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.
Guam Home Builder's Warranty Agreement serves as a legal contract between homeowners and home builders in Guam. This agreement ensures that the construction or renovation of a residential property meets certain quality standards and provides warranty coverage for any potential defects or issues that may arise during a specified time period. The terms and conditions of the agreement typically vary depending on the home builder and the specific type of warranty selected. Key Features of Guam Home Builder's Warranty Agreement: 1. Coverage: The agreement outlines the duration and extent of warranty coverage, which typically includes structural elements, plumbing, electrical systems, heating and cooling systems, and other major components of the home. 2. Timeframe: The warranty agreement specifies the length of time that the warranty will be in effect, usually ranging from one to ten years. Different components of the home might have varying warranty periods. 3. Defects and Repairs: The warranty agreement states the process for reporting and addressing any defects or issues that arise in the home during the warranty period. It often requires the homeowner to notify the builder promptly, allowing them a reasonable amount of time to inspect and repair the problem. 4. Exclusions: The agreement may include a list of excluded items, such as normal wear and tear, cosmetic issues, and damages caused by the homeowner's negligence or failure to perform regular maintenance. Types of Guam Home Builder's Warranty Agreement: 1. Structural Warranty: This type of agreement focuses on the structural integrity of the home, covering problems related to the foundation, framing, roofing, and load-bearing walls. 2. Systems Warranty: A systems warranty primarily covers major mechanical systems, such as plumbing, electrical, and HVAC (heating, ventilation, and air conditioning) systems. 3. Workmanship Warranty: This warranty type ensures that the construction work performed by the builder meets established industry standards. It covers issues related to the quality and craftsmanship of the build or renovation. 4. Extended Warranty: Some builders may offer an extended warranty period for an additional fee, allowing homeowners to extend the coverage beyond the standard warranty period. In conclusion, the Guam Home Builder's Warranty Agreement is a crucial legal document that protects homeowners from potential defects or issues in their newly constructed or renovated homes. It defines the scope of coverage, duration, and process for addressing any problems that may arise, providing peace of mind for homeowners in Guam.
