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.
A Nevada Home Builder's Warranty Agreement is a legal document that outlines the terms and conditions of the warranty provided by a home builder to the homeowner. It serves as a guarantee that the home builder will repair or replace any defects or issues that arise during a specified period of time after the completion of the construction. This warranty agreement is specifically tailored for the state of Nevada, taking into account the unique regulations and requirements of the state's construction industry. It ensures that homeowners are protected against any potential construction defects that may arise after purchasing a newly constructed home. The Nevada Home Builder's Warranty Agreement typically includes the following key components: 1. Duration: It specifies the length of the warranty period, which is usually divided into different categories such as one year for workmanship and materials, two years for plumbing, electrical, and HVAC systems, and ten years for structural integrity. 2. Coverage: It outlines the specific items or systems that are covered under the warranty, including but not limited to foundation, roof, plumbing, electrical, heating, ventilation, and air conditioning systems. It may also cover appliances included in the home. 3. Exclusions: The agreement explicitly mentions any items or circumstances that are not covered under the warranty, such as normal wear and tear, acts of nature, or homeowner's negligence. 4. Resolution Process: It details the procedure that homeowners should follow in the event of a warranty claim, including reporting the issue to the builder, allowing reasonable time for repair or replacement, and seeking mediation or arbitration if necessary. 5. Transferability: The agreement specifies whether the warranty is transferable to subsequent homeowners if the property is sold during the warranty period. There are different types of Nevada Home Builder's Warranty Agreements, offering varying levels of coverage and duration based on the builder's policies. Some builders may provide an extended warranty for a higher premium, which increases the coverage period beyond the standard timeframes. It is crucial for homeowners to thoroughly read and understand the terms of the Nevada Home Builder's Warranty Agreement before purchasing a newly constructed home. Seeking legal advice or consulting with a real estate professional can help ensure that the agreement provides adequate protection and meets their specific needs.
