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.
Idaho Home Builder's Warranty Agreement is a legal document that outlines the terms and conditions of a warranty provided by a home builder to the buyer of a newly constructed home in Idaho. This agreement ensures that the home is built in accordance with set industry standards, adheres to local building codes, and is free from defects in materials and workmanship. The Idaho Home Builder's Warranty Agreement typically includes a detailed description of the coverage and duration of the warranty. It outlines the responsibilities of both the home builder and the buyer in relation to repairs and maintenance during the warranty period. Some key components of the Idaho Home Builder's Warranty Agreement may include: 1. Coverage: The warranty agreement specifies the areas of the home that are covered under the warranty. This usually includes the foundation, walls, roof, electrical and plumbing systems, HVAC, and other structural elements. 2. Duration: The agreement states the length of time the warranty will be in effect. This can vary depending on the specific builder and the type of warranty offered, but commonly ranges from one to ten years. 3. Repair and replacement: The agreement describes the process for reporting and resolving any defects or issues covered under the warranty. It may specify whether repairs will be handled by the builder or through a third-party contractor. 4. Exclusions: The agreement lists any items or conditions that are not covered by the warranty. These may include normal wear and tear, acts of nature, neglect or misuse by the homeowner, or alterations made to the property without builder approval. 5. Transferability: The warranty agreement may outline whether it is transferable to subsequent owners if the homeowner decides to sell the property during the warranty period. Different types of Idaho Home Builder's Warranty Agreements may exist, including: 1. Structural Warranty: This type of warranty covers major structural components of the home, such as the foundation, load-bearing walls, beams, and roof trusses. It ensures that these elements are free from defects and guarantees their durability over a specified period. 2. Systems Warranty: This warranty covers various mechanical systems within the home, such as electrical, plumbing, and HVAC systems. It provides assurance that these systems are in good working order and will function properly for a set period. 3. Appliance Warranty: This type of warranty covers major appliances installed by the builder, such as refrigerators, dishwashers, ovens, and washer/dryer units. It ensures that these appliances are free from defects and offers repair or replacement if necessary. In conclusion, the Idaho Home Builder's Warranty Agreement is a crucial legal document that protects the interests of both the home builder and the buyer. It provides peace of mind to the homeowner by ensuring the quality and longevity of the newly constructed home.
