Georgia Home Law

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Did You Know Contractors Are Required by Law to Provide Written Warranties?

Stock photo from www.sxc.hu

In doing some recent reading, I came across a little article about Georgia's Written Warranty Act. I was aware of its existence, but had forgotten how new it is. So as a refresher for me, and hopefully a new lesson for you, today's post discusses the Written Warranty Act and what it means for home builders, contractors, and homeowners.

Signed into law in 2006 - yes, just four years ago - the Written Warranty Act requires home builders and contractors to provide a written warranty to their customers on jobs that exceed $2,500.00. The Act does little more than require the existence of a written contract. The State legislature gave authority to the State Licensing Board to come up with specific terms required to be in each warranty. The State Licensing Board formulated these rules in 2008. Therefore, as of 2008, all written warranties must contain the following:

  • The work and activities covered by the warranty;
  • The work and activities that are not covered by the warranty;
  • The standards used for evaluating the work, which are set forth in the Residential Construction Performance Guidelines published by the National Association of Home Builders;
  • The time period of the warranty;
  • How to go about filing and processing a claim;
  • The contractor’s response options (i.e., repair, replace or compensate); and
  • A list of manufacturer warranties which apply.

In addition, the contractor must attach a complete copy of the written warranty, or an identical but unsigned form to the contract before the contract is signed by the homeowner.

Many builders and contractors already provide written warranties for their work. In these cases, the only difference the Act makes is that it specifies the exact terms that must be in the warranty. Other terms may be added at the contractor’s discretion. If contractors are not currently providing a written warranty to customers, they need to draft one as soon as possible.

The Written Warranty Act might seem like a big burden to smaller contractors, but it is worth the time and money contractors will invest in drafting the warranty. Not only because it’s required by law, but because a written warranty protects the homeowner, as well as the contractor from possible lawsuits down the road. Plus, it establishes expectations between the parties early in the relationship. For these reasons alone, the investment in a written warranty is justified.

 
 
 
 

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