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.
Iowa Home Builder's Warranty Agreement, also known as Iowa Home Warranty, is a legally binding contract established between the home builder and the homeowner, ensuring certain protections and remedies for both parties involved in the construction or remodeling of a residential property in Iowa. This warranty agreement acts as a safeguard for homeowners against potential defects, faulty workmanship, and inferior materials used in the construction process. It provides assurance that the builder will rectify any issues related to the construction, ensuring a certain level of quality in the finished home. Simultaneously, it sets out the homeowner's responsibilities and obligations in terms of regular maintenance and care for the property. Importantly, the Iowa Home Builder's Warranty Agreement outlines the duration and coverage of the warranty period, which may vary depending on the builder or the specific terms agreed upon in the contract. Typically, the warranty period is divided into multiple phases. The most common types of warranties included in the agreement are as follows: 1. Structural Warranty: This warranty typically covers any structural defects, such as foundation issues, load-bearing walls, or structural framing problems. It typically extends for a longer duration, such as ten years, to ensure the long-term stability of the property. 2. Systems Warranty: This warranty focuses on the major systems within the house, including heating, plumbing, electrical, and ventilation systems. It ensures that these systems are installed correctly and in working order. The duration of this warranty may range from two to five years, depending on the builder. 3. Workmanship Warranty: This warranty addresses any defects arising from the builder's workmanship, such as poorly installed windows, doors, or fixtures. It provides coverage for a shorter duration, usually around one to two years. 4. Appliances and Fixtures Warranty: This warranty covers any appliances or fixtures purchased and installed by the builder. It typically aligns with the manufacturer's warranty for these specific products. It is important for homeowners to carefully review the terms and conditions of the specific Iowa Home Builder's Warranty Agreement offered by the builder before signing. Homeowners should also understand the process of filing a warranty claim, including any specified timelines and procedures. Additionally, it is advisable to inquire about any additional or extended warranty options that may be available for purchase. In summary, the Iowa Home Builder's Warranty Agreement provides homeowners with peace of mind, ensuring that the builder takes responsibility for any construction defects or issues that may arise within the specified warranty period. By clearly defining the warranty coverage and duration, both parties can protect their interests and maintain a satisfactory level of quality for the newly constructed or remodeled home.
