When you purchase a new home from a developer, you’ll have to follow certain procedures. Regardless if you’ve got an agent to represent you, the developer will require you to use their own standard purchase offer and possibly a separate form for the contract. At first glance, these forms may look like they’re the same ones your local real estate agent would give you, a close inspection will reveal this contract can be very different. Plus many of these variations won’t be written with your best interests in mind.
For instance, in circumstances when the ceramic tile you’ve selected is no longer in stock, the developer’s contract can permit the developer to swap materials comparable to the ones you’ve chosen. In addition there may be a specification permitting the developer an extended cushion in incidences when your house’s finish date will be detained. Once you detect these conditions, you’ll need to work out terms with the developer to alter them – and brush aside the developer’s contention their standardized forms can’t be modified.
To complicate things further, you may not have the benefit of an independent real estate agent to assist you in negotiating, understanding, and interpreting the contract. To protect your interests, seek the advice of a good attorney before signing or request the inclusion of a contingency allowing you to have your attorney review the contract before the deal is final.
To complicate things further, you may not have the advantage of an independent Realtor to help you in negotiating, understanding, and translating the contract. To guard your interests, seek out the recommendation of a well experienced real estate lawyer before signing or request the incorporation of a contingency permitting you to have your real estate lawyer review the contract before the deal is final. If you should happen to feel the verbiage isn’t fair, you can change or add additional terms – the developer can decide if it wants to accept your terms. For example, you might :
1) Put A Limit On Your Money Deposit – If you can put less cash down, you’ll have less risk if the developer doesn’t perform like they should.
2) Add A Finish Date – Insist on including a date by which the home must be finished, or you’ve got the option to cancel the contract.
3) Stipulate A Holdback Clause: Attempt to include a clause specifying that part of the purchase price will be set aside if the house isn’t completed at the finish date, which you can utilize towards having the house finished.
4) Barter For Several Home Inspections And Walk-Throughs – If the builder is supposed to make the home according to your specs, barter to have the right for independent inspections and for you to check the property many times – not only just before closing. This may insure the work is being done correctly and punctually.
5) Don’t Settle For Less Than The Same Quality – If you are getting a home that copies the model, add a clause saying you will be getting the same or better quality than the model, not only minimum quality satisfactory for the local building codes.
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