New House from builder
Because many people who buy a home from a builder are not represented by a realtor or an attorney, they often sign a contract without professional advice. The most important issue when negotiating with a new homebuilder is to insist on a contingency for attorney review of the contract. (A builder will usually agree to a reasonable time for this. If he is opposed to such a contingency, you should be concerned!)
Many homebuyers come to us after they have signed a new home contract. It is usually too late at that point to negotiate changes with the builder. Homebuyers are typically presented with a form contract and sign it, unaware that there may be pitfalls in the contract, which can be remedied by negotiation.
Some of the most common issues to consider when buying a new home are:
- Providing for protection for the buyer against unfiled mechanic’s liens.
- Assuring marketable title to the buyer.
- Verifying that the contract does not require the purchaser to waive the statutory new home warranties, or, if it does, that it provides an acceptable substitute.
- Reviewing the Homeowners’ Association or condominium documents within the statutory time limits.
- Determining the results of the purchaser’s failure to use the lender, title company, or other service provider recommended by the builder.
- These and other issues can be addressed by your attorney when you bring the contract in for review.
