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.
Montgomery, Maryland Home Builder's Warranty Agreement is a contract between a home builder and a homeowner. This agreement provides assurance to the homeowner that any defects or issues with the newly constructed home will be repaired or replaced within a specified period. One type of Montgomery, Maryland Home Builder's Warranty Agreement is the standard builder's warranty. This warranty typically covers structural defects and major systems such as plumbing, electrical, and HVAC for a specified timeframe, typically one year. Under this agreement, the builder is responsible for fixing any issues that arise during this period. Another type of Montgomery, Maryland Home Builder's Warranty Agreement is the extended warranty. This type of warranty extends the coverage beyond the standard one year. It may cover additional components such as appliances, roofing, or flooring. The extended warranty provides homeowners with added protection against unexpected repairs and replacement costs. The Montgomery, Maryland Home Builder's Warranty Agreement is designed to give homeowners peace of mind and protect their investment in a newly constructed home. It ensures that the builder is accountable for any defects or issues that may arise during the agreed upon timeframe. Keywords: Montgomery, Maryland, home builder, warranty agreement, homeowner, defects, repairs, replaced, newly constructed home, structural defects, major systems, plumbing, electrical, HVAC, standard warranty, extended warranty, coverage, appliances, roofing, flooring, investment.
