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.
Builder warranty form 92544, also known as the Builder Warranty and Disclosure Statement, is a legal document that outlines the warranty coverage provided by a builder to the buyer of a property. This form is used in the construction industry to establish the terms and conditions of the warranty covering the construction of a new home or building. The Builder warranty form 92544 is essential for both the builder and the buyer, as it protects the interests of both parties involved in the construction project. It ensures that the buyer receives a property of the promised quality and that the builder guarantees to rectify any defects or issues that may arise during the specified warranty period. This document typically includes important information such as the builder's contact details, the buyer's information, the property's address, and the warranty period. Additionally, the form outlines the scope of the warranty coverage, including what aspects of the construction are covered, such as structural, electrical, plumbing, or mechanical systems. The Builder warranty form 92544 may also specify any exclusions or limitations of the warranty coverage. For instance, it may exclude damages caused by natural disasters, improper maintenance by the buyer, or modifications made to the property without the builder's consent. Different types of Builder warranty forms 92544 may exist based on the specific builder or construction company issuing the warranty. Some variations may include extended warranty options, which provide coverage for an extended period beyond the standard warranty duration. Other versions may incorporate additional information and clauses regarding dispute resolution or arbitration procedures in case of disagreements between the builder and the buyer. Ultimately, the main goal of the Builder warranty form 92544 is to establish clear guidelines and expectations for both the builder and the buyer, ensuring that any construction defects or issues are addressed promptly and appropriately. It serves as a vital tool in protecting the rights and interests of both parties and promoting successful and transparent construction projects.
