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.
Pennsylvania Home Builder's Warranty Agreement serves as a legal contract between the home builder and the homeowner, guaranteeing specific protections to ensure the quality and performance of newly constructed homes. This warranty agreement is designed to provide homeowners with peace of mind, minimize disputes, and facilitate prompt resolution when issues arise. This agreement typically encompasses various aspects, including construction defects, structural integrity, material defects, and workmanship. By implementing this warranty agreement, home builders assure homeowners that their homes will be free from defects caused by faulty construction, inadequate materials, or substandard workmanship for a specified period. There are several types of Pennsylvania Home Builder's Warranty Agreements, each offering distinct coverage and duration. The most common types include: 1. Structural Warranty: This type typically covers the major structural components of the home, such as the foundation, load-bearing walls, beams, and roof framing. It safeguards against significant structural defects, ensuring that the home complies with the appropriate building codes and regulations. 2. Systems and Appliance Warranty: This warranty focuses on the mechanical systems within the home, including heating, ventilation, air conditioning (HVAC), plumbing, electrical, and major appliances. Any failures or malfunctions resulting from faulty equipment or installation are generally covered. 3. Workmanship Warranty: This type of warranty protects homeowners against flaws in the builders' craftsmanship, ensuring that the construction and finishes are executed to the highest standards. It covers issues such as paint or drywall defects, uneven tiling, misaligned doors or windows, and similar non-structural concerns. 4. Manufacturer's Warranty: In addition to the builder's warranty, various construction materials, fixtures, and appliances installed in the home come with their own manufacturer's warranties. These warranties cover defects or malfunctions specific to these products, offering additional protection to homeowners. Pennsylvania Home Builder's Warranty Agreements promote transparency, clarify responsibilities, and establish procedures for resolving disputes. It is crucial for homeowners to thoroughly read and understand the terms of the agreement before signing, as it outlines their rights and the procedures for reporting and addressing any potential issues that may arise during the warranty period. By guaranteeing the quality and durability of newly constructed homes, Pennsylvania Home Builder's Warranty Agreements provide homeowners with confidence in their investment and ensure that any necessary repairs or replacements will be promptly addressed by the builder. This agreement safeguards the interests of both parties involved and plays a vital role in the construction industry's commitment to customer satisfaction.
