns and malfunctions. 3. Workmanship and Materials Warranty: This warranty focuses on the quality of workmanship and materials used during construction. It covers defects or errors in craftsmanship, such as improper installation of flooring, cabinets, windows, and roofing materials. It also ensures that the materials used meet industry standards and are free from defects. 4. Extended Warranty: Some builders offer extended warranty options that extend coverage beyond the standard warranty duration. These extended warranties may provide additional protection against specific issues, such as pest infestations, mold growth, or even cosmetic defects. It is important for homeowners to carefully review and understand the terms and coverage provided in the Delaware Home Builder's Warranty Agreement before making a purchase. It is advisable to consult with a legal professional or real estate agent to ensure that the agreement meets their specific needs and provides adequate protection.