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.
Rhode Island Home Builder's Warranty Agreement is a legal contract that provides protection for homeowners against certain defects and issues related to the construction of new homes. It ensures that the builder will be liable for addressing any specified problems that may arise within a specific timeframe after the completion of the construction project. This warranty agreement serves as a safeguard for homeowners, giving them peace of mind by outlining the builder's responsibilities and providing mechanisms for resolution in case of any covered defects. The agreement typically includes provisions related to structural integrity, plumbing, electrical systems, heating and cooling systems, and major appliances. There are different types of Rhode Island Home Builder's Warranty Agreements that may be available, each varying in the coverage, duration, and specific terms outlined. Some common types include: 1. Structural Warranty: This type of warranty focuses on the structural stability of the home, covering any potential defects or issues related to the foundation, load-bearing walls, roof framing, and other key structural components. 2. Systems Warranty: This warranty type specifically covers the functioning and performance of various systems within the home, such as plumbing, electrical wiring, HVAC (heating, ventilation, and air conditioning), and major appliances like refrigerators or dishwashers. 3. Workmanship Warranty: Often included in the overall warranty agreement, this component ensures that the builder is responsible for any defects arising from poor quality workmanship. It covers issues such as uneven flooring, poorly applied paint, or inadequate installation of fixtures. 4. Extended Warranty: While the standard warranty typically lasts for a specific period, usually one or two years, some builders may offer the option to purchase an extended warranty, providing additional coverage beyond the initial timeframe. Homeowners can choose to extend their warranty for extra protection against potential future issues. It's important for homeowners to thoroughly read and understand the specific terms and coverage outlined in their Rhode Island Home Builder's Warranty Agreement. Additionally, it is advisable to consult with a legal professional to ensure clarity and to address any concerns before entering into the agreement.
