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.
A Wake North Carolina Home Builder's Warranty Agreement is a comprehensive contract between a homeowner and a home builder that provides certain assurances and protections for the homeowner regarding the construction and quality of their newly built home. This agreement is designed to give homeowners peace of mind knowing that their investment is covered against potential defects or issues that may arise during the specified warranty period. The Wake North Carolina Home Builder's Warranty Agreement typically outlines the terms and conditions related to the warranty coverage, including the scope of coverage, the duration of the warranty, and any exclusions or limitations that may apply. It also details the homeowner's rights and responsibilities, as well as those of the home builder, in the event of a claim or dispute. Under the home builder's warranty agreement, homeowners can expect protection against certain construction-related defects, such as faulty workmanship, substandard materials, or structural issues. The coverage may also extend to systems and components within the home, such as plumbing, electrical, heating, and cooling systems. In Wake North Carolina, there may be different types of Home Builder's Warranty Agreements available to homeowners, such as: 1. Structural Warranty: This type of warranty provides coverage against structural defects, including foundation issues, load-bearing walls, and roof framing problems. It typically extends for a longer duration, such as 10 years. 2. Systems Warranty: This warranty focuses on the systems and components within the home, such as plumbing, electrical, and HVAC systems. It covers repairs or replacements needed due to system failures or malfunctions within a specified period, typically around two to five years. 3. Workmanship Warranty: Also known as the craftsmanship warranty, it covers defects in the construction work performed by the builders, such as incorrect installation, poor finishing, or cosmetic issues. This warranty is often valid for one to two years. It's important for homeowners to thoroughly review and understand the terms of the Wake North Carolina Home Builder's Warranty Agreement before signing it. If there are any questions or concerns, it is recommended to consult with a real estate attorney or an experienced builder to ensure complete clarity and protection.
