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.
Indiana Home Builder's Warranty Agreement is a legal document that outlines the terms and conditions of warranty coverage provided by a home builder in Indiana. This agreement is essential for protecting homeowners against any defects or issues arising from the construction or materials used in their newly built homes. Whether you are buying a single-family home, townhouse, or condominium, having a warranty agreement is crucial to ensure your investment is protected. The Indiana Home Builder's Warranty Agreement encompasses various aspects of the warranty coverage, including the duration, limitations, and exclusions. It is designed to guarantee that the builder will rectify any construction defects within a specified time frame, typically ranging from one to ten years, depending on the agreement. This warranty typically covers major structural components, such as the foundation, walls, roof, plumbing, electrical systems, and HVAC systems. Different types of Indiana Home Builder's Warranty Agreements may exist, each with its own specific coverage and duration. These variations may depend on the builder's policies, the type of construction (e.g., single-family home, townhouse, condominium), and the quality of materials used. For instance, some builders may provide a one-year warranty that covers general workmanship and materials, while others may offer extended warranties that focus on structural defects or major systems for several years. It is important for homeowners to carefully review and understand the terms and conditions of the Indiana Home Builder's Warranty Agreement before signing. This includes identifying any limitations or exclusions, such as normal wear and tear, homeowner negligence, or changes made by the homeowner that potentially impact the warranty coverage. Any additional warranty provisions beyond what is specified by Indiana state law should also be clearly outlined in the agreement. In summary, the Indiana Home Builder's Warranty Agreement serves as a legal protection for homeowners, ensuring that they receive adequate warranty coverage for their newly constructed homes. It provides peace of mind by holding the builder accountable for any construction defects or issues that may arise within the specified warranty period. Homeowners should familiarize themselves with the specific terms of their warranty agreement, including any distinctions between different types of agreements offered by various builders.
