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 Phoenix Arizona Home Builder's Warranty Agreement is a legally binding contract entered into between a home builder and a homeowner, providing assurances and protections for both parties. This agreement outlines the terms and conditions of the warranty, including the coverage, duration, and remedies for any defects or issues that may arise with the newly constructed home. In Phoenix, Arizona, there are two main types of Home Builder's Warranty Agreements: the Standard Home Warranty and the Extended Home Warranty. 1. Standard Home Warranty: The standard warranty is typically provided by the home builder and covers the home for a specific duration, usually one year, from the date of closing or possession. It ensures that the builder will repair or replace any defects or flaws in the construction or materials used during the building process. Components such as plumbing, electrical systems, HVAC, and structural integrity are commonly covered under this warranty. Additionally, most standard warranties offer coverage against major structural defects for a longer period, typically 10 years. 2. Extended Home Warranty: Some home builders may offer an extended warranty, often purchased separately by the homeowner, which provides additional coverage beyond the standard warranty. Extended warranties can vary in duration, ranging from 2 to 20 years, and may cover specific components or systems in the home, such as appliances, roofing, or even cosmetic defects. These extended warranties provide homeowners with peace of mind and financial protection from unexpected repair or replacement costs. The Phoenix Arizona Home Builder's Warranty Agreement is designed to ensure that homeowners receive quality construction and materials in their new homes, while providing builders with an opportunity to rectify any issues that may arise during the warranty period. Homeowners should carefully review the terms and conditions outlined in the agreement to understand the extent of coverage, exclusions, and procedures for making warranty claims. It is advisable for homeowners to consult with legal professionals or real estate agents who specialize in new home construction to fully understand their rights and obligations under the warranty agreement.
