Caveat Emptor: New Construction Contracts

May 30, 2006 |

The contract is the very thing that initiates and rules a home purchase transaction.  While it is a document of the utmost importance, very few people really understand all the clauses that can be involved.  This is especially true of new-construction contracts.  These contracts are, very often, written by attorneys who work for the construction company.  Here in our area, many builders use their own contracts, and the rest usually use the Blue Ridge Homebuilders Association contract.  No matter which contract it is, be aware that they generally have clauses built in that heavily favor the builder.  I found the following article that does a good job of explaining many of the possible pitfalls in a new construction contract.

There is absolutely nothing wrong with using these contracts.  In most cases, the builder is going to require it if you want to purchase the home.  It is your responsibility, and that of your agent, to go over the contract carefully and make sure that everyone understands the possible ramifications of agreeing to all of its terms.  If you see something that doesn’t quite seem right, ask questions.  You may not get the answer that you want, but at least you will have the knowledge required to make an informed and intelligent decision. 

Posted by Daniel | Filed Under Buying 

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