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 Oregon Home Builder's Warranty Agreement is a legally binding document that establishes a guarantee for new residential constructions in Oregon. This agreement outlines the rights and responsibilities of both the home builder and the homeowner, providing assurance and protection to the parties involved. Keywords related to this topic include "Oregon", "home builder", "warranty agreement", "new residential constructions", and "protection". There are different types of Oregon Home Builder's Warranty Agreement, allowing homeowners to select the coverage that suits their specific needs. These variations are mainly based on the timeframes and types of defects covered. Some common types include: 1. Structural Warranty: This type of warranty covers the structural integrity of the home. It typically guarantees against major defects that may affect the stability and safety of the building. Examples of covered defects may include foundation issues, framing problems, or load-bearing wall failures. 2. Systems Warranty: The systems warranty covers the functioning and performance of various systems within the home, such as electrical, plumbing, and HVAC systems. It safeguards against failures or malfunctions that may occur within a specific period after the completion of the construction. 3. Workmanship Warranty: A workmanship warranty ensures that the home is built to industry standards and free from any defects arising from poor or faulty workmanship. It protects homeowners from issues related to the construction process, including cosmetic defects or flaws that affect the aesthetic appeal of the property. 4. Appliance Warranty: This type of warranty specifically covers the appliances installed in the home by the builder. It guarantees the proper functioning of appliances such as refrigerators, stoves, dishwashers, and washing machines, protecting homeowners from defects or breakdowns. These different types of Oregon Home Builder's Warranty Agreement provide flexibility and options for homeowners to choose the extent of coverage they desire. Prospective homeowners are encouraged to carefully review and understand the specific terms and conditions of the warranty agreement before finalizing any new home purchase in Oregon.
