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.
Title: Minnesota Home Builder's Warranty Agreement: Comprehensive Coverage for Quality Construction Description: The Minnesota Home Builder's Warranty Agreement is a fundamental document that ensures high construction standards, protects homeowners, and sets guidelines for home builders in the state. This detailed description highlights the key aspects, benefits, and types of home builder warranty agreements available in Minnesota, incorporating relevant keywords to enhance search engine optimization. Keywords: Minnesota, Home Builder's Warranty Agreement, construction standards, homeowners, guidelines, benefits, types. 1. Introduction: The Minnesota Home Builder's Warranty Agreement is a legally binding contract that establishes the obligations, responsibilities, and warranty terms between the home builder and the homeowner. It guarantees the homebuyer that their newly constructed home meets quality standards, providing peace of mind. 2. Coverage and Benefits: The warranty agreement offers comprehensive coverage to homeowners, encompassing various aspects of construction quality. It includes protection against structural defects, plumbing and electrical work, HVAC systems, roofing, windows, and more. The coverage period generally ranges from one to ten years. 3. Types of Minnesota Home Builder's Warranty Agreements: a. One-Year Warranty: Under this type of agreement, the builder guarantees that the home will be free from defects in materials and workmanship for one year from the date of occupancy. It typically covers issues related to the home's finishes, such as drywall, paint, flooring, and appliances. b. Two-Year Systems Warranty: This warranty ensures that the home's major systems, such as plumbing, electrical, and HVAC, will be free from defects for two years. It protects homeowners from malfunctioning systems that may occur due to faulty installation, design, or workmanship. c. Ten-Year Structural Warranty (implied): Minnesota law implies a ten-year structural warranty, which guarantees that the home's load-bearing components, foundation, and other structural elements will not fail due to defects. However, this warranty may vary depending on the builder, so it's crucial to review specific terms and conditions. 4. Obligations of Home Builders: Minnesota home builders are obliged to rectify any defects covered under the warranty agreement during the specified coverage period. Should any issues emerge, homeowners must promptly notify the builder, who then becomes responsible for timely repairs. 5. Enforcement: Should a dispute arise between the homeowner and the builder regarding the warranty agreement, various options for mediation, arbitration, or litigation are available to resolve the matter. Conclusion: The Minnesota Home Builder's Warranty Agreement acts as a vital safeguard for homeowners, ensuring that new homes adhere to high construction standards. By offering comprehensive coverage for various aspects of the home, homeowners can reside in their new properties with confidence, knowing they are protected against potential defects. Understanding the different types of warranties ensures optimal coverage and a successful home building experience.
