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.
The Hawaii Home Builder's Warranty Agreement is a legally binding contract between a home builder and a homeowner in Hawaii. It provides the homeowner with certain rights and protections regarding the construction and quality of their newly built home. This warranty agreement ensures that the home builder is responsible for any defects or issues that may arise within a specified period after the completion of the construction. The purpose of the Hawaii Home Builder's Warranty Agreement is to safeguard the homeowner's investment, address any construction-related problems, and establish clear guidelines for resolving disputes between the builder and homeowner. It helps maintain the builder's accountability and ensures the homeowner receives the agreed-upon quality of construction. Different types of Hawaii Home Builder's Warranty Agreements may vary based on factors such as the duration of coverage, types of defects covered, and the process of making warranty claims. Some common types include: 1. Structural Warranty: This type of warranty guarantees the structural integrity of the home for a certain period, typically spanning 10 years. It covers defects related to load-bearing components, foundation, framing, and other essential structural elements. 2. Systems and Appliances Warranty: This warranty covers the various systems and appliances installed in the home, such as plumbing, electrical, HVAC (heating, ventilation, and air conditioning), and major household appliances. It typically lasts for one to two years, ensuring that these components function properly. 3. Workmanship Warranty: This warranty covers defects arising from the builder's workmanship, including flaws in craftsmanship and construction materials. It is usually provided for one to two years and encompasses non-structural issues that may affect the home's aesthetics or functionality. 4. Roofing Warranty: Specifically addressing roofing-related defects, this warranty protects the homeowner from leaks, faulty shingles, or other problems with the roof installation. The duration of this warranty can vary, generally ranging from several years to a couple of decades. It is essential for homeowners to thoroughly read and understand the terms and conditions of their Hawaii Home Builder's Warranty Agreement before signing it. Any concerns or questions should be discussed with the builder, and it is recommended to consult with legal professionals to ensure proper comprehension and protection of their rights.
