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.
Michigan Home Builder's Warranty Agreement is a legal document designed to provide assurance to homeowners in the state of Michigan regarding the quality and durability of their newly constructed homes. This agreement is typically presented by home builders to purchasers and acts as a warranty for a specified period after the completion of the construction process. It ensures that the builder will rectify any defects, structural issues, or other problems that may arise within the agreed timeframe. Under the Michigan Home Builder's Warranty Agreement, builders are bound to address both major and minor issues, offering repairs or replacements as necessary. This warranty covers various aspects of the home, including but not limited to its structural integrity, mechanical systems, electrical wiring, plumbing, and appliances. It is designed to provide peace of mind to homeowners, protecting their investments and ensuring that their homes are built to the highest standards. The Michigan Home Builder's Warranty Agreement typically offers coverage for different durations, depending on the specific provisions outlined in the agreement. The most common durations are one year, two years, and ten years, each with its own set of applicable conditions and limitations. 1. One-Year Warranty: This warranty typically covers any defects in workmanship and materials for the first year after the home's completion. It commonly includes repairs for issues related to plumbing, electrical systems, mechanical systems, and various finishes. 2. Two-Year Warranty: This type of warranty generally extends coverage for up to two years, addressing defects in materials and workmanship that affect the property's mechanical and electrical systems, as well as the plumbing and finishing details. 3. Ten-Year Warranty: The ten-year warranty is often called a "structural warranty" as it focuses primarily on the structural integrity of the home. This coverage typically protects against major structural defects that compromise the building's stability and safety. It is essential for homeowners to thoroughly review the Michigan Home Builder's Warranty Agreement before signing to ensure they understand the extent and duration of the warranty coverage. Additionally, homeowners should consult legal professionals or real estate experts if they have any questions or concerns about the agreement's provisions. In summary, the Michigan Home Builder's Warranty Agreement is a comprehensive document that guarantees the quality and durability of newly constructed homes in Michigan. It provides homeowners with peace of mind, ensuring that any defects or issues are addressed by the builder within the specified warranty period. Different types of warranties may exist, including one-year, two-year, and ten-year warranties, each offering coverage for specific aspects of the home's construction.
