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.
Georgia Home Builder's Warranty Agreement is a legal document that provides protection and assurance to homeowners who purchase newly constructed homes in the state of Georgia. This agreement outlines the coverage and terms of the warranty provided by the home builder, ensuring that the home is built to meet specific standards and that any construction defects or issues will be addressed and resolved. The Georgia Home Builder's Warranty Agreement typically includes the following key components: 1. Coverage Period: This specifies the duration of the warranty, which is usually divided into multiple phases, such as one year for workmanship and materials, two years for plumbing, electrical, and HVAC systems, and ten years for structural defects. 2. Covered Components: The agreement lists the various components of the home that are covered under the warranty, including the foundation, walls, roof, plumbing, electrical wiring, HVAC systems, windows, doors, and other structural elements. 3. Exclusions: It is important for homeowners to thoroughly review the warranty agreement to understand what is not covered. Common exclusions may include normal wear and tear, cosmetic issues, acts of nature, homeowner neglect or damage, and any modifications or additions made by the homeowner after the construction. 4. Builder's Responsibilities: The agreement outlines the obligations of the home builder in terms of repairing or replacing any covered defects or issues. It may also specify the process for reporting a claim and the time frame within which the builder is required to respond and rectify the problem. 5. Homeowner's Responsibilities: The agreement may also include certain responsibilities of the homeowner, such as notifying the builder of any defects in writing within a specified time frame and allowing reasonable access to the property for inspection and repairs. In addition to the standard Georgia Home Builder's Warranty Agreement, there may be different types or variations of this agreement: 1. Limited Warranty Agreement: This type of agreement provides coverage for a specific period and may have certain limitations in terms of the components covered or the extent of repairs or replacements provided by the builder. 2. Extended Warranty Agreement: Some builders may offer extended warranty options that provide coverage beyond the standard warranty period, typically at an additional cost to the homeowner. 3. Third-Party Warranty Agreement: In some cases, builders may partner with third-party warranty providers to offer comprehensive warranty coverage. These agreements may have additional terms and conditions specific to the third-party provider. In conclusion, the Georgia Home Builder's Warranty Agreement plays a crucial role in protecting the interests of homeowners by ensuring that their newly constructed homes are of high quality and free from defects. It is vital for homeowners to review and understand the terms and coverage of this agreement before purchasing a new home in Georgia.
