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 Lima Arizona Home Builder's Warranty Agreement is a comprehensive document that outlines the terms and conditions of the warranty provided by home builders in Lima, Arizona. It is crucial for homeowners and buyers to understand the details of this agreement as it ensures protection and peace of mind in case any issues or defects arise in the newly constructed home. This agreement typically covers a specified period, usually ranging from one to ten years, depending on the builder and the type of warranty chosen. It is essential to review the agreement thoroughly before purchasing a property to determine the extent of coverage, terms, and conditions, and any potential limitations or exclusions. Within the Lima Arizona Home Builder's Warranty Agreement, several types of warranties may be included, such as: 1. Structural Warranty: This warranty provides coverage for any structural defects that may occur within a specific timeframe. It typically covers issues related to the foundation, roofs, walls, and other load-bearing elements of the home. 2. Systems and Appliances Warranty: This type of warranty covers the essential systems and appliances within the home, including heating and cooling systems, electrical systems, plumbing systems, and kitchen appliances. It offers protection against malfunctions or breakdowns that may occur during the warranty period. 3. Workmanship and Materials Warranty: This warranty covers any defects in workmanship or materials used in the construction process. It ensures that the home builder will rectify any issues related to poor construction or faulty materials within a specified period after the purchase. 4. Extended Warranty Options: Some builders may offer extended warranty options, allowing homeowners to extend the coverage beyond the standard warranty period for an additional cost. These extended warranties often cover specific components or systems and provide extra assurance and protection. It is important to note that the terms and coverage of the Lima Arizona Home Builder's Warranty Agreement may vary among different builders. Prospective homeowners and buyers should carefully compare various builders' warranties, thoroughly read and understand the agreement, ask questions, and seek legal advice if needed before committing to a property purchase. Overall, the Lima Arizona Home Builder's Warranty Agreement serves as a crucial agreement that provides protection and recourse for homeowners against unforeseen defects and issues in their newly constructed homes. Understanding the different types of warranties available and their specific coverage is essential for making an informed decision and ensuring a satisfactory homeownership experience.
