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.
Mecklenburg North Carolina Home Builder's Warranty Agreement is a legally binding document that outlines the warranty terms and conditions provided by a home builder in Mecklenburg County, North Carolina. This agreement offers assurance to homeowners regarding the quality and durability of the newly constructed or renovated property. The following are some relevant keywords related to Mecklenburg North Carolina Home Builder's Warranty Agreement: 1. Builder: This refers to the home builder or contractor who is responsible for constructing or renovating the property. 2. Homeowner: The individual or party who purchases the newly built or renovated home. 3. Warranty: It is a guarantee provided by the builder to the homeowner, reassuring them that certain elements of the property will be repaired or replaced if any defects or issues arise within a specified period. 4. Defects: Refers to any faults, problems, or shortcomings present in the construction or materials used in the property. 5. Durability: This term signifies the ability of the home to withstand normal wear and tear over time. 6. Agreement: The contract between the builder and homeowner, outlining their respective rights and responsibilities. 7. Terms and Conditions: The rules, obligations, and limitations that both the builder and homeowner must abide by under the warranty agreement. 8. Coverage: The specific components, systems, or aspects of the property that are included in the warranty. 9. Claims: The process by which homeowners can report defects or issues to the builder and request repairs or replacements. 10. Exclusions: Elements that are not covered by the warranty agreement and for which the builder is not responsible. Regarding different types of Mecklenburg North Carolina Home Builder's Warranty Agreements, there might be variations based on the terms and coverage offered by different builders. Some builders may provide a structural warranty, which covers major faults in the load-bearing elements of the home, such as foundation, walls, and roof, for a specific period. Others may include a systems warranty, which extends coverage to the electrical, plumbing, and HVAC systems. Additionally, there could be warranties specific to appliances or other features of the property. It's essential for homeowners to carefully review and understand the specific warranty agreement provided by their builder.
