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.
New Mexico Home Builder's Warranty Agreement is a legally binding contract that provides assurance to homeowners regarding the quality and performance of their newly constructed homes. It is designed to protect homeowners from any defects or structural issues that may arise within a specific period after the completion of construction. The New Mexico Home Builder's Warranty Agreement typically covers various aspects of the home, including the foundation, structural components, plumbing, electrical systems, HVAC (heating, ventilation, and air conditioning) systems, and other major elements. The agreement ensures that these components are installed correctly and are free from defects, offering peace of mind to homeowners. There are different types of New Mexico Home Builder's Warranty Agreements, including: 1. Structural Warranty: This type of warranty covers the integrity of the home's structural components, such as the foundation, load-bearing walls, and roofing. It usually includes coverage against significant structural defects that may compromise the safety and stability of the house. 2. Systems Warranty: This warranty focuses on the major systems within the home, such as plumbing, electrical, and HVAC systems. It ensures that these systems are installed correctly and function properly during the agreed warranty period. 3. Workmanship Warranty: This type of warranty covers any defects arising from faulty workmanship during the construction process. It includes issues related to the installation of finishes, cabinets, flooring, and other cosmetic aspects of the home, ensuring that they are up to industry standards. 4. Appliances Warranty: This warranty specifically covers the appliances installed in the home, such as refrigerators, stoves, dishwashers, and laundry machines. It provides protection against defects or malfunctions that may occur during the warranty period. 5. Roofing Warranty: This warranty focuses on the roof of the home and covers any defects or issues related to its installation or materials. It typically provides coverage against leaks, structural damage, or other roofing-related problems. New Mexico Home Builder's Warranty Agreements are generally provided by reputable home builders and are an essential aspect of the home buying process. They give homeowners confidence in the quality of construction and ensure that any issues that arise shortly after move-in are addressed promptly. In conclusion, the New Mexico Home Builder's Warranty Agreement is a vital document that provides homeowners with guarantees and protection against potential defects in their newly constructed homes. By offering coverage for structural components, systems, workmanship, appliances, and roofing, these agreements serve to establish trust and peace of mind between the builder and the homeowner.
