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 Fulton Georgia Home Builder's Warranty Agreement is a contractual agreement between a home builder and the buyer, outlining the warranty coverage and terms for a newly constructed home in Fulton County, Georgia. This warranty offers protection to homeowners against defects, repairs, and structural issues that may arise after the completion of construction. The Fulton Georgia Home Builder's Warranty Agreement typically includes coverage for various components of the home, such as the foundation, roofing, plumbing, electrical systems, heating and cooling systems, and appliances. The agreement gives homebuyers the peace of mind that their investment is protected and that the builder is responsible for any necessary repairs or replacements within the specified warranty period. There are different types of Fulton Georgia Home Builder's Warranty Agreements available, depending on the scope and duration of coverage. 1. Structural Warranty: This type of warranty provides coverage for any major structural defects in the home, such as foundation issues, load-bearing walls, and roof problems. It usually has a longer duration, often ranging from 10 to 20 years, ensuring that the home's structural integrity is maintained. 2. Systems and Appliances Warranty: This warranty covers the functioning and repair of various systems, including plumbing, electrical, heating, cooling, and major appliances like refrigerators, ovens, and dishwashers. The coverage period for this type of warranty is typically shorter, typically ranging from 1 to 5 years. 3. Workmanship Warranty: The workmanship warranty covers any defects or issues with the quality of the home's construction, such as improper installation of materials, shoddy craftsmanship, or substandard finishes. This warranty generally lasts for a shorter period of time, usually around 1 to 2 years. 4. Extended Warranty: Some builders may offer extended warranties or additional coverage options at an additional cost. These warranties may include extended coverage for specific components, such as windows, flooring, or countertops, beyond the standard warranty period. It is important for homebuyers in Fulton County, Georgia to carefully review and understand the terms and conditions of the Home Builder's Warranty Agreement before signing the contract. This ensures that they are aware of their rights and responsibilities concerning warranty claims and repairs. Additionally, it is recommended to consult with a real estate attorney or a trusted professional to clarify any doubts or concerns regarding the warranty coverage.
