Alabama Home Builder's Warranty Agreement

Q: Does a builder have to guarantee his work?

Do you need a builder&#039;s warranty if you are buying a new build property? Yes. It&#039;s a common misconception that homeowners buying a new build will not need a builder&#039;s warranty. In fact, many new builds can encounter issues within the first ten years.

Category:

Contracts - Construction

State:

Multi-State

Control #:

US-02251BG

Format:

Instant download

Description

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.

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FAQ

Although each provider is different, warranties generally cover major structural elements such as foundations, roofs, ceilings, load bearing walls and stairs and glazing in outside walls. Warranties don't cover general wear and tear, superficial damage or damage caused by storms or other adverse weather.

Do you need a builder's warranty if you are buying a new build property? Yes. It's a common misconception that homeowners buying a new build will not need a builder's warranty. In fact, many new builds can encounter issues within the first ten years.

A labor warranty provides you with coverage against improper installation and generally lasts for a year. By comparison, a manufacturer product warranty usually covers failures or defects, and coverage can range from 10 to 30 years.

This one-year correction period has become known in the construction industry as a one-year warranty. Both owners and contractors point to this provision as a contractual limit on the contractor's obligation to correct defective work discovered more than one year after completion of the construction.

A workmanship warranty provides homeowners with coverage against workmanship or installation errors. This type of warranty generally covers about one year following the completion of the work.

What is it? The warranty will cover costs of up to $300,000 to amend structural flaws for a period of six years post-build. For non-structural defects, you are covered for two years. This includes out-of-pocket expenses including storage, removal and temporary fencing.

All residential building work is covered by implied warranties. They apply: for up to 10 years regardless of whether you have a written contract or what the contract terms are. regardless of the cost of your building project.

One common way that homeowners void their warranty is by performing unauthorized repairs. This could include using a licensed contractor that is not approved by your warranty provider. It also includes using an unlicensed contractor or attempting to do the repairs yourself.

Because home warranties apply to systems and appliances, structural problems aren't usually covered. Some contracts may allow for repairs to windows that threaten the integrity of the rest of your home, but window and door issues usually fall under homeowners insurance.

For 2 years after the completion date of your new build home, it is your housebuilder's responsibility to fix any snags, as long as you submit your snagging list within this warranty period. Housebuilders must correct faults caused by their failure to meet the standards set by their warranty provider.