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 Tennessee Home Builder's Warranty Agreement is a legal contract that provides assurance and guarantees to homeowners regarding the quality and performance of their newly built homes. This agreement is crucial as it safeguards the rights of homeowners by holding the home builder accountable for any defects or malfunctions within a specified period. The primary purpose of the Tennessee Home Builder's Warranty Agreement is to protect the homeowner against any unforeseen issues or construction flaws that may arise after the completion of the home. It offers peace of mind to homeowners, ensuring that their investment is secure and that they have recourse if any problems occur. The Tennessee Home Builder's Warranty Agreement typically covers a range of components and systems within the home, such as the foundation, roof, plumbing, electrical systems, heating and cooling systems, and major structural elements. It aims to address both visible and hidden defects that may compromise the functionality, safety, or value of the property. There are generally two types of Tennessee Home Builder's Warranty Agreement: 1. Structural Warranty: This type of agreement provides coverage for major structural components of the home, such as the foundation, load-bearing walls, beams, and columns. It typically extends for a period of 10 years and protects homeowners against any structural defects that may arise during this time. 2. Systems and Workmanship Warranty: This warranty focuses on the various systems and workmanship aspects of the home, including electrical, plumbing, HVAC, and overall construction. It usually offers coverage for a period of one to two years, ensuring that any faulty or substandard systems are promptly addressed and repaired. It is important for homeowners to thoroughly review and understand the terms and conditions of the Tennessee Home Builder's Warranty Agreement before signing it. They should pay attention to the coverage duration, included components/systems, and any exclusions or limitations mentioned in the agreement. By having a Tennessee Home Builder's Warranty Agreement in place, homeowners can confidently enjoy their new properties while having peace of mind, knowing that any unforeseen issues will be promptly resolved by the home builder within the agreed-upon warranty period.
