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.
Wayne Michigan Home Builder's Warranty Agreement is a legally binding contract between a homeowner and a home builder in Wayne, Michigan. This warranty ensures that the builder is responsible for repairing or replacing any manufacturing defects or faults that arise within a specified time frame after the completion of the home construction. This agreement outlines the rights and obligations of both the home builder and the homeowner, providing protection for the homeowner against any issues that might arise in the newly built home. It aims to establish a smooth and hassle-free living experience for the homeowners, offering peace of mind. The Wayne Michigan Home Builder's Warranty Agreement typically covers a wide range of components and systems within the home, including electrical, plumbing, heating, ventilation, and air conditioning systems. It also includes warranties on the foundation, roof, windows, doors, and other structural elements. This agreement typically excludes normal wear and tear and any damage caused by the homeowner's negligence or improper maintenance. There are different types of Wayne Michigan Home Builder's Warranty Agreements that homeowners should be aware of. These include: 1. Structural Warranty: This type of warranty covers major structural components such as the foundation, load-bearing walls, and roof, providing assurance against any structural defects that may arise within a specified period. 2. Systems and Appliance Warranty: This warranty covers the functioning and repair of various systems and appliances within the house, such as electrical, plumbing, heating, and cooling systems, as well as kitchen appliances. It ensures that these systems and appliances are in proper working condition and free from any defects or malfunctions. 3. Workmanship Warranty: This warranty guarantees that the home builder will rectify any workmanship-related defects or issues that appear after the completion of the construction process. It typically covers cosmetic or non-structural issues, such as paint or drywall problems. 4. Extended Warranty Options: Some home builders may offer extended warranty options beyond the standard coverage. These extended warranties may provide additional coverage for a longer duration, giving homeowners extra peace of mind. It is crucial for homeowners in Wayne, Michigan, to carefully review and understand the terms and conditions of the Home Builder's Warranty Agreement before signing. This agreement is designed to protect the homeowner's investment and ensure that the home builder stands behind their workmanship and materials used. Therefore, it is advisable to consult with a qualified attorney or real estate professional to clarify any doubts or concerns regarding the warranty coverage.
