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 Virginia Home Builder's Warranty Agreement is a legally binding contract that outlines the terms and conditions between a home builder and a homeowner in the state of Virginia. This agreement provides comprehensive protection to homeowners against any defects or issues in their newly constructed home. Under this warranty agreement, the home builder guarantees the quality of construction and promises to remedy any defects or problems that arise during a specified period. The specific terms and coverage details may vary depending on the chosen warranty plan by the homeowner. Keywords: Virginia, home builder's warranty agreement, contract, terms and conditions, homeowner, defects, newly constructed home, protection, quality of construction, remedy, warranty plan. Different Types of Virginia Home Builder's Warranty Agreements 1. Structural Warranty: This type of warranty covers the foundation, load-bearing walls, roof, floors, and overall structural integrity of the home. It provides assurance to the homeowner that the home is built to meet local building codes and standards. 2. Systems and Appliances Warranty: This warranty typically covers major systems such as HVAC (heating, ventilation, and air conditioning), electrical, plumbing, and other essential appliances provided by the builder. It ensures that these systems are in good working condition and will be repaired or replaced if they malfunction within the specified warranty period. 3. Workmanship Warranty: This warranty is aimed at addressing any defects or issues arising from poor workmanship during the construction process. It covers items such as flooring, paint, trim, and cabinetry. The home builder agrees to rectify any workmanship-related problems that arise within a specific timeframe. 4. Extended Warranty: Some home builders offer extended warranty options that prolong coverage beyond the standard warranty period. Homeowners can choose to extend the warranty for an additional cost to ensure continued protection against potential defects or issues. 5. Limited Warranty: This type of warranty limits the builder's liability to certain components of the home within a specified period. It may cover only the major structural elements, while excluding other components like appliances, fixtures, or finishes. Homeowners should carefully review the limitations and exclusions in a limited warranty agreement to ensure they understand the extent of their coverage. Keywords: structural warranty, systems and appliances warranty, workmanship warranty, extended warranty, limited warranty.
