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.
In New Hampshire, a Home Builder's Warranty Agreement is a legal contract between a home builder and a homeowner that guarantees certain protections and assurances for a newly constructed residential property. This agreement provides peace of mind to homeowners by outlining the responsibilities, obligations, and recourse available to both parties in case of defects or issues with the construction. The New Hampshire Home Builder's Warranty Agreement typically includes several key components to address different aspects of the home construction and warranty period. These components may vary depending on the agreement, but some common elements include: 1. Defects Coverage: This section specifies the period during which the builder is responsible for addressing any defects in materials, workmanship, or systems that may arise in the home. This coverage typically extends for a specified period, such as one year, from the date of completion or occupancy. 2. Structural Warranty: This section focuses on the structural integrity of the home, covering issues such as foundation, load-bearing walls, roof system, and other essential components that may affect the stability and safety of the property. The structural warranty usually extends beyond the defects' coverage period, often for a lengthier timeframe like ten years. 3. Limited Warranty: The limited warranty component typically covers specific home components and systems, such as plumbing, electrical, HVAC, or appliances, and outlines the duration and scope of coverage for each. It may also include provisions for repairs or replacements if these components fail or malfunction within a certain period. 4. Maintenance Obligations: This section outlines the responsibilities of the homeowner for regular maintenance, as neglecting maintenance can void certain warranties. It may include recommendations for routine upkeep, such as cleaning gutters, changing filters, or inspecting certain elements of the home. 5. Dispute Resolution: The New Hampshire Home Builder's Warranty Agreement may provide guidance on how disputes between the builder and homeowner will be resolved, including mediation, arbitration, or litigation options. Some variations of the New Hampshire Home Builder's Warranty Agreement can include specialized warranties tailored to specific types of homes or constructions, such as: 1. Condominium Warranty: This warranty agreement is designed for newly constructed condominiums, addressing common elements, common area defects, and unit-specific components. 2. Townhouse Warranty: Similar to the condominium warranty, this agreement covers townhouse-style residences and may include provisions for shared walls and common spaces. 3. Custom Home Warranty: This type of warranty agreement is specifically tailored to unique, custom-built homes, accounting for individual design features, special materials, and construction considerations. By implementing a New Hampshire Home Builder's Warranty Agreement, homeowners can safeguard their investment and ensure that their new home meets quality standards while builders can establish clear guidelines for their responsibilities and expectations. It is crucial to thoroughly review the terms and conditions of any warranty agreement to fully understand the coverage and limitations provided.
