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.
A Wyoming Home Builder's Warranty Agreement is a comprehensive contract that outlines the terms and conditions of the warranty offered by a home builder in Wyoming. This agreement serves as a legal document that protects both the home builder and the homeowner in the event of any defects or issues with the newly constructed home. Key terms commonly included in a Wyoming Home Builder's Warranty Agreement include: 1. Construction Defects: This section specifies the responsibility of the builder to address any construction defects found within a specific time frame after the completion of the home. It defines the types of defects covered under the warranty, such as faulty plumbing, electrical issues, or structural problems. 2. Warranty Period: The agreement clearly states the duration of the warranty provided by the builder. Typically, this period ranges from one to ten years, depending on the type of defect. For instance, structural defects may have a longer warranty period compared to cosmetic defects. 3. Repairs and Replacements: The agreement outlines the procedures and methods by which the builder will repair or replace any defect covered under the warranty. It details whether the builder will cover the labor, materials, or both. 4. Exclusions and Limitations: This section mentions any exclusions from the warranty coverage, such as damage caused by natural disasters, homeowner negligence, or unauthorized modifications. It may also specify limitations on the builder's liability and the homeowner's responsibilities during the warranty period. 5. Dispute Resolution: In case of a dispute between the builder and homeowner, this agreement may mention the preferred method of resolving such issues, such as mediation, arbitration, or litigation. Different types of Wyoming Home Builder's Warranty Agreements may exist based on the specific coverage and warranty duration. Some common variations include: 1. Structural Warranty Agreement: This type of agreement focuses primarily on structural defects like foundation issues, load-bearing walls, or roof problems. It provides an extended warranty period to cover any potential long-term structural failures. 2. Systems and Appliances Warranty Agreement: This agreement is designed to cover defects specifically related to crucial systems and appliances, such as HVAC, plumbing, electrical, or kitchen appliances. It ensures that these components are in proper working condition during the specified warranty period. 3. Limited Warranty Agreement: A limited warranty agreement is a more restricted form of coverage that may offer warranty protection for a shorter duration and limited range of defects. It typically excludes cosmetic issues and addresses only major problems that may impact the overall functionality or safety of the home. In conclusion, a Wyoming Home Builder's Warranty Agreement is a critical contract that protects both homeowners and builders in Wyoming by outlining the terms and conditions of warranty coverage for new homes. It assures homeowners that their investment is protected and holds builders accountable for providing quality construction.
