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.
Nebraska Home Builder's Warranty Agreement is a legally binding document that outlines the terms and conditions under which a home builder provides warranty coverage for new homes constructed in the state of Nebraska. This agreement is designed to protect the rights and interests of both home builders and homeowners, ensuring that any defects or issues can be addressed and resolved in a fair and efficient manner. The primary purpose of the Nebraska Home Builder's Warranty Agreement is to provide homeowners with peace of mind and assurance that their newly constructed home will meet certain quality standards and will be rectified in case of any defects. This agreement typically covers various aspects of the home, including structural components, electrical systems, plumbing, heating and cooling systems, and other major appliances. There are different types of Nebraska Home Builder's Warranty Agreements available, varying in duration and coverage: 1. One-Year Warranty: This is the most common type of warranty agreement provided by home builders in Nebraska. It typically covers the home for a period of one year from the date of closing or possession, during which any defects or issues related to workmanship and materials are the responsibility of the builder to repair. 2. Two-Year Warranty: Some home builders offer an extended two-year warranty, in addition to the one-year coverage. This type of warranty often covers major systems such as electrical, plumbing, and HVAC for an additional year, providing homeowners with continued protection beyond the initial one-year period. 3. Ten-Year Structural Warranty: Under Nebraska law, home builders are required to provide a ten-year structural warranty for newly constructed homes. This warranty ensures that any major structural defects, such as foundation issues or load-bearing problems, will be repaired by the builder within the specified time frame. In order to benefit from the warranty coverage, homeowners must comply with the terms and conditions outlined in the Nebraska Home Builder's Warranty Agreement. This may include reporting any defects or issues in writing within a certain timeframe, allowing the builder reasonable access for inspections and repairs, and maintaining the home in accordance with recommended guidelines. It is important for homeowners to thoroughly review and understand the specifics of their Nebraska Home Builder's Warranty Agreement before signing, as the scope of coverage and warranty limitations may vary between builders. Consulting with an attorney or a real estate professional can provide the necessary guidance and ensure that the agreement meets their needs and expectations.
