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 Maryland Home Builder's Warranty Agreement is a legally binding contract between a home builder and a homeowner that outlines the terms of warranty coverage for a newly constructed home within the state of Maryland. This warranty provides homeowners with protection against defects in materials, workmanship, and systems of the home. It ensures that the builder will be responsible for repairing or replacing any defects that occur within a specified period after the completion of the home. Under Maryland law, there are two types of warranty agreements that a home builder can offer to homeowners: 1. One-Year Warranty: This type of warranty agreement covers defects in materials and workmanship for a period of one year from the date of completion of the home. It typically includes cosmetic issues, plumbing leaks, electrical malfunctions, and other construction-related problems that may arise within the first year. 2. Ten-Year Warranty: This type of warranty agreement, commonly known as a "10-year structural warranty," provides coverage for structural defects in the home for a period of ten years from the date of completion. Structural defects include problems with the foundation, load-bearing walls, roof framing, and other structural components that may compromise the safety and integrity of the home. This warranty ensures that the builder will be responsible for rectifying any structural issues that arise within the given timeframe. The Maryland Home Builder's Warranty Agreement is an essential document that protects homeowners from potential construction defects and gives them peace of mind. It is crucial for homeowners to carefully review and understand the terms and conditions outlined in the agreement before signing it. Additionally, it is advisable for homeowners to consult with a qualified attorney or real estate professional to ensure their rights and interests are adequately safeguarded throughout the warranty period.
