Touring builders’ model homes can be intoxicating. They’re so flawless with very feature you’ve imagined into your dream home. Wynn at Law LLC knows the exhilaration because we’ve been on the same tours of spec properties. Before you rush into the builder’s agreement – which undoubtedly will reflect their best interests first – here are some areas you want to make sure are developed to your liking in the contract.
· The building: Permits are required. Labor has to be furnished. Maybe pieces are subcontracted out. Obviously materials and plans are parts of the construction. Make certain the contract specifies the work that needs to be executed from the lot up to the last closet hinge. Remember lien waivers, too… see our previous article on them.
· The timeline: Disputes with builders usually heat up over the deadline. Your move-in date means the world to you and your lender. What matters to the builder is accommodating inspections (delays), weather (delays), employee issues (delays) and arrival of materials (delays). A firm contract specifies a start date, move-in date, and provisions for reasonable extensions.
· The payment terms: Another potential source of disputes (delays) is the payment. Typically there is a down payment and payments at regular intervals. A clear contract specifies the dates, amounts, and the form of payment they’ll accept as well as where they’ll accept it.
· The warranties: In a sale of an existing home, defects are identified outright. In a new home construction, builders instead offer a warranty. That warranty usually spells out what is NOT covered (exclusions) rather than what IS covered (inclusions). Wynn at Law LLC reviews the home warranty promise and helps you get the most of it.
If you make the decision to build, rather than buy, your dream home, hiring a real estate attorney will ensure a contract favors your family, not the developer, and protects your investment. Usually, a builder presents a standard contract for your approval. If the contract appears overly simple or unnecessarily complex, there’s an excellent chance that the contract does not serve your best interests. Don’t be afraid to let us negotiate! Your home is on the line.
*The content and material in this original post is for informational purposes only and does not constitute legal advice.
Photo by Andrea De Martin, used with permission.
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