New Construction contracts differ from resale contracts which are normally drawn by the State Association of Realtors attorneys. While a typical resale contract is written to give the buyer an option to rescind the purchase agreement within a certain time period (usually due to inspections), it allows the buyer to have the property inspected by any professional of the buyer’s choosing. It states the seller will allow access to the property for these inspections. Seller is additionally required to disclose any known or suspected defects and repairs to property. These clauses don’t exist in new builder contracts. (Builders have a series of inspections throughout the building process, as well as a final walkthrough before move in. Should buyers want a third-party inspection, they will have to obtain permission from the builder.) Very often a builder will provide incentives for using their preferred lender. It’s possible they may pay part of closing costs or even provide a free appraisal. However, those terms are not located in the contract itself. Additionally design and options selections will not be included in this document. The contract will have a date on when these options need to be confirmed. It will also specify how much of those option costs will need to be paid at that time and if those option costs are non-refundable. Delays in construction and Acts of God are generally deemed beyond the builder’s ability to control. Contracts are not written to allow for per-diem charges by the buyer against the seller. The buyer will ordinarily have to wait. As I have experience with new construction and therefore dealing with builders, I have learned that micro-managing, tenacious communication and aggressively pushing for deadline goals is the way to see my clients through to a successful move-in celebration in their dream home!
