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 Texas Home Builder's Warranty Agreement is a legal document that outlines the terms and conditions of a warranty provided by a home builder to the buyer of a newly constructed residential property in the state of Texas. This agreement offers protection to homeowners against defects and issues that may occur within a specific time frame after the completion of construction. The Texas Home Builder's Warranty Agreement typically covers various aspects of the home, including the structure, major components, and systems such as plumbing, electrical, and HVAC. It ensures that the home is built in compliance with local building codes and industry standards, and guarantees that any defects or problems that arise within the warranty period will be repaired by the builder. One type of Texas Home Builder's Warranty Agreement is the Structural Warranty, which covers the home's foundation, load-bearing walls, and other structural components. This ensures that the home is structurally sound and provides coverage against any major structural issues that may arise. Another type is the Workmanship Warranty, which covers the quality of workmanship and materials used in the construction process. This warranty protects homeowners against issues such as faulty installation of fixtures, improper electrical wiring, or plumbing leaks caused by poor workmanship. Additionally, there is the Systems Warranty, which specifically covers the major mechanical systems of the home, including the electrical, plumbing, and HVAC systems. This warranty ensures that these systems are functioning properly and offers coverage for any failures or malfunctions that occur within the warranty period. It is important for homebuyers to thoroughly review and understand the terms and conditions of the Texas Home Builder's Warranty Agreement before signing it. Buyers should pay close attention to the duration of the warranty, any exclusions or limitations in coverage, and the process for making warranty claims. In summary, the Texas Home Builder's Warranty Agreement is a crucial legal document that provides protection and peace of mind to homeowners by guaranteeing that the home is built to certain standards and covering any defects or issues that may occur within a specific time frame. Whether it's the Structural, Workmanship, or Systems Warranty, these agreements serve to safeguard the buyer's investment and ensure that their new home is a quality, well-built dwelling.
