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 Dakota Home Builder's Warranty Agreement is a comprehensive legal contract that provides protection and coverage for homeowners and buyers of newly constructed homes in the state of North Dakota. This warranty ensures that the home builder is responsible for any defects, repairs, and maintenance issues that may arise within a specified period after the completion of the construction project. Key features of the North Dakota Home Builder's Warranty Agreement include: 1. Defect Coverage: This warranty agreement offers protection against defects in workmanship, materials, and design for a set period of time after the completion of the home construction. It ensures that the builder will address any issues that compromise the structural integrity or functionality of the property. 2. Repairs and Replacements: The warranty agreement specifies that the builder is responsible for repairing or replacing any defective materials or components within the designated warranty period. This coverage extends to issues such as faulty electrical systems, plumbing problems, HVAC malfunctions, and other construction-related defects. 3. Structural Coverage: The agreement often includes structural coverage, which guarantees that the home's foundation, walls, roof, and other structural elements meet industry standards and will remain sound throughout the warranty period. This coverage aims to safeguard homeowners from potential damage or hazards caused by structural failures. 4. Warranty Period: The North Dakota Home Builder's Warranty Agreement typically sets out specific timeframes for different aspects of the home, such as a shorter duration for certain finishes or non-structural elements and a longer duration for major components such as the foundation or the roof. 5. Limited Liability: The agreement may contain provisions that limit the builder's liability to specific defects, normal wear and tear, or damages caused by the homeowner's negligence or failure to properly maintain the property. This helps protect the builder from excessive claims that may arise due to factors beyond their control. Types of North Dakota Home Builder's Warranty Agreements: 1. One-Year Warranty: This warranty typically covers the home for one year after the date of completion. It focuses on addressing minor issues such as electrical or plumbing defects, paint issues, and other common problems that may arise during the first year of occupancy. 2. Two-Year Warranty: This warranty extends the coverage period to two years, providing additional protection for major systems such as HVAC, electrical, and plumbing. It ensures that any defects related to these systems are addressed promptly. 3. Ten-Year Structural Warranty: This type of warranty provides a more extended coverage period, specifically targeting structural elements of the home. It safeguards against significant issues such as foundation problems, roof leaks, or structural failures that may arise within ten years from the completion of the construction. Overall, the North Dakota Home Builder's Warranty Agreement aims to give homeowners peace of mind by guaranteeing that their newly constructed homes are built to quality standards and that any defects or issues are promptly addressed by the builder. It is essential for homeowners to thoroughly understand the terms and conditions of their warranty agreement to ensure proper protection and maintain the value and functionality of their homes.
