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 Wisconsin Home Builder's Warranty Agreement is a legally binding contract between a home builder and a homeowner in the state of Wisconsin that outlines the terms and conditions of warranty coverage for a newly constructed home. This agreement provides protection to homeowners in case of any defects or issues arising in the construction of their home and ensures that the builder will rectify these problems within a specified period. Keywords: Wisconsin, Home Builder's Warranty Agreement, warranty coverage, newly constructed home, defects, issues, construction, protection, builder, rectify, specified period. There are two main types of Wisconsin Home Builder's Warranty Agreements: 1. One-Year Warranty: This type of agreement covers defects and issues in the construction of the home for a period of one year from the date the homeowner takes possession. During this time, the builder is responsible for addressing any structural defects, electrical or plumbing issues, or other construction-related problems that may arise. 2. Ten-Year Warranty: This extended warranty agreement offers coverage for major structural defects of the home for ten years from the date of possession. Structural defects refer to issues that affect the integrity and stability of the home, such as foundation problems, load-bearing wall failures, or significant roof leaks. This warranty provides homeowners with peace of mind regarding any large-scale structural issues that may occur over a longer period. It is important for homeowners to carefully review and understand the terms and conditions of the Wisconsin Home Builder's Warranty Agreement before signing. This includes identifying the specific warranty period, covered defects, and the builder's responsibilities for repairs or replacements. Additionally, homeowners should be aware of any limitations or exclusions in the agreement to ensure they fully comprehend their rights and obligations under the warranty.
