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.
A Montana Home Builder's Warranty Agreement is a legally binding contract that outlines the terms and conditions between a home builder and a homeowner, promising protection and assurance for the newly constructed home. It serves as a guarantee that the builder stands behind the quality of their work and will rectify any issues that may arise within a specified period. This warranty agreement typically covers defects in materials, workmanship, and structural components of the home. It ensures that the builder will be responsible for repairing or replacing any defective or faulty elements, thereby providing homeowners with peace of mind and protection against unexpected expenses. The Montana Home Builder's Warranty Agreement may offer different coverage levels, each with its own inclusions and duration. Common types include: 1. Structural Warranty: This portion of the agreement typically covers the home's foundation, walls, roof, and other structural components for a set period, usually around 10 years. It protects against structural defects that may compromise the integrity of the building. 2. Workmanship Warranty: This warranty covers the quality of work performed by the builder, including installation and finishing details such as plumbing, electrical systems, flooring, and cabinetry. It usually lasts for a period of 2-5 years and addresses any deficiencies in craftsmanship. 3. Systems Warranty: This part of the agreement focuses on the major mechanical systems of the home, such as heating, ventilation, and air conditioning (HVAC), plumbing, and electrical systems. It ensures that these systems function properly and typically lasts for 2-3 years. 4. Appliance Warranty: Some Montana Home Builder's Warranty Agreements may include coverage for appliances included in the construction of the home, such as ovens, dishwashers, and refrigerators. This coverage is generally limited and may last for 1-2 years. It's important for homeowners to thoroughly review the terms and coverage details outlined in the Montana Home Builder's Warranty Agreement before signing. Any potential limitations, exclusions, or required notifications should be carefully considered and understood. Additionally, homeowners should keep all documentation associated with the warranty, including maintenance records, to ensure compliance and facilitate any future claims.
