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.
Santa Clara California Home Builder's Warranty Agreement is a legally binding contract between a home builder and a homeowner, ensuring that the builder will address and rectify any structural defects or issues within a stipulated time frame. This agreement provides assurance to the homeowner that the builder will be responsible for covering the necessary repairs or replacements if any defects arise during a specified period after the completion of construction. The Santa Clara California Home Builder's Warranty Agreement typically includes specific terms and conditions, covering the duration of coverage, the types of defects included, and the responsibilities of both parties. It safeguards the homeowner against unforeseen expenses that may arise due to construction-related issues, giving them peace of mind and confidence in the quality of their new home. When exploring the various types of Santa Clara California Home Builder's Warranty Agreement, potential homeowners may come across the following options: 1. Structural Warranty: This type of warranty provides coverage for any defects related to the structural integrity of the home, including foundation, load-bearing walls, and roofing systems. It typically spans a period of ten years, ensuring homeowners' financial protection against major structural issues. 2. Systems Warranty: Often included as part of the Builder's Warranty Agreement, this component covers the major systems installed within the home, such as electrical, plumbing, and HVAC (heating, ventilation, and air conditioning systems). The coverage period could vary, usually ranging from two to five years. 3. Workmanship Warranty: This warranty focuses on defects resulting from improper construction or craftsmanship. It encompasses issues like faulty painting, poor drywall finishing, or uneven flooring. The workmanship warranty typically spans a period of one to two years. 4. Appliance Warranty: While not always included in the standard Builder's Warranty Agreement, an appliance warranty may be offered by the builder or manufacturers of appliances installed in the home, covering repair or replacement of malfunctioning appliances within a specified period. It is important for homeowners to carefully review and understand the details of the Santa Clara California Home Builder's Warranty Agreement before signing any contract. Consulting with legal professionals or experienced real estate agents can ensure that all parties involved are protected and aware of their rights and obligations.
