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.
Collin Texas Home Builder's Warranty Agreement is a legally binding document that outlines the terms and conditions of a warranty provided by home builders in Collin County, Texas. This agreement ensures that the builder will repair or replace any defects or damages that may occur during a specified period after the completion of the construction project. Keywords: Collin Texas, home builder's warranty agreement, warranty, terms and conditions, repair, defects, damages, construction project, Collin County. There are different types of Collin Texas Home Builder's Warranty Agreements: 1. Standard Warranty Agreement: This is the most common type of warranty agreement offered by home builders in Collin Texas. It typically covers a period of one year from the date of completion and ensures that the builder will rectify any defects or issues that may arise within this timeframe. 2. Extended Warranty Agreement: Some home builders may offer an extended warranty agreement, which provides coverage for a longer period, typically up to ten years. This type of agreement may include additional protections, such as structural defects, plumbing or electrical issues, and major system failures. 3. Limited Warranty Agreement: In certain cases, a home builder may provide a limited warranty agreement that offers coverage for specific components or systems within the house. For example, the warranty may only cover the roof or the HVAC system. 4. Transferable Warranty Agreement: A transferable warranty agreement allows the homeowner to transfer the remaining coverage to a subsequent buyer if they decide to sell the property within the warranty period. This can add value to the property and give potential buyers peace of mind. 5. Manufacturer Warranty Agreement: In addition to the builder's warranty, some home components or appliances may come with their own manufacturer warranty. These warranties are separate from the builder's warranty agreement and cover specific items such as appliances, windows, or HVAC systems. Keywords: standard warranty agreement, extended warranty agreement, limited warranty agreement, transferable warranty agreement, manufacturer warranty agreement, home components, appliances, coverage, defect, issues, protection, structural defects, plumbing, electrical, major system failures, roof, HVAC.
