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.
Maine Home Builder's Warranty Agreement is a legally binding contract that guarantees the quality of construction and materials used by a home builder in the state of Maine. This warranty agreement provides homeowners with protection against defects and problems that may arise in newly constructed homes. The purpose of the Maine Home Builder's Warranty Agreement is to ensure that the builder is responsible for addressing any defects or issues that occur within a specific timeframe after the completion of the home. This agreement typically covers structural defects, such as problems with the foundation, roofing, walls, and floors. It may also cover defects in plumbing, electrical systems, and other components of the home. The duration of the warranty period varies depending on the builder and the specific terms of the agreement. Generally, it ranges from one to ten years, with different components of the home having different warranty periods. There are several types of Maine Home Builder's Warranty Agreements available, including: 1. One-Year Warranty: This type of warranty covers any defects or issues that arise within the first year of homeownership. It typically includes materials and workmanship related problems. 2. Two-Year Warranty: This agreement extends the coverage of the one-year warranty to two years, offering additional protection against defects and issues that may arise during the second year of homeownership. 3. Ten-Year Warranty: This type of warranty provides coverage for structural defects that may occur within ten years of homeownership. It ensures that the builder is responsible for any major defects that compromise the safety and integrity of the home. It's important for homeowners to carefully review and understand the terms and conditions of the Maine Home Builder's Warranty Agreement before signing. This agreement serves as a safeguard to protect homeowners' investments and provides assurance that any construction-related issues will be resolved by the builder.
