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 Louisiana Home Builder's Warranty Agreement is a legal contract that provides protection and peace of mind to homeowners by outlining the specific responsibilities and obligations of home builders in the state of Louisiana. This agreement ensures that the builder will address any defects or issues that may arise during the agreed-upon warranty period. One type of Louisiana Home Builder's Warranty Agreement is the New Home Warranty. This warranty covers newly constructed homes and typically lasts for a specified period, commonly one year, starting from the closing date. It safeguards the homeowner against defects in workmanship and materials, allowing them to request repairs or replacements if necessary. Another type is the structural warranty, which specifically focuses on the structural components of the home, such as load-bearing walls, foundation, and roof. This warranty typically extends for a longer period, often ten years, to account for any potential issues that may arise due to poor construction or faulty materials. The Louisiana Home Builder's Warranty Agreement emphasizes the importance of proper maintenance by the homeowner to keep the warranty valid. Regular upkeep and timely reporting of any issues are crucial for the homeowner to take advantage of the warranty provisions. To ensure compliance and protect homeowners, the Louisiana home builder must register with the state as a licensed builder before entering into any warranty agreements. This registration process helps maintain accountability and credibility within the home building industry. The Louisiana Home Builder's Warranty Agreement may also include provisions for dispute resolution, warranty transferability, and exclusions for certain events such as natural disasters or homeowner negligence. It is important for homeowners to thoroughly read and understand the terms and conditions of their warranty agreement to fully utilize its benefits. In summary, the Louisiana Home Builder's Warranty Agreement is a legal contract that provides homeowners with protection and recourse in the event of defects or issues with their newly constructed homes. With different types of warranties available, such as the New Home Warranty and the structural warranty, homeowners can feel confident and secure in their investment.
