Many times we receive a new home builder contract from a prospective buyer, but only to find that it has already been executed by the prospective buyer. As we tell clients, it is important to remember that new home builders (from national, regional, and local builders) spend significant time and money ensuring that the new home builder contract is builder favorable. In light of the foregoing, it is critical for a prospective buyer to ensure a few buyer favorable provisions are incorporated into the new home builder contract prior to its execution.
Some of the more vital buyer favorable provisions are as follows:
the allocation of closing costs (most builders attempt to put all of the closing costs on the buyer's side);
the right of the buyer to hire a third-party inspector to complete a pre-closing inspection of the completed home (and require builder to complete any items needing repair or remediation prior to closing);
limit punch-list items and expedite the builder's time period to complete;
right of buyer to object to certain adverse title matters related to the property or the subdivision;
clarify and enhance any builder warranties related to the new home (including providing buyer with a binder of all manufacturer warranties); and
balancing out the default and remedies provisions of the contract (including adding a builder default provision and requiring the builder to provide written notice to the buyer before holding the buyer in default of the contract).
Please note that this is not an exhaustive list of buyer favorable provisions in new home builder contract, but at a minimum, these provisions should be considered for inclusion into the new home builder contract.
The matters outlined in this post and on SRQPropertyLaw.com are not intended to be legal advice, as each individual contract and client matter is unique and subject to specific review and consultation from a Florida licensed attorney.