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 Hennepin Minnesota Home Builder's Warranty Agreement is a legally binding contract that outlines the terms and conditions of the warranty provided by home builders in Hennepin County, Minnesota. This agreement ensures that homeowners receive protection and assistance for any defects or issues that may arise with their newly constructed homes. One type of Hennepin Minnesota Home Builder's Warranty Agreement is the Structural Warranty. This warranty covers major structural components of the home, such as the foundation, load-bearing walls, and roof, typically for a period of 10 years. It guarantees that these elements will be free from defects resulting in structural failure during the specified warranty term. Another type of warranty commonly found in Hennepin Minnesota is the Systems Warranty. This warranty covers various mechanical systems and appliances within the home, including heating, ventilation, and air conditioning (HVAC), electrical, and plumbing systems. It ensures that these systems will function properly and be free from defects for a specific period, usually ranging from 1 to 2 years. Additionally, Hennepin Minnesota Home Builder's Warranty Agreement may include an Exterior Finish Warranty. This warranty covers exterior materials and finishes, such as siding, paint, and stucco, ensuring they will be free from defects and withstand the elements for a designated period, typically between 1 and 5 years. Homeowners should carefully review and understand the terms and limitations of their specific Hennepin Minnesota Home Builder's Warranty Agreement before signing. It is advised to consult with legal counsel or a real estate professional to ensure their rights are protected, and they fully comprehend the scope of the warranty coverage provided.
