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 North Carolina Home Builder's Warranty Agreement is a legal document that serves as a guarantee provided by home builders to their clients, ensuring that the construction of a new residential property meets certain standards and that any possible defects or issues will be addressed and resolved within a specified timeframe. This warranty agreement is crucial for homeowners as it protects their investment and provides peace of mind. One of the primary types of North Carolina Home Builder's Warranty Agreement is the Structural Warranty. This warranty covers any structural defects that may arise within a specific period, usually ten years, starting from the date of completion or closing. It protects against major issues such as foundation problems, structural damage, and other construction-related faults that pose a threat to the stability and safety of the property. Another type of warranty agreement is the Systems Warranty, which covers the major systems of the house, including electrical, plumbing, and HVAC (Heating, Ventilation, and Air Conditioning). This warranty typically lasts for two years and ensures that these essential systems are functioning correctly and free from defects. Additionally, there might be a Warranty for Materials and Workmanship, which typically lasts for one year. It covers any defects in materials used or issues resulting from poor workmanship during the construction process. This type of warranty protects the homeowner against issues such as faulty paintwork, flooring problems, or malfunctioning appliances. It is important to note that these types of warranty agreements may vary among home builders and are often subject to negotiation. Therefore, homeowners must carefully review the terms and conditions of the warranty agreement before signing a contract with a specific builder. In conclusion, the North Carolina Home Builder's Warranty Agreement is a crucial aspect of the home buying process, ensuring that homeowners have recourse in case of any construction-related defects or issues. By understanding the different types of warranties available, homeowners can make informed decisions and protect their investment in their new home.
